Managing What You Measure

Transcription

1 Managing What You Measure Lessons from the Balanced Performance Scorecard Tim Sullivan Touchstone Energy Tony Thomas NRECA Business and Technology Solutions Henry Cano NRECA Natl Consulting Group Feb. 24,

2 Today s Topic Pg. 2 The Balanced Scorecard and Strategy Execution February, 2015

3 The Balanced Scorecard Pg. 3 Are we achieving our mission?

4 National Scorecard Pg. 4

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6 Compare Quarterly Performance Pg. 6 6

7 Chart Your Five-Year History Pg. 7 7

8 Set Strategic Goals Touchstone Energy Strategy Execution System Pg. 8 8

9 Download and Share as a PDF Pg. 9 9

10 Mobile on any Smart Device! Pg

11 Strategy Management System Pg. 11 How do we achieve improved performance?

12 Organization of the Touchstone Energy Strategy Execution System for Distribution Cooperatives Overall Strategy Execution System Pg. 12 Customized Best Processes Process Summary Key Activities for the Process Templates or Best Practices Final Deliverable Examples

13 Strategy Execution System Website Pg. 13

14 For each stage, best practices are customized and detailed for Touchstone Energy distribution cooperatives Pg TRANSLATE THE STRATEGY 2.1 Design Strategy Map with Linked Strategic Objectives 2.2 Define Strategic Measures and Stretch Targets 2.3 Prioritize Strategic Initiatives and Funding 2.4 Build the Balanced Scorecard 2.5 Assign Accountabilities for Strategy Execution 3. ALIGN THE ORGANIZATION 3.1 Strategy Communications & Alignment 3.2 Align Individual Goals 3.3 Align Compensation 1. DEVELOP THE STRATEGY 1.1 Drive the Strategy Execution Agenda 1.2 Sustain Strategy Execution 1.3 Affirm Purpose, Mission, Values, and Vision 1.4 Perform Strategic Analysis 1.5 Formulate Strategy 1.6 Define Value Gap and Enhance the Vision Strategy Execution System for Touchstone Energy Cooperatives 4. LINK TO OPERATIONS 4.1 Use Models to Set Priorities & Operationalize the Strategy 4.2 Integrate Financial Planning with the Strategy 4.3 Create Operational Dashboards 4.4 Information Strategy and Plan 6. TEST AND ADAPT 6.1 Annual Leadership Retreat 5. MONITOR AND LEARN 5.1 Conduct Strategy Review Meetings 5.2 Manage Initiatives Execute Initiatives Processes * Palladium s Complete Strategy Execution System is depicted in the Appendix

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16 Pg. 16 Stage: 2.0 Translate the Strategy Process: 2.1 Design Strategy Map with Linked Strategic Objectives Process Owner: The primary owner is the person(s) responsible for the Strategy Management function Key Stakeholder(s): Executive staff and Board of Directors participate with full support from the CEO Description: The Strategy Map provides the architecture for integrating all of the output from the strategy formulation processes completed in Stage 1. The Strategy Map describes the process of value creation through a series of cause-and-effect links among objectives across the four Balanced Scorecard (BSC) perspectives: Financial, Member, Internal Process, People & Culture. The person(s) responsible for strategy management/strategic Management Role works with the Executive Staff and Board of Directors to identify the key strategic themes and objectives that must be accomplished to realize the value described in the vision statement. Each strategic theme should be associated with a resulting financial impact or mission outcome that contributes to closing the overall value gap. Objectives: 1. Translate the strategy into specifics to make it actionable and plausible to achieve expected results. 2. Identify the 3-4 strategic themes that bring focus to strategic actions. 3. Identify strategic objectives associated with each strategic theme and identify the cause-effect relationship key to driving and achieving results. 4. Develop a shared view among the Executive Staff on strategic themes and objectives, increase understanding, alignment and commitment to executing the strategy. Outcomes: 1. The strategy is translated into specifics that bring focus to decisions and actions that will drive strategic results. 2. Strategic themes and objectives bring clarity to the actions that must be taken to achieve the vision and realize strategic outcomes. 3. The executive team is aligned and committed to executing the strategy.

17 Financial Members M1. Keep Member s Bills Low Touchstone Energy Strategy Execution System Purpose: To be a top performing cooperative in our state and region Mission: The cooperative s mission is to provide safe, reliable and affordable electricity to its members Vision: To benefit our member-owners by providing reliable electric and energy services delivered efficiently and with extraordinary member care within 3 years R1. Reduce Operating Costs M2. Provide Great Service through Efficiency R2. Manage Wholesale Power M3. Provide Great Service through Extraordinary Care M4. Participate and have an active commitment to our community R3. Increase my value proposition Pg. 17 That provide a uniquely satisfying member experience Ensuring stewardship of financial strength MEMBER ENGAGEMENT OPERATIONAL EXCELLENCE COMMUNITY COMMITMENT Internal Processes E1. Explore products and services that enhance member convenience E3. Enhance the quality of life with member services E2. Achieve high member satisfaction scores E4. Be a highly accessible, longterm trusted partner E5. Provide Communication and Education programs to the membership E6. Establish best-in-class safety process and culture E8. Identify and disseminate best practices E10. Respond quickly and efficient y to outages E7. Reduce Outage Time E9. Optimize processes and the use of assets E11. Effectively manage internal costs E12. Generate Member Engagement Opportunities E14. Provide effective member legislative involvement E13. Create positive community and social impacts E15. Complete community projects on time and on budget To successfully deliver the Strategic Processes People & Culture P1. Establish a Member- Focused Culture P2. Be the Preferred Employer Culture/Talent/Performance P3. Innovate Technologies Fact-Base/Functional/Efficient P4. Communicate expectations, hold ourselves accountable and celebrate achievements We will enable our Employees Values Honesty Integrity Community Involvement Commitment to Safety & Environment Stewardship Innovation Exceptional Member Service Respect & Appreciation for Employees Commitment to Community & Cooperative Principles

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19 Co-op Excellence in Strategy Execution Pg. 19

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21 Customized Assessment Results Pg. 21

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23 Strategy Execution Plans for 2015 Pg. 23 Hold Four Master Classes (one each quarter) Hold Four 90-minute Webex Coaching Sessions with Palladium Consultants Update and completely customize the Master Class curriculum to include all co-op examples and TSE-owned material Hold one Strategy Execution Refresher Course for Alumni

24 Thank You! Pg. 24 Questions?