Strategy into Action SIA
- 2. page 02 Developing a clearand concise strategy monitored with a balanced scorecard driving accountability and alignment enabling stakeholders to succeed. Align, monitor and achieve organization goals strategy into action (SIA) and balanced scorecard
- 3. content review page 03 01 introduction to SIA -Why Strategy into Action (SIA) - What is Strategy into Action (SIA) - Making strategy everyone’s job 03 BSC sample - Strategy map - Balanced Scorecard - Goal overlook - SIA meetings 02 SIA process & framework - Process flow - SIA framework - Strategy Map - Balanced Scorecard components 04 SIA workshop - Workshop process - Workshop images - SIA meetings
- 4. page 04 introduction Why use Strategyinto Action (SIA) What is Strategy into Action (SIA) Making strategy everyone’s job
- 5. why? strategy into action(SIA) page 05 Numerous studies point out that strong implementation is a weakness in many organizations. If used properly, a Balanced Scorecard and Strategy focused organization provides a proven framework to manage this journey to achieve the 5 Principles of the strategy focused organization. 80% of executives are satisfied with their strategy 14% of executives are really satisfied with the execution of their strategy
- 6. what? are the 5principles of (SIA) page 06 Translate strategy into operational terms Mobilize change through executive leadership Govern to make strategy a continual process Motivate to make strategy everyone’s job Align the organization to the strategy • Mission/Vision • Strategy maps • Initiatives • Balanced Scorecard • Targets • CEO sponsorship • “New style of managing” • Executive team engagement • Create performance culture • Accountability of strategy • Strategic awareness • Goal alignment • Linked incentives • Corporate role • Corporate – SBU • SBU ‘s • External Partners • Management Meetings • Feedback System • Learning Process • Linked to management • Linked to budget
- 7. page 07 making strategy everyone’s job Creatinga Climate to Support Strategic Change Create Strategic Awareness 1 Ensure that each individual has sufficient understanding of the strategy (You can’t execute what you don’t understand) Align Personal Objectives 2 Ensure that each individual knows where they fit into the overall game plan Align Incentive Compensation 3 Reinforce desired behavior and increase intensity of awareness
- 8. page 08 SIA process &framework Process flow SIA framework Strategy map Balanced Score Card components
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- 10. page 010 framework to translate thestrategy into operational terms Measurement is the language that gives clarity to vague concepts Measurement is used to communicate, not to control Strategy can be described as a series of cause and effect relationships The Strategy "If we succeed, how will we look to our shareholders?” Financial Perspective "To achieve my vision, how must I look to my customers?” Customer Perspective "To satisfy my customer, at which processes must I excel?” Internal Perspective "To achieve my vision, how must my organization learn and improve?” Organization Learning
- 11. page 012 balanced score cardcomponents are: objectives, measures, targets and initiatives Goal Sample: Operating Efficiency Objective Measure Initiative Target How performance against the objective is monitored On Ground Time On-Time Departure The level of performance or rate of improvement needed 30 Minutes 90% Processes and programs required to reach the target Turnaround Cycle Time Optimization What the strategy is trying to achieve Fast ground turnaround Plane Utilization Profits and RONA Financial Lowest prices Attract & Retain More Customers Customer Fast ground turnaround Internal Ground crew alignment People & Innovation
- 12. page 013 BSC sample Strategy map BalancedScore Card Goal overlook SIA meetings
- 13. page 014 strategy map template “Customized tothe company needs”
- 14. page 015 balanced score card template 1 2 3 4 5 PI-1IE-1 CM-1 FIN-1 PI-1.1 SMART GOAL KPI Target Unit Date Actual Light Owner IE-1.1 SMART GOAL KPI Target Unit Date Actual Light Owner CM-1.1 SMART GOAL KPI Target Unit Date Actual Light Owner FIN-1.1 SMART GOAL KPI Target Unit Date Actual Light Owner PI-1.2 SMART GOAL KPI Target Unit Date Actual Light Owner IE-1.2 SMART GOAL KPI Target Unit Date Actual Light Owner CM-1.2 SMART GOAL KPI Target Unit Date Actual Light Owner FIN-1.2 SMART GOAL KPI Target Unit Date Actual Light Owner PI-1.3 SMART GOAL KPI Target Unit Date Actual Light Owner IE-1.3 SMART GOAL KPI Target Unit Date Actual Light Owner CM-1.3 SMART GOAL KPI Target Unit Date Actual Light Owner FIN-1.3 SMART GOAL KPI Target Unit Date Actual Light Owner PI-1.4 SMART GOAL KPI Target Unit Date Actual Light Owner IE-1.4 SMART GOAL KPI Target Unit Date Actual Light Owner CM-1.4 SMART GOAL KPI Target Unit Date Actual Light Owner FIN-1.4 SMART GOAL KPI Target Unit Date Actual Light Owner PI-2 IE-2 CM-2 FIN-2 PI-2.1 SMART GOAL KPI Target Unit Date Actual Light Owner IE-2.1 SMART GOAL KPI Target Unit Date Actual Light Owner CM-2.1 SMART GOAL KPI Target Unit Date Actual Light Owner FIN-2.1 SMART GOAL KPI Target Unit Date Actual Light Owner PI-2.2 SMART GOAL KPI Target Unit Date Actual Light Owner IE-2.2 SMART GOAL KPI Target Unit Date Actual Light Owner CM-2.2 SMART GOAL KPI Target Unit Date Actual Light Owner FIN-2.2 SMART GOAL KPI Target Unit Date Actual Light Owner PI-2.3 SMART GOAL KPI Target Unit Date Actual Light Owner IE-2.3 SMART GOAL KPI Target Unit Date Actual Light Owner CM-2.3 SMART GOAL KPI Target Unit Date Actual Light Owner FIN-2.3 SMART GOAL KPI Target Unit Date Actual Light Owner PI-2.4 SMART GOAL KPI Target Unit Date Actual Light Owner IE-2.4 SMART GOAL KPI Target Unit Date Actual Light Owner CM-2.4 SMART GOAL KPI Target Unit Date Actual Light Owner FIN-2.4 SMART GOAL KPI Target Unit Date Actual Light Owner PI-3 IE-3 CM-3 FIN-3 PI-3.1 SMART GOAL KPI Target Unit Date Actual Light Owner IE-3.1 SMART GOAL KPI Target Unit Date Actual Light Owner CM-3.1 SMART GOAL KPI Target Unit Date Actual Light Owner FIN-3.1 SMART GOAL KPI Target Unit Date Actual Light Owner PI-3.2 SMART GOAL KPI Target Unit Date Actual Light Owner IE-3.2 SMART GOAL KPI Target Unit Date Actual Light Owner CM-3.2 SMART GOAL KPI Target Unit Date Actual Light Owner FIN-3.2 SMART GOAL KPI Target Unit Date Actual Light Owner PI-3.3 SMART GOAL KPI Target Unit Date Actual Light Owner IE-3.3 SMART GOAL KPI Target Unit Date Actual Light Owner CM-3.3 SMART GOAL KPI Target Unit Date Actual Light Owner FIN-3.3 SMART GOAL KPI Target Unit Date Actual Light Owner PI-3.4 SMART GOAL KPI Target Unit Date Actual Light Owner IE-3.4 SMART GOAL KPI Target Unit Date Actual Light Owner CM-3.4 SMART GOAL KPI Target Unit Date Actual Light Owner FIN-3.4 SMART GOAL KPI Target Unit Date Actual Light Owner PI-4 IE-4 CM-4 FIN-4 PI-4.1 SMART GOAL KPI Target Unit Date Actual Light Owner IE-4.1 SMART GOAL KPI Target Unit Date Actual Light Owner CM-4.1 SMART GOAL KPI Target Unit Date Actual Light Owner FIN-4.1 SMART GOAL KPI Target Unit Date Actual Light Owner PI-4.2 SMART GOAL KPI Target Unit Date Actual Light Owner IE-4.2 SMART GOAL KPI Target Unit Date Actual Light Owner CM-4.2 SMART GOAL KPI Target Unit Date Actual Light Owner FIN-4.2 SMART GOAL KPI Target Unit Date Actual Light Owner PI-4.3 SMART GOAL KPI Target Unit Date Actual Light Owner IE-4.3 SMART GOAL KPI Target Unit Date Actual Light Owner CM-4.3 SMART GOAL KPI Target Unit Date Actual Light Owner FIN-4.3 SMART GOAL KPI Target Unit Date Actual Light Owner PI-4.4 SMART GOAL KPI Target Unit Date Actual Light Owner IE-4.4 SMART GOAL KPI Target Unit Date Actual Light Owner CM-4.4 SMART GOAL KPI Target Unit Date Actual Light Owner FIN-4.4 SMART GOAL KPI Target Unit Date Actual Light Owner PI-5 IE-5 CM-5 FIN-5 PI-5.1 SMART GOAL KPI Target Unit Date Actual Light Owner IE-5.1 SMART GOAL KPI Target Unit Date Actual Light Owner CM-5.1 SMART GOAL KPI Target Unit Date Actual Light Owner FIN-5.1 SMART GOAL KPI Target Unit Date Actual Light Owner PI-5.2 SMART GOAL KPI Target Unit Date Actual Light Owner IE-5.2 SMART GOAL KPI Target Unit Date Actual Light Owner CM-5.2 SMART GOAL KPI Target Unit Date Actual Light Owner FIN-5.2 SMART GOAL KPI Target Unit Date Actual Light Owner PI-5.3 SMART GOAL KPI Target Unit Date Actual Light Owner IE-5.3 SMART GOAL KPI Target Unit Date Actual Light Owner CM-5.3 SMART GOAL KPI Target Unit Date Actual Light Owner FIN-5.3 SMART GOAL KPI Target Unit Date Actual Light Owner PI-5.4 SMART GOAL KPI Target Unit Date Actual Light Owner IE-5.4 SMART GOAL KPI Target Unit Date Actual Light Owner CM-5.4 SMART GOAL KPI Target Unit Date Actual Light Owner FIN-5.4 SMART GOAL KPI Target Unit Date Actual Light Owner PIP-1 Owner IEP-1 Owner CMP-1 Owner FINP-1 Owner PIP-2 Owner IEP-2 Owner CMP-2 Owner FINP-2 Owner Projects: Projects: Projects: Projects: Goal Title Goal Title Goal Title Goal Title Goal Title Goal Title Goal Title Goal Title Goal Title Goal Title Goal Title Goal Title Goal Title Goal Title Goal Title Goal Title People & Innovation (Organizational Capacity) Internal Efficiency (Processes) Customer (Market) Finance Goal Title Goal Title Goal Title Goal Title Vision: Mission: Must Win Battles: Balance Score Card Consultant Download APP @sharakabiz SBSCxxxxxYY BALANCED SCORE CARD SHEET BALANCED SCORE CARD TITLE COMPANY NAME COUNTRY YEAR “Customized to the company needs”
- 15. page 016 goal overlook sample Project Description:To allocate 15 new franchises by 1 December, 2003 Comments: • Only seven franchises have been awarded to date and we are at risk at not meeting the target of 15 by 01/12/03 • Sales and EBIT contribution from the seven franchises awarded to date has been well down on budgeted forecasts, primarily due to adverse market conditions experienced over the past six months Date Status Milestones Ownership 02/03/03 Complete Finalisation of standard Franchise terms and conditions review Gerry Baker 07/08/03 In process Negotiation of Broome and Mandurah franchises Bill Taylor 09/12/03 Not Started Preparation of Lead Team presentation of project outcomes Fred Smith 0 1 2 3 4 5 6 7 Q1 03 Q2 03 Q3 03 Q4 03 Forecasted Actual Actual vs. Projected Franchise Growth Theme Owner: Name Initiative Owner: Fred Smith Expected Completion: 09 December 2003 Budgeted Franchise Contribution Q1 Q2 Q3 Q4 Budgeted Sales Actual Sales Variance $86m $41m $45m $102 $82m $20m $145m $103m $42m $191m Budgeted EBIT Actual EBIT Variance $25m $12m $13m $31m $25m $06m $44m $31m $13m $57m Franchises Budgeted Franchises Allocated Variance 06 03 03 10 06 04 13 07 06 15 Actual vs. Projected Franchise Contribution Fin-1: Franchise Growth Project “Customized to the company needs”
- 16. page 017 SIA meetings The management meetingmust be focused on making actionable decisions about the strategy. Discuss Implications (40%) Review Performance (40%) Review Strategic Issues (20%) Present (Event-driven Learning) Future (Continuous Learning) Monthly Staff Meeting Between the meetings Quarterly Strategic Review Meeting Provide input to strategic issues currently being worked on Dialog about performance Explain anomalies Suggest solutions Identify issues Identify strategic issues for discussion at next group meeting Review performance data (available on-line) Discuss Implications (30%) Review Performance (10%) Review Strategic Issues (60%)
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- 18. page 019 Initial review anddata gather Step 1 • Review the current strategic information, SWOT and other business performance information to gain a clear understanding of the business. • On-Site meetings with top team members and major stakeholders. workshop process
- 19. Plan and prepareworkshops Step 3 • Consolidate and summarize all inputs • Tailor SIA process • Design and produce materials (slides, displays etc.) page 020 Step 2 Design 5Yr BBS and 1Yr BBP • Outputs with approval • Inputs • Process • People issues – how to enhance team effectiveness during workshop activities workshop process
- 20. Process the outputs Step5 • Process the outcomes into one page BBS and BBP documents • Prepare workshop reports capturing all data and outputs • Debrief and consider next steps page 021 Step 4 Run the SBP/BBP Workshops • Build the team • Agree the strategy • Develop the BBS and BBP • Agree way forward to improve the use of SIA as an integral management tool workshop process
- 21. Achieve Organization Goals SIA Implementation Step6 • Create Projects (initiatives) Masterplan • Create Projects by Department • Train SIA Champion • Work with Marketing & Corporate Communication on launch plan • Periodical Review plan page 022 workshop process
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- 23. connect with us page 024 Connect withus Riyadh, KSA +966 54 217 3828 info@sharaka.biz www.sharaka.biz Sharaka business consultants