Managing What You Measure - TechAdvantage · Henry Cano – NRECA Natl Consulting Group ....

Managing What You Measure

Lessons from the Balanced Performance Scorecard

Feb. 24, 2015 1

Tim Sullivan – Touchstone Energy Tony Thomas – NRECA Business and Technology Solutions

Henry Cano – NRECA Natl Consulting Group

Touchstone Energy Strategy Execution System

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The Balanced Scorecard and Strategy Execution

February, 2015

Today’s Topic


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Are we achieving our mission?

The Balanced Scorecard


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National Scorecard - 2013


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5


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6

Compare Quarterly Performance


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Chart Your Five-Year History


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Set Strategic Goals


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Download and Share as a PDF


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Mobile on any Smart Device!


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How do we achieve improved

performance?

Strategy Management System


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Organization of the Touchstone Energy Strategy Execution System for Distribution Cooperatives

Overall Strategy Execution System

Customized Best Processes

Process Summary

Key Activities for the Process

Templates or Best Practices

Final Deliverable Examples


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Strategy Execution System Website


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2. TRANSLATE THE STRATEGY 2.1 Design Strategy Map with

Linked Strategic Objectives 2.2 Define Strategic Measures

and Stretch Targets 2.3 Prioritize Strategic Initiatives

and Funding 2.4 Build the Balanced Scorecard 2.5 Assign Accountabilities for

Strategy Execution

1. DEVELOP THE STRATEGY 1.1 Drive the Strategy Execution

Agenda 1.2 Sustain Strategy Execution 1.3 Affirm Purpose, Mission ,

Values, and Vision 1.4 Perform Strategic Analysis 1.5 Formulate Strategy 1.6 Define Value Gap and

Enhance the Vision

3. ALIGN THE ORGANIZATION 3.1 Strategy Communications &

Alignment 3.2 Align Individual Goals 3.3 Align Compensation

4. LINK TO OPERATIONS 4.1 Use Models to Set Priorities &

Operationalize the Strategy 4.2 Integrate Financial Planning

with the Strategy 4.3 Create Operational Dashboards 4.4 Information Strategy and Plan

5. MONITOR AND LEARN 5.1 Conduct Strategy Review

Meetings 5.2 Manage Initiatives

6. TEST AND ADAPT 6.1 Annual Leadership Retreat

Strategy Execution System for

Touchstone Energy Cooperatives

Initiatives

Processes

Execute

* Palladium’s Complete Strategy Execution System is depicted in the Appendix

For each stage, best practices are customized and detailed for Touchstone Energy distribution cooperatives


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Stage: 2.0 Translate the Strategy

1. Translate the strategy into specifics to make it actionable and plausible to achieve expected results.

2. Identify the 3-4 strategic themes that bring focus to strategic actions.

3. Identify strategic objectives associated with each strategic theme and identify the cause-effect relationship key to driving and achieving results.

4. Develop a shared view among the Executive Staff on strategic themes and objectives, increase understanding, alignment and commitment to executing the strategy.

1. The strategy is translated into specifics that bring focus to decisions and actions that will drive strategic results.

2. Strategic themes and objectives bring clarity to the actions that must be taken to achieve the vision and realize strategic outcomes.

3. The executive team is aligned and committed to executing the strategy.

The Strategy Map provides the architecture for integrating all of the output from the strategy formulation processes completed in Stage 1. The Strategy Map describes the process of value creation through a series of cause-and-effect links among objectives across the four Balanced Scorecard (BSC) perspectives: Financial, Member, Internal Process, People & Culture. The person(s) responsible for strategy management/Strategic Management Role works with the Executive Staff and Board of Directors to identify the key strategic themes and objectives that must be accomplished to realize the value described in the vision statement. Each strategic theme should be associated with a resulting financial impact or mission outcome that contributes to closing the overall value gap.

Description:

Process Owner:

Key Stakeholder(s):

The primary owner is the person(s) responsible for the Strategy Management function

Executive staff and Board of Directors participate with full support from the CEO

Process: 2.1 Design Strategy Map with Linked Strategic Objectives

Objectives: Outcomes:


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Honesty Integrity Community Involvement Commitment to Safety & Environment Stewardship

Innovation Exceptional Member Service Respect & Appreciation for Employees Commitment to Community & Cooperative Principles

P2. Be the Preferred Employer

Culture/Talent/Performance

P1. Establish a “Member-Focused” Culture

P4. Communicate expectations, hold ourselves accountable and

celebrate achievements

P3. Innovate Technologies Fact-Base/Functional/Efficient

M1. Keep Member’s Bills Low

M2. Provide Great Service through Efficiency

M4. Participate and have an active commitment to our

community

M3. Provide Great Service through Extraordinary Care

R3. Increase my value proposition R2. Manage Wholesale Power R1. Reduce Operating Costs

We will enable our Employees

Ensuring stewardship of financial

strength

That provide a uniquely satisfying member

experience

To successfully deliver the Strategic

Processes

Fina

ncia

l M

embe

rs

Inte

rnal

Pro

cess

es

Peop

le &

C

ultu

re

Val

ues

COMMUNITY COMMITMENT

E12. Generate Member

Engagement Opportunities

E14. Provide effective member

legislative involvement

E13. Create positive

community and social impacts

E15. Complete community

projects on time and on budget

E1. Explore products and services that

enhance member convenience

E5. Provide Communication and

Education programs to the membership

MEMBER ENGAGEMENT

E3. Enhance the quality of life with member services

E4. Be a highly accessible, long-

term trusted partner

E10. Respond quickly and

efficient y to outages

E7. Reduce Outage Time

E6. Establish best-in-class

safety process and culture

E9. Optimize processes and the

use of assets

OPERATIONAL EXCELLENCE

E8. Identify and disseminate best

practices

E11. Effectively manage internal

costs

Mission: The cooperative’s mission is to provide safe, reliable and affordable electricity to its members Vision: To benefit our member-owners by providing reliable electric and energy services—delivered efficiently and with extraordinary member care within 3 years

Purpose: To be a top performing cooperative in our state and region

E2. Achieve high member

satisfaction scores


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Co-op Excellence in Strategy

Execution


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Customized Assessment Results


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Strategy Execution Plans for 2015

• Hold Four Master Classes (one each quarter)

• Hold Four 90-minute Webex Coaching Sessions with Palladium Consultants

• Update and completely customize the Master Class curriculum to include all co-op examples and TSE-owned material

• Hold one Strategy Execution Refresher Course for Alumni


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Questions?

Thank You!

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