webinar - strategy: dont just plan...execute!
DESCRIPTION
Strategy Snapshot Webinar - Session 1.Discussion on focus for speeding up the strategy planning process with emphasis on continuous management and execution.TRANSCRIPT
Strategy: Don’t Just Plan…EXECUTE!
Are you Bridging Your Strategy Execution Gap?
discover • plan • execute • succeed
Strategy: Don’t Just Plan…EXECUTE!
Are you executing your strategy?
discover • plan • execute • succeed
Are You Executing Your Strategy?
"82% of Fortune 500 CEO's feel their
organization did an effective job of strategic
planning. Only 14% of the same CEO's indicated
that their organization did an effective job of
implementing the strategy.“
discover • plan • execute • succeed
implementing the strategy.“
Are You Executing Your Strategy?
“62% of more than 1,500 executives describe
their organizations as mediocre – or worse – at
strategy execution”
discover • plan • execute • succeed
Are You Executing Your Strategy?
"90% of organizations fail to execute their
strategies successfully."
“95% of a typical workforce doesn't
discover • plan • execute • succeed
“95% of a typical workforce doesn't
understand its organization's strategy"
Poll Question
Our business strategy is integrated throughout the organization, not just with the executive team.
discover • plan • execute • succeed
Its About Execution
Top CEO Concerns
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What It Means
Make It Happen vs. Let It Happen
discover • plan • execute • succeed
It’s About Execution!
Traditional Strategic Planning is DEAD!
R.I.P.
TRADITIONAL
STRATEGIC
PLANNING
• You can’t plan 3 – 5 years into the future
• Strategy is not just role of Executive Team
discover • plan • execute • succeed
PLANNINGTeam
• Most companies can create a strategy in 3 days that is 90% as good as one it might create in 90 days
Traditional Strategic Planning
Strategic Analysis &
Prioritization
CEO Communication to
BSC / Strategy Maps
discover • plan • execute • succeed
Source: Alignment, Kaplan, Norton
CEO Communication to
Management Team
Source: Alignment, Kaplan & Norton
Integrate Strategic Planning into Organization
• Strategy Review
• Environmental Assessment
discover • plan • execute • succeed
• Strategy Formulation
• Strategy Management
The Strategy-Execution Gap
High
Ali
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The Strategy Execution Gap is the variance between management's strategic plans and the organization's actual execution or implementation of those plans.
discover • plan • execute • succeed
Medium
Low
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Strategy Execution• Vision• Strategies• Activities
• Alignment• Measurement• Accountability
• Knowledge• Strategic Change• Ability to Execute
Gap
Strategy Execution
Gap
Strategy Execution Gap
• Business is constantly changing– Competitive Landscape– New Information & technologies– Changing Worker Habits/Needs
• Companies must adapt and drive
discover • plan • execute • succeed
• Companies must adapt and drive
• How much do you consider your internal and external environment when formulating strategy?
External Forces
discover • plan • execute • succeed
Did You Know?
• Top 10 in-demand Jobs in 2010 did not exist in 2004
• US Department of Labor estimates today’s learner
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estimates today’s learner will have 10-14 jobs by age 38
• 1-4 employees have been with their current employer for less than a year
Years to Reach Market Audience of 50 Million
Radio - 38 Years
TV - 13 Years
discover • plan • execute • succeed
Internet - 4 Years
iPod - 3 Years
Facebook - 2 Years
Did You Know?
• Amount of new technical information is doubling every 2 years
discover • plan • execute • succeed
Did You Know?
discover • plan • execute • succeed
Poll Question
How concerned are you about the speed of change and its effect on your business environment?
discover • plan • execute • succeed
Does Your Organization Have a Pulse?
• How in-tuned is your organization to these forces?
• Is IT Keeping up?
discover • plan • execute • succeed
• How prepared is HR?
• What about other business functions?
• What about the Management Team?
Changes in Fortune 1000 Top 20
1993 – 2003
2003 - 201360%
?Are You Built To
Change?
discover • plan • execute • succeed
Source: Built to Change, Lawler, Worley, 2006
1973 - 1983
1983 - 1993
1993 – 2003
35%
45%
Execute or Die
discover • plan • execute • succeed
Vs.
Executing and Dictating Outcomes
discover • plan • execute • succeed
Are You Bridging Your Strategy Execution Gap?
• Will you be in business in 1 – 3 years?
• How will your business change?
discover • plan • execute • succeed
• How will your business change?
• Do you have a strategy?
• Are you executing?
Is Your Organization Able to Execute?
• Do you have the strategic assets to execute?– Financial Capital– Human Capital– Information Capital
• Are your business processes converting your strategic
discover • plan • execute • succeed
• Are your business processes converting your strategic assets into customer/shareholder value?
• How relevant, timely and accurate is your information?
• When was the last capability assessment performed in your organization?
Strategic Alignment
Strategic Alignment is the coordinated deployment of strategic assets (human, financial, & information capital) to achieve corporate strategies and is the foundation of strategy execution.
Strategy Execution
discover • plan • execute • succeed
Financial
Human
Information
Alignment – Horizontal & Vertical
• Horizontal Alignment breaks down silos across functions
Without With
Organizational Units fail to coordinate, have conflicting goals and priorities, and often compete for resources, resulting in poor strategy execution.
discover • plan • execute • succeed
across functions
• Vertical Alignment keeps every level of organization focused on corporate strategies
Poll Question
How would you characterize the alignment of your organization?
discover • plan • execute • succeed
Complexity Handicaps Execution
• Simplify the management of strategy
• Streamline decision making
• Must compress strategy cycle time
discover • plan • execute • succeed
• Must compress strategy cycle time
• Measure deployment of strategic assets
• Common Terminology & Communication
Business Simplicity
Vision
Strategies
Mission
Balanced Scorecard
Porter’s Five Forces
SWOT Analysis
Business Strategy
Corporate Strategy
Value Chain
discover • plan • execute • succeed
Activities
Competitive Advantage
Grand StrategyStrategy Portfolio
Strategy Maps
Goals ValuesSeven ‘S’ Framework
Strategic Planning
Vision
• How do you want to be perceived by customers?
• What do you seek to create as a company?
discover • plan • execute • succeed
• Vision serves as north star to guide the company
Strategies
• Strategy is the course we chart, the journey we imagine, and at the same time, it is the course we steer, and the trip we actually make
discover • plan • execute • succeed
• Strategies are the overall themes of activities we engage in to achieve our vision
• Strategic initiatives are defined to support the strategies of the organization
Activities
• What we engage in on a daily basis as an organization, department, individuals that support the implementation of strategic initiatives and overall corporate strategies
discover • plan • execute • succeed
initiatives and overall corporate strategies
• Activities link your human, financial, and information capital (Strategic Assets) to your strategies and vision
Poll Question
We have a dynamic strategic management process that facilitates flexibility, adaptability, and execution.
discover • plan • execute • succeed
Strategy Learning Cycle
Quality and Velocity
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Strategic Management Systems
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Traditional Strategic Planning
Do you have time for
protracted strategy cycles?BSC / Strategy Maps
discover • plan • execute • succeed
Source: Alignment, Kaplan, Norton
Source: Alignment, Kaplan & Norton
BSC Strategy Map – Confusing?
Internal Processes
Internal Customer
Financial Performance
Attract , Develop, & Retain Talent
• Develop leadership pipeline
Drive Organizational Performance• Align individual performance objectives to
business outcomes
Transform HR into Strategic Asset
• Understand & anticipate business needs
Enhance Organizational Capability
Get the right people in the right place at the
right time
Be knowledgeable & trusted advisor
Provide competitive
rewards
Support achievement of business objectives
Provide opportunity to advance career
Sr. Executives Managers Employees
Provide operational excellence through efficient HR practices
Enhance effectiveness of HR contributions to business
performance
Promote a global diverse
culture
Strategies
Activities
Vision
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Learning & Growth
Processes
Create Alignment
•Identify HR activities that drive business performance•Link people and processes to organizational strategy•Identify actionable metrics to measure effectiveness•Partner with IT to execute HR technology strategy
•Identify required KSAs, behaviors, values required•Identify strategic job families that deliver results•Define competency model for job families
Create Capability
Information Capital•Global Core HRIS system•Talent Management System•HR data warehouse•Digital HR
Organizational Capital•Know business needs•Strategic identity•Manage change•Align workforce to strategy
Human Capital•Knowledge, skills, abilities & values•Improve business acumen•Develop strategic HR competencies•Enhance and communicate EVP
• Develop leadership pipeline • Attract MDs into R&D• Facilitate movement of talent across org• Manage contingent workforce effectively• Attract & develop employees/leaders
business outcomes• Transform performance management process
into business performance tool• Align/leverage reward system with strategy• Make innovation & customer satisfaction part of
every job
• Understand & anticipate business needs • Consult on talent solutions• Improve HR best-practices awareness• Develop efficient & effective HR processes
aligned to business outcomes• Manage change initiatives effectively
Assets
Simplify Strategic Management
Your VisionVision
Strategies
Activities
Initiatives
discover • plan • execute • succeed
Human Financial InformationAssets
Alignment & Capability
Strategy Execution Lifecycle
VerticalAlignment
StrategicPlanning
HorizontalAlignment
Strategy Formulation
EnvironmentalAnalysis
StrategicAlignment
discover • plan • execute • succeed
StrategicChange
Measurement
Accountability
Empowerment
Strategy Review
StrategyExecution
Simplified Strategic Solutions (S3)
Capability Assessment
Strategy Workshops
BusinessExecution
Framework Strategic Initiative Portfolio
Strategy Risk
Management
Plan2
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Simplified Strategic Solutions
Strategic Alignment
Questionnaire
Alignment Debrief
Strategic Alignment Scorecard
Strategic Change
Discover1 Execute3
Succeed4
Thank You!
The Strategy Snapshot
discover • plan • execute • succeed
Rick [email protected]
Mitch [email protected]
Next Webinar: Tuesday, December 1, 2009