Getting Knowledge & Sharing Knowledge

1. Operating Model
Day 2
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2. What were the most important
ideas/points discussed in Day 1?
Recap / Day 1
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3. DAY 2:
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Operating Model
 Identifying the phases related to the process of strategic planning.
 Highlighting the operating model and all the components related to it.
 Defining strategic goals and how they should be aligned with business strategy.
 Recognizing the main parties involved in the strategic planning process.
 Sharing some tips and advice on how to implement a business plan strategy.

4. “Without a strategy the organization is like a ship
without a rudder, going around in circles.”
Joel Ross and Michael Kami
Quoting
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5. which are required for firms to achieve:
strategic competitiveness
sustained competitive advantage
above‐average return on investment
1.The Strategic Management Process (1 of 2)
Involves the full set of:
ActionsCommitments Decisions
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6. Drawing a Strategy Map
TRANSLATE
STRATEGY
Mission / Vision
Strategy Map
Targets
Initiatives
ORGANIZATION
ALIGNMENT
Corporate Role
SBU Goals
Shared Services
External Partners
EXECUTIVE
LEADERSHIP
Top Management Support
Executive Team Engaged
Accountability & Results
A Performance Culture
CONTINUAL
PROCESS
Linked to Budgeting
Linked to Mgt Operations
Management Meetings
Feedback System
Learning Process
EVERYONE’S
JOB
Strategic Awareness
Goal Alignment
Professional Responsibility
Strategy
Focused
Organization
1.The Strategic Management Process (2 of 2)
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7. Human
Resources
Operations
Finance
& Accounting
Information
Technology
Marketing
& Sales
Understand the perspective of our internal business partners:
2.Internal Factors
Finance:
‐ Pricing products
‐ Creating financial models
Accounting:
‐ Accounts payable
‐ Accounts receivables, etc.
Marketing:
‐ Plan, price, promote, &
distribute goods/services.
Sales:
‐ Sell company’s product in
the marketplace, etc.
Operations:
‐ Focus on productivity,
quality, cost, delivery, &
performance.
‐ Supply chain.
Human Resources:
‐ Attract, retrain, retain
and reward.
‐ Define core/managerial &
technical competencies
Information Technology:
‐ Identifying strategic
information system that
is dependable & reliable.
‐ Can save time/cost on the
company, etc.
Strategic Management
Parties involved:
‐ Owners
‐ Directors/Managers
‐ Supervisors/employees
‐ Suppliers/clients/etc.
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8. 3.Internal/External Stakeholders
Internal Stakeholders External Stakeholders
COMPANY
Employees
Manager
Owners
Suppliers
Society
Government
Creditors
Shareholders
Customers
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9. Environmental
Realities
Organizational
Realities
Vision
Mission
Culture
Organizational Strategy
(Objectives)
Company Structure
(Workplace design)
HR Requirements
(Competencies)
Business Strategy
Performance
Management
GROUP ACTIVITY
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10. 4. Mckinsey’s 7s Model
Consider the impact of change upon these 7Ss:
 Strategy
 Systems
 Staff
 Skills
 Style
 Shared values
 Structure
The vision and business plan; (is there a new direction and a need to re‐plan?)
Computer/manual processes; (are we more efficient? Where can we improve?)
The affected parties; (are they accepting and coping with the changes now?)
Future knowledge and skills needed; (what are the training programs needed?)
Methods of communication; (any issues faced? how technology has affected people?)
Culture and ethics; (are we contradicting ourselves or being on the right track?)
Reporting Lines and framework; (is decision making enhanced or duplicated?)
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11. 5.Operating Model
Objectives of the Operating Model:
 To foster a culture of innovation and enterprise development though
partnerships in a community‐based system.
 To support across the developmental value chain, from funding support, to
R&D, manufacturing, marketing, servicing and standards development.
The operating model is the first key deliverable in any organizational design. It
describes in broad terms how the new organization will operate and interact
with its customers and other stakeholders.
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12. 5a. A Framework for Change Management Model
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13. Example of a High Level Retail Operating Model
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14. Example of Operating Model (e.g. for Finance)
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15. 5b. How to Design the Operating Model
5 Major Steps to be considered:
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16. 5c. How OD Supports Organizational Effectiveness
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17. 6.Service Management (1 of 2)
Service management is about:
a. building relationships with key customers and stakeholders
b. ensuring that the services delivered meet customers’ needs.
Best service management exists to meet regularly with people to share
objectives, review past performance and set expectations for future activity.
A successful service management team will continually check the alignment
of the services from the shared service center with the goals and objectives
of the customer groups.
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18. re
c
Service management is usually made up of the following key activities:
• Quality control to monitor standard processes and outputs on a day by day basis.
• Performance measurement to track volumes and adherence to service KPIs within cost
• Process improvement teams to manage change requests and to act to correct service non‐
compliance in a timely manner.
• Service level agreement (SLA) management to set up suitable SLAs that define the
responsibilities between service provider and customer.
• Performance reporting of KPIs and balanced scorecard on a regular basis to inform the
dialog between the service provider and the customer.
• Customer satisfaction feedback surveys to measure baseline satisfaction with services on a
regular basis
• Governance boards, which meet on a quarterly or half‐yearly basis to review overall
performance and prioritize new services for roll‐out, improvements to be scheduled or
investments to be made.
6.Service Management (2 of 2)
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19. 6a. Service Management Activities
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20. 6b. Service Management Phases
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21.  Strategic planning is an essential business activity. It is practiced widely informally
or formally.
 Strategic planning and decision making process should result in SMART goals and
agreed‐upon objectives.
 Concepts to be used in strategic planning include:
‐ programs
‐ policies
‐ plans
‐ actions
‐ tactics
‐ strategies
‐ goals and objectives
We need to have a clear roadmap that defines the ways things are best achieved
in the organization taking into account people productivity and efficiency in
performing their tasks, duties and responsibilities.
7.Goals, Objectives and Targets (1 of 3)
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22. The definition regarding these concepts vary, overlap and fail to achieve clarity!
There are common features among goals, objectives and targets. They are mainly
specific, measurable, achievable, realistic and time bound.
It is important to identify priority objectives and goals and develop clear action
plans to reach the desired outcome quantitatively and qualitatively.
Shareholders may have several goals at the same time:
‐ To achieve higher profits.
‐ To gain competitive advantage.
‐ To ensure bigger market share.
“Goal Congruency” refers to how well the goals are combined with each other.
For example: Does GOAL “A” appear compatible with GOAL “B”?
Do they fit together to form a unified strategy?
7.Goals, Objectives and Targets (2 of 3)
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23. We recommend to have short‐term, medium and long‐term goals.
So one should expect that short‐term goals are easily attainable and fairly assessed.
To achieve the desired goals and outcomes, this mainly requires:
‐ Commitment
‐ Concentration
‐ Communication
‐ Coordination
‐ Resource planning
‐ Time management
‐ Budget
Above all, in order to become really effective, LEADERS in the organization should
have the responsibility for:
‐ communicating the vision of the shareholders
‐ creating a sound strategic plan
‐ setting an action plan
‐ defining the short and long‐term objectives to be compatible with the company
vision, mission, and business strategy.
7.Goals, Objectives and Targets (3 of 3)
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24. 7a. Diagnosing Development Level (1 of 2)
 What is the specific goal or task you want to accomplish?
(Clarity of vision)
 How strong or good are the individuals demonstrating task knowledge
and skills? (Learning or doing)
 How strong or good have the individual’s transferable skills?
(Ability or self‐efficacy)
 How motivated, interested and enthusiastic is the individual?
(Attitude: + or ‐)
 How confident or self‐assured is the person?
(Personality A/B or AB)
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25. 7a. Diagnosing Development Level (2 of 2)
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D4 D3 D2 D1
Doing
Can do goal or task
without direction
Learning
Cannot do goal or task
without Direction
Attitude
+ - - +
D4 D3 D2 D1

26. 1 Board Members:
• Vision / Goals
• Support / Focus
• Monitor Effectiveness
• Shares / Perks
4 Individual / Employee
• Self‐awareness
• Job Performance
• Professionalism & Career
Planning, training
• Bonus / Promotion / Merit
2 Group Organization:
• Strategy
• Systems / Processes
• Technology / Help
• Gain Sharing / Bonus
3
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Manager / Supervisor:
• Performance Management
• Development & Coaching
• Succession Planning
• Bonus / Merit / Benefits
• Others
7b. Identifying Corporate Responsibilities

27. 8.Business Partners’ Requirements
To be successful, LEADERS must concentrate on the SEVEN key elements:
Abilities
Skills
Development
Attitude
Ethics
Recognition
Knowledge
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28.  Be part of the business management team with specific responsibility for leading
the development and implementation of proper solutions in place.
 Champion, drive and embed the functional agenda with the business customers
and ensure its inclusion in the business planning process.
 Support change initiatives undertaken by business customers.
 Manage relationships with business customers on a face to face basis.
 Conduct regular discussions where customers can raise issues, concerns and
ideas, etc.) to improve accordingly.
 Act as a facilitator for major communications and change management.
 Work with senior managers on solving issues and managing change.
 Consolidate and capture the customer feedback and respond adequately.
8a. The Role of a Business Partners
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29. 8b. Dimensions of Change
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 Business partnering
 Strategic perspective
 Organizational Change
 New Technology
 Diversity & work‐life balance
 Decentralization
 Shift in responsibilities
 Outsourcing
 Off shoring
 Social responsibility
 Development of people
 Measurements
 Mergers & acquisitions
 Employee relations

30. Steven Covey
7 Habits
for Highly
Effective
People
Conclusion
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