4x4 Methodology for Startegic Execution: workshop preview
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Transcript of 4x4 Methodology for Startegic Execution: workshop preview
PERSPECTIVES DISCIPLINES
STRATEGY EXECUTION
Execution Gap Turning Goals into Actions
THE BALANCED SCORECARD
Translating Strategy Into Action
For more info: http://www.surveymonkey.com/s/Scorecard2013
1. Why strategic planning? 2. Communicating strategy 3. The Balanced Scorecard 4. The 4 Disciplines of
Execution
Agenda
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“If you don’t know where you are going, you may not like it when you get there.”
Mark Twain
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• A
• B
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Why Strategic Planning?
§ To get from A to B in the most effective and efficient way possible.
§ Must Win Battles in order to win the War. § To remain sustainable and competitive.
For more info: http://www.surveymonkey.com/s/Scorecard2013
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Levels of Strategic Planning
Vision
Mission, Values
Long-term Strategic Objectives
Annual Organization wide Goals (Measures, Targets)
Department Goals
Individual Goals/Actions For more info: http://www.surveymonkey.com/s/Scorecard2013
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THE BLIND MEN AND THE ELEPHANT by John Godfrey Saxe (1816-1887)
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• You can’t manage something that you can’t describe!
• There is no generally accepted way to describe a business strategy
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• without a common language
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Development plan § Quisque augue felis, commodo a, elementum id, faucibus id, sem. Aenean rutrum enim. Praesent pulvinar dignissim nisl. Cras a nunc. Donec tincidunt odio sit
amet lacus. Pellentesque metus tortor, ullamcorper vitae, lobortis vel, euismod in, mi. Ut laoreet, tellus laoreet blandit mollis, massa purus posuere purus, quis molestie ligula massa eu metus. Duis placerat, nulla sit amet ornare interdum, neque nunc mollis leo, vitae porttitor mi orci sit amet neque. Donec at enim. In facilisis tellus gravida ligula. Phasellus ut lorem. Pellentesque ac tortor eget augue suscipit ullamcorper. Aenean eleifend porta orci.
§ Etiam at arcu. Vestibulum lacinia nunc in eros. Suspendisse potenti. Aliquam erat volutpat. Donec gravida. Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Maecenas vel enim et metus semper fringilla. Donec ornare arcu. Maecenas faucibus ligula convallis nibh. Mauris dui quam, congue eu, commodo nec, tristique in, enim. Nulla auctor semper urna. Quisque a elit eu purus iaculis vestibulum. Aliquam dictum risus at odio. Fusce at lorem et elit faucibus placerat. Aenean velit. Proin elit odio, blandit et, scelerisque quis, pulvinar a, dui. Nunc magna dolor, bibendum ut, accumsan congue, tincidunt sit amet, neque. Proin consequat tincidunt lacus. In urna dui, congue nec, tincidunt sit amet, facilisis imperdiet, lorem.
§ Morbi sed nibh. Vivamus vitae dolor. Ut bibendum volutpat mi. Pellentesque quis magna non lectus elementum pretium. Aliquam quis est vitae arcu consequat fringilla. Cras magna risus, placerat eget, egestas consectetuer, ornare vel, felis. Nam ornare justo id orci mattis ultricies. Morbi luctus. Ut pretium odio ac libero. Nunc sollicitudin pharetra lorem. Aenean scelerisque, lacus eget ullamcorper scelerisque, ipsum urna viverra mi, eget viverra quam eros eget velit. Ut lacinia feugiat purus. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Etiam nunc nisl, aliquam blandit, luctus id, commodo laoreet, sem. Phasellus sit amet orci ut sapien vulputate pellentesque. Pellentesque dapibus purus et quam. Nam sit amet magna in neque dignissim sodales. Aenean non justo nec magna lobortis volutpat.
• Strategy
• Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Cras in tortor. Sed posuere erat. Maecenas pulvinar nulla eu magna. Vivamus semper, risus ut egestas pulvinar, lectus ante feugiat quam, sit amet congue odio lacus ac ipsum. Aliquam suscipit, est ut volutpat vulputate, nulla felis
pulvinar libero, non ornare libero ipsum tristique tortor. Fusce sed lorem vitae justo feugiat malesuada. Donec aliquet. Vivamus semper eros nec diam. Vivamus sem arcu, imperdiet nec, congue ac, scelerisque vel, nulla. Donec et mauris. Integer a nulla vulputate pede consequat euismod. Praesent molestie urna nec leo. Proin eros. Maecenas ac sem nec dui sodales tempus. Maecenas suscipit egestas velit. Suspendisse vel tortor. Proin imperdiet, sem nec aliquet ultrices, nunc est egestas eros, non hendrerit magna eros eget augue. Maecenas sed leo vitae leo faucibus
vulputate. Proin dignissim eros at augue.
• Nam luctus nulla non nibh. Nam at lorem ac mauris laoreet viverra. In placerat consequat nunc. Donec rhoncus nunc ac urna. Integer vestibulum condimentum orci. Fusce velit turpis, malesuada quis, scelerisque ut, eleifend vitae, ipsum. Vestibulum eu erat. Vestibulum justo nisl, tincidunt et, semper vel, tristique quis, eros. Vestibulum tempus, massa vel consectetuer congue, erat magna consequat purus, a facilisis orci nibh vitae purus.
Nam tincidunt venenatis ligula. Nunc orci nulla, ornare quis, lobortis viverra, dapibus at, turpis. Suspendisse sit amet nisl at enim tincidunt blandit. Curabitur augue est, suscipit sed, egestas sit amet, vehicula vitae, tellus. Maecenas nec metus vel nisi interdum pellentesque.
• Words
• Text
• Text • Text • 18% • 300%
• 12%
• 1%
• through inappropriate means
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• with outdated methods
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“The formulation of great strategies is an art, and it will always remain so.
But the description of strategy should not be an art. If people can describe strategy in a more disciplined way, they will increase the likelihood of its successful implementation.”
Kaplan & Norton
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What is a Balanced Scorecard?
• A Measurement
System? • A Management
System? • A
Communication Tool? For more info:
http://www.surveymonkey.com/s/Scorecard2013
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Components of a Balanced Scorecard
• • Strategic Objectives • Measures • Targets • Initiatives
• Lea
rnin
g • In
tern
al • C
usto
mer
• Fin
anci
al • F1 - Improve Returns • F2 - Broaden Revenue Mix • F3 - Reduce Cost Structure
C1 - Increase Customer Satisfaction With Our Products & People
C2 - Increase Satisfaction “After the Sale”
I1 -Understand Our Customers I2 -Create Innovative Products I3 -Cross-Sell Products
I4 -Shift Customers to Cost-Effective Channels
I5 -Minimize Operational Problems I6 -Responsive Service
• L1 - Develop Strategic Skills • L2 - Provide Strategic Info • L3 - Align Personal Goals
Return on Investment Revenue Growth Deposit Service Cost
Change
Share of Segment Customer Retention
New Product Revenue Cross-Sell Ratio Channel Mix Change Service Error Rate Request Fulfillment
Time
Skills Coverage
Employee Satisfaction
Revenue per Employee
15% +10% -5%
20% 95%
10% 9%
TBD <1%
<2 days
100% 80%
Finance 2000 Global Re-
Engineers
Sales & marketing Reorganization & Training
QFD Project Customer Database
Global Service Training Program
HRMS Knowledge
Management System
• THEME • THEME
• Strategy Map • Scorecard
• Financial
• Perspective
• Customer
• Perspective
• Internal
• Perspective
• Learning Perspective
For more info: http://www.surveymonkey.com/s/Scorecard2013
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• Financial / Mission Success
• To Build the Strategic Capabilities..
• Needed to Deliver Unique Sets of Benefits to Customers...
• To Drive Financial/Mission Success...
• And Realize the Vision
• Equip our People...
• Internal Capabilities
• Customer Benefits
“Balanced”…Reflecting a “Natural Cause & Effect Logic” of Performance
• People: Knowledge, Skills, Systems, and Tools
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� 16
Balanced Scorecard
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� 17
RESULTS =
X STRATEGY EXECUTION
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Need Both
§ Vision without ac-on is merely a dream. § Ac-on without vision just passes the -me. § Vision with ac-on can change the world. § ~ Joel A. Barker
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What Leaders Do
Execution Gap Turning Goals into Actions
STRATEGY EXECUTION
Ram Charan said:
70% of strategic failures are due to poor execution
of leaders. “Why CEOs Fail” Fortune June 21, 1999
It’s rarely for lack of smarts
or vision.”
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The Challenge: Ability to Execute
• “Leadership without the discipline of execution is
incomplete and ineffective. Without the ability to execute
all other attributes of leadership become hollow”
• Larry Bossidy Chairman, Honeywell International For more info:
http://www.surveymonkey.com/s/Scorecard2013
� 21
Charan & Bossidy on Execution
“Leaders who execute focus on a very few clear priorities that everyone can grasp.”
—Execution: The Discipline of Getting Things Done
• 21
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� 22
General Electric - The Power of Focus
§ 45+ business units § $25.5 billion revenue
• 1980
• 1981 • Jack Welch (CEO) announces that GE will leave any business line where they cannot hold the leadership position or a very close 2nd place
• 2000 • 12 business units
• $129.8 billion revenue
• 40-fold increase in stock price
• Outperformed S&P 500 by more than three times over the two decades
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• Discipline 1
• 3 WIGs • 2 WIGs • 3 WIGs
• Division A • Division B • Division C
• 2 WIGs • 3 WIGs • 3 WIGs
Create Goals with Line-of-Sight
• WIG 1 • WIG 2 • WIG 2
• Organizational Level WIGs
• Unit 2 • Unit 1 • Unit 3 For more info: http://www.surveymonkey.com/s/Scorecard2013
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• Lagging • provide an historical look at past performance.
• Leading • provide indicators that are predictive of future results.
• Real-Time • show where things are right now.
• They allow corrective action to be taken immediately to affect the outcome.
• 23
• Must drive the lag measures
• Should be sensitive enough to move every week
• Behavioral, not “quick lag” measures
Three Types of Measures
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� 25
Scoreboard
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� 26 • © 2011 Narejo Human Resources
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� 27 • 47
• “Follow-through is the cornerstone of execution, and every leader who’s good at executing follows through
religiously.
• Following through ensures that people are doing the
things they committed to do.” Larry Bossidy,
Execution: The Discipline of Getting Things Done
Hold Each Other Accountable
For more info: http://www.surveymonkey.com/s/Scorecard2013