elevating teams in strategy execution€¦ · strategy execution management budgeting and strategy...
TRANSCRIPT
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
Customer Experience Intent
Statement
Strategy Formulation
Strategy Execution Management
Budgeting and Strategy
Resourcing
The Strategy Planning Cycle
“Your organization’s values, purpose, and future direction”
Market Analysis
Enterprise Vision
Statement
Enterprise Mission
Statement
Customer Experience Intent
Statement
Strategy Formulation
Strategy Execution Management
Budgeting and Strategy
Resourcing
The Strategy Planning Cycle
“Target customers and markets; main products and services; geographic domain; core technologies; growth,
and profitability”
Market Analysis
Enterprise Vision
Statement
Enterprise Mission
Statement
Customer Experience Intent
Statement
Strategy Formulation
Strategy Execution Management
Budgeting and Strategy
Resourcing
The Strategy Planning Cycle
“What specific attributes do you want your customers to feel at each and every customer interaction?”
Market Analysis
Enterprise Vision
Statement
Enterprise Mission
Statement
Customer Experience Intent
Statement
Strategy Formulation
Strategy Execution Management
Budgeting and Strategy
Resourcing
The Strategy Planning Cycle
“Business trends, external opportunities, internal resources, competitive intelligence and core competency
assessments”
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Market Analysis
Enterprise Vision
Statement
Enterprise Mission
Statement
Customer Experience Intent
Statement
Strategy Formulation
Strategy Execution Management
Budgeting and Strategy
Resourcing
The Strategy Planning Cycle
“Low-cost leadership, product differentiation, best-cost provider, customer intimacy?”
Market Analysis
Enterprise Vision
Statement
Enterprise Mission
Statement
Customer Experience Intent
Statement
Strategy Formulation
Strategy Execution Management
Budgeting and Strategy
Resourcing
The Strategy Planning Cycle
“StratEx”
Market Analysis
Enterprise Vision
Statement
Enterprise Mission
Statement
Customer Experience Intent
Statement
Strategy Formulation
Strategy Execution Management
Budgeting and Strategy
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
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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
MeasureMeasure Definition
Owner Freq TargetCurrentActual
ResultsLast
Actual
Process Strategies
MeasureMeasure Definition
Owner Freq TargetCurrentActual
ResultsLast
Actual
PeopleStrategies
MeasureMeasure Definition
Owner Freq TargetCurrentActual
ResultsLast
Actual
Customer Strategies
MeasureMeasure Definition
Owner Freq TargetCurrentActual
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
MeasureMeasure Definition
Owner Freq TargetCurrentActual
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
MeasureMeasure Definition
Owner Freq TargetCurrentActual
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
MeasureMeasure Definition
Owner Freq TargetCurrentActual
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
MeasureMeasure Definition
Owner Freq TargetCurrentActual
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
MeasureMeasure Definition
Owner Freq TargetCurrentActual
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
MeasureMeasure Definition
Owner Freq TargetCurrentActual
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
MeasureMeasure Definition
Owner Freq TargetCurrentActual
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