Bridging the Gap between Business Strategy and Project Execution. Tom Witty PMP, SMP Professional Development Days September 19, 2016
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1 Bridging the Gap between Business Strategy and Project Execution Tom Witty PMP, SMP Professional Development Days September 19, 2016
2 Take Aways Any good presenter wants you to leave a session with 3 Things to Remember 2
3 Take Aways So today, we ll provide you these three takeaways: Strategy Projects 3
4 ASP BOK and Certification Association for Strategic Planning ASP Book of Knowledge (BOK) Certifications Strategic Planning Associate (SPA) Strategic Planning Professional (SPP) Strategic Management Professional (SMP) 4
5 My Manager Told Me to Change this Sign So I Did 5
6 Strategy Management and Project Management STRATEGY MANAGEMENT The organization s process of continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet it s goals and objectives. PROJECT MANAGEMENT From Association for Strategic Planning Book of Knowledge The application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. From PMI Lexicon of Project Management Terms 6
7 Why They Fail STRATEGY MANAGEMENT Ineffective Pre-Planning Passive Top Management Commitment Too few planning and change resources Mission, Vision and Value statements that lack substance Conducting business as usual after developing the plan Seeing the Document as an end in itself Not having a Scorecard Failure to integrate planning at all levels Keeping Planning separate from Day to Day management No yearly (quarterly) review and update How to Avoid the Top Strategic Management Failures Stephen Haines 7
8 Why They Fail PROJECT MANAGEMENT Senior Management Meddling Unrealistic Schedules Failure to Understand the Impact of Changes Miscommunication of Scope of Work No Risk Management No Historical Data No Project Manager No Change Control Lack of Involvement Ineffective Communication Top Reasons Projects Fail Rita Mulcahy PMI Conference Paper
9 Why They Fail REASONS WHY STRATEGIES FAIL REASONS WHY PROJECTS FAILS The Common Denominators 9
10 Strategy and Project Failure Lack of Involvement or Integration of the People Impacted Lack of Awareness of Change; The Environment Ineffective Planning and Scheduling Lack of Management Participation or Involvement The Common Denominators Lack of Data, Scorecard or Progress Monitoring 10
11 Strategy and Culture Culture Eats Strategy for Breakfast Peter Drucker 11
12 Examples where Culture Eats Strategy for Breakfast (here are 4 of them) Nordstrom Rules: #1 Use best judgment in all situations. There will be no other rules. 12
13 Since Culture Eats Strategy for Breakfast Lunch and Dinner Too! Ref: Torbin Rick You better have your Strategy aligned with your Culture. 13
14 Take Away Question #1: How well is your organization s culture aligned with your strategic initiatives? 14
15 Strategy Management It s a System Lead - How do we start? Think Where are we now? Plan Where do we want to be? Act How do we get there? 15
16 Strategy Management It s a System Process: a series of actions or steps taken in order to achieve a particular end. System: a set of connected things or parts forming a complex whole. How do we start? Where are we? Where do we want to be? How do we get there? 16
17 The best way to predict the future is to create it. Abraham Lincoln 17
18 LEAD Process Perpetual Leadership Assessing the Situation Organizing the Strategic Planning and Management Initiatives 18
19 LEAD Models and Tools Strategy, Project and Portfolio Management Capabilities Gaps in Capabilities Key Roles and Responsibilities Strategic Management Model Selection Documentation of the Process Communications and Change Management Leadership Readiness Assessment Results and Implications 19
20 LEAD Example: Readiness Assessment Results & Implications Attributes and Criteria Necessary to Achieve Strategic Initiatives Executive / Management Levels President with clear vision & commitment V.P. /Management level commitment to carry out the vision V.P. /Management level ability to carry out the vision Succession plan in place Performance Management Culture Expected, reinforced and rewarded Associates Associate level commitment to carry out the vision Associate level ability to carry out the vision Effectively in Place Not Effectively Used Not in Place Some Sample Assessment Areas: Executive Management Associates and Organization Communication Hiring / Retention Education Project Management Technology Performance Measurement Process Management Previous Strategy Efforts Communication Established pipeline to deliver info from V.P. s to the front line associates Established system for gathering ideas/feedback at all levels Established communication system between all business units Adequate platforms for electronic communication are in place Management recognizes the company intranet as a key vehicle for communicating company and department information Hiring/Retention Reward and Recognition: Appropriate Associate Reward and recognition programs are in place Turnover is at or under the established acceptable level Actively pursues top college graduates for employment Reward and Recognition: Management Reward and recognition programs are targeted and used effectively to achieve business initiatives Hiring: Processes are efficient to handle the demand Hiring: Internal candidate hiring is strongly encouraged as a means of retaining good people Education Programs in place to recognize and develop future leaders Training is used as a means of changing behavior and producing results Sufficiently staffed and qualified trainers Department trainers are well trained and make training a priority Adequate Training equipment and facilities Management and Leadership training is available that meets the strategic needs of the organization Project Management System of managing projects is well communicated Project progress is communicated effectively and in a timely manner Process for Post project assessment, and communication of lessons learned 20
21 LEAD Example: Readiness Assessment Results & Implications Attributes and Criteria Necessary to Achieve Strategic Initiatives Executive / Management Levels President with clear vision & commitment V.P. /Management level commitment to carry out the vision V.P. /Management level ability to carry out the vision Succession plan in place Performance Management Culture Expected, reinforced and rewarded Effectively in Place Not Effectively Used Not in Place Associates Associate level commitment to carry out the vision Associate level ability to carry out the vision 21
22 Take Away Question #2: Is your organization and leadership ready to take your strategy to the next level? 22
23 The essence of strategy is choosing what not to do. Michael Porter 23
24 THINK Process Metacognition Thinking about Thinking: How we Think External Future Assessment Internal Assessment 24
25 THINK Models and Tools Thinking Facilitation; Brainstorming, Delphi Method, Role Playing Assessing Customers and Stakeholders; Needs, Segments, Expectations Business Modeling Environmental Scanning; PESTEL, SWOT Analysis Scenario Planning Internal Scan to Understand Current State, Trends and Core Competencies 25
26 THINK Example Environmental Scanning Strategy Competitive Intelligence Goals & Objectives Markets Prioritization Shared Services Strategy Process Automation BPM Customer Service Software Development Reporting, Metrics, Estimating Requirements Customer / Stakeholder IMO's / Agents Leadership Marketing Perceptions of Organization Product Development Regulatory Sales People Associate Development Collaboration Hiring & On-Boarding Mobile Workforce Roles Skills and Knowledge SME's Training Infrastructure BCP / HA / DR BD Tools Cloud Computing Data Mobile Computing OCR Security Social Media Legacy Systems Oracle Insurance Policy Admin Systems Software - Applications Software Maintenance Software - Services 26
27 THINK Example Environmental Scanning Business Process Management (BPM) Measurement Implementation Technologies Customer Process (and BPM) Innovation Strategic Implications Digitizing Process Management 27
28 THINK Example Environmental Scanning Business Process Management (BPM) Strategic Implications We ve talked about BPM for years. Our Process Improvement Initiatives are marginal at best. We don t have good process metrics, so we re not pricing our products and services adequately. Our business areas operate as silo s. WE MUST RECOGNIZE BPM AS CRITICAL TO THE SUCCESSFUL EXECUTION OF OUR DAY TO DAY OPERATIONS! 28
29 Take Away Question #3: Does your organization jump to solutions without evaluating the environment, options and scenarios? 29
30 In preparing for battle I have always found that plans are useless, but planning is indispensable. Dwight D. Eisenhower 30
31 PLAN Elements Strategic Elements Key Organizational Drivers of Success Operational Planning 31
32 PLAN Models and Tools Mission, Vision, Core Values, Policies, Goals, Objectives Key Organizational Drivers of Success Scenarios and Strategies Program Selection High Level Strategic Budgets Annual Operating Plans and Resource Requirements Visual Representation (e.g. Strategy Maps) 32
33 PLAN Example Strategy Map Lagging Indicators Financial Customer Leading Indicators Process Infrastructure People Perspectives Financial Customers / Stakeholders Process Infrastructure People 33
34 PLAN Example Strategy Map Financial Maximize Value of New Business Grow Top Line Revenue Effectively Reduce Expenses Minimize Risk Related Consequences Lagging Indicators Financial Customer Leading Indicators Process Infrastructure People Customers / Stakeholders Process Infrastructure People Owners Achieve Long Term Growth Maintain Reputation Increase Company Value Increase Scalability Implement Business Continuity 7/24/365 Institute Key Employee Succession Planning Increase Sales & New Business Process Efficiency Retire/Replace Aging Equipment and Software Improve Employee On-Boarding Customers Provide Value Be Responsive Offer Convenience Implement Effective Service Model Improve Data and Information Security Achieve Strategically Aligned Workforce Sales Force Deliver Service Pay Quality Commissions Provide Competitive Products Improve Logistics Increase Self-Service Capabilities Improve Performance Management 34
35 PLAN Example Strategy Map Financial Maximize Value of New Business Grow Top Line Revenue Effectively Reduce Expenses Minimize Risk Related Consequences Lagging Indicator Financial Customers / Stakeholders Process Owners Achieve Long Term Growth Maintain Reputation Increase Company Value Increase Scalability Increase Sales & New Business Process Efficiency Customers Provide Value Be Responsive Offer Convenience Implement Effective Service Model Sales Force Deliver Service Pay Quality Commissions Provide Competitive Products Improve Logistics Infrastructure Implement Business Continuity 7/24/365 Retire/Replace Aging Equipment and Software Improve Data and Information Security Increase Self-Service Capabilities People Institute Key Employee Succession Planning Improve Employee On-Boarding Achieve Strategically Aligned Workforce Improve Performance Management 35
36 PLAN Example Strategy Map Financial Maximize Value of New Business Grow Top Line Revenue Effectively Reduce Expenses Minimize Risk Related Consequences Lagging Indicator Customer / Stakeholder Customers / Stakeholders Process Owners Achieve Long Term Growth Maintain Reputation Increase Company Value Increase Scalability Increase Sales & New Business Process Efficiency Customers Provide Value Be Responsive Offer Convenience Implement Effective Service Model Sales Force Deliver Service Pay Quality Commissions Provide Competitive Products Improve Logistics Infrastructure Implement Business Continuity 7/24/365 Retire/Replace Aging Equipment and Software Improve Data and Information Security Increase Self-Service Capabilities People Institute Key Employee Succession Planning Improve Employee On-Boarding Achieve Strategically Aligned Workforce Improve Performance Management 36
37 PLAN Example Strategy Map Financial Maximize Value of New Business Grow Top Line Revenue Effectively Reduce Expenses Minimize Risk Related Consequences Leading Indicator Process Customers / Stakeholders Process Owners Achieve Long Term Growth Maintain Reputation Increase Company Value Increase Scalability Increase Sales & New Business Process Efficiency Customers Provide Value Be Responsive Offer Convenience Implement Effective Service Model Sales Force Deliver Service Pay Quality Commissions Provide Competitive Products Improve Logistics Infrastructure Implement Business Continuity 7/24/365 Retire/Replace Aging Equipment and Software Improve Data and Information Security Increase Self-Service Capabilities People Institute Key Employee Succession Planning Improve Employee On-Boarding Achieve Strategically Aligned Workforce Improve Performance Management 37
38 PLAN Example Strategy Map Financial Maximize Value of New Business Grow Top Line Revenue Effectively Reduce Expenses Minimize Risk Related Consequences Leading Indicator Process Customers / Stakeholders Process Owners Achieve Long Term Growth Maintain Reputation Increase Company Value Increase Scalability Increase Sales & New Business Process Efficiency Customers Provide Value Be Responsive Offer Convenience Implement Effective Service Model Sales Force Deliver Service Pay Quality Commissions Provide Competitive Products Improve Logistics Infrastructure Implement Business Continuity 7/24/365 Retire/Replace Aging Equipment and Software Improve Data and Information Security Increase Self-Service Capabilities People Institute Key Employee Succession Planning Improve Employee On-Boarding Achieve Strategically Aligned Workforce Improve Performance Management 38
39 PLAN Example Strategy Map Financial Maximize Value of New Business Grow Top Line Revenue Effectively Reduce Expenses Minimize Risk Related Consequences Leading Indicator Infrastructure Customers / Stakeholders Process Owners Achieve Long Term Growth Maintain Reputation Increase Company Value Increase Scalability Increase Sales & New Business Process Efficiency Customers Provide Value Be Responsive Offer Convenience Implement Effective Service Model Sales Force Deliver Service Pay Quality Commissions Provide Competitive Products Improve Logistics Infrastructure Implement Business Continuity 7/24/365 Retire/Replace Aging Equipment and Software Improve Data and Information Security Increase Self-Service Capabilities People Institute Key Employee Succession Planning Improve Employee On-Boarding Achieve Strategically Aligned Workforce Improve Performance Management 39
40 PLAN Example Strategy Map Financial Maximize Value of New Business Grow Top Line Revenue Effectively Reduce Expenses Minimize Risk Related Consequences Leading Indicator People Customers / Stakeholders Process Owners Achieve Long Term Growth Maintain Reputation Increase Company Value Increase Scalability Increase Sales & New Business Process Efficiency Customers Provide Value Be Responsive Offer Convenience Implement Effective Service Model Sales Force Deliver Service Pay Quality Commissions Provide Competitive Products Improve Logistics Infrastructure Implement Business Continuity 7/24/365 Retire/Replace Aging Equipment and Software Improve Data and Information Security Increase Self-Service Capabilities People Institute Key Employee Succession Planning Improve Employee On-Boarding Achieve Strategically Aligned Workforce Improve Performance Management 40
41 Take Away Question #4: Does your organization distinguish between lagging and leading indicators (cause and effect)? 41
42 Organizations don t execute unless the right people, individually and collectively, focus on the right details at the right time. Ram Charan 42
43 ACT Elements Strategy Execution Performance Analysis and Management Evaluation Alignment and Accountability 43
44 ACT Models and Tools Strategy Communication Risk Management Change Management Portfolio and Project Management Process Improvement and Learning Cascading the Strategy and Metrics throughout the Organization 44
45 ACT Example Cascading Strategy 45
46 ACT Example Cascading Strategy 46
47 ACT Example Cascading Metrics 47
48 The Organization s Business Strategy ACT Example Cascading Metrics Organizational Strategic Target Results Department / Area Roadmap Targets Program / Project Goals Strategic Portfolio Cumulative Goals Strategic Results tied to Project Goals Customer Service Roadmap Strategic Program/ Project Strategic Project Portfolio Strategic Results Roadmap Targets Project Goals Strategic Results tied to Project Goals 48
49 Take Away Question #5: Does your organization have cascading objectives and metrics from the top the bottom? 49
50 Strategy and Project Failures: So What Were the Common Denominators again? 50
51 Strategy Management 51
52 Strategy Management So What Does It Look Like? 52
53 The Project Management Corollary 53
54 Closing the Gap 54
55 A Strategic Project Management System Strategy Management Culture Project Management Culture Engaged Leadership Minimally Viable Strategies Strategic Project Management Strategy Management Organization Strategic Processes and Models Project Management Processes and Models Engaged Sponsorship & Stakeholders Agile, Iterative Projects Project Management Organization 55
56 To Summarize The Gap between Business Strategy and Project Management can be closed when these things are in place for both practices The Right Culture The Right Engagement The Right Agility and Focus The Right Organization And the Right Processes and Models 56
57 My Manager Told Me to Change this Sign and I Know Why She Did 57
58 Thank You. Tom Witty, PMP, SMP 58
59 References Association for Strategic Planning Book of Knowledge, ASPBOK 2.0, 2 nd edition PMI Lexicon of Project Management Terms, How to Avoid the Top Strategic Management Failures Stephen Haines Top Reasons Projects Fail, Rita Mulcahy PMI Conference Paper Reasons Culture Eats Strategy for Lunch, Joe Tye Execution The Discipline of Getting Things Done by Larry Bossidy and Ram Charan 59
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