Elevating Teams in Strategy Execution€¦ · Strategy Execution Management Budgeting and Strategy Resourcing The Strategy Planning Cycle Where Should Finance Play in Strategy Execution?

JPK

Gro

up2019 Leading Strategy Forum

June 20-21, 2019 • San Diego, CA

Elevating Teams in Strategy Execution

June 21, 8:30 am

Roy Barnes – Blue Space ConsultingRoy has more than 25 years of experience leading work teams and delivering world

class results in both the profit and non-profit sectors. During Roy's executive committee role at Marriott Vacation Club International, the company's revenue grew

from $400M to $2.5B over six years. As Senior Vice President for Customer Experience Development, Roy managed the introduction and execution of multiple

process and strategy management tools that focused MVCI on building a sustainable operating and strategic infrastructure. In the non-profit sector, Roy helped several of

the nation's oldest conservation organizations with operation and development strategic planning, leadership team alignment and goal setting. Visit LinkedIn for more

detailed experience and professional profile on Roy.

View presentation online at:https://jpkgroupsummits.com/sandiegols2019-attendee

Password: JPK

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Elevating Teams in Strategic Execution

Or….

A Mashup of Strategy, Provocation and Your Personal Role in Execution

A Little Background First

Front Desk Clerk

Senior VP – Strategic PlanningSenior VP -Customer Experience

Industries/Market Expertise

• Communications (Altamont Group, ASMI, Verizon, Bluegrass Cellular, Cincinnati

Bell, PSMJ)

• Energy (American Gas Association, Avista, Duke Energy, Chelan PUD, Portland

General Electric, Intermountain Gas, Puget Sound Energy, Rocky Mountain

Electric League, Northwest Energy Efficiency Alliance, NorthWestern, WEI,

Wisconsin Energy, Westar Energy, TouchStone Energy Cooperatives

• Hospitality/Food Industry (Marriott, Ritz-Carlton, Wyndham, Vail Resorts,

Schwann Foods, Food Management Institute)

• Medical/Health (Tertumo BCT, Sterigenics, Health Solutions, University Health

Systems, Advocate Health, Astropak, Joerns Healthcare)

• Transportation (Celebrity Cruise Lines, Delta Airlines, Southwest Airlines)

• Tech/Manufacturing (Intel, Michelin, Forsythe Electronics, Hewlett Packard)

• Education and Non-Profit (Florida Virtual, Datamark, Rollins Business School,

National Audubon Society, Down Syndrome Association)

• Federal/State Government (U.S. Dept. of Defense,

City of Fort Collins, City of Spokane)

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Real World

Not to cover familiar ground but…

The bad behaviorsthat you’re seeing

from your organization are

there for a reason

Sorry…You’re A Little Bit Screwed

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Here’s Why…

u The CEO’s vision doesn’t penetrate to the level wherework gets done

u The CCO typically only customer issues

u The COO often is consumed with operating processes

u The CMO often limits their view to just acquisition and retention

u The HR leader knows personnel issues

u Chief Legal Counsel… are well ...lawyers

This leaves you…

• Breadth and depth of visibility across the enterprise

• Deep understanding of internal and external threats

• Natural appreciation for the confluence of analytics, process and technology

• The conversion path of data into information into knowledge

• Trustworthy

We need your perspectiveand your voice

….because we’re stuck

I X

3/26/19

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We Need Help Getting Out of the Box

Events and Experience

Role/Story Conclusion

Interpretation

Quickly form

Helping Others Think Differently...

This becomes their worldview.

Their box!

Predicts future perception and behavior

Every interpretation is based upon what that person has experienced before. Their worldview produces

automatic �thoughting�…not new thinking.

THEY ARE PRETTY ATTACHED TO IT

THEY�VE GOT FRIENDS WHO AGREE WITH THEM

CHANCES ARE…YOU�RE NOT THEIR FRIEND

R o y

B a r n e s

�unleashing possibility�

Everyone Has Their Own Worldview A thought about resistance...

�Faced with the choicebetween changing one�s mind

and proving there is no need to do so, almost everyone gets busy on the proof.�

John Kenneth Galbraith

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…it is about expanding one’s capacity to exercise influence

Leadership is not about position or authority…

So, let’s get started

Your organization’s alignment with the external environment

A realistic internal view of your core competencies and sustainable competitive advantages

Thoughtful resourcing, implementation and monitoring

Strategic success depends on three critical factors:

1.

2.

3.

Market Analysis

Enterprise Vision

Statement

Enterprise Mission

Statement

Customer Experience Intent

Statement

Strategy Formulation

Strategy Execution Management

Budgeting and Strategy

Resourcing

Where Do You Play in The Strategy Planning Cycle?

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Market Analysis

Enterprise Vision

Statement

Enterprise Mission

Statement


Statement




Resourcing

The Strategy Planning Cycle

“Your organization’s values, purpose, and future direction”

Market Analysis

Enterprise Vision

Statement

Enterprise Mission

Statement


Statement




Resourcing


“Target customers and markets; main products and services; geographic domain; core technologies; growth,

and profitability”

Market Analysis

Enterprise Vision

Statement

Enterprise Mission

Statement


Statement




Resourcing


“What specific attributes do you want your customers to feel at each and every customer interaction?”

Market Analysis

Enterprise Vision

Statement

Enterprise Mission

Statement


Statement




Resourcing


“Business trends, external opportunities, internal resources, competitive intelligence and core competency

assessments”

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Market Analysis

Enterprise Vision

Statement

Enterprise Mission

Statement


Statement




Resourcing


“Low-cost leadership, product differentiation, best-cost provider, customer intimacy?”

Market Analysis

Enterprise Vision

Statement

Enterprise Mission

Statement


Statement




Resourcing


“StratEx”

Market Analysis

Enterprise Vision

Statement

Enterprise Mission

Statement


Statement




Resourcing

The Strategy Planning Cycle Where Should Finance Play in Strategy Execution?

Asset Management

Growth Indices

Risk Assessment

and ManagementTax

Optimization

Economic Value Added

Financing Decisions

Cash Flow

Management

Profitability Ratios

Capital Structures

Performance Management

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Strategic Objectives

Consistent Execution

Help The Organization in Crossing The Chasm

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�The primary cause for leadership failure is difficulty with execution.

The two most critical success factors are:

1. Clear understanding or alignment to specific strategic objectives

2. Follow-up to make sure actions stay aligned to objectives�

It’s a Serious Problem

Without compulsive follow-up linked to original intent, organizational actions tends to flow along the… Without constant re-

verification, people and organizations begin to lose perspective

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And they gradually drift off course as each day’s small deviations go unnoticed due to the

pace and turbulence of daily events

And, knowledge is

fragile.

Over time people only remember a fragment of

what was originally

discussed…

Right around then…they tell their co-workers and then through the telling, re-telling through conversation and email, the “drift” accelerates.

We need more: EvidenceFactsTranscripts

He used that same excuse (er…explanation) at last month’s performance review meeting

I wonder if anyone will remember

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Too often, people who get good at telling “stories” move up…their “strong communication skills” used for avoiding

accountability and political maneuvering

We need to bring the discipline of FP&A to the daily operational performance of

the rest of the organization

“This is a big rock”

So…let’s break this down

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85% of Leadership Teams spend less than 1 hour per month discussing strategy90% of the workforce doesn’t understand the strategy70% of organizations don’t link management incentives to strategy60% of organizations don’t link budgets to strategy

42

The Typical Approach

Vision and MissionWhere We’re Heading

Let’s Go Do SomethingWe’re Doers

How Did We Do? Other Than Finance - Lagging Annual Metrics

How Much Money Do I Have? Everybody gets 3.5% Over Last Year

What would you rather do?

Work on a long-term strategic objective or go fight some fires? We need a tool

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In the end, executives, managers, teams and individual employeesneed to continuously know the answer to one question:

�How am I/we doing on what is important?�

Your Dashboard/Scorecard provide this answer.

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Balanced ObjectivesFinancial, Customer, Process and People

Strategies Top-Level Game Plan to Achieve Our Objectives

Measures How We Know We’re Successful Executing Our Strategies

Monthly TargetsMore Frequent Targets to Create a Visible Improvement Trajectory

Assigned Measure Accountability Responsibility for Improvement Owned by Specific Individuals

All Initiatives Directly Linked to Specific Measures Initiative business cases will show forecasted impact to specific measures

ValuesWhat We Believe In

Strengthen Your Scorecard FrameworkVision and Mission

Where We’re HeadingThe Attention Span Problem

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Initiatives

Balanced Strategies

Financial

Customer

Process

People

Financial Strategies

MeasureMeasure Definition

Owner Freq TargetCurrentActual

ResultsLast

Actual

Customer Strategies



ResultsLast

Actual

Process Strategies



ResultsLast

Actual

PeopleStrategies



ResultsLast

Actual

Customer Strategies



ResultsLast

Actual

Customer Strategies

• The Strategies are broad descriptions of what we would like to accomplish within the next 1-3 years.

• Strategies typically don’t change annually.• Strategies should address internal and external market challenges, essential

program components, desired customer behaviors, specific customer experience as well as process performance of enabling customer processes.

Example Strategy Statements:

C1 Improve Price, Value and Delivery Proposition

C2 Deliver Innovation and Industry Best Practices

C4 Provide Strategic

Expertise

C3 Deliver Sustainable Results and Superior Customer Service

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Customer Strategies



ResultsLast

Actual

Measures

• Measures define how we will know how achievement of the Strategy isdetermined.

• Measures bring definition to a broad Strategy.• Measures should be both leading and lagging indicators of progress. Leading

measures are significantly more helpful.• Leading measures are significantly more helpful.• Determining the critical few is difficult but, if done carefully, provides enormous

alignment.

Example Measures:C1 Improve Price, Value and Delivery Proposition

C2 Deliver Innovation and Industry Best Practices

C4 Provide Strategic

Expertise

C3 Deliver Sustainable Results and Superior Customer Service

Measurement is a Mess

�In the real world, an organization’s measurement systems typically deliver a blizzard of nearly meaningless data that quantifies practically everything in sight, no matter how unimportant; that is so voluminous as to be unusable; that is delivered so late as to be virtually useless.”

�We use two percent of what we measure. The rest is CYA…”

- Michael Hammer

Issues with Performance Measurements

• Too many measures prevent focus and poor alignment• We measure the wrong things• We don’t define common measures the same way• Precision and quantity masquerade as a poor substitute for

substance

• Most measures are after-the-fact outcomes (lagging indicators)• Major emphasis is on financial measures

However, Good Measures Are Incredibly Valuable

• Need a combination of balanced (financial and non-financial)leading and lagging measures

• Selection of the critical few is difficult, but extremely importantto maintaining focus on overall strategy

• Good measures monitor and communicate progress againststrategies

• Assignment of measurement owners creates accountability

• Creates strategic focus at management meetings

Customer Strategies



ResultsLast

Actual

Measure Definition

• Measure Definitions are used to provide EXACT description of what is being measured.

• Absent a Measure Definition, team members will get confused over exactly ismeasured, what is included, what is excluded, etc.

C1b % Onboarding

Satisfaction

Measure

C1b % Onboarding Satisfaction of New

Residential Customers in the Southeastern Division

Measure Definition

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Customer Strategies



ResultsLast

Actual

Measure Owner

• The Measure Owner is responsible for reporting on the progress towardsachievement of the Measure.

• The Measure Owner may or may not have complete “reporting structureauthority” for Measure achievement.

• The Measure Owner must come prepared to explain past performance andwhat corrective actions are planned to bring a Measure back into an acceptable performance parameters.

• Each Measure must be owned singularly. No committee or joint ownership.• Measure Owners may have a data reporter who gathers Measure information

and inputs Measure performance into the Scorecard.

Customer Strategies



ResultsLast

Actual

Reporting Frequency

• Reporting Frequency is simply the descriptor of when the Measure should bediscussed (M, Q, S, A).

• Most helpful frequency is Monthly. For example, Quarterly measures give only 3 opportunities for course correction. Semi-Annual and Annual measuresare interesting from a tracking perspective but are difficult to track movement until it is too late to respond.

• For those of you paying attention: The downside of monthly reporting is thetransparency provided to the organization when no progress is being made.No place to hide.

Customer Strategies



ResultsLast

Actual

Performance Target

• The Performance Target is the expected performance within the Frequencyperiod described. So, then, the Target may be your monthly Target or Quarterly Target.

• The Target can (and likely will be) variable throughout the course of the year.• The Target can be time specific, rolling averages, bounded or cumulative

totals depending upon which indicator is of most help from a strategic management perspective.

• It may be desirable to add a column describing the range of acceptableperformance.

Example Performance Target Ranges: >80 = Green75-80 = Yellow

<75 = Red

Performance Range

Customer Strategies



ResultsLast

Actual

Current Actuals

• Current Actuals are the most current results. So, for example, the Current Actual may be last Quarter’s results if we are in the midst of the next Quarterand are not in a position to report completed Quarter results.

• Important Note: The substance of Scorecard discussion should NOT be understanding the “why” of the Current Actual performance. The discussion should be led by the Measure Owner to understand what corrective actions are underway to mitigate any performance issues.

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Customer Strategies



ResultsLast

Actual

Performance Results

• Performance Results can be quickly determined by assigning a color (Green,

Yellow or Red) to results.• These color indicators should prioritize Measure performance discussions.

Discuss Red first, Yellow second and Green results if there is time available.• The Performance Ranges discussed under the Target setting column

determine the color assignment.

• Important Note: It is important that the Red and Yellow designations are not perceived as negative. Red simply means it needs immediate discussion

among senior leaders. A Yellow indicator may mean that performance is of some concern but may be immediately rectified due to specific circumstances.

• If Targets are set so low that not indicator every goes Yellow or Red, it is likely

that the organization will not reach stretch goals or ambitious targets. Strategic Initiatives and Execution

A Couple of Concerns: An Initiative With No Strategic Purpose

Initi

ativ

e A

Initi

ativ

e B

Initi

ativ

e C

Initi

ativ

e D

Initi

ativ

e E

Initi

ativ

e F

Initi

ativ

e G

Initi

ativ

e H

Customer Measure #1

Customer Measure #2

Customer Measure #3

Customer Measure #4

Customer Measure #5

Customer Measure #6

Customer Measure #7

Customer Measure #8

Customer Measure #9

A Couple of Concerns: A Measure With No Effort Being Applied

Initi

ativ

e A

Initi

ativ

e B

Initi

ativ

e C

Initi

ativ

e D

Initi

ativ

e E

Initi

ativ

e F

Initi

ativ

e G

Initi

ativ

e H

Customer Measure #1

Customer Measure #2

Customer Measure #3

Customer Measure #4

Customer Measure #5

Customer Measure #6

Customer Measure #7

Customer Measure #8

Customer Measure #9

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A Couple of Concerns: All Eggs in One Basket

Initi

ativ

e A

Initi

ativ

e B

Initi

ativ

e C

Initi

ativ

e D

Initi

ativ

e E

Initi

ativ

e F

Initi

ativ

e G

Initi

ativ

e H

Customer Measure #1

Customer Measure #2

Customer Measure #3

Customer Measure #4

Customer Measure #5

Customer Measure #6

Customer Measure #7

Customer Measure #8

Customer Measure #9

A Couple of Thoughts

…your capacity to move others is greater than you likely imagine…

How do you spend your time?

Conversations Desk Work Thinking

______% ______% ______%89 10 1

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Everyone who talks to another person is a public speaker.You are continually in the

public eye, educating -- all the time

How many of you are public speakers?

How many of you are private speakers?

By show of hands….

Please, help sell better strategic execution!

LIVE

Thank you!Don’t Forget to Connect

Documents

Elevating Teams in Strategy Execution€¦ · Strategy Execution Management Budgeting and Strategy Resourcing The Strategy Planning Cycle Where Should Finance Play in Strategy Execution?