Don t Wimp Out on Your
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1 Don t Wimp Out on Your Strategic Plan Managing for Excellence Track Pat Sciarappa Organizational Development Director Florida Sterling Council Objectives Understand the difference between strategic and operational plans Understand transformational change and the need to prioritize change initiatives Stimulate and incorporate innovation in strategic planning to address key challenges Visualize desired results and determine KPIs to track achievement of plans 2 Sterling Management Model 3
2 Strategic Planning Criteria 2.1 Strategy Development Strategy Development Process Strategic Planning Process Innovation Strategy Considerations Work Systems and Core Competencies Strategic Objectives Key Strategic Objectives Strategic Objective Considerations 2.2 Strategy Implementation Action Plan Development and Deployment Action Plan Development Action Plan Implementation Resource Allocation Workforce Plans Performance Measures Performance Projections Action Plan Modification 4 Martin Luther King, Jr. If you can t fly, then run. If you can t run, then walk. If you can t walk, then crawl, But whatever you do, You have to keep moving forward. 5 Sterling Strategy Basics Vision + Data + Analysis + Stakeholder Input = Planning with SMART Goals + Actions with Aligned Resources + Communication and Measurement = Successful Execution 6
3 SWOT + Sterling Strengths (internal, positive) Opportunities (external, positive) Strength Opportunity strategies Which of the company s strengths can be used to maximize the opportunities you identified? Threats (external, negative) Strength Threat strategies How can you use the company s strengths to minimize the threats you identified? Weaknesses (internal, negative) Weakness Opportunity strategies What action(s) can you take to minimize the company s weaknesses using the opportunities you identified? Weakness Threats strategies How can you minimize the company s weaknesses to avoid the threats you identified? Strengths would include core competencies and strategic advantages. 7 8 Examples 9
4 Round 1 Mind the Basics 10 Strategy A method or plan chosen to bring about a desired future A plan of action designed to achieve a particular goal 11 Strategy Leadership Matrix Good Strate egy CRYING Good Strategy Bad Leadership DENYING OR DYING Bad Strategy Bad Leadership THRIVING Good Strategy Good Leadership TRYING Bad Strategy Good Leadership Bad advisors.com/strategy leadership matrix Leadership Good 12
5 A bad strategy will fail no matter how good your information is and lame execution will stymie a good strategy. If you do enough things poorly, you will go out of business. Bill Gates Too many strategies? 15
6 Identifying Bad Strategy Skipping over problems Choice & focus Conflicting goals Spend more Positive attitude and hard work Pursue unrelated challenges Identifying Good Strategy Good organization = specialization Strategic leverage = insight Pivotal points Concentration 16 Fluff is superficial restatement of the obvious combined with a generous sprinkling of buzzwords. Richard Rumelt 17 Get the Right Mindset No denying problems and challenges No crying and complaining A little bit better is just a little bit better No wishful thinking without coordinated actions and plans 18
7 Strategic vs. Operational Objectives, Measures, Projections Continued Initiatives Category 2 Strategic Action Plans Change Initiatives Strategic Action Plans On going Operations Evaluation & Action Plans for Improvement Examples 21
8 Round 2 Fake Strategies 22 Transformational Change 23 World of Change 24
9 2016 CEO Challenges Rank Challenge 2015 Rank 1 Human Capital Hot Buttons: Failure to attract & retain 1 talent and Developing Next Gen Leaders 2 Operational Excellence 2 3 Customer Relationships 4 4 Innovation & Digitization 3 5 Risk and Regulation 8 6 Corporate Brand and Reputation 5 Global Expansion Trust in Business Source: The Conference Board s 2016 CEO Challenge Report & Florida Sterling Executive Roundtable 25 Keys to Success 21 st Century s most valuable assets: Openness to new ideas Ingenuity Imagination Fortune.com November 2015 The 21 st Century Corporation
10 Strategic Thinking Do we engage our people as strategic thinkers? Does the issue we are discussing really matter for our organization and our customers? If we go down this track will it likely change any important business results? 28 Strategy is Evolving 29 Salesforce Efficiency Zone Non Core Activities Innovation Zone Your Lab 1 2 things Performance Zone Core Business Transformation Zone 1 2 years will be in Performance Zone McKinsey Podcast, January 2017 with Jacques Pommeraud, Senior Vice President & General Manager of Cloud Services, Salesforce.com 30
11 Round 3 Transform or Perish 31 Stimulate and Incorporate Innovation in Strategic Planning to Address Key Challenges 32 Strategy and Strategic Innovation Identify opportunities through: Big & Small Data Forecasts & Projections Intelligent Risks 33
12 Helps find answers that enable: Cost reductions Time reductions New product/service development Smarter decision making Why Big Data Matters 34 How is Big Data Used? (Public Sector) U.S. Dept. of Agriculture Social Security Administration FDA DOE Homeland Security IBM Center for the Business of Government blog February 25, 2015 unless noted 35 Types of Innovation 36
13 37 38 Forecasts and Projections Forecast Future Environment Detect and reduce competitive threats Shorten reaction time Identify opportunities Need for new core competencies Need for new work systems Projected Performance Understand and track dynamic performance factors with targets based on past performance, bestin class, and benchmarks Results from new product or process innovations, new markets entered, new technologies implemented Rate of improvement and relative to targets and stretch goals (future desired performance) and vs. competitors 39
14 Prioritize opportunities Tie to mission Address key challenges Leverage strengths Check for intelligent risk Check alignment of core competencies and work systems Choose the critical few to turn into SMART goals with the greatest impact 40 Risk: part of life and business Intelligent risk: potential downside is limited, potential upside may be unlimited Analyze Risk 41 Examples 42
15 Round 4 Innovate 43 Visualize Desired Results and Determine KPIs to Track Achievement of Plans 44 Key Performance Indicators KPI's are performance measures that indicate progress toward a desirableoutcome. Strategic KPIs: Monitor the implementation and effectiveness of an organization's strategies Determine the gap between actual and targeted performance Determine organizational effectiveness and operational efficiency 45
16 Developing Effective KPIs What is your desired outcome? Why does this outcome matter? How are you going to measure progress toward this outcome? How will you know you ve achieved your outcome? How often will you review progress toward this outcome? Well formed strategies fail due to poor execution Strategic Planning Success Data based on a blog from The Six Disciplines Organizations do not link strategy to budget Leadership Teams spend less than one hour per month discussing strategy Typical company s employees have access to its strategic plan Middle Managers and 90% of front line employees have compensation not linked to strategy Employees do not understand their organization s strategy Organizations that use a formal process to manage strategy out performed their peers 48
17 Measure, Monitor, and Keep the Plan Alive Stay committed Create a champion for every strategy & action Set milestones and regular updates Challenge assumptions Schedule team huddles every 90 days to keep everyone informed and visibly reward success 49 Round 5 The Winner of the Wimp War is YOU! The winners of your bold efforts will be your company, its customers, and its employees! 50 Sterling Criteria Alignment & Strategy Linkages Customers Potential, Current, Competitor, Segmentation Satisfaction (Dis), Engagement, Complaints Product Offerings Customer Relationships Leadership Mission Vision Values Organizational Governance Communication / Org Performance Ethical & Legal Behavior Societal Responsibility Operations Product & Process Design Innovations Management Process Efficiency / Effectiveness Supply Chain Management Safety / Emergency Preparedness Strategy Strategic Development Strategic Opportunities & Innovation Work Systems & Core Competencies Strategic Objectives Action Plans Measurement, Analysis & Knowledge Management Performance Measurement & Agility Performance Analysis, Review & Improvement Continuous Improvement & Innovation Organizational Knowledge Management / Learning Data, Information, Information Technology Workforce Capability, Capacity, Culture, Climate Change management Workforce / Leader Development Learning & Dev Effectiveness Career Progression Results Product and Process Customer Workforce Leadership & Governance Financial and Market
18 Expected Results Category 1 Leadership Category 2 Strategy Category 3 Customers Category 4 Measurement, Analysis, and Knowledge Management Category 5 Workforce Category 6 Operations 7.4a Leadership and Governance Results (leadership, governance, laws/regulations, ethics, societal) Note: may also include 7.1 thru 7.5 Results 7.4b Strategy implementation results Note: may also include 7.1 thru 7.5 Results 7.2 Customer Focused Results 7.1 thru 7.5 Results 7.3 Workforce Focused Results (capability/capacity, climate, engagement, development) 7.1 Product/Service and Process Results (product/service and process outcomes, work process effectiveness, supply chain management) Note: These may vary depending on the organization Strategy Criteria Changes Strategy considerations are emphasized as elements of managing strategic risk. Questions on work systems are now organized to emphasize the fundamental decisions that lead to decisions on work processes. 53 Resources Ten Types of Innovation: The Discipline of Building Breakthroughs by Larry Keeley Zone to Win: Organizing to Compete in an Age of Disruption by Geoffrey Moore abstract available at and management/zone to win/ functions/digital mckinsey/our insights/discussions on digital howstrategy is evolving and staying the same in the hypergrowth digital age advisors.com/strategy leadership matrix management ebooks.com/subscribe/subscribe.htm types government/five examples how federal agencies use bigdata IBM Center for the Business of Government blog February 25,
19 Fun Parting Thought 55 Closing Did we meet our objectives? Call Sterling for more information about examiners, assessments, and training: Florida Sterling Council 2017 All rights reserved. Materials may not be copied or used in any form outside your organization or for profit without the written consent of the Florida Sterling Council. 56
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