Operationalizing strategy
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This document provides an overview of operationalizing organizational strategy through linking everyday work to strategic goals. It discusses defining strategy, assessing individual commitment to strategy, and linking work efforts to strategic results through cause-and-effect relationships. Key points include understanding one's role in achieving the organizational mission and vision, building strategy commitment, and ensuring initiatives, projects and programs deliver intended benefits to meet strategic objectives.
Operationalizing strategy
- 1. Operationalizing Strategy: How to link our everyday work to organizational strategy January 24, 2013 Jenine Serviolo Environmental Leadership Program (ELP) Senior Fellow, PMP, SDI® Facilitator SMART Management Consulting, LLC 1
- 2. Introduction ELP Senior Fellow/New England Other Regional Network 2012 • SDI® Facilitator Harvard Extension School • Master’s Certificate in PM, • Masters in Sustainability GWU Management student • Performance Measure Project Management Institute Blueprint with Stacey Barr (PMI) Involvement • Balanced Scorecard Strategic • PMP (BSC) Execution with Kaplan and Norton • Portfolio Management for the PM • Managing Strategic Performance • LEED Green Associate (in progress) • Standard for PfM 3rd Edition SMART Management Consulting, LLC 2
- 3. SMART Management Consulting President & CEO Federal Government Clients Consulting, Training, and Workshops • Strategic Planning, Execution, and Management o Strategic Planning using Balanced Scorecard (BSC) • Sustainable Leadership • Business and Professional Communication o Mentoring and Coaching o Effective Collaboration Member of US Green Building Council SMART Management Consulting, LLC 3
- 4. Outline Strategy Discussion Questions Relationship to Strategy Contact Information • Organizational role References • Commitment Backup Slides The Strategic Chain • Definitions of Portfolios, • Cause and Effect Programs, Projects • Linking Up • Strategy & Results Mapping • Outreach Plan o Communication Matrix • Other Tips for Embedding Strategy SMART Management Consulting, LLC 4
- 5. Strategy Discussion Organizational Strategy Strategy is an integrated set of choices that include a series of cause and effect relationships and position an organization within its market to achieve targets in a specified time horizon. • Integrated set of choices- reflects systems thinking based decisions that support each other • Cause and Effect - links actions to outcomes in a successive fashion - often called What-If or Means-End thinking • Position - place in the competitive environment • Target- quantitative or qualitative measures • Time horizon- deadline by which the targets are to be achieved SMART Management Consulting, LLC 5
- 6. Strategy Discussion Strategy Strategy is about being intentional in your thoughts, words, and actions to achieve change or maintain performance/reputation. It is about systematically addressing • Where are we now? • Where do we want to go? • What is the best way to get there? Strategy stretches the organization • Far enough for productive tension • Not so far to cause it to snap SMART Management Consulting, LLC 6
- 7. Strategy Discussion Organizational Strategy Elements MISSION: explains why an organization exists • Communicates the organization’s enduring nature, its grand purpose - to people both inside and outside the organization CORE VALUES: a set of guiding principles • Reflects the organization’s collective attitudes, behaviors, decisions and actions VALUE PROPOSITION: underscores the organization’s unique blend of products, services, relationships, and image. • Differentiates the organization from competitors VISION: describes a more ideal future place • Captures where we will be once we achieve our current strategy. It answers the question, where are we going? Why are we changing? Sometimes captured in a BHAG (Big Hairy Audacious Goal) or strategic themes GOALS, OBJECTIVES, MEASURES, AND TARGETS: typically the first major step to operationalizing strategy • Goals & objectives are made up of initiatives, programs, projects, and activities • They should be SMART… SMART Management Consulting, LLC 7
- 8. Strategy Discussion SMART Strategy SPECIFIC Stated in a way that is clear to the reader MEASURABLE Expressed in quantifiable way and includes a target ACHIEVABLE Doable within known constraints RELEVANT Will directly support achievement of overall strategy TIME-BOUND Provides a due date SMART Management Consulting, LLC 8
- 9. Strategy Discussion SMART BHAG SMART Management Consulting, LLC 9
- 10. Strategy Discussion SMART Goal Steven VanRoekel SMART Management Consulting, LLC 10
- 11. Strategy Discussion Our discussion assumes that your organization has a formal or informal strategy to which you can align If it doesn’t, your first step may be to ask some questions… SMART Management Consulting, LLC 11
- 12. Relationship to Strategy Role-based Relationship to Strategy Organizational Strategy Role Contribution Executive Define strategy. Give direction to Meet mission and Leadership achieve the mission and vision achieve vision Portfolio Ensures we do the best Meet objectives Management combination of work to meet the mission and achieve the vision Program Ensures we do the work most Deliver benefits Management efficiently to deliver benefits in a coordinated fashion Project Ensures we do the work right - on Meet milestones Management & schedule, within budget and scope and service level Operations (including quality) agreements Consistently Manifest Core Values SMART Management Consulting, LLC 12
- 13. Relationship to Strategy Individual Strategy Commitment Conscious Cognizant Concur Champion of of with for Knows it’s Can Can Can articulate there but articulate the articulate the strategy, can’t strategy but the plays an active articulate it doesn’t strategy role and and doesn’t knowingly and plays consistently knowingly play an active role seeks out play an active active role as directed opportunities to role further strategy Contrary to Also may be Is at least conscious or important to cognizant of strategy note… but is opposed to it… SMART Management Consulting, LLC 13
- 14. Relationship to Strategy Assessing Strategy Commitment How committed are you to organizational strategy (O)? How committed should you be (X)? Commitment Level Champion Concur X Cognizant Conscious O Contrary SMART Management Consulting, LLC 14
- 15. Relationship to Strategy Building Strategy Commitment Discuss commitment to strategy with peers, mentor, supervisor and/or strategy officer • Consider who else you directly influence o Peers o Managers o Subordinates o Customers o Partners o External agencies • What do you need to get to target level? o Training o Awareness sessions What do you need to Start, Stop, or Continue doing to live up to your strategy commitment? o Attitudes o Behaviors o Actions SMART Management Consulting, LLC 15
- 16. The Strategic Chain Strategic Cause and Effect Direct correlation between completing a work effort and ultimately gaining an organizational benefit or meeting an objective • Cause o Work and Effort Initiatives Operational Activities, Projects, Programs, Portfolios • Effect o Results (outputs and outcomes) o Benefits, Objectives, Mission, Vision SMART Management Consulting, LLC 16
- 17. The Strategic Chain Strategy Mapping Vision A strategy map assigns strategic Process Financial Customer objectives to each BSC Objective perspective and defines relationships between them Objective • Organizational strategy map shows complete set of key Objective objectives needed to achieve the vision Objective • Defines cause and effect Internal relationships between objectives Objective & Growth Learning Objective Placement of Customer & Financial perspectives reflect Government and non-profit organizations 17
- 18. The Strategic Chain Operationalizing Objectives Vision Financial Customer Objective Objective Objective Measures Targets Objective Statement of Initiatives How success The desired what must be will be performance achieved Programs, Objective determined level or projects, improvement Process Internal operations, required to Objective achieve target & Growth Learning Objective SMART Management Consulting, LLC 18
- 19. The Strategic Chain Strategy Gantt Chart Strategy Gantt Chart shows work that supports specific objectives Excerpt from PMI’s Project Management Journal, December 2010: Measuring Portfolio Strategic Performance Using Key Performance Indicators by Hynuk Sanchez and Benoît Robert SMART Management Consulting, LLC 19
- 20. The Strategic Chain Linking Up to Strategy What do you need to Start, Stop, or Continue to help achieve strategy? • Consider all strategy elements • Walk through each objective, measure, and target to determine your contribution • Record findings, assumptions, ideas for each • Review with supervisor and/or strategy officer • Publish and track Some of the most important strategy conversations will be around how to handle competing objectives SMART Management Consulting, LLC 20
- 21. The Strategic Chain Linking with a Strategy Map Organizational strategy map – shows full set of objectives Individual’s strategy map shows subset of objectives supported by one person’s work SMART Management Consulting, LLC 21
- 22. The Strategic Chain Linking with Work Plans Strategy Gantt Chart – shows full set of objectives with supporting Projects Work Plan shows subset of objectives supported by unit/department and one person’s work Slide used with permission of Mieko Ozeki from Project Management Strategies for the Environmental Leader: Organizational Toolkit for Long-Term Sanity http://ELPnet.org/webinar-archive SMART Management Consulting, LLC 22
- 23. Supporting Pieces Ongoing Tracking Once linkage is made, communicate, communicate, communicate • Status Reports • Performance Reports • Quarterly/Annual Strategy Reports • Question and Answer Sessions • Celebrations SMART Management Consulting, LLC 23
- 24. Take Action Identify your organizational strategy Determine your current and target level of commitment to strategy • Identify how to achieve your target level of commitment Link your work to the organizational strategy • Identify cause and effect • Document and communicate the relationship Track and communicate your progress Effectively communicating our part in achieving strategy gives meaning to the work we do every day and connects our work to the larger mission SMART Management Consulting, LLC 24
- 25. Questions SMART Management Consulting, LLC 25
- 26. Contact Information Jenine Serviolo, PMP | SDI Facilitator | ELP SENIOR FELLOW PRESIDENT & CEO SMART MANAGEMENT CONSULTING Get-SMART.com 757.615.6865 | 1231 Boissevain Ave, Norfolk, VA 23507 | [email protected] TRAINING AND CONSULTING IN o Strategic Planning, Execution, and Management o Sustainable Leadership o Business and Professional Communication APPLICATIONS FOR 2013 PROGRAMS ARE NOW OPEN ELP is one of the only leadership organizations bringing together environmental and social change leaders from academia, business, government and the non-profit sector. • Take your career to the next level elpnet.org • Find balance in work and in life [email protected] • Expand your network to include some of the most innovative people in the country SMART Management Consulting, LLC 26
- 27. References Strategic Planning with Balanced Scorecard • Kaplan and Norton • Palladium Group • Balanced Scorecard Institute Performance Measurement • www.StaceyBarr.com o Performance Measurement Specialist o Performance Measurement Blueprint o Key Performance Indictor Library Project, Program, Portfolio Management • www.PMI.org Leadership • How leaders kill meaning at work https://www.mckinseyquarterly.com/Governance/Leadership/How_leaders_kill_meaning_a t_work_2910 • From Good to Great by Jim Collins o www.jimcollins.com SMART Management Consulting, LLC 27
- 28. References Mieko Ozeki Project Management Strategies for the Environmental Leader: Organizational Toolkit for Long-Term Sanity http://ELPnet.org/webinar-archive SMART Management Consulting, LLC 28
- 29. Backup Slide Project Portfolios A portfolio is a collection of projects or programs and other work grouped together to facilitate effective management to meet strategic business objectives. (PMBOK® Guide – Fourth Edition) The components of a portfolio are quantifiable; that is, they can be measured, ranked, and prioritized. A portfolio is a true measure of an organization’s intent, direction, and progress Portfolio management (PfM) is the coordinated management of portfolio components to achieve specific organizational objectives. (PMI® Standard for Portfolio Management – Second Edition) SMART Management Consulting, LLC 29
- 30. Backup Slide Programs and Projects A program is a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually Program management (PgM) is the centralized coordinated management of a program to achieve the program’s strategic objectives and benefits. It involves aligning multiple projects to achieve the program goals and allows for optimized or integrated cost, schedule, and effort (PMI® Standard for Program Management – Second Edition) A project is temporary endeavor undertaken to create a unique product, service or result Project Management (PM) is the application of knowledge, skills, tools and techniques to project activities to meet the project requirements (PMBOK® Guide – Fourth Edition) JS, (45) SMART Management Consulting, LLC 30
- 31. Backup Slide Strategy Mapping Mission/Vision Part of BSC methodology (Kaplan and Process Financial Customer Norton) Objective BSC balances the Financial Objective perspective with • Customer Objective • Internal processes • Learning and growth Objective Internal Requires us to develop objectives, Objective measures, and targets & Growth Learning Objective The balanced scorecard framework is recognized by the General Accountability Office (GAO) and used by the Department of Defense and other government agencies SMART Management Consulting, LLC 31
- 32. Backup Slide Results Mapping Success Stacey Barr Corporate • Performance Measure Capability Process Blueprint Activity • Define the results that spell success and depict them showing cause and effect relationships Results Mapping www.StaceyBarr.com Results Mapping: another way to depict strategy relationships SMART Management Consulting, LLC 32
- 33. Backup Slide Results Mapping Focuses on the results of each area Lines indicate key relationships • Companion • Cause and effect • Lead-Lag Results Mapping www.StaceyBarr.com • Conflict Results Mapping: another way to depict strategy relationships SMART Management Consulting, LLC 33
- 34. Backup Slide Outreach Plan Discuss Current and Target Commitment Levels • Use discussion to determine Outreach & Communication activities The Outreach and Communications Plan • Includes outline of stakeholders and activities/communications that will be done to communicate strategy SMART Management Consulting, LLC 34
- 35. Backup Slide Using the Communication Matrix… Identify what information needs to be provided to key stakeholders by to make strategic planning successful . Use this information to complete the Communications Plan. Communication Matrix: Strategic Plan Planning Phase Audience Response Message Methods Sender Needed Content 1. Identify the target audiences (by role or name) that are important for successful strategy achievement 2. Identify the response needed from each target audience 3. Choose message content appropriate for the target audience and the response needed 4. Define best methods to deliver the message content for the target audience and response needed 5. Identify who should send the message 35
- 36. Backup Slide Embed Strategy • Work Plans • Project/Work • Training Plans Selection Processes • Federal Capital Planning & • Professional Goals Investment Control (CPIC) • Performance Process Objectives • Status Reports • Meeting Agendas • Correspondence • Headers • Email signatures SMART Management Consulting, LLC 36
Editor's Notes
- #32: Learning and Growth perspective includes employee training and corporate cultural attitudes related to both individual and corporate improvement. With rapid technological change, it is necessary for workers to be in a continuous learning mode. Measures should be defined for managers to focus training funds where they can help the most. Learning and growth constitute the essential foundation for success of any knowledge-worker organization.Learning is more than formalized training. It also includes mentors, knowledge sharing and management as well as ease of communication among workers that allows them to get help when needed. The Internal Operations (Business Process) PerspectiveThe Internal Operations perspective refers to internal business processes. Measures for this perspective allow the managers to know how well their business is running, and whether its products and services conform to customer requirements. These measures have to be carefully designed by those who know these processes most intimately; all missions are unique, therefore, these measures must be developed by individuals from within the organization.The Financial PerspectiveTimely and accurate funding data will always be a priority to ensure the organization is fiscally responsible. Financial measures should include planned versus actual spending as well as risk and cost-benefit data.The Customer PerspectiveRecent management philosophy has shown an increasing realization of the importance of customer focus and customer satisfaction in any business. These are leading indicators: if customers are not satisfied, they will eventually find other suppliers that will meet their needs. Poor performance from this perspective is thus a leading indicator of future decline, even though the current financial picture may look good.In developing measure for satisfaction, customers should be analyzed in terms of kinds of customers and the kinds of processes for which we are providing a product or service to those customer groups.