Strategic Agility: Navigating Your Organization Through Turbulent Times. LBL Strategies, All Rights Reserved.
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1 Strategic Agility: Navigating Your Organization Through Turbulent Times 1
2 Randall Rollinson Co-Founder & President, LBL Strategies Senior Associate, Strategy Management Group 35+ years experience as an international educator, trainer, counselor, facilitator, author, software developer, social entrepreneur and consultant. Co-Author, Strategy in the 21st Century: A Practical Strategic Management Process. Lead Instructor, Strategy Management Performance System Certification program - Offered in conjunction with George Washington University College of Professional Studies Co-Founder, President, Chicago Chapter, Association for Strategic Planning. Contributor to the growth of the Association for Strategic Planning and the certification program since its inception. ASP Registered Education Provider ASP Conference Co-Chair - Bridging the Strategic Execution Gap Bachelors degree in Psychology and Master degrees in Rehabilitation Counseling Southern Illinois University / MBA in Management, DePaul University 2
3 Strategy Management Competencies Our Perspective on Managing Strategic Performance in Turbulent Times Navigating turbulent times requires specific rhythms and capabilities Manage Strategic Performance Strategy Management Competencies Foremost is an ability to rapidly adapt to changing circumstances (Strategic Agility) 3
4 An organization s ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage. -Jack Welch Everyone has a plan... until they get punched in the face! -Mike Tyson It's how we react to that adversity that defines us, not the adversity itself.
5 Agile Fundamentals Organization s must be able to adapt at a pace that matches their urgency and need for change. 5+ years (slow) 3-5 years (medium) 1-3 years (fast) Achieving Strategic Agility is both seductive and elusive. The pathway to achieving Strategic Agility depends on one s unique circumstances. Where you stand (on agility) depends on where you sit. (Nelson Mandela, George Schultz, Truman-era diplomat) Strategic Agility challenges all levels of leadership to evolve their thinking and behavior. Strategic Agility requires excellence in 10 team competencies. 5
6 10 Team Competencies to Achieve Strategic Agility Strategic Thinking Culture and Values External Analysis Core Competency Strategic Direction Strategy & Objective Setting Performance Measures Selecting and Prioritizing Initiatives Execution and Alignment Team Work and Team Building Can think strategically and understand how to lead their team to become strategy focused Can identify, articulate, and develop a core set of shared values Can convert external scan information into strategic intelligence Can identify and develop core organizational competencies and capabilities Can focus on a clear purpose and desired future state Can identify, evaluate, and select goals, strategies and objectives Can practice a disciplined approach to selecting performance measures and reaching targets Can use a disciplined process for selecting and prioritizing initiatives Can use a strategy execution methodology to sustain focus, alignment and learning Can facilitate team work and team building 6
7 Five Levels of Strategic Management Competency Conflict Confusion Clarity Engagement Strategic Agility We are developing an online tool to conduct a Strategic Management Competency Assessment for your team: Currently we are testing the assessment with current clients Once finalized, we will send a link to all webinar participants 7
8 Characteristics of Level 5: Strategic Agility Can leverage existing and build new core competencies to achieve strategic results. Team is united and achieving tangible results which validates organization is navigating in the right direction. Can implement, evaluate and agilely adjust goals, strategies and objectives to achieve continuous growth. Strategic performance is improving by agilely making changes to correct performance gaps based on KPIs. Can pick up on weak signals, anticipate the external trends and take timely action to pursue uncontested market opportunities. Established track record for effectively prioritizing strategic initiatives to reduce performance gaps and achieve strategic results. Core values are so deeply imbedded they are immediately used to make strategic and operational decisions. Learn from strategy execution and adapt plans and original assumptions on an agile basis to gain sustainable growth. Can think strategically and use an effective strategic management process to continuously grow and evolve the organization. Strategic Agility Team proactively works together to sustain a strategy focused organization, where collaboration is expected and practiced. 8
9 Strategic Thinking Culture and Values External Analysis Core Competency Strategic Direction Strategy & Objective Setting Performance Measures Selecting and Prioritizing Initiatives Execution and Alignment Team Work and Team Building Competency 1: Can think strategically and understand how to lead their team to become strategy focused Strategic thinking is about anticipating and analyzing opportunities and problems divergently thinking critically and understanding the impact your actions might have on others Strategic thinkers interpret and visualize what might or could be make decisions after gathering complex data, sometimes ambiguous data and interpret it to make smart choices align the workforce to achieve strategic results learn and adjust Sample Strategic Thinking Framework* *Decision Strategies International 9
10 Strategic Thinking Culture and Values Competency 2: Can identify, articulate, and develop a core set of shared values External Analysis Core Competency Strategic Direction Strategy & Objective Setting Performance Measures Selecting and Prioritizing Initiatives Execution and Alignment Team Work and Team Building 10
11 Strategic Thinking Culture and Values External Analysis Core Competency Strategic Direction Strategy & Objective Setting Performance Measures Selecting and Prioritizing Initiatives Execution and Alignment Competency 3: Can convert external scan information into strategic intelligence Political/ Legal / Regulatory Forces Socio-cultural Forces Macro Environment Stockholders Governments Customers Creditors Micro Environment Communities The Organization Special Interest Groups Competitors Employees/ Labor Unions Suppliers Trade Associations Environmental Forces Technological Forces Economic Forces Perpetual Listening Posts Needed to Identify Weak Signals and Durable Trends Team Work and Team Building 11
12 Utility Industry Example Weak Signals: Ford and Google plan to create a joint venture to work on selfdriving cars Google expands Project Sunroof to 16 new metro areas Toyota starts $1B center to develop cars that don't crash GM invested $500M in Lyft as part of a round of a $1B of fundraising Silver Spring launches Starfish: IoT service linking enterprises/cities/utilities across secure/scalable networks Comcast partners w/weatherbug to provide data that adapts to customers heating & cooling systems Durable Trend: Emergence of smart home "internet of things" 12
13 Strategic Thinking Culture and Values External Analysis Core Competency Strategic Direction Strategy & Objective Setting Performance Measures Selecting and Prioritizing Initiatives Execution and Alignment Team Work and Team Building Competency 4: Can identify and develop core organizational competencies and capabilities Hamel and Prahalad suggest three factors to help identify core competencies: Provides access to a wide variety of markets Is difficult for competitors to imitate Makes a significant contribution to the perceived customer benefit Reference: Prahalad, C. K., & Hamel, G. (1990). The Core Competence of the Corporation. Harvard Business Review. 68(3), p.84 13
14 University Example Core Competency Pracademic Our ability to integrate theory and practice into leadership development through experiential learning in a way that makes differences for individuals, organizations, and people they serve. 14
15 Strategic Thinking Culture and Values Competency 5: Can focus on a clear purpose and desired future state External Analysis Core Competency The Present The Delta The Future Strategic Direction Strategy & Objective Setting Performance Measures Selecting and Prioritizing Initiatives Execution and Alignment Movable Boundaries Focus! Team Work and Team Building Reference: Jeanenne LaMarsh, Changing the Way We Change Copyright 2008, LBL Strategies, Ltd. 15
16 Strategic Thinking Culture and Values Competency 6: Can identify, evaluate, and select goals, strategies and objectives External Analysis Core Competency Strategic Direction Strategy & Objective Setting Performance Measures Selecting and Prioritizing Initiatives Execution and Alignment Team Work and Team Building 16
17 Strategic Thinking Culture and Values External Analysis Core Competency Strategic Direction Strategy & Objective Setting Performance Measures Selecting and Prioritizing Initiatives Competency 7: Can practice a disciplined approach to selecting performance measures and reaching targets Measure what matters most! Vital few versus trivial many. Blend of leading and lagging indicators Execution and Alignment Team Work and Team Building 17
18 Strategic Thinking Culture and Values Competency 8: Can use a disciplined process for selecting and prioritizing initiatives External Analysis Core Competency Strategic Direction Strategy & Objective Setting Performance Measures Selecting and Prioritizing Initiatives Strategic Initiative is a collective endeavor, with a defined beginning and end, to reduce performance gaps and help accomplish strategic objectives. Execution and Alignment Team Work and Team Building 18
19 Expected ROI / Benefit Prioritization Technique - 2x2 Matrix We need it Invest Here We should do it Be Selective Initiatives We should do it 8 Be Selective 7 It would be nice to do Consider Later Strategic Importance / Urgency / Mission Critical
20 Strategic Thinking Culture and Values Competency 9: Can use a strategy execution methodology to sustain focus, alignment and learning External Analysis Core Competency Strategic Direction Strategy & Objective Setting Organizations are improving in their ability to implement strategy and the failure rate has fallen from 90% (2002) to 67% (2016). (Excellence in Execution: How to Implement Your Strategy by Robin Speculand, Strategy Implementation Survey 2016) Only 62% of strategic initiatives are successful. (PMI Pulse of the Profession: The High Cost of Low Performance, May 2016) Only 47% of the leaders believe their organization is good at implementing strategy. (Excellence in Execution: How to Implement Your Strategy by Robin Speculand, Strategy Implementation Survey 2016) Performance Measures Selecting and Prioritizing Initiatives Execution and Alignment Team Work and Team Building Only 11% of managers believe that all their company's strategic priorities have the financial & human resources needed for success. (Harvard Business Review. Why Strategy Execution Unravels - and What to Do About It, by Donald Sull, Rebecca Homkes and Charles Sull, March 2015) 30% of managers cite failure to coordinate across units as their greatest challenge to executing their company's strategy. (Harvard Business Review. Why Strategy Execution Unravels - and What to Do About It, by Donald Sull, Rebecca Homkes and Charles Sull, March 2015) Only 10% of organizations surveyed achieve at least twothirds of their strategy objectives, with 36% achieving between 50%-67% and 54% achieving less than 50%. (Excellence in Execution: How to Implement Your Strategy by Robin Speculand, Strategy Implementation Survey 2016) 21
21 Why is an organized approach to execution important? Strategies most often fail because they aren t executed well. Management does not recognize execution as a management discipline. Execution is a discipline integral to strategy. Execution is the major job of the business leader. Execution must be a core element of an organization s culture. Reference: Larry Bossidy and Ram Charan, Execution: The Discipline of Getting Things Done,
22 Keys to becoming agile in strategy execution Leaders must create the right conditions and stay deeply involved in execution Balance short term versus long term thinking Minimize the number of objectives!! Have the resources required in place from the beginning Provide clear roles, responsibilities and accountabilities Engage employees in the journey Mid-level managers must be empowered Know the organization s priorities and why they are important Know the capabilities of their team Able to guide their team to take the right actions Take small steps in the beginning Go slow to go fast Break up work into 90 day segments (Rhythm and routine required) Be transparent up, down and across 23
23 Objective by Key Results OKRs is a critical thinking framework and ongoing discipline that seeks to ensure employees work together, focusing their efforts to make measurable contributions that drive the company forward. Objectives where you want to go your outcomes or goals for a set period (often onequarter) Key Results how far you progressed in the pursuit of these goals. Reference: Paul Niven and Ben Lamorte, Objectives and Key Results Driving Focus, Alignment, and Engagement with OKRs,
24 Key Features of OKRs Agile: Ambitious: Measurable: Transparent: Easily Understood: Focused Change: All Organizational Levels: For companies seeking to build in more agility into their strategic management and performance system. Objectives should be a stretch and feel somewhat uncomfortable. Each OKR should be measurable and easy to grade with a number. OKRs should be visible to all in the organization, both vertically and horizontally. Identify in very clear language exactly what outcome is desired with quantifiable result. Focuses attention on what changes need to be made to reach the stretch key result targets. OKRs are used at the corporate level (Tier 1), department level (Tier 2), and employee level (Tier 3). 25
25 Traditional Alignment Example: Amy s Ice Cream Palace Vision Making the world a better place one scoop at a time! Tier 1: Enterprise Goal Increase market share by 35% in 5 years Tier 2: Department Tier 3: Team & Individual Enterprise Objectives Department Objectives Objective Increase Brand Awareness My Personal Objectives IT Objective Improve social media presence and access Webmaster Objective Increase social media KSAs 26
26 Agile Alignment Example: Amy s Ice Cream Palace Vision Making the world a better place one scoop at a time! Tier 1: Enterprise Goal Increase market share by 35% in 5 years Tier 2: Department Tier 3: Team & Individual Enterprise Objectives Department Objectives Objective Increase Brand Awareness My Personal Objectives IT OKR Increase website traffic by 30% in the next 90 days Webmaster OKR Increase google ranking of best ice cream in Chicago to page 1 in the next 90 days 27
27 Strategic Thinking Culture and Values External Analysis Core Competency Strategic Direction Strategy & Objective Setting Performance Measures Selecting and Prioritizing Initiatives Execution and Alignment Competency 10: Can facilitate team work and team building Increased motivation to support decisions Due to investment in the process Improved/more inclusive results Due to increased innovation/participation Everyone feels like an integral part of the team People encouraged to think and act for overall team benefit A forum for constructively resolving conflicts is developed Team Work and Team Building 29
28 Strategic Management Performance System (SMPS) Framework 30
29 Want to study each competency in greater depth? Enroll today: Strategic Management Performance System George Washington University - certification program Next live cohort begins Tuesday, September 19 th, online live sessions every Tuesday at 4:00 pm CST Connect with learners from all over the world! Pathway to become ASP certified with 100% pass rate! Also available in self-paced online format For more information, contact Doug Maris (Dmaris@lblstrategies.com ) Register at 31
30 Thank You! 32
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