Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Turning Strategy Into Action

4,894 views

Published on

If you are a new or experienced business leader this presentation will guide you to implement an effective company strategy.

Please contact me should have any questions or require assistance

Published in: Business

Turning Strategy Into Action

  1. 1. Presenter: Ajay M. Pangarkar, CTDP, CPA, CMA Based Upon the Book The Trainer’s Balanced Scorecard: A Complete Resource for Linking Learning to Organizational Strategy CentralKnowledge Where Learning…Means Business
  2. 2. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar Building Business Acumen for Trainers: Skills to Empower the Learning Function (with CD) Published by Wiley Terrence Gargiulo, Ajay M. Pangarkar, Teresa Kirkwood additional resources The Trainer’s Balanced Scorecard: A Complete Resource for Linking Learning to Organizational Strategy Ajay M. Pangarkar, Teresa Kirkwood Published by Wiley
  3. 3. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar Identify variables supporting strategy and to deliver results what to expect Develop critical process to strategy formulation Implement a strategy for performance expectations turning strategy into action Learning objectives: Develop a framework to support strategy execution
  4. 4. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar strategy facts…   “approximately 5% of all organizations implement their strategies successfully, and 70% of strategic initiatives fail to meet their objectives. the remaining 25% have some mild success but do not meet the full potential of the strategy devised. - Kotter International
  5. 5. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar quick question…   what’s strategy to you? •  Turn to the person next to you •  Take 3 minutes and describe what strategy means for you
  6. 6. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar how strategy is seen…  
  7. 7. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar what strategy is not…   Strategy is more than just financial results… …financial success is a result of a well executed, performance focused strategy - Ajay M. Pangarkar CTDP, CPA, CMA
  8. 8. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar what strategy is not…   •  provides long-term coherence and direction •  documents key choices to make a strategic plan is not a ‘to do list’ •  focuses on ‘big picture’ direction •  provides operational action items What it is…It…
  9. 9. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar defining strategy…   simply as going from point A to point B… Where you are Where you want to be
  10. 10. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar defining strategy…   then… why do so many still get it wrong?
  11. 11. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar defining strategy…   Mission Why we exist Values What’s important to us Vision What’s we want to be Strategy Our game plan Strategy Map Connecting the strategy Balanced Scorecard Managing strategy performance Targets and Initiatives What we need to do Personal Objectives What I need to do Satisfied Shareholders Happy Customers Effective Processes Motivated Workforce Strategic Outcomes Ref:  Kaplan  &  Norton  
  12. 12. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar ? core strategy concepts   Getting to… B Where are we now Where are we going How will we get there? ? Can you answer these questions? Take 5 minutes; turn to your neighbour and try
  13. 13. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar ? core strategy concepts   Getting to… B Where are we now Where are we going How will we get there? ?
  14. 14. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar core strategy concepts! Mission and Objectives Environmental Scan Strategy Implementation Strategy Formulation Evaluation & Control ? where are we now how will we get there? where are we going?
  15. 15. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar strategy development! 1 define the mission 2 3 identify expectations evaluate situation 4 address options 5 implement option(s) 6 align operations we’re going to “storyboard” strategy
  16. 16. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar the case: sky air   •  Sky Air, a value driven airline •  Strategy shift from market growth to profitability •  Profit growth through revenue or efficiency •  Loyal clients enjoying value from SkyAir •  CEO wants efficiency over revenue growth
  17. 17. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar where do we begin?   we need to start somewhere… what do you think?
  18. 18. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar basic mission concepts   Current focus: •  what is the mission? none?…imply one •  does it clearly communicate intent? no, why? Future direction: •  does the current one fit? no, why? •  what changes/modification is required? Keep in mind   mission components why; what; how; where; values 1 define the mission
  19. 19. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar basic mission concepts   HOW an organization accomplishes what it does to exist! Corporate Strategy Mission WHAT an organization must do to become what it aspires to be! Vision Business Strategy 1 define the mission
  20. 20. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar what a mission can do…   Be the world's best quick service restaurant experience. Being best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile McDonald’s mission: 1 define the mission what are your observations about the mission?
  21. 21. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar now it’s your turn…   In your group: §  read the SkyAir case §  together, identify Sky Air’s mission §  what is the current focus? we’re going to “storyboard” SkyAir 1 define the mission
  22. 22. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar sky air’s mission   Dedication to building a recognized brand with… •  the highest quality customer service and respect •  delivered with a sense of warmth, friendliness, individual pride, and company spirit •  continuing building our unique position as a leading short haul, point-to-point carrier in North America. 1 define the mission
  23. 23. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar anchor your strategy…   customer intimacy product leadership operational excellence value disciplines focus •  customer needs •  value not price •  market leader •  innovator, adopters •  lean operations •  efficiency, reliability example 2 identify expectations Can a company have more than one?
  24. 24. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar other analysis tools?   Core Competence (P&H) •  what do we do better than others Porter’s ‘what is strategy?’ •  cost leadership, differentiation, market focus 2 identify expectations
  25. 25. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar now it’s your turn…   In your group: §  revisit the mission §  decide on a primary discipline §  what is their strategy focus? what’s SkyAir’s “anchor”? 2 identify expectations
  26. 26. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar strategic analysis   Strategically analyze industry/competitive conditions Strategically analyze your company’s situation What strategic options does the company have? What is the best strategy? mission à opportunities à threats à strengths à weaknesses à stakeholder needs revised mission 3 evaluate situation
  27. 27. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar strategic analysis – external   Key Questions: •  What are the industry’s dominant features? •  What’s changing the competitive/business environment? •  Which companies are in strong/weak positions? •  What strategic moves are rivals likely to make? •  What are key factors for competitive success? •  Is the industry attractive and what are the prospects for above-average profitability? Strategically analyze industry/competitive conditions 3 evaluate situation external focus
  28. 28. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar strategic analysis – internal   Key Questions: •  How well is the present strategy working? •  What are the company’s strengths, weaknesses, opportunities, and threats? •  Are the company’s prices/costs competitive? •  How strong is the company’s competitive position? •  What strategic issues does the company face? Strategically analyze your company’s situation 3 evaluate situation internal focus
  29. 29. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar swot analysis   S = what do we do well W= what do we do poorly O = what is the industry growth T= what are industry challenges 3 evaluate situation
  30. 30. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar ‘keys’ to the company   key success factors •  necessary to achieve the mission •  vital for a successful strategy •  drives the strategy forward; makes or breaks it key risk factors •  not meeting a KSF •  external threats or festering weaknesses 3 evaluate situation
  31. 31. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar quick question…   what are your ksf’s? •  Turn to the person next to you •  Take 5 minutes; come up with 3 ksf’s for your company •  Ensure they are ksf’s and not competitive advantages 3 evaluate situation
  32. 32. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar other analysis tools?   Porters 5 Forces •  Supplier, buyer, rivalry, substitution, new entry others you use? PESTEL •  Political, economic, social, technology, environmental, legal 3 evaluate situation
  33. 33. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar now it’s your turn…   In your group: §  review the SWOT provided §  identify additional SWOT points §  identify KSFs/KRFs §  define is the stakeholder need evaluate SkyAir’s “situation” 3 evaluate situation
  34. 34. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar address strategic options   evaluate options to address issues: 1.  operational efficiencies (flight turnaround) 2.  revenue growth (premium packages) strategy alignment ‘test’: •  align with the mission? •  meet with stakeholder needs? •  fit with the value discipline? •  capitalizes on KSFs? 4 address options
  35. 35. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar now it’s your turn…   In your group: §  select one option §  evaluate its pros and cons §  how well does it align? §  hint: review the current situation evaluate SkyAir’s strategic “options” 4 address options
  36. 36. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar strategic fit   Best Strategy A good fit? Competitive advantage? Performance objectives? Fit the Mission? 5 implement option(s) overall objectiveoperational performance
  37. 37. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar now it’s your turn…   In your group: §  review the original mission §  does it need to be modified? §  if yes, then modify it evaluate SkyAir’s “mission”…again mission revised mission 5 implement option(s)
  38. 38. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar sky air’s (revised) mission   Dedication to building a recognized brand with… •  the highest quality customer service and respect •  delivered with a sense of warmth, friendliness, individual pride, and company spirit •  continuing building our position as a leading operationally efficient short haul, value driven fares, point-to-point carrier in North America. 5 implement option(s) time to ‘operationalize’ the mission
  39. 39. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar operational performance   “a set of management processes help to improve management, strategy execution and decision making. it helps execute strategy and to measure and monitor performance to make strategic decisions and learning. it is the quality of those decisions that separate successful companies from the rest - Advanced Performance Institute 6 align operations performance management is…
  40. 40. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar operational performance   6 align operations Financial objectives “What stakeholders want?” Customer expectations “How customers see us?” operational financial results market reality and expectations support external requirements enable operational requirements Internal focus “What must we do well?” Learning capacity “Improve/create value?” • operationalize the mission this how you: • measure strategy performance
  41. 41. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar Customer Need Identified Design Develop Make Market Customer Need Satisfied Service Time to Market Supply Chain CUSTOMER CUSTOMERINTERNAL PROCESS LEARNING & GROWTH Innovation Operations FINANCIAL performance & value chain   6 align operations
  42. 42. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar • Sales training program • Custom. service training • HR hiring plan • 50% incr leads • 10% incr. satisf • Maintain/incr. level by 15% / month • Sales/month • Client satisf. • Client retention • Weekly perform reviews • Develop/hire sales staff • Develop/hire cust. Service staff Learning • Incr. Resource to R&D • Benchmarking • <$2M/quarter • >75 days from current • >10 min/client • Invst. in R&D • Development to mkt turnaround • Cust. resp time • Develop innov. products • Reduce client handling Internal • Cust. service • Innovation management • Customer loyalty program • < 90% satisf. rate from 2005 • Survey 75% clients • % change • Cust. satisf survey/levels • Survey current customers • Increase client loyalty • Build client relat. And identify client needs Customer • Ident. markets • Stabilize prod cost • Acquire sales tools • 35% in 2 years • 22% / year • 40% / year • Revenue stmt. • Production level • Sales forecasts • Revenue incr. • Increase prod. • Increase sales Financial InitiativesTargetsMeasuresObjectivesStrategy Map Incr. revenue Increase production Increase sales levels Increase client loyalty Develop cust. relation. Develop new products Align Sales team Develop cust. service staff Facilitate client interaction performance framework   6 align operations
  43. 43. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar now it’s your turn…   In your group: §  use the revised mission and swot §  complete the BSC provided §  map the performance links operationalize SkyAir’s “strategy” 6 align operations
  44. 44. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar sky air performance   6 align operations Objectives Measures Target Initiative Financial 1.  Increase profits 2.  Increase revenue 3.  Fleet management • P&L forecast to actual • Incrm. revenue report • Reduce fleet size; reduce cost; incr. profit • 10% net profit/yr • 15% / year • 35 planes • Optimize flight time • Intro high margin products • Increase customer capacity of existing fleet Customer 1.  Flight is on-time 2.  Lowest prices 3.  Customer satisfaction • FAA OnTime arrival rating • SA to industry price report • Customer survey • 90% on-time arrival • Currently #2 by Consumer Report • 85% satisfaction • Quality management • Manage prices to 5% lower than competitors • Customer loyalty program Internal 1.  Fast turn around 2.  Fast passenger processing 3.  Effective resource utilization • On ground time • Time to disembark and board • Resource utilization report • 30 minutes or less • 25 minutes or less • 90% resource use • Cycle time optimization for ground crew • Cycle time optimization for gate/ boarding crew Learning 1.  Ground crew alignment 2.  Boarding/Gate staff alignment • Cycle time optimization benchmark report • Cycle time optimization benchmark report • 30min turnaround (15% improve) • 90% resource use • 25 min. boarding • 95% satisfaction • Ground crew activity analysis • Optimize value add activities • Assess resource utilization • Boarding/gate staff analysis • Identify passengers concern
  45. 45. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar quick question…   what are you taking away today? •  Turn to the person next to you •  Take 3 minutes to name what is your take-away and how you will apply it
  46. 46. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar Identify variables supporting strategy and to deliver results turning strategy into action Develop critical process to strategy formulation Implement a strategy for performance expectations learning objectives review: Develop a framework to support strategy execution §  Failure occurs when not operationalized §  Creates tangible connections throughout the organization §  Recognize strategy is not just financial §  Aligns with the mission §  Need to know where you want to go §  An evolving process to achieve the mission §  Objectively assess its current situation §  Leverages what it does well, mitigates what it doesn’t
  47. 47. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar Identify variables supporting strategy and to deliver results turning strategy into action Develop critical process to strategy formulation Implement a strategy for performance expectations turning strategy into action learning objectives review: Develop a framework to support strategy execution §  Failure occurs when not operationalized §  Creates tangible connections throughout the organization §  Recognize strategy is not just financial §  Aligns with the mission §  Need to know where you want to go §  An evolving process to achieve the mission §  Objectively assess its current situation §  Leverages what it does well, mitigates what it doesn’t
  48. 48. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar TrainingIndustry.com —  The CLO Reality: What It Takes to Lead & Manage the Learning Function —  The Business Leaders Bottom Line: Aligning Learning With Organizational Needs —  Building Strategic Learning Linkages: Mapping & Measuring Your Learning Strategy TrainingMag “Last Word” —  Taking Care of Business —  Let’s Get Naked! “Workforce Revolution!” blog.centralknowledge.com thank you…please follow my blog
  49. 49. CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar Ajay M. Pangarkar CTDP, CPA, CMA t: 866-489-7378 x 1 e: ajayp@centralknowledge.com                 @ajaypangarkar   30% DISCOUNT CODE: WLY15 @Wiley.com

×