Strategic Planning Framework for Technical Organization

By Dr Ali Sajid Director IB & M

Special Presentation for MBA (Evn) IBM Fall 2010

Inspiration!
Strategic Planning
Dr. Ali Sajid alisajid61@yahoo.com www.dralisajid.com

We have a strategic plan Its called doing things

One who does less than he can is a thief

SAINT BABA

However beautiful the strategy, you should occasionally look at the results
Sir Winston Churchill

Sir Brian Pitman, former CEO of Lloyds TSB,

There is always a better strategy than the one you have; you just haven't thought of it yet

I claim not to have controlled events, but confess plainly that events have controlled me

Abraham Lincoln

In real life, strategy is actually very straightforward. You pick a general direction and implement like hell Jack Welch

"Change can either challenge or threaten us...Your beliefs pave your way to success or block you."
--Marsha Sinetar

1. Every morning, write a list of the things that need to be done that day

2. Do them

Intelligent people can always come up with intelligent reasons to do nothing

The secret of getting ahead is getting started

Action is the foundational key of all success

Blame nobody

Expect nothing Do something

Do things

Get mad Start doing something about it Now

Do what needs to be done

This is so simple it sounds stupid, but it is amazing how few oil people really understand that you only find oil if you drill wells. You may think youre finding it when youre drawing maps and studying logs, but you have to drill.

I saw that leaders placed too much emphasis on what some call high-level strategy, on intellectualizing and philosophizing, and not enough on implementation. People would agree on a project or initiative and then nothing would come of it.

Start Now

Try things

Natural selection is death. Without huge amounts of death, organisms do not change over time. Death is the mother of structure. It took four billion years of death to invent the human mind.

Effective prototyping may be the most valuable core competence an innovative organization can hope to have

The paradox of innovation: whoever makes the most mistakes wins

The most successful people are those who are good at plan B

The key to a great painting is the nerve, after weeks of effort, to bet the painting on the next brush stroke

Fail Fail again Fail better

S.A.V.
(Screw Around Vigorously!)

The secret to having good ideas is to have a lot of ideas, then throw the bad ones away

Reward excellent failures Punish mediocre successes

In business, you reward people for taking risks. When it doesnt work out you promote them, because they were willing to try new things.

No try No deal

You miss 100% of the shots you never take

READY? FIRE! AIM.

Fail Forward Fast

Learn not to be careful

Human creativity is the ultimate economic resource

Every child is born an artist. The trick is to remain an artist

I think it is very important for you to do two things: act on your temporary conviction as if it was a real conviction; and when you realize that you are wrong, correct course very quickly

Fail faster Succeed sooner

Life is what happens to you while you're busy making other plans

A year from now you may wish you had started today

The one thing you need to know about sustained individual success: Discover what you dont like doing and stop doing it.

Im not comfortable unless Im uncomfortable

If it works, its obsolete

Respect = Magic Thank you = Magic

A successful man is one who can lay a firm foundation with the bricks others have thrown at him.
- David Brinkley

Accept nothing less

Change the world

The only worthwhile reality

Dream!

The greatest discovery of our generation is that a human being can alter his life by altering his attitudes.
- William James

Action

Logic will not change an emotion, but action will.

In order to be big, you

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

- Emeril Lagasse

person is as happy as he makes up his mind to be.

- Abraham Lincoln

We tend to judge others by their behaviors and ourselves by our intentions.

- Stephen Covey

Thoughts

--> Feelings -> Actions. So, if you think negative, you will feel negative and then act negative, then continue to think negative, and so on.
- Hendrie Weisinger

The mold of a man's fortune is in his own hands.

- Francis Bacon

Believe
If

you do not believe in yourself ... chances are nobody else will.

 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

The first basic ingredient of leadership is a guiding vision. The leader has a clear idea of what he wants to do professionally & Personally & the Strength to Persist in the face of setbacks, even failures.
- Warren Bennis

The very essence of Leadership is that you have to have a Vision. It's got to be a vision you articulate clearly & forcefully on every occasion.
Theodore Hesburgh, President of University of Notre Dame

Teamwork Stages of An Organization

Low >>>>>>>>>> Team Focus >>>>>>>>>> High

Stage 1 External

Stage 2

Stage 3

Internal

Stage 1 Org -Low Team Focus

No vision, mission or strategic focus. Organizational Goals unclear. Disorganized with individuals doing whatever they think is the best for them or their unit. Weak core or NO CORE Values. Customer is An Afterthought.

Stage TWO Org

Moderate Core Value Development & Team Effort

Some teams formed. Some training at the interpersonal level. No real sense of Mission 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 A Learning Community Shared Vision (e.g., Xerox). Effective Teamwork & Strategic Planning. 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.

Missing activity at any org among Different activities require different approaches 5 Purposeful Activities
(Gerald Nadler)

1. 2. 3. 4.

5.

Learning Research Planning and Design Evaluation Operating & Supervising

Outline of the Framework

What is Strategic Planning How can we plan Strategically (& why should we?)? Designing your Org Strategic Plan Best Practices in Planning

Presentation Overview
Clearly Define Complete Strategic Planning Process Explain how to create & execute a: Strategic Plan, Vision, Mission & Strategy/ Strategic Intents

Provide a common model that the entire org can follow

Important Thoughts
Planning is a Process, not an event. The norm is for Strategic Planning to Fail, because the way things are is very powerful! Planning takes time!

Strategic Panning in any Org

The Process of Developing Strategies to reach a defined Objective for Your org.
(Wikipedia)

Strategic Planning
Systematic process through which an org agrees on & builds commitment among stakeholders to priorities that are essential to its mission & are responsive to the environment.

Strategic Planning

Guides the acquisition & allocation of resources to achieve these priorities.

Michael Allison & Jude Kaye

Pre-Requisites to Planning
Senior leadership commitment
Who will do what? What will each group do? How will we do it? When is the best time?

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Strategic

Planning is ongoing, not used just when considering major changes

Why Do Strategic Planning?

If you fail to plan, then you plan to fail be Proactive about the future

Why Do Strategic Planning

Strategic Planning Improves Performance Counter Excessive inward & shortTerm thinking Solve major issues at A macro level Communicate to everyone: What is most important

What is Strategic Planning?

A Long-term, Future-oriented Process of Assessment, Goal-setting, & Decisionmaking that: Maps an explicit path between Present & a Vision of the future. It relies on careful consideration of an org's Capabilities & environment, & leads to Priority-based resource allocation & Other Decisions.

Strategic Thinking & Planning Process of deciding the Optimal alignment between unlimited needs & Limited resources to achieve your Priorities.
Center for Organizational Effectiveness

Strategic Plan
A Program of Action, that addresses the Orgs Strategic issues (fundamental questions or challenges) & is driven by the orgs Vision/ mission/ purpose.

What is Strategic Planning?

Process to establish priorities on what you will accomplish in the future Forces you to make choices on what you will do & what you will not do Pulls entire organization together around a single game plan for execution Broad outline On where resources will get allocated

Strategic Planning
Not easy stuff. Takes experience & knowledge to facilitate & participate. Can not be rushed.

The approaches used can vary, but there are some essential parts.

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 the Performance gap

Visionary convey a desired future end state

Flexible allow & accommodate change Guide decision making at lower levels operational, tactical, individual levels
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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

One-off, brief activity Production of a document or report that nobody 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
Is
Process To identify broad goals Stakeholder driven Responds to a defined and understood environment

Is not A dead document Day to day activities and operations A wish list Divorced from other plans and goals of the campus

Stakeholder
Any person, group or organization that can place a claim on an organization's attention, resources, or output, or that is affected by that output

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Stakeholders

Internal
Family Partners

External
Agencies Lenders Builders

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Strategic Planning Process

Start
Get executive buy-in Environmental Scan

Assemble team and resources

Stakeholder Input

Stakeholder Buy-In

Executive Buy-In

Draft Plan

Plan

Implement Plan

Evaluation and Monitoring

Strategic Planning Flow Chart

Mission Plan For Planning Purpose Values Assess Mandates External & Internal Assessment SWOT Define

Strategic Issues
For the Business

Plan of Action
Strategy

Stakeholders External Internal

Vision

Implementation and Assessment

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Strategic Planning Model ABCDE

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

Assessment

Baseline

Components

Down to
Specifics

Evaluate

Environmental Scan Background Information Situational Analysis SWOT Strengths, Weaknesses, Opportunities, Threats

Situation Past, Present and Future Significant Issues Align / Fit with Capabilities

Mission & Vision Values / Guiding Principles Major Goals Specific Objectives

Performance Measurement Targets / Standards of Performance Initiatives and Projects Action Plans

Performance Management Review Progress Balanced Scorecard Take Corrective Actions Feedback upstream revise plans

Gaps

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Assessment

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SWOT Analysis
An analysis of a businesses internal & external Environments

SWOT Analysis
Strengths
Weaknesses

Opportunities
Threats

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Strategic Planning Flow Chart

Mission Plan For Planning Purpose Values Assess Mandates External & Internal Assessment SWOT

Define

Strategic Issues
For the Business

Plan of Action
Strategy

Stakeholders External Internal

Vision

Implementation and Assessment

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Assessment Model: SWOT

Internal Assessment: Organizational assets, resources, people, culture, systems, partnerships, suppliers, . . .

Assessment

External Assessment: Marketplace, competitors, social trends, technology, regulatory environment, economic cycles .

SWOT

SWOT

Good Points
Easy to Understand Apply at any organizational level

Possible Pitfalls
Needs to be Analytical and Specific Be honest about your weaknesses
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Assessment

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 condition Strengths can be intangible: Good leadership, strategic insights, customer intelligence, solid reputation, high skilled workforce. Often considered Core Competencies Best Leverage points for growth without draining your resources

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Weaknesses

Assessment

Weaknesses Those things that prevent you from doing what you really need to do Since weaknesses are internal, they are within your control. INCLUDE: Bad leadership, unskilled workforce, insufficient resources, poor product Quality, slow distribution and delivery channels, outdated technologies, lack of planning, . . .

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Opportunities

Assessment

Opportunities Potential areas for growth & higher performance External in nature marketplace, unhappy customers with competitors, better economic conditions, more open trading policies, . . Internal opportunities should be classified Strengths Timing: May important for capitalizing on opportunities
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Threats
Threats Challenges confronting org, external in nature

Assessment

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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Baseline

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Baseline

Why Create a Baseline?

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

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Orgal Profile 1. Operating Environment

Baseline

Products & Services Suppliers, Delivery Channels, 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, . . .
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Orgal Profile 2. Business Relationships

Baseline

Orgal Structure Business Units, Functions, Board, Mgt Layers, . . . Customer Relationships Requirements, Satisfaction, Loyalty, Expectations, . . . Value Chain Relationship between everyone in value chain . . . . Partner Relationships Alliances, long-term suppliers, customer partnerships, . . .

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Orgal Profile 3. Key Performance Categories

Customer Products and Services Financial Human Capital Operational External (Regulatory Compliance, Social Responsibility, . . . )

Baseline

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Baseline

Gap Analysis
Baseline / Org Profile
Challenges / SWOT

Gap = Basis for LongTerm Strategic Plan

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Components

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Major Components of the Strategic Plan / Down to Action

Components

Strategic Plan

Vision Mission Goals Objectives O1 AI2 M3 T1 AI3

What we want to be Why we exist

Action Plans Evaluate Progress

What we must achieve to be successful O2

Specific outcomes expressed in measurable terms (NOT activities) Planned Actions to Achieve Objectives Indicators and Monitors of success Desired level of performance and timelines

Initiatives
Measures Targets

AI1

M1 M2 T1 T1

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Define the vision & the mission

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Planning Should Have

A Vision:
Future

Now Mission drives the work. Plan drives the action.

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Strategic Vision

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 seeing things invisible. It's okay to lose sight of the shore as long as you don't lose sight of the inner course.
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Vision

Components

How org wants to be perceived in the future what success looks like an expression of desired end state Challenges everyone to reach for something significant inspires a compelling future Provides a long-term focus for the entire organization

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Your successful past will block your visions of the future.

- Joel Barker
Creating

a better future starts with the ability to envision it.

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For those empowered with a vision, greatness begins with a single spark of inspiration.
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Vision Statement
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 of Future Direction.

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Vision Statement 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

AWWA will be the leading force in the world dedicated to safe drinking water.

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Developing the Strategic Vision 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 to serve in the future?
See WCU growth plans at: http://planning.wcu.edu/Enroll_Targets.htm

What are the expected or desired characteristics of your constituencies?

Ethnicity Age Gender Other characteristics
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Developing the Strategic Vision Program and Service Mix The Program and Service Mix section should address the following 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

Every organization should be guided by a set of values and beliefs Provides an underlying framework for making decisions part of the organizations culture Values are often rooted in ethical themes, such as

Components

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.
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Examples of Guiding Principles & Values

Components

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.

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Mission Statement

Components

Captures Essence of why the org exists Who we are, what we do Explains the basic needs that you fulfill Expresses 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
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Mission Statement - definition

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 the organizations intentions towards the clientele to be served
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Mission Statement
Broad description of What the organization does, with and for whom the organization does what it does, and WHY the organization exists (the ultimate end). Mission conveys a sense of fundamental purpose.

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Mission Statement
Mission = what an organization does Values = how an organization should act Vision = what an org should look like in future

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Mission Statement Should Include: Purpose One sentence that describes the end result an org seeks t accomplish (for whom)

Business a description of the primary means (program, action, services, etc.) used to accomplish the purpose

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Mission Statement

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.
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An

effective mission statement : Should be able to tell: Your company story and ideals in: Less than 30 seconds.
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Writing Your Purpose Sentence

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 to be addressed or condition to be changed (such as access to safe drinking water)

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Sample Mission Statements

YMCA seeks to enhance lives of all people (purpose) through programs designed to develop spirit, mind, & body (business).

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Examples Good and Bad Mission Statements

NASA To Explore the Universe and Search for Life and to Inspire the Next Generation of Explorers Walt Disney To Make People Happy

Components

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 more descriptive information about what makes the organization special.
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AWWA Mission Statement

The American Water Works Association is the authoritative resource for safe drinking water. AWWA promotes public health, safety, and welfare 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 to the stewardship of water.
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The mission of the Stanford Medical School is to be a premier research-intensive school of medicine that improves health in the 21st century through discoveries, leadership and innovations in education, biomedical and clinical research and patient care.

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How should I write a Mission Statement? should say who your company is, what 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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Strategic Planning Flow Chart

Mission Plan For Planning Purpose Values Assess Mandates External & Internal Assessment SWOT

Define

Strategic Issues
For the Business

Plan of Action
Strategy

Stakeholders External Internal

Vision

Implementation and Assessment

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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.

Components

Goals
Describes a future end-state desired outcome that 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.
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Components

Developing Goals
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.

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Components

Examples of Goals
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 customer focus.

Maintain and enhance the physical conditions of our public facilities.

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Components

Objectives

Relevant - directly supports goal Compels org into action Specific enough so we can quantify n measure 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
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Goals vs. Objectives

GOALS Very short statement, few words Broad in scope Directly relates to the Mission Statement Covers long time period (such as 10 years) OBJECTIVES Longer statement, more descriptive Narrow in scope

Components

Indirectly relates to the Mission Statement Covers short time period (such 1 year budget cycle)
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Examples of Objectives

Components

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 purchasing power.

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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Down to Specifics

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Formulate a Strategy

Make an Action PlanSo now what?

What to do? Who will do it? When.set a timeline

Report Back

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What are Action Plans?

Down to
Specifics

The Action Plan identifies specific steps that 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 on Objectives, for which measures are needed

Objectives

Initiatives
Action Plans
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Down to

Characteristics of Action Plans

Specifics

Assign responsibility for successful completion of the Action Plan. Who is responsible? 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 take these actions? Establish the resources required to complete the steps. How much will it take 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 result from completion of individual steps. Identify in-process measures to ensure the processes used to carry out the action are working as intended. Define the expected results and milestones of the action plan. Provide a brief status report on each step, whether completed or not. What communication process will we follow? How well are we doing in executing our action plan? Based on the above criteria, you should be able to clearly define your action plan. If you have several action plans, you may have to prioritize.

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Down to

Action Plan Execution

Specifics

Requires - you have answered Who, What, How, Where, and When questions related to initiative that drives strategic execution Coordinate with lower level sections, administrative n operating personnel since they will execute Action Plan in the form of specific work plans Assign action responsibility and set timelines Develop working plans and schedules that have specific action steps Resource the project or initiative and document in the form of detail budgets (may require reallocation prior to execution) Monitor progress against milestones and measurements Correct and revise action plans per comparison of actual results against original action plan
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Quantify from Action Level Up in terms of Measurements

Down to
Specifics

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 are uncertain about driving (leading) the desired outcome. Establish measures using a template to capture critical data elements

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Down to
Specifics

Measurement Template
(Insert organization name) (Insert division name) (Insert department name) Risk Frame area objective supports (Insert objective owner) (Insert measurem ent owner) (Insert reporting contact info) Objective Description description of objective purpose, in sufficient detail for personnel not familiar with the objective to understand its intent. Objective descriptions are typically two or three paragraphs long. This will appear in the pop-up window when you mouse over the objective in the Balanced Scorecard System. References source documentation for objective and objective description

Comments additional information about the objective not covered in above blocks, such as recommendations for further revision, additional organizations objective impacts, recommendations for coordination / alignment with other objectives, etc. Measure Name - The name exactly as you want it to appear in the Balanced Scorecard, including the measure number (i.e. Percent Employees Satisfied, etc.) Measure Description description of the measure, include its intent, data source, and organization responsible for providing measure data. This will appear in the pop-up window when you mouse over the measure in the Balanced Scorecard. Measure Formula formula used to calculate measure value (if any) Data Source The source of the data manual, data spreadsheet, or database name and contact familiar with the data

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

Measure Reporter Person responsible for providing measure data. Include the name, organization and email. 15 2/23/2013 12:38 Date Matt H. Evans, How 3 Target Maximum Maximum expected value for the Effective PM Frequency matt@exinfm.com Units

Down to
Specifics

Integrity Complete; useful; inclusive of several types of measure; designed to measure the most important activities of the organization Reliable: Consistent

Criteria for Good Measures

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
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Examples of Measurements Lead Indicators

Down to
Specifics

Average time to initiate customer contact => shorter time should lead to better customer service Average response time to incident => below average response times should lead to increased effectiveness in dealing with incident Facilities that meet facility quality A1 rating => should lead to improved operational readiness for meeting customer needs
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Examples of Measurements Lag Indicators

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Specifics

Overall customer satisfaction rating => how well you are doing looking back Business Units met budgeted service hour targets => after the fact reporting of service delivery volume Number of category C safety accidents at construction sites => historical report of what has already taken place

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Down to
Specifics

Targets

For each measurement, you should have at least one target Targets should stretch the organization to higher levels of performance Incremental improvements over current performance can be used to establish your targets Targets put focus on your strategy When you reach your targets, you have successfully executed your strategy
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Down to Examples of Targets

Average Time to Process New Employee Setups in DB 65 days Year 2007 60 days Year 2008 92% for Year 2008 70% for Year 2008
Specifics

55 days Year 2009 95% for Year 2009 95% for Year 2009

Utilization Rate for Rental 90% for Housing Units Year 2007 Toxic Sites meeting inservice compliance 55% for Year 2007

Personnel Fully Trained in 65% by Safety and Emergency 2rd Quarter

Open Positions Filled after 30 day promotion period % Reduction in Orders Filled Short in 1st Cycle 75 positions Sept 2007 50% by Year 2008
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75% by 3th Quarter

100 positions Jan 2008 65% by Year 2009

90% by 4th Quarter

135 positions July 2008 85% by Year 2010
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Down to
Specifics

Sanity Check . . .
Make sure everything is linked and connected for a tight end-to-end model for driving strategic execution.

OBJECTIVE
Improve Employee Satisfaction

MEASURE / TARGET
Measure
Percent Satisfaction

90% Employee Satisfaction Survey Rating

gap

INITIATIVE
Employee Productivity Improvement Program

45%

ACTION PLAN
Identify issues per a company wide survey

Target

90% favorable overall

Target

Actual

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Evaluate

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Formulate a Strategy Make an Action PlanSo now what?

What to do? Who will do it? When.set a timeline

Report Back

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Evaluation and Reassessment Try it! Does it fit? Redesign needed?

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Strategic Planning Flow Chart

Mission Plan For Planning Purpose Values Assess Mandates External & Internal Assessment SWOT

Define

Strategic Issues
For the Business

Plan of Action
Strategy

Stakeholders External Internal

Vision

Implementation and Assessment

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If you do not know where youre heading, youre likely to end up somewhere else.
Yogi Berra

Continuous Feedback through the Balanced Scorecard

Evaluate

Cascade and align from the top to create a Strategic Management System. Use the Balanced Scorecard framework to organize and report actionable components. Use the Scorecard for managing the execution of your strategy. Scorecard forces you to look at different perspectives and take into account causeeffect relationships (lead and lag indicators) Improves how you communicate your strategy critical to execution.
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D2-D5: Build the Balanced Scorecard

Evaluate

Performance Management

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 to change. Recognize and reward good performance results Brainstorm and change take corrective action on poor performance results.
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D2-D5: Build the Balanced Scorecard

Evaluate

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)
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Link Budgets to Strategic Plan

Evaluate

The worlds best Strategic Plan will fail if it is not adequately resourced through the budgeting process Strategic Plans cannot succeed without people, time, money, and other key resources Aligning resources validates that initiatives and action plans comprising the strategic plan support the strategic objectives

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What Resources? How to Link?

Every Action Plan should identify the following:

Evaluate

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 succeed Resource 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

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Some Final Thoughts

Integrate all components from the top to the bottom: Vision > Mission > Goals > Objectives > Measures > Targets > Initiatives > Action Plans > Budgets. Get Early Wins (Quick Kills) to create some momentum Seek external expertise (where possible and permissible) Articulate your requirements to senior leadership if they are really serious about strategic execution

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