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Strategically Aligning Business Process Improvement

Dr. Joseph A. DeFeo, CEO Juran Global

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One day Alice came to a fork in the road and saw a Cheshire Cat in a

tree."Which road do I take?" she asked.

His response was a question: "Where do you want to go?"

"I don't know," Alice answered."Then," said the cat, "it doesn't

matter."

From Alice in Wonderland

Do We Need Strategic Plans?

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“In the majority of organizations – we estimate 70% -- the real problem isn’t

(bad strategy)…. it’s bad execution. Less that 10% of strategies effectively

formulated are effectively executed.”

“Why CEO’s Fail?” Fortune Magazine

Bad Execution is often a result of poor alignment of resources and

infrastructure.

Why Today’s Topic?

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Strategic planning is an organization's process of defining

its longer term direction, and making decisions on allocating its resources to

pursue this direction.

A set of aimed at targets!

What is Strategic Planning?

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Implementation

Define:Key

StrategiesStrategic

Goals

Review and Audit

Annual Goals

Depl

oym

ent

Asse

ssm

ent

Vision Mission Policy Values

Typical Planning Model

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Companies rarely track performance against long-term plans: less than 15% of companies make it a regular practice to go back and compare the business’s results with the performance forecast for each unit in its prior year’s strategic plans. (Harvard Business Review)

For a typical business unit, top management and the board should monitor no more than 3 to 5 metrics, representing different areas of the business for each of the three time frames: short-term, over the next 1-5 years, and long-term. (McKinsey Quarterly)

Companies realize only 63% of the financial performance their strategies promise because of defects and breakdowns in planning and execution. More than 1/3 placed the figure at less than 50%. (Harvard Business Review)

Only 7% of employees today fully understand their company’s business strategies and what’s expected of them in order to help achieve the company goals. (Success Factors)

Some Data

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Today’s Agenda

1. What is strategic alignment?

2. Why is it so difficult?

3. How do you improve the process and your success rate (3 Secrets)?

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1. MisunderstandingThe workforce does not understand the

strategy.

2. ResourcesMost companies

do not have budget links to

strategy.

3. Rewards and structures

Most managers don’t have incentives linked to

strategy..

4. InattentionMost executive teams spend less than one

hour per month discussing strategy.

9 out of 10 companies

fail to execute strategy

Why Do We Need Strategic Alignment?

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Establish Responsibility

Identify Actions

Identify and Provide Resources

Establish Timelines and Milestones

Subdivide Broad Goals

What is Strategic Deployment?

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Strategic alignment is the process and the result of linking an organization's structure and resources with its strategy and business objectives. It is the actions of bringing the organization’s business divisions and staff members in line with the organization’s planned objectives. 

What is Strategic Alignment?

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Why is It So Difficult?

Inability to manage change You have to be willing to create and implement innovative

strategies and adjust to change in the market

Lack of infra-structure that supports execution Leaders assume that the current organizational structure will

support the new strategy.

Not involving the right people at the right time To make good decisions, you must seek out the perspectives

of a wide range of people. Involving people in decisions gets them focused on generating solutions to problems rather than complaining or waiting to be told what to do.

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Why is It So Difficult?

Misalignment between leadership actions and organization long term direction and priorities

Employees observe the leaders and pick up signals about what is important and appropriate

Limited or no organization-wide coordination and collaboration

Ensuring that decisions and actions are coordinated across organizational boundaries takes shared goals,

clearly defined roles and accountability

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Management

ReviewsMethods

Outside-in Drivers of satisfaction and loyalty Growth and retention analytics Establish vision / mission

Align all plans to corporate strategy

Align core processes, process measures

Integrate improvement initiatives Balance contributions to gap-

closure requirements Review performance regularly Manage overall effects and

market changes Analyze causes of gaps Assess impact of gaps and re-

prioritizeImprovement Methods: DMAIC, BPM, Lean, QbD, RCCA,

Voice of the Customer &

BusinessHoshin

Planning – Catch Ball

Review and ManageAdjust & Feedback

Execute Through Managed Processes

Set Direction

&Deploy Goals

ImplementInitiatives &Projects

Aligned Performance

Plans

Define top-level imperatives Define measures of success

Launch business planning

process

Strategy Alignment Solutions

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Successful Execution of

Strategy

Customer

SetDirection

DeployDirection

Review&

Manage

ImplementSolutions

Gap

Execute through Improved, Streamlined and New Processes

RCCALeanSix

Sigma

QbD,Design ForSix Sigma

How Does It Fit Together?

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ProjectsAnnualGoals

StrategicGoals

KeyStrategy

Vision

Time

5 Years 1 Year

Strategic Alignment – Detailed Look

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How Do You Improve the Process?

1. Collaboration (Catch ball)a. Organizations are complex; we must

rely on others to get things done.b. Create the conditions for people to

work together (teams).c. Cooperation is facilitated by clearly

defines roles.d. Goals are best achieved when those

that have to achieve them are included in the development of them (catch ball).

e. Coach managers on how to cascade their strategic plans to their teams.

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How Do You Improve the Process?

2. Communicationa. Over-communicate the vision,

strategies and objectives for the organization.

b. Develop communication strategies for all levels of the organization; one message does not suit all!

c. People must know how does this effect me and what do I need to do to contribute!

d. When in doubt, communicate more.

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How Do You Improve the Process?

3. Regular Reporting & Review

a. Create a performance management system that assigns accountability for each initiative and makes its progress more transparent.

b. Develop a regular schedule of reviews on a monthly basis.

c. Create and use action plans; these are the cornerstones of execution.

d. Encourage leaders to identify problems and barriers to execution rather than masking them.

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More Resources

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