strategic planning framework for technical organization

7/29/2019 Strategic Planning Framework for Technical Organization

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Strategic PlanningFramework for Technical

Organization

By Dr Ali Sajid

Director IB & M

Special Presentation for MBA (Evn)IBM

Fall 2010


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Inspiration!Strategic Planning

Dr. Ali [email protected]


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We have astrategic

plan

Its called

doing things


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One who

does less

than he canis a thiefSAINT BABA


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However

beautiful thestrategy, you

should

occasionally look

at the resultsSir Winston Churchill


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There is always abetter strategy than

the one you have;you just haven't

thought of it yetSir Brian Pitman, former CEO of LloydsTSB,


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I claim not to have

controlled events,but confess plainly

that events havecontrolled me

Abraham Lincoln


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In real life, strategy

is actually verystraightforward. You

pick a generaldirection and

implement like hell

Jack Welch


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"Change can eitherchallenge or

threaten us...Yourbeliefs pave your

way to success or

block you "--Marsha Sinetar


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1. Every morning,write a list of the

things that need tobe done that day

2. Do them


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Intelligent peoplecan always come

up with intelligent

reasons to donothing


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The secret of

getting aheadis gettingstarted


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Action is the

foundational

key of allsuccess


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Blame nobody

Expect nothing

Do something


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Dothings


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Get madStart doing

something

about it

Now


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Do whatneeds tobe done


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This is so simple it sounds

stupid, but it is amazinghow few oil people reallyunderstand thatyou only

find oil if you drill wells. Youmay think youre finding it

when youre drawing mapsand studying logs, but youhave to drill.


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I saw that leaders placed too

much emphasis on what somecall high-level strategy, onintellectualizing and

philosophizing, and notenough on implementation.

People would agree on aproject or initiative and thennothing would come of it.


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StartNow

!


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Trythings


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Natural selection isdeath. Without hugeamounts of death,organisms do not change

over time. Death is themother of structure. It

took four billion years ofdeath to invent the

human mind.


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Effective

prototyping may bethe most valuable

core competence aninnovative

organization can

hope to have


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The paradox ofinnovation:

whoever makes

the mostmistakes wins


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The mostsuccessful

people are

those who are

good at plan B


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The key to a greatpainting is the

nerve, after weeksof effort, tobet the

paintingon the nextbrush stroke


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FailFail againFail better


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S.A.V.(Screw Around

Vigorously!)


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The secret to

having good

ideas is to have alot of ideas, then

throw the bad

ones away


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Reward excellent

failuresPunish mediocre

successes


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In business, you

reward people fortaking risks. When it

doesnt work out youpromote them,

because they werewilling to try new

things


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No tryNo deal


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You miss

100% of the

shots younever take


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READY?FIRE!AIM.


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FailForward

Fast


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Learn notto be

careful


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Humancreativityis

the ultimate

economic

resource


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Every child isborn an artist.

The trick is to

remain anartist


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I think it is very

important for you to dotwo things: act on your

temporary conviction as ifit was a real conviction;and when you realize that

you are wrong, correctcourse very quickly


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Fail fasterSucceedsooner


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Life is whathappens to you

while you're

busy makingother plans


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A year from

now you maywish you hadstarted today


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The one thing you

need to know aboutsustained individual

success: Discoverwhat you dont like

doing andstop

doing it


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Im not

comfortableunless Im

uncomfortable


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If itworks, itsobsolete

R t


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Respect

= Magic

Thank you

= Magic


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A successful man is onewho can lay a firm foundation

with the bricks others havethrown at him.

- David Brinkley


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Change the worldAccept nothing less

Dream!The only worthwhile reality


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The greatest discoveryof our generation

is that a human beingcan alter his life by

altering his attitudes.- William James


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Action

Logic will notchange anemotion,

but action will.


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In order to be big, you

have to think big.If you think small,you're going to be

small.- Emeril Lagasse

A person is as happy as he


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A person is as happy as hemakes up his mind to be.

- Abraham Lincoln

We tend to judge others

by their behaviors andourselves by ourintentions.

- Stephen Covey


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Thoughts --> Feelings --> Actions. So, if you

think negative, you willfeel negative and thenact negative, then

continue to thinknegative, and so on.

- Hendrie Weisinger


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The mold of aman's fortune

is in his ownhands.

- Francis Bacon


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Believe

If you do not believe inyourself ...

chances are nobodyelse will.


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Being broke is a

temporary situation.Being poor is a state of

mind.- Mike Todd

Hastey kay fareeb main mut aa jouyio

asad Alam Tumam halqa dam I Khal haain

Th fi t b i i di t f


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The first basic ingredient ofleadership is a guiding

vision. The leader has aclear idea of what hewants to do

professionally &Personally & theStrength to Persist

in the face of setbacks,even failures.- Warren Bennis

Th f


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The very essence ofLeadership is that youhave to have a Vision.

It's got to be a visionyou articulate clearly &forcefully on every

occasion.Theodore Hesburgh, President of University of Notre Dame

T k St f A O i ti


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Teamwork Stages of An OrganizationLow >>>>>>>>>> Team Focus >>>>>>>>>> High

Stage 1 Stage 2 Stage 3

External

Internal


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Stage 1 Org -Low Team Focus

No vision, mission or strategicfocus.

Organizational Goals unclear.

Disorganized with individuals doingwhatever they think is the best for

them or their unit. Weak core or

NO CORE Values. Customer is An Afterthought.

Stage TWO Org


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g gModerate Core Value Development &

Team Effort

Some teams formed.

Some training at the interpersonal level.

No real sense ofMission toward

Corporate Objectives.

Customer is important but customer

satisfaction is not the:

Goal of all Subgroups. Upper management does not understand

modern tools-- but pretends to anyway.

Stage THREE Org


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A Learning Community

Shared Vision (e.g., Xerox).

Effective Teamwork& StrategicPlanning.

Core Values important & Well integrated

into the Companys Corporate Culture. Internal and External Customers important.

Willingness to use Quality Management

Tools.

Sense that everyone:

Succeeds or Fails Together.


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Missing activity at any org

among

Different activities require differentapproaches

5 Purposeful Activities(Gerald Nadler)

1. Learning

2. Research

3. Planning and Design

4. Evaluation

5. Operating & Supervising


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Outline of the Framework

What is Strategic Planning

How can we plan Strategically (&

why should we?)?

Designing yourOrg Strategic Plan

Best Practices in Planning

P t ti O i


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Presentation OverviewClearly Define Complete Strategic Planning

ProcessExplain how to create & execute a:

Strategic Plan, Vision, Mission & Strategy/

Strategic Intents

Provide a common model that the entire

org can follow


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Important Thoughts

Planning is a Process, not an event. The norm is forStrategic Planning to

Fail, because the way things are is

very powerful! Planning takes time!


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Strategic Panning in any Org

The Process of Developing

Strategies to reach

a defined Objectivefor Your org.

(Wikipedia)


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Strategic Planning

Systematic process throughwhich an org agrees on

& builds commitment

among stakeholders topriorities that are essential to its

mission & are responsive to the

environment.


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Strategic Planning

Guides the acquisition& allocation of

resources to achievethese priorities.

Michael Allison & Jude Kaye


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Pre-Requisites to Planning

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Senior leadership commitment

Who will do what?What will each group do?

How will we do it?

When is the best time?

St t i Pl i


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Strategic Planning

is ongoing,not used just when

considering major

changes

S ?


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Why Do Strategic Planning?

If you fail to plan, thenyou plan to fail

be Proactive aboutthe future


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Why Do Strategic Planning

Strategic Planning ImprovesPerformance

Counter Excessive inward & short-

Term thinking Solve major issues atA macro level Communicate to

everyone:

What is most important

What is Strategic Planning?


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A Long-term, Future-oriented Process of

Assessment, Goal-setting, & Decision-making that:

Maps an explicit path between

Present & a Vision of the future.

It relies on careful consideration of an org's

Capabilities & environment, & leads toPriority-based resource allocation &

Other Decisions.

St t i Thi ki &


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Strategic Thinking &

PlanningProcess of deciding the

Optimal alignment

between unlimited needs &

Limited resources

to achieve your Priorities.Center for Organizational Effectiveness

Strategic Plan


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Strategic Plan

A Program of Action,that addresses the

Orgs Strategic issues

(fundamental questions orchallenges)

& is driven by the orgs

Vision/ mission/ purpose.



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Process to establish priorities

on what you will accomplish inthe future Forces you to make

choices on what you will do &

what you will not do Pulls entireorganization together around a

single game plan for

execution Broad outlineOn where resources

will get allocated

Strategic Planning


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Strategic Planning

Not easy stuff. Takes experience &knowledge to facilitate & participate.

Can not be rushed.

The approaches used can vary, butthere are some essential parts.

A Good Strategic Plan Should


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A Good Strategic Plan Should.


Address critical performance issues

Create the right balance b/t

What org is capable of doing vs.

what the org would like to do.

Cover a sufficient time period to close thePerformance gap

Visionary convey a desired future end stateFlexible allow & accommodate changeGuide decision making at lower levels

operational, tactical, individual levels

F d t l Q ti t A k


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Fundamental Questions to Ask

Where are we now? (Assessment)Where do we need to be? (Gap /

Future End State)

How will we close the gap (Strategic

Plan)

How will we monitor our Progress

(Balanced Scorecard)

What Strategic Planning is Not


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What Strategic Planning is Not

One-off, brief activity

Production of a document or report thatnobody reads

Tactical getting from A to B

Affects and is engaged in by a single unit

Something done by an individual Divorced from an orgs broader

missions/goals

Divorced from reality

Reactive to the environment Operates under unrealistic assumptions

Strategic Planning


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Strategic Planning

Is

Process

To identify broad

goals Stakeholder driven

Responds to adefined andunderstoodenvironment

Is not

A dead document

Day to day activities and

operations A wish list

Divorced from other

plans and goals of the

campus

St k h ld


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Stakeholder

Any person, group or

organization that can place a

claim on an organization'sattention, resources, or

output, or that is affected by

that output


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Stakeholders

Internal Family

Partners

External Agencies

Lenders

Builders


Strategic Planning Process


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Start Get executive buy-in Environmental Scan

Evaluation and

Monitoring

Stakeholder Buy-In Executive Buy-In Draft Plan

Plan Implement Plan

Assemble team and

resourcesStakeholder Input

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Plan

For

Planning

Mission

Purpose

Values

Stakeholders

External

Internal

External &

Internal

Assessment

SWOT

Define

Strategic

IssuesFor the

Business

Implementation

and

AssessmentVision

Strategic Planning Flow Chart

Plan of Action

StrategyAssess

Mandates


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Strategic Planning Model


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g g

A B C D E


Environmental Scan

Assessment

Background

Information

Situational Analysis

SWOTStrengths,Weaknesses,

Opportunities,

Threats

Situation Past,Present and Future

Significant Issues

Align / Fit with

Capabilities

Mission & Vision

Values / Guiding

Principles

Major Goals

Specific Objectives

PerformanceMeasurement

Targets / Standards of

Performance

Initiatives and

Projects

Baseline Components

PerformanceManagement

Review Progress

Balanced Scorecard

Take Corrective

Actions

Down toSpecifics

Evaluate

Where we are Where we want to be How we will do it How are we doing

Gaps Action Plans Feedback upstream

revise plans


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Assessment


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SWOT Analysis

An analysis of a businesses

internal & external Environments


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SWOT Analysis

Strengths

WeaknessesOpportunities

Threats




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Plan

For

Planning

Mission

Purpose

Values

Stakeholders

External

Internal

External &

Internal

Assessment

SWOT

Define

Strategic

IssuesFor the

Business

Implementation

and

AssessmentVision


Plan of Action

StrategyAssess

Mandates

Assessment Model: Assessment


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S W O T


External Assessment: Marketplace,

competitors, social trends, technology,regulatory environment, economic cycles .

Internal Assessment: Organizational

assets, resources, people, culture,

systems, partnerships, suppliers, . . .

Easy to Understand

Apply at any

organizational level

Needs to be

Analytical and

Specific

Be honest about your

weaknesses

Good Points Possible Pitfalls

SWOT SWOT

Assessment


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Strengths


Strengths Those things that you do well,

high value or performance points

Strengths can be tangible: Loyal customers,

efficient distribution channels, very high quality

products, excellent financial conditionStrengths can be intangible: Good leadership,

strategic insights, customer intelligence, solid

reputation, high skilled workforce.

Often considered Core Competencies BestLeverage points for growth without draining your

resources

Weaknesses Assessment


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Weaknesses Those things that prevent you

from doing what you really need to doSince weaknesses are internal, they are

within your control.

INCLUDE: Bad leadership, unskilledworkforce, insufficient resources, poor

product Quality, slow distribution and

delivery channels, outdated technologies,

lack of planning, . . .

Opportunities

Assessment


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pp

2/23/2013 12:38 PM Matt H. Evans, [email protected]

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0

Opportunities Potential areas for

growth & higher performance

External in nature marketplace,

unhappy customers with

competitors, better economicconditions, more open trading

policies, . . Internal opportunities

should be classifiedStrengths Timing: May important for

capitalizing on opportunities

Threats Assessment


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Threats Challenges confronting org,

external in nature

Threats can take a wide range bad press

coverage, shifts in consumer behavior,

substitute products, new regulations, . . .

May be useful to classify or assign

probabilities to threats.

More accurate you are in identifying

threats, better position you are for dealing

with sudden ripples of Change.


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2

Baseline

Baseline


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Why Create a Baseline?

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Puts everything abt org into a single

context for comparability & Planning

description abt company as well as overall

environment include info abt relationships

Customers, suppliers, partners

Preferred format is the Orgal Profile

Orgal Profile

1 O ti E i tBaseline


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1. Operating Environment

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Products & Services Suppliers, DeliveryChannels, Contracts, Arrangements, . . .

Organizational Culture Barriers,

Leadership, Communication, Cohesiveness

Workforce Productivity Skill levels,diversity, contractors, aging workforce, . .

Infrastructure Systems, technology,

facilities, Regulatory Product / Service

Regulation, ISO Quality Standards, Safety,Environmental, . . .

Orgal Profile Baseline


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g

2. Business Relationships

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Orgal Structure Business Units,Functions, Board, Mgt Layers, . . .

Customer Relationships Requirements,

Satisfaction, Loyalty, Expectations, . . .

Value Chain Relationship between everyone invalue chain . . . . Partner Relationships Alliances,

long-term suppliers, customer partnerships, . . .

Orgal Profile3. Key Performance

Baseline


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3 ey e o a ce

Categories

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CustomerProducts and Services

Financial

Human Capital

OperationalExternal (Regulatory Compliance, Social

Responsibility, . . . )

Baseline


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Gap Analysis

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Baseline / Org Profile Challenges / SWOT

Gap = Basis for Long-

Term Strategic Plan


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8

Components

Major Components of the Components


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Strategic Plan / Down to Action

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Vision

Mission

Goals

Objectives

Measures

What we want to be

Why we exist

Indicators andMonitors of success

Desired level ofperformance and

timelines

Planned Actions to

Achieve Objectives

O1 O2

AI1AI2 AI3

M1 M2 M3

T1 T1 T1

Specific outcomes expressed inmeasurable terms (NOT activities)

Strategic Plan

Action Plans

Evaluate Progress

Targets

Initiatives

What we must achieve to be successful


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Define the

vision & themission

Planning Should Have


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Planning Should Have

A Vision:

Now

Future

Mission drives the work.

Plan drives the action.

Strategic Vision


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Where are do we want to go?

What are the implications for our

campus and organizational goals?

What problems are we trying to

solve? What problems should we

be trying to solve?

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Vision is the art of


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Vision is the art of

seeing thingsinvisible.

It's okay to lose sightof the shore as long asyou don't lose sight of

the inner course.

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Vision Components


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How org wants to be perceived in the

future what success looks like anexpression of desired end state

Challenges everyone to reach for

something significant inspires a

compelling future Provides a long-term

focus for the entire organization

Your successful past


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Creating a better futurestarts with the ability to

envision it.

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Your successful past

will block your visionsof the future.

- Joel Barker


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For thoseempowered with a

vision, greatnessbegins with a single

spark of inspiration.

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Vision Statement


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The Vision Statement: Describes the

future we intend to create the results,we will be achieving & characteristics the

organization will need to possess

in order to achieve those results.

The Vision Statement: Provides direction &

Inspiration for organizational goal-setting

& conveys a sense ofFuture Direction.

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Vision Statement


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Examples

S I have a dream.

Martin Luther King, Jr.

S By the end of the decade, we will put

a man on the moon. John F. Kennedy

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AWWA Vision Statement


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AWWA will be the

leading force in theworld dedicated tosafe drinking water.

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Developing the Strategic Vision


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Clientele

The Clientele section should address the following questions:

Who do you serve? Who will you serve?Many units have multiple constituencies: Alumni, students, staff, public,

parents, etc.

How many do you serve? How many do you want/expect toserve in the future?See WCU growth plans at: http://planning.wcu.edu/Enroll_Targets.htm

What are the expected or desired characteristics of yourconstituencies?

Ethnicity

Age

Gender

Other characteristics

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Program and Service Mix
http://planning.wcu.edu/Enroll_Targets.htmhttp://planning.wcu.edu/Enroll_Targets.htm


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Program and Service Mix

The Program and Service Mix section should address thefollowing questions:

What programs and services does/will the unit offer?

What are the priorities for the programs and services?

What new programs/services should be sought?

How can the unit meet the needs of new, changing, or

future clientele?

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Guiding Principles and Values

Components


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Every organization should be guided by a set of

values and beliefsProvides an underlying framework for making

decisionspart of the organizations culture

Values are often rooted in ethical themes, such as

honesty, trust, integrity,respect, fairness, . . . .

Values should be applicable across entire org

Values may be appropriate for certain best

mgt practices best in Terms of Quality, Exceptional

customer service, etc.

Examples of

Guiding Principles & ValuesComponents


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Guiding Principles & Values


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We obey the law and do not compromise moral or ethical principles ever!We expect to be measured by what we do, as well as what we say.

We treat everyone with respect and appreciate individual differences.

We carefully consider the impact of business decisions on our people and we

recognize exceptional contributions.

We are strategically entrepreneurial in the pursuit of excellence, encouraging original

thought and its application, and willing to take risks based on sound business

judgment.

We are committed to forging public and private partnerships that combine diverse

strengths, skills and resources.

Mission Statement Components


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Captures Essence of why the org exists

Who we are,

what we do

Explains the basic needs that you fulfillExpresses the core values of the org

Brief & to the point

Easy to understand If possible, convey

Unique nature of your org & the role it

plays that differentiates it from others

Mission Statement - definition


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Purpose of the organization Core function

Organizations reason for being the

work of the organization

What the organization does uniquely well

Mission/purpose should define theorganizations intentions towards the clientele

to be served

Mission Statement


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Broad description of

What the organization does,with and for whom the organization does

what it does,

and WHY the organization exists (theultimate end).

Mission conveys a sense offundamental purpose.


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Mission Statement

Mission = what an organization does

Values = how an organization should actVision = what an org should look like in

future

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Mission Statement Should Include:


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Purpose One sentence that describes

the end result an org seeks taccomplish (for whom)

Businessa description of the primarymeans (program, action, services, etc.)

used to accomplish the purpose


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Mission Statement


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a Broad description of :

What the Org Does,

for Whom org does what it does,

WHY organization exists

(the ultimate end). Mission conveys a sense of

Fundamental Purpose.2/23/2013 12:38 PM Matt H. Evans, [email protected]

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An effective mission


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An effective mission

statement :Should be able to tell:

Your company story andideals in:

Less than 30seconds.


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Writing Your Purpose Sentence


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An Infinitive verb: that indicates a

Change in status (such as to increase,to decrease, to eliminate, to prevent,

etc.)

An identification of the Problem tobe addressed or condition to be

changed

(such as access to safe drinking water)


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Sample Mission Statements


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YMCA seeks to enhance

lives of all people (purpose)through programs

designed todevelop spirit, mind, & body

(business).


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Examples Good and Bad

Mi i St t t

Components


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Mission Statements


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To Make People Happy

To Explore the

Universe and Search

for Life and to

Inspire the Next

Generation ofExplorers

NASA

Walt Disney

Does a good job of expressing the core

values of the organization. Also conveys

unique qualities about the organization.

Too vague and and unclear. Need moredescriptive information about what makes

the organization special.

AWWA Mission Statement


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The American Water Works Association is theauthoritative resource for safe drinking

water.

AWWA promotes public health, safety, andwelfare by uniting the efforts of the full

spectrum of the drinking water community.Through our collective strength, AWWA

advances the technology, science,

management, and govt policies relative tothe stewardship of water.


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The mission of the Stanford Medical Schoolis to be a premier research-intensive school

of medicine that improves health in the 21st

century through discoveries, leadership and

innovations in education, biomedical andclinical research and patient care.


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How should I write a Mission Statement

should say who your company is, what


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y y p y ,you do, what you stand for and why you

do it. best developed with input by all

members of an org.

tend to be 3-4 sentences long.


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Plan

For

Planning

Mission

Purpose

Values

StakeholdersExternal

Internal

External &

Internal

Assessment

SWOT

Define

Strategic

IssuesFor the

Business

Implementationand

AssessmentVision

Plan of Action

StrategyAssess

Mandates


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Strategic Issue

Fundamental policy question or

challenge that affects the businesses

mandates, mission and/or values.

Long term and do-able.

Goals

Components


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Goals


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Describes a future end-state desired outcomethat is supportive of the mission and vision.

Shapes the way ahead in actionable terms.

Best applied where there are clear choices about

the future.

Puts strategic focus into the organization

specific

ownership of the goal should be assigned to

someone within the organization.

May not work well where things are changing fast goals tend to be long-term for environments

that have limited choices about future.

Developing Goals

Components


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p g


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2

Cascade from top of Strategic Plan

Mission, Vision, Guiding Principles.

Look at your strategic analysis SWOT,

Environmental Scan, Past Performance, Gaps . .

Limit to a critical few such as 5-8 goals.

Broad participation in development of goals:Consensus from above buy-in at execution

level.

Should drive higher levels of performance n

close a critical performance gap.

Examples of GoalsComponents


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p


14

3

Reorganize entire org for better responsiveness to customers

We will partner with other businesses, industry leaders, and government agencies in

order to better meet the needs of stakeholders across the entire value stream.

Manage our resources with fiscal responsibility and efficiency through a single

comprehensive process that is aligned to our strategic plan.

Improve the quality and accuracy of service support information provided to our

internal customers.

Establish a means by which our decision making process is market and customerfocus.

Maintain and enhance the physical conditions of our public facilities.

Objectives

Components


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Objectives

Relevant - directly supports goal Compels org into action

Specific enough so we can quantify nmeasure results

Simple n easy to understand

Realistic n attainable

Conveys responsibility n ownership

Acceptable to those who must execute May need several objectives to meet a goal


14

4

Goals vs. ObjectivesComponents


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jGOALS OBJECTIVES

Very shortstatement, fewwords

Longer statement, moredescriptive

Broad in scope Narrow in scope

Directly relates tothe Mission

Statement

Indirectly relates to the MissionStatement

Covers long timeperiod (such as 10years)

Covers short time period (such 1year budget cycle)


14

5

Examples of Objectives

Components


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14

6

Develop a customer intelligence database system to capture and analyze patterns in

purchasing behavior across our product line.

Launch at least three value stream pilot projects to kick-off our transformation to a

leaner organization.

Centralize the procurement process for improvements in enterprise-wide purchasingpower.

Consolidate payable processing through a P-Card System over the next two years.

Monitor and address employee morale issues through an annual employee satisfaction

survey across all business functions.


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14

7

Down to

Specifics

Formulate a Strategy


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Make an Action PlanSo now what?

What to do?

Who will do it?

When.set a timeline

Report Back


14

8

What are Action Plans?The Action Plan identifies specific steps that

will be taken to achieve initiatives n strategic objectives

Down toSpecifics


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14

9

Objectives

Initiatives

Action

Plans

will be taken to achieve initiatives n strategic objectives

Describe who does what, when it will be completed, & how org knows

when steps are completed

Each Initiative has a supporting Action Plan(s) attached to it

Action Plans are geared toward operations, procedures, and

processes

Like Initiatives, Action Plans require monitoring of progress onObjectives, for which measures are needed

Characteristics of Action PlansDown toSpecifics


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Assign responsibility for successful completion of the Action Plan. Who isresponsible? What are roles n responsibilities?

Detail all required steps to achieve Initiative that Action Plan is supporting.Where will actions be taken?

Establish a time frame for completion each steps. When will we need to takethese actions?

Establish the resources required to complete the steps. How much will ittake to execute these actions?

Define the specific actions (steps) that must be taken to implement the

initiative. Determine the deliverables (in measurable terms) that should resultfrom completion of individual steps. Identify in-process measures to ensurethe processes used to carry out the action are working as intended. Definethe expected results and milestones of the action plan.

Provide a brief status report on each step, whether completed or not. Whatcommunication process will we follow? How well are we doing in executingour action plan?

Based on the above criteria, you should be able to clearly define youraction plan. If you have several action plans, you may have to prioritize.


15

0

Action Plan ExecutionDown toSpecifics

R i h d Wh Wh t H Wh


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1

Requires - you have answered Who, What, How, Where,and When questions related to initiative that drives

strategic execution

Coordinate with lower level sections, administrative noperating personnel since they will execute Action Planin the form of specific work plans

Assignaction responsibility and set timelinesDevelop working plans and schedules that havespecific action stepsResource the project or initiative and document in theform of detail budgets (may require reallocation priorto execution)

Monitorprogress against milestones andmeasurementsCorrect and revise action plans per comparison ofactual results against original action plan

Quantify from Action Level Up

in terms of Measurements

Down toSpecifics


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15

2

Measure your milestones short-term outcomes

at Action Item level.

Measure outcomes of your objectives.

Try to keep your measures one per objective.

May want to include lead and lag measures to

depict cause-effect relationships if you areuncertain about driving (leading) the desired

outcome.

Establish measures using a template to capture

critical data elements

Measurement Template

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Measurement Template


15

3

(Insertorganizationname)

(Insertdivision name) (Insertdepartmentname)

Risk Frameareaobjectivesupports

(Insertobjectiveowner)

(Insertmeasurementowner)

(Insertreportingcontact info)

Objective Description description of objective purpose, in sufficient detail forpersonnel not familiar with the objective to understand its intent. Objectivedescriptions are typically two or three paragraphs long. This will appear in thepop-up window when you mouse over the objective in the Balanced ScorecardSystem.

References sourcedocumentation forobjective and objectivedescription

Comments additional information about the objective not covered in above blocks, such asrecommendations for further revision, additional organizations objective impacts, recommendations forcoordination / alignment with other objectives, etc.

Measure Name - Thename exactly as youwant it to appear in theBalanced Scorecard,

including the measurenumber (i.e. PercentEmployees Satisfied,etc.)

Measure Description description of themeasure, include its intent, data source, andorganization responsible for providingmeasure data. This will appear in the pop-up

window when you mouse over the measurein the Balanced Scorecard.

MeasureFormula formula usedto calculate

measure value(if any)

Data Source -The source of thedata manual,data spreadsheet,

or databasename and contactfamiliar with thedata

Measure Weight - the relative weight of the measure based on theimpact it has on the overall objective. The total weights for all measuresfor an objective must add to 100

Measure Reporter Personresponsible for providing measuredata. Include the name,organization and email.

Target Maximum

Maximum expected value for the Effective Date Frequency

How Units

Criteria for Good Measures

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Criteria for Good Measures


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4

Integrity Complete; useful; inclusive of several types of

measure; designed to measure the most important activities

of the organization

Reliable: Consistent

Accurate - Correct

Timely Available when needed: designed to use and report

data in a usable timeframe

Confidential and Secure: Free from inappropriate release or

attack

Examples of MeasurementsLead Indicators

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ead d ca o s Average time to initiate customer contact

=> shorter time should lead to bettercustomer service

Average response time to incident =>

below average response times shouldlead to increased effectiveness in dealingwith incident

Facilities that meet facility quality A1

rating => should lead to improvedoperational readiness for meetingcustomer needs


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5

Examples of MeasurementsLag Indicators

Down toSpecifics


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g

Overall customer satisfaction rating =>how well you are doing looking back

Business Units met budgeted service hour

targets => after the fact reporting ofservice delivery volume

Number of category C safety accidents atconstruction sites => historical report of

what has already taken place


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6

Targets

Down toSpecifics


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Targets For each measurement, you should have

at least one target Targets should stretch the organization to

higher levels of performance

Incremental improvements over currentperformance can be used to establishyour targets

Targets put focus on your strategy

When you reach your targets, you havesuccessfully executed your strategy


15

7

Examples of Targets

Down toSpecifics


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15

8

Average Time to ProcessNew Employee Setups inDB

65 daysYear 2007

60 daysYear 2008

55 daysYear 2009

Utilization Rate for RentalHousing Units

90% for

Year 2007

92% forYear 2008

95% forYear 2009

Toxic Sites meeting in-service compliance

55% forYear 2007

70% forYear 2008

95% forYear 2009

Personnel Fully Trained inSafety and Emergency

65% by2rdQuarter

75% by3thQuarter

90% by4thQuarter

Open Positions Filled

after 30 day promotionperiod

75

positionsSept 2007

100

positionsJan 2008

135

positionsJuly 2008

% Reduction in OrdersFilled Short in 1st Cycle

50% byYear 2008

65% byYear 2009

85% byYear 2010

Sanity Check

Down toSpecifics


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Sanity Check . . .Make sure everything is linked andconnected for a tight end-to-end modelfor driving strategic execution.


15

9

INITIATIVE

Employee

Productivity

Improvement

Program

Employee

Satisfaction

Survey

Rating

90%

favorable

overall

Measure

Target

Target Actual

90%

45%

PercentSa

tisfaction

gap

MEASURE / TARGET

OBJECTIVEImprove Employee

Satisfaction

ACTION PLAN

Identify issues per

a company wide

survey


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Evaluate



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Make an Action PlanSo now what? What to do?

Who will do it?

When.set a timeline

Report Back


Evaluation and Reassessment


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Try it!

Does it fit?

Redesign needed?




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Plan

For

Planning

Mission

Purpose

Values

StakeholdersExternal

Internal

External &

Internal

Assessment

SWOT

Define

Strategic

IssuesFor the

Business

Implementationand

AssessmentVision

Plan of Action

StrategyAssess

Mandates


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If you do not know whereyoure heading,

youre likely to end upsomewhere else.Yogi Berra

Continuous Feedbackthrough the Balanced Scorecard

Cascade and align from the top to create a

Evaluate


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Cascade and align from the top to create a

Strategic Management System. Use the Balanced Scorecard framework to

organize and report actionablecomponents.

Use the Scorecard for managing theexecution of your strategy.

Scorecard forces you to look at differentperspectives and take into account cause-

effect relationships (lead and lagindicators)

Improves how you communicate yourstrategy critical to execution.


Performance Management

D2-D5: Build the Balanced Scorecard

Evaluate


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g Establish a regular review cycle using your

balanced scorecard. Analyze and compare trends using graphs for rapid

communication of performance.

Dont be afraid to change your metrics life cycle

(inputs to outputs to outcomes) Work back upstream to revise your plans: Action

Plans > Operating Plans > Strategic Plans

Planning is very dynamic must be flexible tochange.

Recognize and reward good performance results

Brainstorm and change take corrective action onpoor performance results.


Automating the ProcessD2-D5: Build the Balanced Scorecard

Evaluate


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Automating the Process


Low Cost Scorecard Tools

1. Dialog (www.balancedscorecard2.com)

2. Ergometrics (www.ergometrics.com)

3. ExecDash (www.idashes.net)

4. Scorecard Hosting (www.scorecardhosting.com)

High End Best of Breed Tools

1. PB Views (www.pbviews.com)

2. QPR (www.qpronline.com)

3. Rocket (www.rocketsoftware.com/portfolio/epm)

Link Budgets to Strategic

Plan

Evaluate
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The worlds best Strategic Plan will fail if it isnot adequately resourced through thebudgeting process

Strategic Plans cannot succeed without peopletime, money, and other key resources

Aligning resources validates that initiatives anaction plans comprising the strategic plansupport the strategic objectives


What Resources?How to Link?

Evaluate


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Every Action Plan should identify the following:

The people resources needed to succeed

The time resources needed to succeed

The money resources needed to succeed

The physical resources (facilities, technology, etc.) needed to

succeedResource information is gathered by Objective Owners which is

provided to the Budget Coordinators for each Business Unit.

Resources identified for each Action Plan are used to establish the

total cost of the Initiative.

Cost-bundling of Initiatives at the Objective level is used by our

Business Unit Budget Coordinators to create the Operating Plan

Budget

Some Final Thoughts


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Some Final Thoughts

Integrate all components from the top to thebottom: Vision > Mission > Goals > Objectives> Measures > Targets > Initiatives > ActionPlans > Budgets.

Get Early Wins (Quick Kills) to create somemomentum

Seek external expertise (where possible andpermissible)

Articulate your requirements to senior

strategic planning framework for technical organization

Documents