From Idea to Execution Accelerate strategy execution through the Office of Strategy Management (OSM)
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1 From Idea to Execution Accelerate strategy execution through the Office of Strategy Management (OSM) Liz Popwell, M.A.P.A., FACHE, PMP Jhaymee Heinlein, MBA, MS, PMP The opinions expressed are those of the presenter and do not necessarily state or reflect the views of SHSMD or the AHA Society for Healthcare Strategy & Market Development
2 Welcome to Our Workshop We look forward to sharing our passion for healthcare and strategy with you today. Liz Popwell is Vice President, Strategy Executive for the Strategic Service Group of the Carolinas HealthCare System. She leads the organization wide strategy management process and advises System level executives in her areas of expertise which include: strategic planning, strategy execution, strategic growth, service line planning, portfolio/ project management, and cost management. LinkedIn: Jhaymee Heinlein is the Director of Strategy Management and Growth for the Strategic Services Group of the Carolinas HealthCare System. She serves as an internal strategy consultant for service line development, focused on Pediatrics and Cancer care. Her areas of expertise include healthcare strategy development and execution, project portfolio management, and business transformation. LinkedIn:
3 Carolinas HealthCare System ~ M Care Locations 7 Unique Patients >$9.7B Combined Revenue th Largest Medical Group in US ~65K Teammates >7,400 Licensed Beds 47 Hospitals 11.6M Patient/Encounters Year
4 Workshop Agenda There are four key agenda topics for today s workshop, with group exercises built in. Learning Objectives and Ice Breaker Strategy Management The Office of Strategy Management (OSM) Best Practices Closeout, Wrap-Up, and Q&A 9:00-9:20am What do you hope to gain from our workshop? 9:20-10:15am Define strategy management and its components 10:15-10:50am How the OSM can be the bridge between development and execution 10:50-11:20am Review of common pitfalls and best practices with strategy execution 11:20-11:30am Helpful resources and a discussion on next steps
5 Learning Objectives You will emerge from this workshop with tools to bridge the strategy execution gap. Best Practices Apply best practices for implementing an OSM within your organization Role of OSM Understand the role of the OSM as the coordinator, facilitator and integrator for strategic planning in healthcare organizations Strategy Management Define strategy management and identify the challenges and pitfalls for implementing strategy within healthcare organizations Best Practices Role of OSM Strategy Management
6 We Want Your Feedback We will be using Poll Everywhere to hear your insights throughout the workshop. When a poll is active, respond in one of two ways: Text JHAYMEEHEINL850 to once to join Respond at PollEv.com/jhaymeeheinl850
7 Icebreaker Time! Did you know that there are more than 40 participants in this workshop?
8 Strategy Management The opinions expressed are those of the presenter and do not necessarily state or reflect the views of SHSMD or the AHA Society for Healthcare Strategy & Market Development
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10 Definition of Strategy Carolinas HealthCare System has chosen a definition with similar elements to your organizations.
11 Translating Strategy into Results Defining strategy is less of a concern than execution. Today is all about how an OSM approach may help strengthen your results.
12 5 Myths of Strategy Execution Many of us may related to an interesting article on strategy execution and the common myths 5 Myths organizations of fall prey Strategy to. Execution 1 2 Execution Equals Alignment Execution Means Sticking to the Plan 30% of Leaders Cite Failure To Coordinate Across Units Strategy Execution is About Seizing Opportunities to Deliver on the Strategy Communication Equals Understanding A Performance Culture Drives Execution Execution Should Be Driven from the Top Leaders and Team Members Don t Have Clarity for How Priorities and Initiatives Fit Together The Most Pressing Problem is the Failure to Foster Coordination Essential to Execution Top Executives Help Best When Adding Structured Processes to Facilitate and Ensure Coordination and Collaboration Source: Why Strategy Execution Unravels- and What to Do About It, Donald Sull, Rebecca Homkes, and Charles Sull.
13 Why it matters Organizations that successfully communicate and provide context around their strategy are more likely to succeed or pivot when needed. 55% Of middle managers could name one of their company s top five priorities 7 out of 10 Teammates cannot pick their Strategy out of a lineup Teammates want to see how their work contributes More engaged teammates perform better Our teammates are close to our customers Source: Why Strategy Execution Unravels- and What to Do About It, Donald Sull, Rebecca Homkes, and Charles Sull.
14 The Gap Between Development and Execution Without execution, vision is just another word for hallucination. Mark V. Hurd Planning teams focus on planning Culture Effective Leadership Communication Measures of Success Coordination / Alignment
15 Root Causes of the Execution Gap Experts tend to focus on three prevailing root causes. Organizational plans aren t translated into actionable steps Communication is unclear and employees don t understand how they can advance the strategy Goals and compensation are not aligned to the strategy
16 Defining Strategy Management Developing a common language and process is important. Strategy Development The process used to develop a three to five year strategic plan that includes mission, vision, strategic objectives and priorities. Strategy Execution The set of processes used to align resources, report on progress, and develop action plans using strategic portfolio management principles.
17 Strategy Management Process The CHS Strategy Management processes borrows from best practice examples. Develop Strategy Rebalance as needed Align Priorities & Metrics Monitor results Determine implementation plans Execute projects
18 Develop Strategy Whether you have made choices, continuous improvement, or a combination of both, and OSM approach has great value. Strategy How are we going to compete... and win? Operational Excellence How we are going to get better tomorrow at what we did today? The choices that will distinguish your organization in the eyes of your customers Organizational goals that require continuous improvement
19 Align Priorities and Metrics The OSM team keeps line of sight into implementation of the work to ensure measures align to expectations and the scope of work meets the intent of the strategic aspirations. Ensure Work is Scoped and Aligned to Results Expected Ensure Measures of Success Are: Defined clearly Aligned to Strategic Priorities Communicated Broadly Tracked Routinely Corrective Actions Monitored for Impact
20 Determine Implementation Plans Developing specific action plans, timeframes, and report out structures sound easy, but can become complicated fast.
21 Execute Strategic Projects Planning to execute your strategic projects is as important as executing the work and is the most over-looked step in the process. Assign Executive Sponsor Connect the Dots (Over and Over Again) Assign Roles Determine Stakeholder Management Clarify the Scope of Work and Results Expected Align Leader Goals Did We Mention Connect the Dots Implement Lead and Lag Measures Implement Project/ Initiatives
22 Monitor Results Kaplan and Norton made the balanced scorecard famous. It is important to align your measures to your strategic priorities and consider lead and lag indicators. Net operating margin Days of cash on hand Return on capital Finance Internal Business Processes Average length of stay Core measure compliance Readmission rates Adverse events Employee turnover Employee satisfaction Training and learning opportunities Learning and Growth Customer Physician satisfaction Patient satisfaction Market share
23 Rebalance As Needed Strategy by its very definition is intended to be nimble, and it is important to keep an eye on the changing environment and its impact to the organization. Disrupt Yourself or Someone Else Will
24 Group Exercise #1 How well is your organization closing the gap between strategy development and execution? Attendees will be split into groups of five people. Assign one person at your table to report out key takeaways. Each individual completes the assessment based on their current organization. Discuss the results at your table. What surprised you? What ahas do you have? Report out your findings at your table to the room.
25 The Office of Strategy Management (OSM) The opinions expressed are those of the presenter and do not necessarily state or reflect the views of SHSMD or the AHA Society for Healthcare Strategy & Market Development
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31 Traditional Planning is Fragmented Multiple business units touch the strategic planning process with no coordination. Source: The Office of Strategy Management, Harvard Business Review, Kaplan and Norton
32 Strategic Planning Can Evolve Strategic activities can be aligned and coordinated to maximize value for organizations. Source: The Office of Strategy Management, Harvard Business Review, Kaplan and Norton
33 The Execution Premium The extraordinary value that s created when organizations execute on strategy. A unit with responsibility for the implementation of strategy becomes a convenient focal point for ideas that percolate up through the organization. Kaplan and Norton
34 An OSM Links Strategy Together The OSM serves as the accelerator, facilitator, and integrator of strategy. An office of strategy management, or OSM, is intended to close the gap between strategy development and execution. It is typically a new unit at the corporate level of an organization, overseeing all strategy-related activities. The OSM can become an area where future leaders gain a strategic perspective on the organization.
35 The OSM as the Accelerator A core focus on performance, alignment, and review with the C-suite. 1 Scorecard Management Design and report on scorecard measures. 2 Organization Alignment Ensure all business and support units are aligned with the strategy 3 Strategy Reviews Shape the agenda for management strategy reviews and learning meetings
36 The OSM as the Facilitator Focusing on facilitating and managing the planning and communication of strategy. 4 Strategic Planning Help the CEO and executive team formulate and adapt the strategy 5 Strategy Communication Communicate and educate employees about the strategy 6 Initiative Management Identify and oversee management of strategic initiatives
37 The OSM as the Integrator Working with HR, Finance, IT, and knowledge management to cascade strategy. 7 Planning/Budgeting Link financial, human resources, information technology, and marketing to strategy 8 9 Workforce Alignment Ensure all employee s goals, incentives and development plans link to strategy Best Practice Sharing Facilitate a process to identify and share best practices
38 Emerging Role OSM as a Translator OSM can help translate strategy between different business units/groups. Provide common language and definitions around strategy Share the strategy story and narrative Serve as myth busters on strategy development and execution
39 How to Structure Your OSM Building your OSM requires a lean team to minimize corporate overhead and bureaucracy. An OSM at a large company typically needs only six to eight full time people, but this could vary based on your organization s needs. Typically, organizations with sales of $500 million to $5 billion and 1,000 to 10,000 employees can have a successful OSM with fewer than ten people. Source: The Office of Strategy Management, Harvard Business Review, Kaplan and Norton
40 How to Position Your OSM Success for the OSM requires a direct line of sight to the C-suite. Direct to the Chief Executive Officer (CEO) sole reporting relationship Direct to the Chief Financial Officer (CFO), with direct access to the CEO dual relationship Direct to the Chief Strategy Officer (CSO), with direct access to the CEO dual relationship
41 Case Study
42 Brief Company History Founded by Walter Chrysler in the 1920s Launched The Chrysler 70 in 1924 to provide customers with a well-engineered car at an affordable price Several mergers and acquisitions over time Maxwell Motor Company, Chrysler Corporation, DaimlerChrysler AG, Chrysler, LLC, Chrysler Group LLC, FCA US LLC, 2014-present Known for engineering innovation $83 billion in global revenues (2014) Source: Chrysler Fiat website
43 What did they do? Established an OSM by employing 13 full-time people who manage the company s strategy Born from the existing business strategy function Incorporates additional cross-enterprise strategy execution functions Responsible for cascading strategy to 90,000+ employees throughout the organization Generated $1.2 billion in earnings in 2004, despite a weak automobile market Source: The Office of Strategy Management, Harvard Business Review, Kaplan and Norton
44 How did they do it? Introduced a Balanced Scorecard project in the 1990s Translated the company s new strategy into a Balanced Scorecard Trained Chrysler s business and support units to help create local scorecards Cascaded the scorecards throughout the company Strategy group maintained responsibility for the data collection and reporting process for the scorecards Assumed a leadership role in preparing scorecard related materials to communicate strategy Worked with senior leadership to train on action planning to ensure progress Source: The Office of Strategy Management, Harvard Business Review, Kaplan and Norton
45 Break Time
46 Best Practices The opinions expressed are those of the presenter and do not necessarily state or reflect the views of SHSMD or the AHA Society for Healthcare Strategy & Market Development
47 Common Obstacles to Execution These are the top ten reasons why execution stalls in organizations Competitive pressures Conflicting accountabilities Confusion over objectives or expectations Culture not ready for change Economic conditions are not favorable Government regulations Inadequate communications and feedback Lack of adequate resources Lack of follow-through Lack of performance-management links to outcomes Source: AMA/HRI Keys to Strategy Execution: a global study of current trends and future possibilities : p. 72
48 Strategy Management and Herding Cats
49 POWER POWER Stakeholder Management One of the hardest things strategists do is manage a wide array of stakeholders. Process of identifying all people or organizations impacted by the project. Results in developing a stakeholder register to include: Name, role, location, contact information. Expectations, influence, and interest level. Attitude related to the project. LOW Keep Satisfied INTEREST Monitor (Minimum Effort) HIGH Manage Closely INTEREST Keep Informed HIGH LOW 49 Source: PMBOK
50 Stakeholder Management Plan The process of engaging stakeholders through the project lifecycle based on their needs, interests, and impact on the success of the project. Identifies management strategies required to engage stakeholders: Desired and current engagement Scope and impact of change Identified interrelationships Stakeholder communication requirements Information to be distributed to stakeholders Source: PMBOK
51 Communication Management OSMs must determine the best communication channels for strategic activities. Communication is 55% body language, 38% vocal inflection, and 7% words. Communication Types Communication Methods Source: PMBOK
52 Communication Plan Example Communication Type Kickoff Meeting Objective of Communication Introduce the project team and the project. Review project objectives and management approach Medium Frequency Audience Owner Deliverable Face to Face Once Project Sponsor Project Team Stakeholders Project Manager Agenda Meeting Minutes Project Team Meetings Review status of the project with the team Face to Face Conference Call Lync Weekly Project Team Project Manager Agenda Meeting Minutes Project schedule Technical Design Meetings Discuss and develop technical design solutions for the project Face to Face Lync As Needed Project Technical Staff Technical Lead Agenda Meeting Minutes Monthly Project Status Meetings Report on the status of the project to management Face to Face Conference Call Lync Monthly PMO Project Manager Project updates Project schedule Project Status Reports Report the status of the project including activities, progress, costs and issues SharePoint Monthly Project Sponsor Project Team Stakeholders PMO Project Manager Project Status Report Project schedule
53 Clarifying Roles Responsible Does the task/work Accountable Approves final work that responsible provides Delegates work to those responsible Has the ultimate ownership Consulted Provides opinions about the task/work Informed Those who work depends on this work/task Receives updates about the progress Source: PMBOK
54 Responsibility, Accountable, Consult, Inform (RACI Chart) Activity Activity A Activity B Activity C Activity D Activity E Jackie Don Walter Mildred Jeff R, A C R I - I - R, A C - C C R A I I I I R, A R I C - R R, A Note: Only one person should be accountable for the whole project (macro level) and for each activity (micro level) 54 Source: PMBOK
55 Monitoring and Controlling Processes OSMs continually monitor and control initiatives related to the strategic plan. Planning Processes Start Project Initiating Processes Closing Processes End Project Executing Processes Source: PMBOK
56 Monitoring and Controlling Strategy OSMs monitor and control strategy through scorecards and action plans. The process of tracking, reviewing and reporting strategy progress to meet the objectives of the strategic plan. Monitoring and controlling activities include: Comparing actual performance to baselines Determining if corrective or preventive actions are required Provide information for status reports Monitor implementation of approved and validated changes Source: PMBOK
57 (Low Impact) (High Impact) Scenario Planning/ Pressure Test How to pressure test your strategy. Delivery Model A Delivery Model B A: (Scenario A) B: (Scenario B) C: (Scenario C) D: (Scenario D)
58 (Minimal New Competitors) (Many New Competitors) Stress Test Example Strategic options for a CON repeal plan. (CON continues) (CON goes away) A: (Expand regionally) B: (Mergers/ JVs) C: (Continue Current Path) D: (Network Integrity)
59 Group Exercise #2 What will your action plan be for your OSM? Using the action planning template provided, each individual will Create an action plan to launch an OSM at their organization. Create a RACI to clarify the roles for the OSM Identify key tactics from the presentation that you will implement over year to launch your OSM. What support will you need in your organization to be successful? What barriers/challenges do you foresee?
60 Revisit Our Learning Objectives You will emerge from this workshop with tools to bridge the strategy execution gap. Best Practices Apply best practices for implementing an OSM within your organization Role of OSM Understand the role of the OSM as the coordinator, facilitator and integrator for strategic planning in healthcare organizations Strategy Management Define strategy management and identify the challenges and pitfalls for implementing strategy within healthcare organizations Best Practices Role of OSM Strategy Management
61 Helpful Resources These are helpful articles and books on strategy development, execution, and OSM. The Execution Premium Available on Amazon Creating an Office of Strategy Management The Office of Strategy Management Harvard Business Review Article Project Management Body of Knowledge (PMBOK)
62 Questions? Liz Popwell: Jhaymee Heinlein: Please be sure to complete the session evaluation on the mobile app! The opinions expressed are those of the presenter and do not necessarily state or reflect the views of SHSMD or the AHA Society for Healthcare Strategy & Market Development
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