Improving Your Strategic Focus & Performance Dan Ryan


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Improving Your Strategic Focus & Performance Dan Ryan

  1. 1. Strategic Performance Management & Measurement SummitImproving Your Strategic Focus & Performance March 27, 2010 Atlanta, GA Dan Ryan, EVP Management Systems and Health & Safety
  2. 2. Veolia Water is the leading provider of comprehensive water and wastewater services for over 300 municipal and industrial clients through-out North America.Approximately 2,700 EmployeesIn 32 States and 3 Provinces
  3. 3. Veolia Water Uses Balanced Scorecard to Drive North American Strategy • Veolia Water introduces new CEO in 2008 – Laurent Auguste. • Auguste had experience with the balanced scorecard in his previous roles with Veolia Water in the Asia- Pacific region . • Auguste seeks winning strategy based on strategic alignment throughout the organization. • Veolia Water selects the Balanced Scorecard Institute to define a strategic planning and management system based on balanced scorecard methodology.
  4. 4. Veolia Water Uses Balanced Scorecard to Drive North American Strategy CEO creates new department – Management Systems The role of “Management Systems” Develop and implement systems and procedures for enabling continuous improvement towards maintaining high standards of quality, reliability, safety and compliance across the country. Many similarities with BSC
  5. 5. Worked with our Consultant to… Train Management Teams on BSC Methodology and Value Develop Mission Statement Develop Vision Statement Conduct Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis Identify Strategic Objectives Identified Key Performance Indicators (KPI’s) Set KPI Targets and Red Flags Identify Initiatives Cascade Process to Functional Departments Engagement of consultant reduced likelihood of false start.
  6. 6. Key components of our strategy Reliable solutions to water challenges – Mission Added value for customer, employees and shareholders Vision Recognized benchmark Leader Values Behaviors driving SVR (Service, Value, Responsibility) Profitable Growth, Recognition, Mid-term Objectives Employer of choice Strategy Map How we get there Key Performance Indicators Tracking our progress Initiatives Actions making it happen
  7. 7. The Veolia Water Balanced Scorecard was designed to: • Boost organizational performance. • Breakdown communication barriers between business units and departments. • Increase focus on strategy and results. • Budget and prioritize time and resources more effectively • Help the company better understand and react to customer needs. Alignment
  8. 8. Veolia Water North America Corporate Strategy MapSustainable, Profitable High Growth Innovative Solutions & Partnerships Operational & Technical Excellence Achieve A High Rate of Increase Sustainable ProfitabilityFinancial Growth Increase Increase Customer &Customer Penetration of New Community Trust & Current Markets & Strengthen Brand Leverage Improve ImproveBusiness Increase Business Technical, The Performance Internal Development Operational & of Our New and ProcessesProcess Throughout the Business Current Business Expertise Organization Attract, Improve Cultivate aLearning Develop & Understanding Performance& Growth Retain Skilled & of Stakeholders Based Ambitious Staff & Market Trends Organization 8
  9. 9. BSC Web-Based Software- Quick Score™
  10. 10. Mandatory Training for ProjectManager and above.
  11. 11. The following slides are example initiatives that were… 1) Funded as justified by the BSC process 2) Selected to support Strategic Objectives and their KPIs
  12. 12. Initiative / Strategy Map LinkageTalent Acquisition and Recruitment Hired Bob Caldrone; Director, Talent Acquisition 12
  13. 13. Initiative / Strategy Map Linkage Compensation Framework - Levels - Titles - Salary Ranges - Incentive Targets 13
  14. 14. Initiative / Strategy Map LinkagePerformance Management 14
  15. 15. Initiative / Strategy Map LinkageCompetency Management Developed Database Reviewed job descriptions for key jobs in operations Completed “mapping” of competency requirements for key jobs in operations Identified gaps and opportunities Developed competency-based training programs 15
  16. 16. Initiative / Strategy Map Linkage Re-design of Annual Incentive Plan (AIP) 16
  17. 17. The Balanced ScorecardAggregate Score will alsoimpact the level of fundingof the incentive pool. 17
  18. 18. Initiative / Strategy Map LinkageRe-design of Annual Incentive Plan (AIP) – cont. 2011 Balanced Scorecard Target 6.67 2011 CAFOP / Revenue Target 10.12% 18
  19. 19. Initiative / Strategy Map LinkageCommission Plan Re-design Funding of Commission Pool Determination of Size of Commission Pool Clarity and Definition Related to Administration of Commission Program Linkage of Developer’s Commission Plan to Annual Incentive Program (AIP) Allow for Some Level of Subjectivity/Flexibility Communication of Commission Plan 19
  20. 20. Initiative / Strategy Map Linkage Created Shared Service Center 20
  21. 21. Initiative / Strategy Map Linkage Payroll Consolidation Addressed Numerous Payroll Issues: - Payroll Processing and Practices - Federal Employer Identification Number (FEIN) 21
  22. 22. Initiative / Strategy Map Linkage Time Labor Management Converted from paper time- keeping to a computerized time labor management system. 22
  23. 23. Initiative / Strategy Map LinkageReorganization To better manage existing business and to proactively organize for expected growth: Reorganized “Municipal” regions from 4 to 3. Formed an “Industrial” Business Group 23
  24. 24. Initiative / Strategy Map LinkageProject Polaris 24
  25. 25. Initiative / Strategy Map LinkageUnder Ground Asset Management (UGAM) 25
  26. 26. Initiative / Strategy Map Linkage Meters – Product Offering = 26
  27. 27. Initiative / Strategy Map LinkageWater FootprintCarbon Footprint 27
  28. 28. Initiative / Strategy Map LinkageBenchmarking VWNA / McKinsey Joint Venture - Pilot project at VW Indianapolis - Pilot project at VW Milwaukee 28
  29. 29. Initiative / Strategy Map Linkage CRM Sales Tool Customer Relationship Management (CRM) is a widely-implemented strategy for managing a company’s interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service. Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments. 29
  30. 30. Initiative / Strategy Map LinkageContract Management Database e3 is a web-based software program used to manage company, client, regulatory, and contractual obligations and deliverables (tasks) and to manage audit/inspection findings (issues) from identification through resolution (closure). It is a repository for facility’s regulatory VWNA has purchased an operating permits and service unlimited user’s license agreements (contracts). agreement with e3 Solutions Inc. An on-going initiative involves review of all contracts for risk assessment and overall improvement opportunities 30
  31. 31. Initiative / Strategy Map LinkageDeveloped Client Satisfaction andTrust SurveySurvey Excerpt… 31
  32. 32. Initiative / Strategy Map Linkage Cost of Goods Sold (COGS) This initiative provides a systematic approach to treatment plant optimization. Subject matter experts work with plant personnel to review expenses such as power chemical, labor, residuals management, etc. to maximize plant efficiency, control costs, and seek sustainable solutions. 32
  33. 33. Veolia Water receives theBalanced Scorecard Institute’s“Award for Excellence” basedon the following criteria:Executive LeadershipStrategy MappingBreakthrough ResultsAlignmentData-Driven Decision MakingStrategic Resource AllocationReporting and CommunicationSustainability February 26, 2012
  34. 34. “People cannot perform better than the organization supporting them” Thank You
  35. 35. Strategic Performance & Change Management Conference November 13-15, 2012 in New Orleans, LA View the Strategic Performance & Change Management program here: If you would like to receive the free IQPC brochure directly email