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![Root cause analysis
IDENTIFY ISSUE
© 2014 Accelare. Proprietary and confidential. All rights reserved. 237/29/14
Clarify Strategy > Identify Capabilities > Assess Capabilities > Gap Analysis
ProcessMaterials
TechnologyPeople
Why?
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Why is [Pareto item]
accountingfor 50%of
problem
Problem Statement
To copyall fishbone
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Transforming Vision to Value - Managing the Strategy to Execution Process
The document discusses the challenges organizations face in executing their strategies effectively, citing that a significant percentage of executives and employees lack a clear understanding of their company's strategy. It outlines a structured approach for transforming strategic vision into operational capabilities, emphasizing the importance of alignment between strategy and execution across various departments. Furthermore, the presentation highlights key performance indicators and the need for continuous monitoring and adjustment of strategies to achieve desired outcomes.
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Transforming Vision to Value - Managing the Strategy to Execution Process
- 1. Transforming Vision toValue Managing the Strategy to Execution Process Jeff Scott VP/ Business & Technology Strategy Accelare Webinar July 29,31, 2014
- 2. “We have greatideas, we just can’t seem to implement them.” CEO Smart, capable executives struggle to bring their strategies to fruition. They want to run a great organization but settle for good… or less. Everywhere I go, I see . . . . © 2014 Accelare. Proprietary and confidential. All rights reserved.7/29/14 2
- 3. “We keep gettingbetter at doing things that don’t matter.” Department Manager Managers who want to make a difference but don’t know where to apply their organization’s resources and talent. They want to make an important contribution but settle for functional optimization. And I see . . . . © 2014 Accelare. Proprietary and confidential. All rights reserved.7/29/14 3
- 4. “I just putmy head down and do what they tell me.” Customer Service Representative Staff who are not engaged and energized in their roles. They want to be seen as significant contributors but are frustrated with management’s lack of clarity. And I also see . . . © 2014 Accelare. Proprietary and confidential. All rights reserved.7/29/14 4
- 5. And I believe. . . © 2014 Accelare. Proprietary and confidential. All rights reserved.7/29/14 5
- 6. Strategy execution isthe BIGproblem • 37% of executives say their companies are “very good or excellent” at strategy execution. • Only 23% blame current economic conditions as a major factor in their lack of execution • 53% of implementers cannot state their company’s strategy in its entirety 2010 HBR survey of 1,000 executives • 60% of typical organizations do not link their strategic priorities to their budget • 66% of HR and IT organizations develop strategic plans that are not linked to the enterprise strategy • 95% of employees in most organizations do not understand their organization’s strategy Robert Kaplan, Harvard Business Review • 70% of typical organizations do not link their strategic priorities to their budget Mark Hughes, Journal of Change Management © 2014 Accelare. Proprietary and confidential. All rights reserved.7/29/14 6
- 7. The organizational reality— strategy diffusion 75% 75% 75% 75% 75% 68% 61% 55% 49% Strategic effectiveness coefficient © 2014 Accelare. Proprietary and confidential. All rights reserved.7/29/14 7
- 8. Where is yourstrategy process? Order Cash Prospect Client Concept Product Order office supplies Travel expense management Performance reviews Strategy Execution © 2014 Accelare. Proprietary and confidential. All rights reserved.7/29/14 8
- 9. Order Post-it® notesprocess Fill out online request Check inventory Debit budget Reject order External Provider Order Mgmt. General LedgerWarehouse Interoffice mail Pick & pack Schedule delivery Deliver Post-it® Notes Update route Send update notification Check budget Funds available? Inventory available? Debit inventory Schedule order Item pickup Order replenishment No Yes Yes No © 2014 Accelare. Proprietary and confidential. All rights reserved.7/29/14 9
- 10. Implement strategy processExecutive Management Everyone Else Go d o s o m e t h I n g !!!! © 2014 Accelare. Proprietary and confidential. All rights reserved.7/29/14 10
- 11. The Strategy toExecution Process © 2014 Accelare. Proprietary and confidential. All rights reserved.7/29/14 11
- 12. Strategy execution framework ©2014 Accelare. Proprietary and confidential. All rights reserved.7/29/14 12
- 13. Clarify strategy CREATE FOCUSAND CLARITY 7/29/14 13© 2014 Accelare. Proprietary and confidential. All rights reserved. Strategic intent Direction Aspiration Goals Vision Clarify Strategy
- 14. Differentiate & illuminate VALUEMAP - STARBUCKS Start > Strategy > Value Map > Starbucks Clarify Strategy © 2014 Accelare. Proprietary and confidential. All rights reserved.7/29/14 14
- 15. Differentiate & illuminate ITINC. - CURRENT VERSUS FUTURE STATE Product Innovation Identify New Opportunities Lower Project Costs Predictable Outcomes Speed to Market Operational Efficiency Start > Strategy > Value Map > IT Inc. Business View IT View High Low Emphasis New IT Clarify Strategy © 2014 Accelare. Proprietary and confidential. All rights reserved.7/29/14 15
- 16. Identify capabilities CAPABILITIES LINKSTRATEGY TO ACTION Clarify Strategy > Identify Capabilities Capabilities: • Define what an organization must be able to do to successfully execute its business model • Provide a common language for change • Create a common link between executive intent and operational activities • Provide a foundation for assessment and prioritization © 2014 Accelare. Proprietary and confidential. All rights reserved.7/29/14 16
- 17. Capability map– ITInc. CREATE A BUSINESS VIEW OF THE OPERATING MODEL 1.1 Divisional Planning 1.2 Support Business Process Reengineering 1.3 Publish IT Performance (to Customers) 1.4 Manage Customer Relationships 1.5 Maintain Current State Models 2.1 Manage EA 2.2 Manage IT Standards 2.3 Manage IT Governance 2.4 Create Annual Plans 2.5 Plan & Manage Research & Innovation 2.6 Manage Policy 3.1 Plan Portfolio 3.2 Deliver Portfolio 3.3 Manage Program & Project Standards, Methods & Governance 3.4 Manage Requirements, Project Standards, Methods & Governance 3.5 Govern Portfolio & Delivery 4.1 IT Resource Management 4.2 IT Performance Management 4.3 Execute IT Controls 4.4 IT Operational Tactical Planning 4.5 Manage IT Services/Products 5.1 Deliver Solution Estimation & Impact Analysis 5.2 Define & Manage Solution Architecture 5.3 Conduct Requirements Management 5.4 Conduct Solution Analysis 5.5 Design Solutions 5.6 Construct Solutions 5.7 Test Solutions 5.8 Design Audit, Review &Harvest 5.9 Deploy Solutions Solutions Delivery 5 IT Administration & Management 4 Program & Project Management IT Planning & Controls Business Partnership Management 1 2 3 Start > Capabilities > Capability Models > IT Inc. Clarify Strategy > Identify Capabilities © 2014 Accelare. Proprietary and confidential. All rights reserved.7/29/14 17
- 18. PERFORMANCE is significantly belowwhat is needed given the VALUE of the capability to the firm PERFORMANCE is below what is needed given the VALUE of the capability to the firm PERFORMANCE is adequate given the VALUE of the capability to the firm Capabilities are not all equal in their VALUE to the customer and/or financial performance … … or the same in terms of their effectiveness and efficiency PERFORMANCE within the organization. Assess capabilities ASSESS BOTH VALUE AND PERFORMANCE Clarify Strategy > Identify Capabilities > Assess Capabilities © 2014 Accelare. Proprietary and confidential. All rights reserved.7/29/14 18
- 19. Capability assessment -IT Inc. UNDERSTAND EACH CAPABILITY’S VALUE CONTRIBUTION 7/29/14 19 1.1 Divisional Planning 1.2 Support Business Process Reengineering 1.3 Publish IT Performance (to Customers) 1.4 Manage Customer Relationships 1.5 Maintain Current State Models 2.1 Manage EA 2.2 Manage IT Standards 2.3 Manage IT Governance 2.4 Create Annual Plans 2.5 Plan & Manage Research & Innovation 2.6 Manage Policy 3.1 Plan Portfolio 3.2 Deliver Portfolio 3.3 Manage Program & Project Standards, Methods & Governance 3.4 Manage Requirements, Project Standards, Methods & Governance 3.5 Govern Portfolio & Delivery 4.1 IT Resource Management 4.2 IT Performance Management 4.3 Execute IT Controls 4.4 IT Operational Tactical Planning 4.5 Manage IT Services/Products 5.1 Deliver Solution Estimation & Impact Analysis 5.2 Define & Manage Solution Architecture 5.3 Conduct Requirements Management 5.4 Conduct Solution Analysis 5.5 Design Solutions 5.6 Construct Solutions 5.7 Test Solutions 5.8 Design Audit, Review &Harvest 5.9 Deploy Solutions Solutions Delivery 5 IT Administration & Management 4 Program & Project Management IT Planning & Controls Business Partnership Management 1 2 3 Business Necessity Capabilities Essential Capabilities Strategic Support Capabilities Advantage Capabilities Capability Value Index Start > Capabilities > Capability Models > IT Inc. > Value Contribution Clarify Strategy > Identify Capabilities > Assess Capabilities © 2014 Accelare. Proprietary and confidential. All rights reserved.
- 20. Capability assessment -IT Inc. AND UNDERSTAND WHICH CAPABILITIES NEED OPERATIONAL IMPROVEMENT 20 1.1 Divisional Planning 1.2 Support Business Process Reengineering 1.3 Publish IT Performance (to Customers) 1.4 Manage Customer Relationships 1.5 Maintain Current State Models 2.1 Manage EA 2.2 Manage IT Standards 2.3 Manage IT Governance 2.4 Create Annual Plans 2.5 Plan & Manage Research & Innovation 2.6 Manage Policy 3.1 Plan Portfolio 3.2 Deliver Portfolio 3.3 Manage Program & Project Standards, Methods & Governance 3.4 Manage Requirements, Project Standards, Methods & Governance 3.5 Govern Portfolio & Delivery 4.1 IT Resource Management 4.2 IT Performance Management 4.3 Execute IT Controls 4.4 IT Operational Tactical Planning 4.5 Manage IT Services/Products 5.1 Deliver Solution Estimation & Impact Analysis 5.2 Define & Manage Solution Architecture 5.3 Conduct Requirements Management 5.4 Conduct Solution Analysis 5.5 Design Solutions 5.6 Construct Solutions 5.7 Test Solutions 5.8 Design Audit, Review &Harvest 5.9 Deploy Solutions Solutions Delivery 5 IT Administration & Management 4 Program & Project Management IT Planning & Controls Business Partnership Management 1 2 3 Start > Capabilities > Capability Models > IT Inc. > Performance Meets or exceeds current needs Needs minor improvement Needs significant improvement Heat Map Index © 2014 Accelare. Proprietary and confidential. All rights reserved.7/29/14 Clarify Strategy > Identify Capabilities > Assess Capabilities
- 21. Identify the strategic“heat” PINPOINT WHICH CAPABILITIES NEED OPERATIONAL IMPROVEMENT 21 Start > Capabilities > Capability Models > IT Inc. > Performance Clarify Strategy > Identify Capabilities > Assess Capabilities © 2014 Accelare. Proprietary and confidential. All rights reserved.7/29/14
- 22. Strategic gap analysis 22©2014 Accelare. Proprietary and confidential. All rights reserved. Capability Today Capability Tomorrow 7/29/14 Clarify Strategy > Identify Capabilities > Assess Capabilities > Gap Analysis
- 23. Root cause analysis IDENTIFYISSUE © 2014 Accelare. Proprietary and confidential. All rights reserved. 237/29/14 Clarify Strategy > Identify Capabilities > Assess Capabilities > Gap Analysis ProcessMaterials TechnologyPeople Why? Why? Why? Why? Why? Why? Why? Why? Why? Why? Why? Why? Why? Why? Why? Why? Why is [Pareto item] accountingfor 50%of problem Problem Statement To copyall fishbone "objects" Use Cntl-Shift-A
- 24. Root cause analysis IDENTIFYCAUSE People Process Technology Clarify Strategy > Identify Capabilities > Assess Capabilities > Gap Analysis © 2014 Accelare. Proprietary and confidential. All rights reserved.7/29/14 24
- 25. Plan and fundenhancements CLOSE CAPABILITY GAPS Clarify Strategy > Identify Capabilities > Assess Capabilities > Gap Analysis > Investment Planning © 2014 Accelare. Proprietary and confidential. All rights reserved.7/29/14 25
- 26. Intended strategy What we’d like to happen Emergentstrategy The many day-to-day decisions and prioritizations that set direction Realized strategy What actually occurs Unrealized strategy Things that are left behind Deliberate strategy Top-down plans, statements, and initiatives Assess progress RECOGNIZE THAT STRATEGIES ARE DYNAMIC The role of the strategist is to get you where you want to be Clarify Strategy > Identify Capabilities > Assess Capabilities > Gap Analysis > Investment Planning > Monitor Results © 2014 Accelare. Proprietary and confidential. All rights reserved.7/29/14 26
- 27. Assess progress KEEP YOUREYE ON WHAT MATTERS Metrics Change Acceleration Assessment Overall Investment Roadmap Health Future State Metrics Bottom Line Benefits (Customer and Investor) Enables Delivers Yields Metrics Metrics Metrics Metrics Organizational measures that indicate our ability to sustain change Process and organization KPIs that correlate to our Value Map Customer and Financial KPIs How are we executing our investment roadmap Clarify Strategy > Identify Capabilities > Assess Capabilities > Gap Analysis > Investment Planning > Monitor Results © 2014 Accelare. Proprietary and confidential. All rights reserved.7/29/14 27
- 28. The bottom line VISION GOALS STRATEGIES CAPABILITIES GAPS Focuses investments where they will have the most business impact Creates a direct line of sight from strategic intent to day to day activities Establishes a foundation for continuous improvement Increases employee engagement which drives innovation and productivity Creates an integrated and ongoing role for business architects © 2014 Accelare. Proprietary and confidential. All rights reserved.7/29/14 28 Strategy to execution management
- 29. Stay in touch JeffScott Email: [email protected] Phone: +1-704-275-1725 LinkedIn: www.linkedin.com/company/accelare www.linkedin.com/in/logicalleap Web: www.accelare.com Twitter: @accelare Subscribe to The Business Architect @ http://thebusinessarchitect.accelare.com/ © 2014 Accelare. Proprietary and confidential. All rights reserved.7/29/14 29
- 30. Questions 30© 2014 Accelare.Proprietary and confidential. All rights reserved.7/29/14
- 31. 7/29/14 31© 2014Accelare. Proprietary and confidential. All rights reserved. THANK YOU