Content1. Intro: Vision, Mission, Values, Strategy2. Definitions: Strategy, Portfolio, Program, PMO3. Strategy Execution - core competence4. Program Management & Role in Strategy Execution
Content• Intro: Vision, Mission, Values, Strategy• Definitions: Strategy, Portfolio, Program, PMO• Strategy Execution - core competence• Program Management & role in Strategy Execution
Vision, Mission, Values, Strategy What do we want? How will we get there? Why do we exist? Who we are?
Values – Who are we?• Amazon: • Vodafone – Customer Obsession – Speed – Innovation – Simplicity – Bias for Action – Trust – Ownership • MTN – High Hiring Bar – Integrity – Frugality – Leadership – Innovation – Can-Do – Relationships
Mission – why do we exist?• Wal-Mart Stores: • Honda: – To help people save money – To seek technology that so they can live better. helps realize true peace• Metro: and happiness on earth. – To bring together people • Google: and products in all corners – To organize the worlds of the globe. information and make it• Tesco: universally accessible and useful. – To create value for our customers to earn their lifetime loyalty.
Try it yourself! 1. short 2. catchy, easy to remember 3. inspiring 4. ambitious 5. realistic and measurable 6. differentiating from competition
Vision – What do we want?• Wal-Mart Stores: – To become the worldwide leader in retailing.• Sony: – To have the world look to Sony for comprehensive entertainment.• Samsung: – To lead the digital convergence movement.
Try It yourself! 1. specific 2. achievable 3. motivating 4. guideline for daily decisions 5. shapes organisation culture 6. BHAG
Project, Program, Portfolio, PMO Project Management • is the planning, organizing, directing, and controlling of company resources... for a relatively short-term objective Program Management • a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually Portfolio Management • A portfolio is a collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives. PMO • An organizational body or entity assigned various responsibilities related to the centralized and coordinated management of those programs under its domain. • The responsibilities of a PMO can range from providing PM support functions to actually being responsible for the direct management of a project.
The Challenge Only 10% of organizations execute their strategy Barriers to Strategy Execution Vision Barrier People Barrier Management Barriers Resource Barrier Only 5% of the Only 25% of the 85% of executive teams 60% of organizations workforce managers have spend less than one hour don’t link budgetsunderstands the incentives linked to per month discussing strategy strategy strategy Culled from Harvard Business Review
ABC Bank Strategy Map The Revenue Growth Strategy The Productivity StrategyFinancial ImprovePerspective Returns Improve Broaden Operating Revenue Mix EfficiencyCustomerPerspective Increase Customer Increase Customer Confidence in Our Satisfaction Through Financial Advice Superior ExecutionInternal Innovation Customer Management Operational ExcellencePerspective Understand Cross-Sell Shift to Provide Develop New Minimize Customer the Product Appropriate Rapid Products Problems Segments Line Channel ResponseLearningPerspective Increase Employee Employee Satisfaction Productivity Revenue per Employee Develop Access to Align Personal Strategic Skills Strategic Info Goals Strategic Job Strategic Info Personal Goals Coverage Ratio Availability Alignment (%)
Strategy Execution - Balanced Scorecard Balanced Scorecard should be understood as the LINK between strategy and action Specific initiatives to support the implementation of the companys strategies BSC Strategy Action/ Operations Strategic guidance will be communicated and BSC implemented on all relevant levels
Palladium’s Methodological approach 6 steps to achieve it Translate the strategy in 2 Enable an agenda for the requiered 1 operational terms using the Translate Develop changes and define a coherent strategy Balanced Scorecard so everyone the the that is aligned with the Mision, Vison can understand it Strategy Strategy and values of the organization 3 Strategic Plan 6Align the organization around its Align the Test Monitor the strategy momentumstrategy so it becomes everyone’s Organization and Adapt and adapt the strategy based onjob the results achieved Business Intelligence 4 5 Link the stratetgy with the Plan Monitor Turn the strategy in a continuos organizations budget and the Operations Operating/Financial Plan and Learn process, establishing a formal adequate process to assure its follow-up process based on the execution strategy performance Process Execution
BSC - 4 Quadrants & Causal Links FINANCIAL “To succeed Objectives Measures Targets Initiatives financially, how Lagging Hard should we appear to our shareholders?”CUSTOMER INTERNAL BUSINESS PROCESSES“To achieve Objectives Measures Targets Initiatives “To satisfy our Objectives Measures Targets Initiativesour vision, Vision shareholdershow should & and customers,we appear to Strategy what businessour processes mustcustomers?” we excel at?” Leading INNOVATION LEARNING & GROWTH “To achieve our Objectives Measures Targets Initiatives Soft vision, how will we sustain our ability to change and improve?”
Typical Corporate Scorecard Strategic Strategic Objective Strategic Measures Initiatives Budget Owner Theme GROW F1: Increase shareholder value EBITDA Initiative A GHC XXX Director, Financial F2: Profitable Growth across all Revenue Market Share Initiative B GHC YYY Finance commercial areas ROCE OFCF, FCF Growth Rate vs Competition Full Cost vs Competition CUSTOMER C1: Delight targeted segment Market Share per segments Programs B GHC ZZZ Director, ADMIRATION C2: Improve Dealer profitability CDI, NPS per segment Project C GHC RRR Marketing Customer ARPU TRUSTED BRAND Brand KPIs Gross/Net adds WIN-WIN Dealer Gross profit Growth Project D GHC PPP Director, DEALER Dealer Survey Sales RELATIONS NEW PRODUCTS I1: Innovative Products and New Product ROI Program E GHC FFF CTO services New product Acceptance Rate Internal COST I2: Technology Excellence Perfect Orders EFFICIENCY I3: Inventory Management SLA adherence (Delivery, MTTR) I4: On spec – On Time Cost Initiatives ROI OPERATIONAL I5: Cost Saving Initiatives Incidents per month vs Group Director, EXCELLENCE I6: Improve H&S HR INVIGORATE L1: Employee engagement Employee engagement scores Project F GHC KKK CEOLearning & L2: Key Business systems (CRM, Employee surveys per region Growth UNDERSTAND DR, BIs) Strategic competency Availability THE BUSINESS L3: Core competencies and skills % successors identified Program G Director , L3: Business rating (Ghana Club Strategic Information availability HR 100)
Recap: HR Balanced Scorecard Strategic Objectives Strategic Measures Targets Strategic Initiatives Budget M1. Create Shareholder Value Stock Price Multiple CompetitiveBusinessLinkage norms M2. Objectives on Measures on M3. Enterprise Scorecard Enterprise Scorecard M4. Impacted by HR Impacted by HR Financial F1. Improve HR Efficiency Budget Cost vs Actual 100% HR Cost / Employee 90% of norm Employee Satisfaction Survey 80% rating Employee Survey Customer C1. Create a Positive Work Environment $ CCC C2. Build Strategic Partnership Service Agreement Feedback 85% Rating Account Review Program $ BBB C2. Insure Human Capital Readiness Human Capital Readiness 75% Human Capital Readiness Report $ AAA I1. Achieve HR Operational Excellence Cost per Transaction 5% Reduction Activity Based Costing $ NNN Cycle Time 21 Days Process reengineering $ OOO Error Rate / Complaints 50% reduction TQM for HR Processes $ PPP I2. Develop Business Unit Partnerships Service Agreements in Place (%) 90% Service Agreements Program $ KKK HR Strategic Plans in Place (%) 90% HR Strategic Planning Process $ LLL Time with Customer 10 hrs / week Relationship Management Program $ MMM Internal I3. Provide Strategic Support to Business a) Build Strategic Staff Human Capital Readiness 100% Strategic Job Family Identification $ DDD Competencies Competency Profiles $ EEE Training & Development $ FFF b) Develop Leaders & Leadership Alignment 100% Leadership Development $ GGG Supportive Culture Cultural Alignment 100% Mission, Vision, Values $ HHH c) Create a High Performance Staff Alignment 100% Strategic Communications $ III Organization Performance Management Program $ JJJ L1. Provide Strategic HR Info HR Application System Readiness 100% (vs. plan) HR Systems Plan $ QQQ HR Competencies: Readiness 100% (vs. plan) HR Competency PlanLearning & L2. Develop Strategic HR Competencies $ RRR Growth L3. Fill HR Leadership Pipeline Key Position Depth Chart 80% HR Leadership Development Program $ SSS L4. Increase Best Practice Sharing Best Practices Transferred (#) 50% Knowledge Management Program $ TTT L5. Insure Strategic Alignment Personal Goals Linked to BSC (%) 80% BSC Cascade $ UUU L6. Create Shared Vision / Culture Strategic Awareness (%) 80% Strategic Education / Communication $ VVV
• Strategic Objective: – Achieve Operational Excellence owned by Dick• Initiatives Required to Achieve Objective – Project 1: Activity Based Costing @ $NNN, PM: DY – Project 2: Process Re-engineering @ $OOO, PM: PN – Program 1: TQM for HR Processes @ $PPP, PM: JM• Program Manager – Edwin Provencal
Financial Customer PerspectiveLearning & Growth Internal Processes all Strategic Objectives Balanced Scorecard Project Plot Impact of Programs against Achieve Operational excellence Strategic Objective Program Program Name Program Name Program Name Program Name Program Name x Activity based Coating Program Name x Process reengineering Program Name x TQM for HR Processes Program Name Program Name Program Name Program Name Program Name Program Name Program Name Project/Program Requirement Matrix Program Name Program Name Program Name
Benefits of Program ManagementArea of Impact BenefitDelivery of Change More effective delivery of changes because the changes can be planned and implemented in an integrated way ensuring that current business operations are not adversely affectedAlignment between Effective response to strategic initiatives by filling the gap between strategies and projectsstrategy and project levelsManagement support Keeping activities focused on the business change objectives by providing a framework for senior management to direct and manage the change processResource management More efficient management of resources by providing a mechanism for project prioritization and project integrationRisk management Better management of risk because the wider context is understood and explicitly acknowledgedBenefit realization Help to achieve real business benefits through a formal process of benefit identification, management, realization and measurementManagement control Improved control through a framework within which the costs of introducing new infrastructure, standards and quality regimes can be justified, measured and assessedBusiness operations Clarification of how new business operations will deliver improved performance by defining the desired benefits and linking these to the achievement of new working practicesManagement of Business More effective management of the Business Case by building and maintaining a Business Case that clearlyCase compares current business operations with the more beneficial future business operationsCo-ordination and control More efficient co-ordination and control of the often complex range of activities by clearly defining roles and responsibilities for managing the Project Portfolio and realizing the benefits delivered by the programTransition management Smooth transition from current to future business operations through the clear recognition and responsibility for preparing the organization for migration to new ways of workingConsistency Achieving a consistent system of new or amended policies, standards, and work practices through the integrated definition, planning, delivery and assurance of the required changes
Key SkillsLeadership Benefit Focus Motivation Communication Decision- Political CulturalInfluencing making Awareness Awareness Risk ProjectNegotiation Management Creativity Management Mindset Principles Comfortable in Time Conflict Flexibility an uncertain Management Management environment
In summary• Most organizations have a strategy• 90% of organizations fail to execute• Strategy Execution can be a core competence• Program Management plays a key role in effective Strategy Execution