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Validating strategies workshop, 9th and 11th November 2015, by Dr Phil Driver

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Validating strategies for programme success
APM Benefits Management SIG and Programme Management SIG workshop
by Dr Phil Driver
Monday 9th and Wednesday 11th November 2015

Published in: Business
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Validating strategies workshop, 9th and 11th November 2015, by Dr Phil Driver

  1. 1. Copyright OpenStrategies Ltd 2015 Validating Strategies Course November 9th and 11th 2015 Dr Phil Driver phil@openstrategies.com +64 (0)21 0236 5861
  2. 2. Who are we? Participants • Your name • Your background (2-3 sentences) Facilitator: • Dr Phil Driver • Author of Validating Strategies • Founder of OpenStrategies Ltd • Background in business, science and technology Copyright OpenStrategies Ltd 2015 2
  3. 3. Key questions and messages • What is ‘strategy’ and what’s it got to do with project management? • What do organisations (and project managers) actually do? • Can project managers ‘realise benefits’? • PRUB – linking Projects and Results to Uses and Benefits • SubStrategies and OpenStrategies • Validating strategies – Is it logical? – Will it definitely work? – Will it be worth it? Copyright OpenStrategies Ltd 2015 3
  4. 4. Learning outcomes • Understand why most strategies fail • Understand the core functions of organisations and project managers and how strategy influences (or should influence) projects • Know how to develop and ‘Validate’ strategies • Understand how to work in the different types of strategic environments • Know more about your own strategic ‘comfort zone’ Copyright OpenStrategies Ltd 2015
  5. 5. Clarify • Breaks • Lunch • Time-keeping • What else do you want or expect? Copyright OpenStrategies Ltd 2015
  6. 6. Your strategy background? • Who has read a strategy document? • Who has created and documented a strategy? • Who has implemented a strategy? • What was your strategy experience like? • Did people apply the strategy successfully? • Do ‘people at the top’ know what they are doing? • What training have you had relating to ‘strategy’ Copyright OpenStrategies Ltd 2015
  7. 7. Worldwide, what percentage of strategies makes a significant difference? Copyright OpenStrategies Ltd 2015
  8. 8. Copyright OpenStrategies Ltd 2015 ‘Tired of Strategic Planning?’ From a 2007 survey of 30 top international companies, McKinsey’s conclusions about strategic planning were: • “…the extraordinary reality is that few executives think this time-consuming process pays off…” • “…there is a lot of banging of drums and waving of feathers and an almost mystical hope that something good will come out of it”
  9. 9. Freek Vermeulen, London Business School • “Most companies do not have a strategy… I think 9 out of 10 (at least) don’t actually have one” • “Most companies and CEOs do not have a good rationale of why they are doing the things they are doing and how this should lead to superior performance” • “A strategy is only really a strategy if people in the organisation alter their behaviour as a result of it” Copyright OpenStrategies Ltd 2015
  10. 10. Actually….. • All organisations do have a ‘strategy’ of some sort • Most organisations have a ‘strategy’ which is not written down and which just means that they will – ‘respond to whatever the world throws at us’ (that is, it is a purely reactive strategy without any serious planning) • Many organisations have a written strategy but it is not the same as what they are actually doing • Very few organisations have a genuine strategy that is written down and which they are actually implementing Copyright OpenStrategies Ltd 2015 10
  11. 11. What is the meaning of the word ‘strategy’? – Discuss – Agree that for this course we will define strategy as: “…………” Copyright OpenStrategies Ltd 2015
  12. 12. Strategy? • A strategy is “an action plan and rationale” • ‘Rationale’ means the reasons for implementing the strategy i.e.: – confirmation that it is logical, plus – confirmation that it will actually work, plus – that it is worth it Copyright OpenStrategies Ltd 2015 12
  13. 13. Strategy? ‘Strategic planning’ may involve environment scanning, scenario development, market research, focus groups, test marketing, product development and much much more…… but at the end of the day…. a strategy must be distilled from all the above information and it must be: “an action plan and rationale” Copyright OpenStrategies Ltd 2015 13
  14. 14. Strategy? • A strategy may exist in people’s minds or it may be written down • If it’s going to be shared and used to inspire many stakeholders it has to be documented in some way • It has to be understandable by many people Copyright OpenStrategies Ltd 2015 14
  15. 15. Exercise In groups, identify a list of stakeholders who would be interested in the following high level strategy: “to design and build a new coal fired power station in the old and partly abandoned commercial area of the city”. Most of these stakeholders need to understand the strategy if they are expected to support it Copyright OpenStrategies Ltd 2015
  16. 16. Are these ‘strategies’? • Optimise profit • Operate sustainably • Be environmentally responsible • Be socially responsible • Operate legally • Exceed customer expectations • Apply quality management methods • Optimise shareholder value Copyright OpenStrategies Ltd 2015 16
  17. 17. Are these ‘strategies’? Meridian will maximise long-term shareholder value by: • seeking sustainable competitive advantage from excellence in generating electricity at optimal value through to meeting customer needs for energy and wider complementary and adjacent products and solutions • actively developing and participating in competitive energy markets to provide products and services that deliver value to our customers and to enable Meridian to optimise its risk position Copyright OpenStrategies Ltd 2015
  18. 18. Are these ‘strategies’? Meridian will maximise long-term shareholder value by: • undertaking new investments that over their lives are: – aimed at yielding a positive risk-related net present value – managed in a manner that will maximise the commercial value of the business • undertaking prudent risk management in relation to its business activities • minimising operating costs • acting with a sense of social responsibility and reporting on its actions • providing healthy and safe places of work for its people Copyright OpenStrategies Ltd 2015
  19. 19. • Exercise 5 Copyright OpenStrategies Ltd 2012
  20. 20. Do we need strategies? • “If in doubt restructure because it gives the impression of progress” • If in doubt create a strategy because it gives the impression of progress • If in doubt set up a pilot/trial (or committee or inquiry or…) because it gives the impression of progress • Too often, these are ways of avoiding making decisions and taking action Copyright OpenStrategies Ltd 2015
  21. 21. Copyright OpenStrategies Ltd 2015 The Old Strategy Paradigm (by OpenStrategies 2001) 005
  22. 22. How do strategies influence Projects? 1. Stakeholder engagement 2. Strategy and higher-level SubStrategies 3. Design 4. Operational-level SubStrategies (tactics?) 5. Implementation – Project Management – Performance management Copyright OpenStrategies Ltd 2015
  23. 23. Why most strategies make no difference #1 • 3 levels of strategies • Aspirational • Guidance • Operational • Human cognitive limits • Lack of focus on core organisational functions Copyright OpenStrategies Ltd 2015
  24. 24. Why most strategies make no difference #2 Strategy language • Taxonomy (classification of strategy words) – Outputs, outcomes, mission, goal, objectives, framework, vision, status, cross-cutting-themes, aspirations, strategies, plans, collaboration, cooperation, competition, values, structures, KPIS, tasks, accountabilities, responsibilities, principles, tactics, actions, directions, issues, factors, priorities, benefits, impacts, purpose, capacity, capabilities, forecasts, scenarios, drivers-for-change, data, information, knowledge, wisdom…. and sometimes ‘implementation’ • Syntax (rules for constructing strategy ‘sentences’) – Do goals create objectives or do objectives create goals?.... • Semantics (meaning of strategies) Copyright OpenStrategies Ltd 2015
  25. 25. Copyright OpenStrategies Ltd 2015 Levels of strategies • Improve the transport system • Improve the bus system • Buy new buses and make sure that they run on time • Buy new buses which produce fewer harmful emissions and make sure they arrive within 1 minute of their scheduled time • Buy new, low emission buses which use computer- controlled scheduling system to ensure that they arrive within 1 minute of their scheduled time
  26. 26. Copyright OpenStrategies Ltd 2015 The meaning of strategy…. 1. Strategy is what people above you in the organisation do… 2. Tactics is what people below you in the organisation do… 3. Statements 1 and 2 are true irrespective of what level you are in the organisation Driver’s 2nd Law 2014
  27. 27. Copyright OpenStrategies Ltd 2015 Human cognitive limits • There are limits to how much information humans can use at any one time: – Humans can hold 7 +/- 2 ideas in their heads (Miller’s law) – We believe that humans can understand just 15-20 inter- connected ideas when they are in a written or graphical format (Driver’s 1st law) • So if strategies are to be understood by many people they must be easy to understand 27
  28. 28. Copyright OpenStrategies Ltd 2015 Our main OpenStrategies’ principle The smallest amount of information… that has the highest value… to the most people
  29. 29. What should strategies do? Strategies should guide the improvement of what organisations actually do So what do organisations actually do? Copyright OpenStrategies Ltd 2015 29
  30. 30. Exercise: What do organisations actually do? Copyright OpenStrategies Ltd 2015 Core functions of organisations and their customers/citizens Inputs Outcomes External factors Internal factors
  31. 31. This is what organisations actually do Copyright OpenStrategies Ltd 2015 Create assets (products, services, infrastructure) and enable customers/citizens to use them to create benefits Inputs Outcomes External factors Internal factors
  32. 32. This is what organisations actually do Copyright OpenStrategies Ltd 2015 Inputs Outcomes External factors Internal factors 32
  33. 33. Create assets & enable people to Use assets to create Benefits Copyright OpenStrategies Ltd 2015 33 P R U B
  34. 34. Copyright OpenStrategies Ltd 2015 PRUB Organisations run Projects which produce Results (outputs/assets) which people Use to create Benefits (outcomes)
  35. 35. Copyright OpenStrategies Ltd 2015 PRUB PRUB: The smallest amount of information… that has the highest value… to the most people
  36. 36. Copyright OpenStrategies Ltd 2015 36 Happy customersbecause they have done and achieved what they wanted to doand achieve Sustainablymanufacture, distribute andmarket our company’snew product Our company’s new product availableto customers together withrelevant productmarketing information Customers buy anduse our company’snew productto do & achieve whatthey want Our companyissustainably profitable Projects Results Uses Benefits Build asheltered,safe cycleway from the housing estate to theschool A sheltered, safe cycleway is in place fromthe housing estate to the school Children ride toschool and home again onthesafe and sheltered cycleway Children are safe when travelling Two simple example SubStrategies
  37. 37. Copyright OpenStrategies Ltd 2015 Assess customer’s needs based on what they want to do and achieve with our company’s potential new product Information available on what customers want to do and achieve with our company’s potential new product Use this information to design, build and test market new products to enable customers to do and achieve what they want to do and achieve Accurate product and customer-use data is available relating to our company’s potential new product Happy customers because they have done and achieved what they wanted to do and achieve Sustainably manufacture, distribute and market our company’s new product Our company’s new product available to customers together with relevant product marketing information Customers and buy and use our company’s new product to do & achieve what they want Our company is sustainably profitable Projects Results Uses Benefits
  38. 38. Example SubStrategy • Post-earthquake Christchurch Copyright OpenStrategies Ltd 2015
  39. 39. Copyright OpenStrategies Ltd 2015 39 Deliver 30,000 chemical toilets to ChCh homes 30,000 ChCh homes have chemical toilets Families in 30,000 homes use chemical toilets 30,000 ChCh homes have high hygiene standards Install sewage disposal tanks in streets Sewage disposal tanks in position in streets Users Use & empty their own chemical toilets Deliver cleaning and sanitation chemicals to all users Users Use, empty, clean/sanitise own chemical toilets Develop/operate disposal tank emptying/cleaning processes Vet/train reliable operators who empty & clean chemical toilets for frail people All users have cleaning & sanitation chemicals Frail users Use chemical toilets that were emptied & cleaned by ‘someone’ Disposal tanks clean & useable at least 98% of the time Chemical toilets of frail people are ready for use at least 98% of the time
  40. 40. Exercises • Card sets • Worksheet exercise Copyright OpenStrategies Ltd 2015
  41. 41. Kidney Health Monitoring example Copyright OpenStrategies Ltd 2015
  42. 42. You must identify and understand 1. The most compelling Uses 2. The Uses that the customer will pay for Copyright OpenStrategies Ltd 2015
  43. 43. Copyright OpenStrategies Ltd 2015 43 GIS hardware & software GIS data Land managers: • learn about using GIS systems & data, • purchase hardware/software, • download GI data, • collect their own GI data, • integrate data, • verify & analyse data, • draw conclusions from data, • make land management decisions, • train their staff to implement the decisions, • get permits to implement the decisions, • purchase equipment to implement the decisions, • manage the land better (i.e. implement the decisions) Results (Compound) Uses Benefits Economic, environmental & social Benefits ‘realised’ by the better land management What is the ‘Benefit-realising’ Use? Who is it that ‘realises Benefits’?
  44. 44. Copyright OpenStrategies Ltd 2015 44 GIS hardware & software GIS data Land managers: • learn about using GIS systems & data, • purchase hardware/software, • download data, • collect their own data, • integrate data, • verify & analyse data, • draw conclusions from data, • make land management decisions, • train their staff to implement the decisions, • get permits to implement the decisions, • purchase equipment to implement the decisions, • manage the land better (i.e. implement the decisions) Results (Compound) Uses Benefits Economic, environmental & social Benefits ‘realised’ by the better land management GIS data integration tools GIS analysis & validation tools Decision support tools/advisors GIS/Managemen t training Land mgmnt tools Permitting system New Results which are essential to enable ‘Benefits Realisation’ by users
  45. 45. PRUB or BURP • BURP for strategic planning • PRUB for strategy implementation • Usually it is best to start by identifying and precisely defining Uses Copyright OpenStrategies Ltd 2015
  46. 46. P R U B Copyright OpenStrategies Ltd 2015 46 Projects Results Uses Benefits Handover Engage Create assets Use assets Planning Implementation
  47. 47. Three broad levels of strategy • Aspirational (high level – not implementable) • Guidance • Operational (action plans – implementable) Copyright OpenStrategies Ltd 2015
  48. 48. Projects What organisations do…. – Aspirational • Develop insurance policies – Guidance • Develop home insurance policies for earthquakes – Operational • Develop home insurance policies which cover selected earthquake damage (but excluding ground liquefaction) for the New Zealand market Copyright OpenStrategies Ltd 2015
  49. 49. Results What organisations achieve…. – Aspirational • Insurance policies are ready to sell – Guidance • Home insurance policies for earthquakes are ready to sell – Operational • Home insurance policies which cover selected earthquake damage (but excluding ground liquefaction) are ready to sell in New Zealand Copyright OpenStrategies Ltd 2015
  50. 50. Uses What end-users do…. – Aspirational • People buy and make claims on insurance policies – Guidance • People buy and make claims on home insurance policies for earthquakes – Operational • New Zealanders buy and make claims on home insurance policies which cover selected earthquake damage (but excluding ground liquefaction) Copyright OpenStrategies Ltd 2015
  51. 51. Benefits What end-users achieve…. – Aspirational • People are happy because they have made successful claims on their insurance policies – Guidance • People are happy because their homes were repaired after earthquakes – Operational • Some New Zealanders are happy because their homes were repaired after earthquake damage where their homes did not suffer ground liquefaction • Other New Zealanders are unhappy because their homes were not repaired because the earthquakes caused ground liquefaction Copyright OpenStrategies Ltd 2015
  52. 52. Strategy syntax (rules for strategy ‘sentences’) There are no short-cuts…to be effective… Projects must lead to Results (outputs) which must lead to Uses which must lead to Benefits (outcomes) Copyright OpenStrategies Ltd 2015
  53. 53. ‘Validating’ strategies • Almost anyone can write a document and call it a ‘strategy’ • It is not a strategy unless it has been ‘validated’ • How do we develop and validate strategies? Copyright OpenStrategies Ltd 2015 53
  54. 54. Copyright OpenStrategies Ltd 2015 Creating a Validated Strategy 1. SubStrategy Describe the idea as a SubStrategy Is it logical? 2. Evidence Add compelling Evidence for the Links Will it definitely work? 3. Value $B must be greater than ($P + $U) Is it worth it? 54
  55. 55. Copyright OpenStrategies Ltd 2015 Step 1: SubStrategy • Create a SubStrategy which identifies what we would like to happen • This shows theoretically how Projects (inputs) Link through Results (outputs) and Uses to Benefits (outcomes) • Ideally 15-20 ‘PRUBs’ (a human cognitive limit for each SubStrategy) • This answers the question: “Is it logical?” 55
  56. 56. Copyright OpenStrategies Ltd 2015 Research results suitable for incorporation into XXXX XXXX product developers and programmers incorporate R&D results into XXXX Possibly… other organisations incorporate XXXX into their products or produce products which are complementary to XXXX An updated XXXX product Complementary products and services Farmers & other land owners manage their land better using XXXX & complementary products within regulatory guidelines • Dairy farmers for nitrate management (dairy effluent; fertilisers) • Conservationists for native plant management • Regional authorities for river nutrient management • Drinking water suppliers for water quality management • • Economic Benefits to farmers, land managers, suppliers and other stakeholders Social Benefits to farmers, land managers, suppliers and other stakeholders Engage with XXXX Stakeholder Advisory Group to develop & Validate an XXXX R&D Strategy Researchers secure funding for and conduct XXXX research in line with the strategy A Validated XXXX R&D strategy which is widely supported by stakeholders Environmental Benefits to farmers, land managers, suppliers and other stakeholders Cultural Benefits to farmers, land managers, suppliers and other stakeholders Sustainably viable organisations creating XXXX and complementary products and services Regulators create and disseminate better and more effective regulations guided by XXXX Better and more effective regulations (guided by XXXX) are in place and understood by end-users Projects Results Uses Benefits
  57. 57. Copyright OpenStrategies Ltd 2015 Step 2: Evidence • A SubStrategy identifies what we would like to happen • We need to add Evidence to be sure that it really will happen • Evidence is information which ‘validates’ the Links between Projects, Results, Uses and Benefits • This answers the question: “Will it work?” 57
  58. 58. Copyright OpenStrategies Ltd 2015 Data vs Evidence • What’s the difference between data and evidence? • How significant is this difference for – Strategy validation? – Performance management? • Look out for policies which say they are ‘evidence based’ and ask yourself if they are merely ‘data-based’
  59. 59. Evidence • Evidence is information which confirms ‘cause- and-effect’ • It is not just ‘data’ or ‘facts’ or ‘numbers’ • Evidence describes the cause-and-effect impact of the Links in a SubStrategy • So Evidence confirms whether or not: – Projects contribute to Results – Results contribute to Uses – Uses contribute to Benefits Copyright OpenStrategies Ltd 2015 59
  60. 60. Copyright OpenStrategies Ltd 2015 Evidence sits on the Links between Projects, Results, Uses and Benefits The most important Evidence sits on the Links between Results and Uses 60
  61. 61. Exercise Worksheet • Data? • Correlation? • Evidence? Copyright OpenStrategies Ltd 2015
  62. 62. Copyright OpenStrategies Ltd 2015 Step 3: Value • Determine a ‘Value’ for Benefits ($B) • Identify costs of Projects ($P) plus costs of Uses ($U) • To proceed with a Project…. $B must be greater than $P + $U • This answers the question: “Is it worth it?” 62
  63. 63. Benefits ‘realisation’? • So who creates/delivers/ensures/realises Benefits? • Organisations and project managers cannot ‘create’ or ‘deliver’ or ‘ensure’ or ‘realise’ Benefits • Only Users create/realise Benefits • Therefore organisations must: – totally understand Uses and users – make their Results (assets) attractive and easy to Use – tell people about the Results Copyright OpenStrategies Ltd 2015 63
  64. 64. • Are these ‘Benefits’? – Skilled leaders – Motivated staff Copyright OpenStrategies Ltd 2012
  65. 65. Exercise part 1 Working in groups, create a high level SubStrategy (4-8 boxes) on a simple topic of your choice Expand your high level SubStrategy into a more detailed SubStrategy of maybe 30 or more boxes: • Start with identifying the main Uses • Add Benefits • Add Results Copyright OpenStrategies Ltd 2015 65
  66. 66. Exercise part 2 Reduce your SubStrategy to no more than 15 +/- 5 boxes: • Cluster similar ideas together • Summarise each cluster Copyright OpenStrategies Ltd 2015 66
  67. 67. Exercise part 3 Carefully rewrite your SubStrategy of 15 +/- 5 boxes so that each box contains a complete sentence of up to about 20 words Note: The key reason for this exercise is to be able to describe Projects, Results, Uses and Benefits so that anyone can understand them Copyright OpenStrategies Ltd 2015 67
  68. 68. From Projects to Programmes and Portfolios – linking multiple SubStrategies • Horizontally – Across themes – Across demographic groups (users) – Across organisations (providers) • Vertically – High level aspirational strategies – Mid-level guidance strategies – Low-level operational strategies • Sequentially Copyright OpenStrategies Ltd 2015 68
  69. 69. Copyright OpenStrategies Ltd 2015 Cycling, walking and buses SubStrategies Combined cycling, walking and buses OpenStrategy 021 69
  70. 70. Exercise: where do you feel most comfortable working? Aspirational Projects Results Uses Benefits Level SubStrategies Guidance Projects Results Uses Benefits Level SubStrategies Operational Projects Results Uses Benefits Level SubStrategies Copyright OpenStrategies Ltd 2015 70
  71. 71. Review #1 • A strategy is ‘an action plan and a rationale’ • Organisations create assets and enable people to use them to create Benefits (for themselves and others) • Strategies should improve the above process • Stakeholders need to understand a strategy – it has to be simple • PRUB is ‘the smallest amount of strategic information that has the highest value to the most people’ Copyright OpenStrategies Ltd 2015
  72. 72. Review #2 • Only Uses create Benefits, so strategies must understand and enable Uses • Evidence is not the same as data or correlations (and there can be different levels of confidence in the Evidence) • To be Validated a strategy: – must be logical, and – there must be compelling evidence it will work, and – and it must be worth it Copyright OpenStrategies Ltd 2015
  73. 73. Copyright OpenStrategies Ltd 2015 ‘Wanting’ or ‘Doing’ • Compare and discuss these questions: – Would you like better public transport? – How often would you use better public transport? • Compare and discuss these questions: – Would you like more cycle paths? – How often would you use new cycle paths?
  74. 74. Copyright OpenStrategies Ltd 2015 ‘Wanting’ or ‘Doing’ When you ask people: “what do you want?” they think about what you can give them. As a result, they often don’t take much responsibility for their answer When you ask people “what do you want to do?” they think about what they want to do As a result, they take much more responsibility for their answer
  75. 75. Copyright OpenStrategies Ltd 2015 Orphan Results P R U B P R P1 P2 R1 R2 U B Abandoned Orphan Result Adopted Orphan Result
  76. 76. Management environments and management styles • Management environments • Management styles • Examples • Your own management environment/style • Summary Copyright OpenStrategies Ltd 2015
  77. 77. Copyright OpenStrategies Ltd 2015 4 Management Environments • Simple – eg laying bricks • Complicated – eg fixing a Ferrari • Complex – eg understanding a rainforest • Chaotic – eg responding fast to an earthquake
  78. 78. Copyright OpenStrategies Ltd 2015 Simple environments • Repeating patterns and consistent events • Clear cause-and-effect • Right answer exists • Facts • Known-knowns The domain of best practice/rules eg laying bricks
  79. 79. Copyright OpenStrategies Ltd 2015 Complicated environments • Expert diagnosis required • Cause-and-effect discoverable but not obvious • More than one right answer possible • Facts • Unknown-knowns The domain of experts eg servicing a Ferrari
  80. 80. Copyright OpenStrategies Ltd 2015 Complex environments • Unpredictability • Many competing ideas • No right answers • Patterns (not facts) • Unknown-unknowns The domain of emergence eg understanding a rain forest
  81. 81. Copyright OpenStrategies Ltd 2015 Chaotic environments • High turbulence • No clear cause-and-effect • No right answers • No time to think • Patterns (not facts) • Unknowables The domain of rapid response eg responding fast to an earthquake
  82. 82. Copyright OpenStrategies Ltd 2015 Managing Simple Environments • Sense, categorise, respond • Proper processes • Best practices • Communicate clearly and directly The domain of best practice/rules eg laying bricks
  83. 83. Copyright OpenStrategies Ltd 2015 Managing Complicated Environments • Sense, analyse, respond • Panels of experts • Listen to conflicting advice The domain of experts eg servicing a Ferrari
  84. 84. Copyright OpenStrategies Ltd 2015 Managing Complex Environments • Probe, sense, respond • Create environments where patterns can emerge • Seek information, listen, learn, generate ideas, encourage dissent and diversity • Manage starting conditions and monitor for emergence The domain of emergence eg understanding a rain forest
  85. 85. Copyright OpenStrategies Ltd 2015 Managing Chaotic Environments • Act, sense, respond • Look for what works, not right answers • Take immediate action to re-establish order (command and control) • Direct clear communication The domain of rapid response eg responding fast to an earthquake
  86. 86. Copyright OpenStrategies Ltd 2015 Summary of strategic environments • There are 4 management environments – Simple (known-knowns) – Complicated (unknown-knowns) – Complex (unknown-unknowns) – Chaotic (unknowables) • These 4 environments require 4 different management styles – Simple (best practice/rules) – Complicated (experts) – Complex (emergence) – Chaotic (rapid response)
  87. 87. PRUB is simple…. the world is complex • The world of Projects and Results is simple (you can only implement “known-knowns”) • The real world of Uses and Benefits is complicated and complex (characterised by “unknown-knowns and unknown-unknowns”) • PRUB links the necessarily simple world of Projects and Results to real-world complicated and complex Uses and Benefits Copyright OpenStrategies Ltd 2015 87
  88. 88. Copyright OpenStrategies Ltd 2015 Exercise: Assess your own management style 1. Do you prefer to work in a simple, complicated, complex or chaotic environment? 2. Do you want to build up skills in: 1. ‘best practice/rules’ for simple environments, or 2. being a technical ‘expert’ in complicated environments, or 3. research & investigation in complex environments, or 4. wisdom to think and act rapidly in chaotic environments? 3. How does this impact on your other preferences: 1. in the PRUB-sequence? 2. re Aspirational, Guidance and Operational level strategies?
  89. 89. Copyright OpenStrategies Ltd 2015 Engaging with stakeholders 1. What is the nature of the strategic environment you are working in? 2. Do your individual stakeholders prefer to work in a simple, complicated, complex or chaotic environment? 3. Do individual stakeholders prefer to operate at high, aspirational levels or grass-roots operational levels? 4. Do individual stakeholders prefer to focus on Projects; Results; Uses; or Benefits? 5. How do your own preferences impact on working with multiple stakeholders?
  90. 90. Copyright OpenStrategies Ltd 2015 Performance measurement & management Measurement Make measurements within each P, R, U, and B – Indicators (the thing that you are going to measure) – Targets (the number you are wanting to achieve) – Measurements (what you actually measured) Management One ‘PRUB-step’ to the left (lead and lag indicators)
  91. 91. Exercise Worksheet • Indicator? • Target? • Measurement? Copyright OpenStrategies Ltd 2015
  92. 92. Exercise (if time) Working in pairs, rapidly • create a high level SubStrategy (4-8 boxes) on a simple topic of your choice • expand into ~ 30 boxes: – start with Uses – add Benefits – add Results • Repeat Copyright OpenStrategies Ltd 2015 92
  93. 93. OpenStrategies review #1 • Strategy failures – poor strategy language (taxonomy, syntax, semantics) – cognitive limits exceeded for many stakeholders – lack of focus on organisation’s core functions • PRUB – PRUB = what organisations actually do – Create assets (PR) Use assets (UB) – BURP for planning, PRUB for implementation • Orphan Results – Abandoned Orphans – Adopted Orphans Copyright OpenStrategies Ltd 2015
  94. 94. OpenStrategies review #2 • 3 levels of strategy – aspirational (governance) – guidance (middle management) – operational (implementable action plans) • 4 strategic environments – simple (rules, best practice, facts) – complicated (experts, facts) – complex (emergence, research, patterns) – chaotic (act, patterns) Copyright OpenStrategies Ltd 2015
  95. 95. OpenStrategies review #3 • There are no shortcuts. Effective strategies must have Projects which must produce Results which must be Used to create Benefits • Strategies must be Validated, hence PRUB-Validate: 1. Theoretical/desired SubStrategy 2. Cause-and-effect Evidence that it really will happen (THE most important Evidence is on the Link from Results to Uses) 3. Value (is it worth it) i.e. is ƩVB > ƩCP + ƩCU • Understanding Uses is paramount • Only Uses ‘realise Benefits’ Copyright OpenStrategies Ltd 2015
  96. 96. Copyright OpenStrategies Ltd 2012 OpenStrategies is a comprehensive management system based on PRUB • Develop strategies • Validate strategies (protect services, save money) • Implement strategies/manage processes • Performance measurement and management • Stakeholder engagement/consultation • Integrate levels of strategies • Integrate strategies on many topics, demographic groups and geographical areas • Integrate strategies across organisations (collaboration) • Integrate sequential strategies
  97. 97. Contacts phil@openstrategies.com +64 (0)21 0236 5861 merron@newrealities.co.uk +44 (0)7973 498603 Web www.openstrategies.com Book http://www.gowerpublishing.com/isbn/9781472427816 Copyright OpenStrategies Ltd 2015
  98. 98. This presentation was delivered at an APM event To find out more about upcoming events please visit our website www.apm.org.uk/events

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