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“From Silos to Alignment” Richard Condit Chief Administrative Officer Association for Strategic Management National Conference San Diego, CA February 22, 2009 One Company’s Journey to Strategic Management

“From Silos to Alignment”

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Page 1: “From Silos to Alignment”

“From Silos to Alignment”Richard Condit

Chief Administrative Officer

Association for Strategic ManagementNational Conference

San Diego, CAFebruary 22, 2009

One Company’s Journey toStrategic Management

Page 2: “From Silos to Alignment”

Then1996

ThenThen19961996

No Shared Vision of theFuture

Silos

No Strategic or TacticalPlanning

No Context for DecisionMaking

Poor FinancialPerformance

Now2009

NowNow20092009

Shared Vision, Missionand BHAG

Alignment

Mature Strategic andTactical Planning Process

Plans Provide the Contextfor Decision Making

Best in Class FinancialPerformance

Page 3: “From Silos to Alignment”

Strategic Planning Systems Model

Input OutputThroughput

“THE SYSTEM”TODAY FUTURE

FEEDBACK LOOP

Feedback

Page 4: “From Silos to Alignment”

Strategic Implementation Systems Model

People

“The Sundt Legacy”

People

“The Sundt Legacy”

Processes

“The Sundt Way”

Processes

“The Sundt Way”

Customer

“The Sundt Experience”

Customer

“The Sundt Experience”

Financial

“180 @ 120”

Financial

“180 @ 120”

Page 5: “From Silos to Alignment”

Strategic Implementation Systems Model

People

• Lead with Talent

People

• Lead with Talent

Business Processes

• Execution

Business Processes

• Execution

Customer

• Build Customer Loyalty

Customer

• Build Customer Loyalty

Financial Management

• Grow Profitability

Financial Management

• Grow Profitability

Page 6: “From Silos to Alignment”

Sundt Planning Cascade

( Alignment)

Vision, Mission, Core Values, BHAG, PlanCore Strategies and Action Items (Bi-annual)

CorporateStrategic Plan

Corporate MarketingPlan (Bi-annual)

Corporate CommitteeTactical Unit Plan (Annual)

Profit/Service Center 3-year Tactical Business

Plan (Annual)

Profit Center MarketingPlan (Annual)

Profit Center MarketSector Mini Plans (Annual)

Strategic Account Plans(Annual)

Page 7: “From Silos to Alignment”
Page 8: “From Silos to Alignment”

BHAG 180 @ 120BHAG 180 @ 120

Page 9: “From Silos to Alignment”

Per Share Stock ValuePer Share Stock Value

Page 10: “From Silos to Alignment”

DividendDividend

Page 11: “From Silos to Alignment”

Change in Shareholder ValueChange in Shareholder Value

Total Growth 649%

64.9% Annual Growth

Page 12: “From Silos to Alignment”

Net IncomeNet Income