FAA PMIWDC LUNCHEON SERIES STRATEGIC PLANNING; WHAT, WHY, AND HOW

Transcription

1 FAA PMIWDC LUNCHEON SERIES STRATEGIC PLANNING; WHAT, WHY, AND HOW John Lever, Managing g Partner The Lever Group February 29 th, 2012 vision mission strategy performance

2 INTRODUCTION AND SESSION OVERVIEW Thank you to the FAA Office of the CIO for Hosting PMIWDC Luncheon Today s Goals Demonstrate the value proposition of Strategic Thinking and Strategic Messaging g Challenge long held notions that Strategic Planning is a one size fits all template to be applied every 5 years Demonstrates the value of strategic planning in aligning resources towards a common goal Dfi Define value of the strategic t plan as process, not the final version or deliverable of the plan 2

3 AGENDA Why The Need & Requirement What Overview, Organization & Sequencing How Process, Tools & Tips Q & A Time is limited but audience participation is highly encouraged 3

4 STRATEGIC PLANNING WHY THE NEED & REQUIREMENT an average strategy well executed will beat a great strategy poorly executed every time anonymous consultant

5 THE NEED FOR STRATEGIC PLANNING For-Profit / Mission Based / Commercial Business Federal Government Competition Financial: Return on Investment and Break Even Constraints Allocation of limited resources Investor and Equity requirements Technical Flexibility Risk Tolerant Financial Allocation of limited or dwindling resources Service Demand Security Stability Availability External Constraints (such as politics) Risk Adverse 5

6 THE REQUIREMENT; FOR FEDERAL AGENCIES Legislative Mandates The Government Performance and Results Act (GPRA) Modernization Act of 2010 requires: Availability of an agency strategic plan, annual plan, and performance updates Quarterly updates via a central, government-wide website on Agency Priority Goals and Federal Priority Goals Identification of a full list of agency programs Four other laws mandate strategic planning: The CFO Act of 1990, GPRA of 1993, Reports Consolidation Act of 2000 and the Chief Human Capital Officer Act of 2002 OMB Circular no. A 11, August 2011 Part 6, Preparation and Submission of Strategic plans, Annual Performance Plans, and Annual Performance Reports Explicitly requires agencies to annually submit Strategic Plan or Addendum in accordance with GRPA 6

7 THE NEW ANNUAL STRATEGIC PLANNING TIMELINE October 2011 January 2012: Agencies work to finalize: Strategic Plans or Addendums FY 2013 Congressional Budget Justifications FY 2013 Annual Performance Plan FY Agency Priority Goals (if applicable) February 2012: Concurrent with release of FY13 Budget, agencies deliver to Congress: Final Agency Strategic Plans or Addendums Agency FY13 Congressional Budget Justifications which should include: FY13 Annual Performance Plans FY11 Annual Performance Report FY12 FY13 Agency Priority Goals (if applicable) 7

8 STRATEGIC PLANNING WHAT OVERVIEW, ORGANIZATION & SEQUENCING If you fail to plan, then you plan to fail - Harvey Mackay, NY Times bestselling author Swim with the Sharks Without Being Eaten Alive

9 STRATEGIC PLANNING: OVERVIEW Strategic Planning is not necessarily an output driven process It is a process to establish priorities; What is the Mission What will your organization accomplish By what measure and in what timeframe This process compels rational decision making Defines what you intent to accomplish with finite resources Helps define boundaries of what you will not do It broadly defines how and when resources get allocated It unites the organization and defines the direction forward It is not a roadmap with detailed instructions on when or where to turn 9

10 OVERVIEW PITFALLS AND STRENGTHS Potential pitfalls of Strategic Planning Analysis Paralysis Over thinking the general direction forward Disconnected from reality or not acting Major strength is improving organizational communication Optimizes performance towards a unified goal Expands long term thinking and sustainability Rationalizes scarce resources where they are needed 10

11 GOOD STRATEGIC PLANS Communicate a Vision Provide internal and external messaging Convey the envisioned Future State Detail the Mission of the organization Address critical performance issues Define a Performance Gap and demonstrate a realistic and viable plan to close it Best Fit / Right Size ; Create the right balance between what the organization is capable of doing vs. what the organization would like to do Manage Risks Guide decision making at lower levels operational, tactical, individual Allow for and accommodate changes 11

12 ORGANIZATION SKILLS SETS NEEDED Leadership Strategic Planning is a top down process Leaders must be committed and engaged Executive sponsorship and participation is the critical path; without that the process becomes a pure paper drill Management Consider planning a focused and finite exercise not a repetitive operational drill. Fixed end date and deliverables Create and maintain a sense or urgency Manage the message through out the organization to reduce pushback and increase morale Participation Consider using an outside or neutral moderator, facilitator or consultant to support the effort DO NOT OUTSOURCE the entire effort or your organization will lose essential buy-in and it all becomes a pure paper drill 12

13 ORGANIZATION INTEGRATED PROJECT TEAM SKILLS Group Management and Facilitation Consensus building Delegation and committees Logistics and meeting management Decision Support and Decision Making Conflict resolution and conflict management Brain-storming or creative thinking Encouraging innovative thinking Inclusion and Stakeholder outreach Focus Groups and Working Groups Facilitating large and small Groups Communications, messaging, and socialization 13

14 SEQUENCING WHEN TO PLAN How are we doing? Assess Where are we? Evaluate Baseline What do we have? How do we get there? Detail Compose Where should we go? 14

15 STRATEGIC PLANNING HOW PROCESS TOOLS & TIPS A good plan violently executed now is better than a perfect plan tomorrow George S. Patton

16 PROCESS HIGH LEVEL APPROACH Stop! Allocate resources and a team with real authority Think What are we, where e are we and what do we have? (Inventory and Assessment) Where do we need to be? (GAP Analysis / End State Analysis) Plan How can we get there or how can we close the gap? (Strategic Planning / Tactical Integration) At Act How can we monitor performance? (Road Map Development / Balanced Scorecard / Exec Dashboard) Think, Plan, Act method based on the Association for Strategic t Planning (ASP) approach and other industry leading sources 16

17 TOOLS AND TIPS ABC S OFSTRATEGIC PLANNING Assess Baseline Compose Detail Evaluate Charter Background Situational Analysis SWOT Inventory Define Current State GAP Analysis Values and Guiding Principles Develop Vision High Level Future State Performance Measurement Standards of Performance Initiatives and Projects Performance Management Formal Review Process Balanced Scorecard Objectives Action Plans Dashboard Road Map Corrective Action Plans 17 An overarching model that can be applied in pieces or as a whole.

18 TIPS Stop, Think, Plan & Act Use this as an iterative maturity model Document, document, document Strategy vs. Tactics Planning is great but keeping lights on is your mission Do not skimp on your baseline, inventory and assessment steps Use these steps as tools to determine and communicate assumptions and constraints t Build Buy-In Build a messaging and communications plan as you develop your roadmap and performance measures 18

19 TOOLS QUICK DISCUSSION SWOT Assessment GAP Analysis Defining the GAP Future State Analysis The Roadmap Performance Monitoring and Controls Balanced Scorecard Executive Dashboard 19

20 S.W.O.T. ASSESSMENT Strengths Opportunities Weaknesses Threats Strengths and Weaknesses are internally focused and can be managed Opportunities and Threats are external factors that need to be tracked Pros Easy to Understand d Apply at any organizational level Cons Needs to be Analytical and Specific Quantifying weaknesses and threats can be difficult 20

21 GAP ANALYSIS Various Definitions ISO9000 Environmental Current Future GAP Vs Business State State Forces organizations to Document Vision, Mission and Objectives Communicate assumptions and constraints Define performance GAP Can effectively help build Buy-In by allowing input into Future State design And as always, build in messaging and communications 21

22 THE ROAD MAP The heart of a strategic plan High Level Action Plan Enumerates Goals or Perspectives of the organization Perspectives allow for segmenting business processes Correlation to FEA and other Business Process Maps Delineates Objectives and Metrics of each Perspective Defines Roles and Responsibilities Management, control and oversight Initiates Risk Management Process Assigns Tasks High Level Timeline 22

23 BALANCED SCORE CARD -DFAS EXAMPLE PERSPECTIVE OBJECTIVE MEASURE Customer Improve Client/Customer 1. Client/Customer Satisfaction 2. Commitments Met Performance Contracts Satisfaction 3. Commitments Met Client Executive Contacts 4. Specific Billing Rates Simple & Direct connection with Strategic Plan and Objectives Financial Internal Business Processes Reduce Cost to Client/Customer Expand the Use of Competitive Sourcing Improve and Leverage Quality Encourage Innovation 5. Total Costs 6. Competitive Sourcing Performance 7. Total Workforce Ratio 8. Quality Index 9. Rework Identified 10. Rework Eliminated 11. Best Business Practices Adopted d 12. New Products or Services Delivered Deliver System 13. Commitments Met System Milestones Solutions Growth & Learning Enhance Employee 14. Employees in Developmental Assignments Competence Increase Employee 15. Employee Satisfaction Satisfaction Enhance Ability to 16. Core Competency Profile Recruit and Retain DFAS Talent Develop a Climate for 17. Climate for Action 23 Action

24 DASHBOARD EXAMPLE ITDASHBOARD.GOV Provides Performance At a Glance Dashboards have been used in the private sector and DOD for years Allows both managers and field staff to view reported performance If properly used, they can help identify opportunities for improvements and highlight areas of need Implementation, as always, is key for success when applied in conjunction with a strategic planning effort 24

25 RECAP AND QUESTIONS Recap Why The Need & Requirement What Overview, Organization & Sequencing How Process, Tools & Tips Questions? 25

26 THANK YOU! - John Lever FOR NOTIFICATION OF EVENTS, JOIN: FAALUNCHPMIWDC SLIDES WILL BE POSTED ON THE PMIWDC WEB SITE vision mission strategy performance