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Measure for Measure

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Innovative execution measures to improve business results. Creating business and organizational alignment. ...

Innovative execution measures to improve business results. Creating business and organizational alignment.

From NJOD Annual Day of Sharing, May 2007

More in: Business , Education
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  • 1. Measure for Measure Innovative Execution Measures to Improve Business Results Presented By: Rosanna D’Orazio – Franklin Covey Christine Troianello – Avaya NJOD Annual Sharing Day May 3, 2007
  • 2. What Causes Strategy Failures? The execution gap is the great ‪ unaddressed issue in the business world today —Larry Bossidy & Ram Charan, ‪ Execution: The Discipline of Getting Things Done ‪
  • 3. Does Execution Matter? Companies with Strong Alignment Return 4 Times More to Shareholders 25% 20% 15% Total Return to 10% Shareholders 1999-2001 5% 0% Weak Strong Alignment Alignment Source: Watson Wyatt study of 12,750 US Workers in 2002
  • 4. Barriers to Execution Clarity Do people know what’s most important? Commitment Have they embraced the organization’s most critical goals? Translation to Action Do they know what they must do to achieve the goals? Does the organization make it easy for Enabling workers to achieve the goals? Is the organization working effectively Synergy together to achieve goals? Accountability Is everyone accountable to their peers to achieve the goals?
  • 5. Execution Happens on 3 Levels  Individual goal clarity  Engagement/commitment Individual  Personal planning discipline  Responsibility for results  Time spent on key priorities  Success measures  Team planning Team  Communications  Trust  Accountability  Focus on key priorities  Purpose & Strategy  Line of sight to goals Organization  Collaboration  Values  Systems  Leadership
  • 6. Cross-Industry Perspective Comm/ Finan- Tech Tele- Media cial Pharma Svs. Com Clarity 63 57 68 72 56 63 Commitment 65 62 67 69 60 63 Translate to Action 60 56 62 66 55 59 Enabling 58 53 64 59 52 56 Synergy 53 47 58 56 47 51 Accountability 55 51 59 63 53 57 Overall Score 59 54 63 64 53 58
  • 7. Building a Culture of Execution Execution Execution Gauge Process Results 4 Disciplines Of Execution
  • 8. Christine Troianello Dir. Of Information Products and Training
  • 9. Why Change?  Background:  ~550 learning leaders and managers, instructional designers and developers, technical writers and instructors globally  Supported corporate-wide audiences both: sales, customer and services training and technical publications  Organizational Culture and Climate  Lacked leadership, “old school”, individualistic, silo’d, noncollaborative  Unresponsive, complex, “hard to do business with”  Growing quality issues, internally focused, expensive  Low morale, continued downsizing, survivor mentality  Not viewed as value added and considered for outsourcing All Rights Reserved © Alcatel-Lucent 2006, #####
  • 10. All Rights Reserved © Alcatel-Lucent 2006, #####
  • 11. 2004-2005 Results Situation Results  Solution “Fuzzy”‪strategy‪to‪goals‪translation Unclear direction Strengthen alignment using goal cascade process Associates were not highly energized Poor Improved‪“line‪of‪sight”‪from‪ by organizational direction commitment organization, to team, to individual Too many priorities Confusion, Prioritized and focused on Wildly burnout Important Goals Poor cross-functional collaboration Poor teamwork, Created shared goals and and team-to-team communications Infighting implemented team to team accountability Gaps between Mgmt and Associate Low Increased communication to perceptions accountability frontline management and drove accountability to all levels Lost momentum Missed Created and aligned leading deliverables measures at all levels Implemented weekly/monthly tracking meetings Measured progress with xQ survey All Rights Reserved © Alcatel-Lucent 2006, #####
  • 12. Intent and Learnings  Intent:  Assess the organization to measure effectiveness in focusing and executing on our key strategic priorities.  learnings:  Gaps between Mgmt and Associate perceptions  Limited “line of sight” to organizational goals and measures  Associates not highly energized by organizational direction  Insufficient cross-functional collaboration and communication All Rights Reserved © Alcatel-Lucent 2006, #####
  • 13. Create and Measure Metrics that Matter All Rights Reserved © Alcatel-Lucent 2006, #####
  • 14. Goals Cascade • Franklin Covey and Lucent certified 6 people globally • Taught the 4 Disciplines of Execution to all employees • Senior management met with their teams to decide top 3-4 priorities • Teams met weekly to go over action plans and clear the path • Success factors:  Overall result 27% increase in xQ scores  Associates indicate they have a clear line of sight to company Leadership and their goals  Associates have an improved understanding of their role in achieving the organizational goals  Substantial increase in organizational collaboration between teams All Rights Reserved © Alcatel-Lucent 2006, #####
  • 15. xQ Scores Reflect Changes Over Time xQ1 xQ2 xQ3 xQ1 xQ2 xQ3 Clarity 61 79 78 50 70 71 Commitment 55 71 73 Organiza- Overall tion Translation 57 76 77 xQ Score: Level into Action xQ1: 54 xQ2: 72 50 72 73 Team Enabling 48 64 65 xQ3: 73 Level Synergy 47 68 70 63 75 76 Individual Level Account- 56 75 75 ability All Rights Reserved © Alcatel-Lucent 2006, #####
  • 16. Changes in Behaviors Show Results! Measurement Target Result Status Reduce Unit Cost 10% 11% Work Reduction Savings $2.2M $2.6M Globalization Savings $1.5M $1.7M Customer AR Responsiveness 80% 100% IP Timeliness 95% 98% Documentation IP Quality 7.75 7.75 Voice of Customer- Relevant 8.13 8.29 information for enhancing job performance Documentation Student Instructor Led – 89.2% Instructor Led – 89.2% Satisfaction Virtual Classroom – Virtual Classroom – 79.6% 86.2% Alternate Delivery – Alternate Delivery – 73.6% 75.4% All Rights Reserved © Alcatel-Lucent 2006, #####
  • 17. Lessons Learned Focus – the more narrow the focus the greater chance of achieving the goals with excellence Keep score – Identify key metrics for your goals and track the progress through use of visual effects Action plans – “Real strategy” is what people do on a daily basis that can move the goal forward Behavior Changes – Change the way you do things or think to achieve the goals Commitment – Needed the commitment from the Leadership and associates to achieve the goals Accountability – All associates needed to be accountable for their part in achieving the goals Implementation – weekly meetings, clear the path issues All Rights Reserved © Alcatel-Lucent 2006, #####
  • 18. Thank You ! Thanks for coming today. Any questions? Feel free to contact: Gretchen.Gill@FranklinCovey.com Rosanna.Dorazio@FranklinCovey.com All Rights Reserved © Alcatel-Lucent 2006, #####