It s All About Strategy!

Transcription

1 Enterprise Management: What s the Role of the? Mark Beasley Deloitte Professor of Enterprise Management NC State University 1 It s All About Strategy! 2 1

2 Strategic View of Management What is management s process for monitoring and responding to emerging uncertainty surrounding core value drivers and new initiatives? Range of Uncertainty Current Drivers of Company s Success & New Strategic Initiatives Time Observe Performance Later 3 Traditional Mgt Approach Credit Operations Finance Human Capital IT Regulatory Reputation 4 2

3 Traditional Mgt Approach Credit Operations Finance Human Capital IT Regulatory Reputation R i s k R i s k 5 As a Result Emerge that Impede Strategy Regulatory Change Range of Uncertainty Change in Customer Wants Competitor Move Current Drivers of Company s Success & New Strategic Initiatives Time Observe Performance Later 6 3

4 Valuation Creation Enterprise Focus on Credit Operations Finance Human Capital IT Regulatory Reputation ERM Goal: Increase Ability to Proactively Manage Biggest to Business Regulatory Change Range of Uncertainty Change in Patient/Physician Wants Competitor Move Current Drivers of Company s Success & New Strategic Initiatives Time Observe Performance Later 8 4

5 2 Primary Roles 1. Understand and approve management s risk management process 2. Understand and oversee entity s top risk exposures relative to appetite 9 Strategic Framework Starts Here Business Model and Strategy Controls, Communication, and Monitoring Internal Environment Identification Response Assessment Source: The Committee of Sponsoring Organizations of the Treadway Commission 10 5

6 Start with Strategic View Talented Leadership & Medical Team Current Business Drivers New Strategic Initiatives High Quality Care Strong Community Presence Implement New Patient Strategy Expand Unique Service Offering Increased Revenues Expense Savings Growth in Shareholder Value or Fulfillment of Mission Implement Enhanced IT 11 Strategic Lens to Identify Talented Leadership & Medical Team High Quality Care Strong Community Presence Implement New Patient Strategy Expand Unique Service Offering Increased Revenues Expense Savings Growth in Shareholder Value or Fulfillment of Mission Implement Enhanced IT 12 6

7 Prioritized Inventory of 100 s of Tier 1 (Top 10-15) 13 Identify and Evaluate Responses to Appropriate? Implemented? Sufficient? 14 7

8 Develop Metrics to Monitor KRIs Talented Leadership & Medical Team KRIs KRIs KRIs KRIs High Quality Care Strong Community Presence Implement New Patient Strategy Expand Unique Service Offering Increased Revenues Expense Savings Growth in Shareholder Value or Fulfillment of Mission KRIs Implement Enhanced IT 15 Strategic Framework Business Model and Strategy Controls, Communication, and Monitoring Internal Environment Identification Response Assessment Source: The Committee of Sponsoring Organizations of the Treadway Commission 16 8

9 2 Primary Responsibilities for Oversight 1. Understand and approve management s risk management process 2. Understand and oversee entity s top risk exposures relative to appetite 17 Prioritized Inventory of Tier 1 top 10 Tier 2 top 20 Other 18 9

10 Create an Enterprise Strategic View of Top Key Identified Core Driver #1 Core Driver #2. Strategic Initiative #1 Strategic Initiative #2 Core Drivers & #1 Strategies X x #2 x x #3 x x #4 x x x x #5 x #6 x x #7 x x #8 x #9 x #10 x x 19 Monitor Responses to Beyond Appetite Impact appetite Likelihood 20 10

11 Elements of Appetite Existing Profile The existing level and distribution of risks across risk categories (e.g. financial risk, market risk, operational risk, reputation risk, etc.) Capacity Tolerance The maximum risk a firm may bear and remain solvent Acceptable levels of variation an entity is willing to accept around specific objectives Determination of Appetite Desired Level of What is the desired risk / return level 21 Explicit Agenda Focus Quarter 1 Management presentation of Top 10 Enterprise With Response Plans and Accountabilities Quarter 2 Deep dive discussion of other Top 10 Update re: any with rapid speed of onset Quarter 3 Deep dive discussion of other Top 10 Update re: any with rapid speed of onset Quarter 4 AC reviews details of Management s ERM Process Update re: any with rapid speed of onset 22 11

12 Topic 1 Heat Map Communication to the January 2014 MDC February 2014 April 2014 June 2014 July 2014 September 2014 October 2014 Topic 2 Special Meeting Topic 3 Topic 4 SAF SAF Topic 5 CBS Topic 6 Audit Audit Audit Audit Topic 7 CBS CBS Topic 8 Topic 9 Audit Audit SAF Audit Audit Audit Audit SAF Audit SAF Audit Topic 10 Topic 11 ECR ECR ECR NCG NCG Topic 12 Topic 13 MDC Spec. Topic 14 Topic 15 ECR 23 Strategic Framework Business Model and Strategy Controls, Communication, and Monitoring Internal Environment Identification Response Assessment Source: The Committee of Sponsoring Organizations of the Treadway Commission 24 12

13 Culture is King 25 Goal: Expand Value Proposition of Enterprise Oversight Enterprise Management Compliance Exercise Loss Prevention Strategic Tool Traditional Management 26 13

14 Mark S. Beasley Deloitte Professor of Enterprise Management NC State University