Strategy Lesson From the Trenches - S2E Case Study

Strategy to Execution Case Study Webinar
April 17, 2015
4/17/2015 © 2015 Accelare. Proprietary and confidential. All rights reserved.

Agenda
1. Brief Introduction
– Introduction to Accelare
– Why The Strategy to Execution Process?
2. Lesson’s From the Trenches
– 3 Common Traits of Success
3. Q&A
4/17/2015 2© 2015 Accelare. Proprietary and confidential. All rights reserved.

Who is Accelare
• 2001 Founded in Boston, MA.
• Key contributors to the Business Process Management
Movement and worked on the best-selling books of
Michael Hammer and James Champy including ;
Reengineering the Corporation and X-Engineering the
Corporation
• 2008, Accelare acquired the Capable Company, whose
leaders authored The Capable Company and Measure
Up!
• 2009 Accelare’s work was featured in the June 2009
Harvard Business Review article, The Next Revolution
in Productivity co-authored with Microsoft.
• 2011 Accelare trademarked S2E “Strategy to
Execution” Process -methods for Business
Architecture, Technical Architecture, Business
Intelligence and Operational Transformation.
• 2010 Accelare launched WorkFit™ — the first
Management Collaboration tool built on SharePoint.

The Six-Steps Behind Strategy-to-Execution (S2E)
1. Articulate and clarify strategy
2. Identify needed capabilities
3. Assess current performance
4. Identify people, process,
and technology gaps
5. Construct a project portfolio
to fill key gaps
6. Establish the management
process to monitor business
performance

Foundational Concept:
The Enterprise is a Network of Capabilities

The Core Capability Model

Most Fail the Fundamentals of Strategy
Respondents felt their organization was
average or poor at strategy execution
Cannot accurately describe the
organization’s strategy
SOURCE: HBR 2010 Strategy Execution Survey, Gartner, Standish Group
Projects fail on ALL dimensions of success
(ROI, Cost, and Schedule)
Projects fail on at least one dimension of
success
What to Do?
Getting it Done

Lessons from the Trenches
1. Get senior leadership engagement early!
Or attract their engagement along the way!
2. Connect investments to capabilities
3. Building the 2X Project Manager

1. Senior Leadership Engagement

1. Senior Leadership Engagement
• With Committed Leader as a Champion (Easy)
– New processes that leverage capability planning and management
– Setting operational strategy priorities
– Dominant input to the project investment decisions
• Without Committed Leader (Harder)
– Content
– Unique Views

New
Management
Process

Nordstrom’s
Wal-Mart
Building Deeper Leadership Commitment
(Courtesy of Michael Porter)

…Committed Leaders Set Operating Model Priorities
4/17/2015 13
“Breakthrough”
Highest
Differentiation
Some
Differentiation
Lower
Cost
Lowest
Cost
Parity
Value Frontier: Efficiently
delivering the intended
value proposition
Non-PriceValuedelivered
Relative cost position
High
(World
Class)
low
high low
6
5
4
3
2
1
Legend
Circles = Current state
Chevron = Ambition
1
2
3
4
56
© 2015 Accelare. Proprietary and confidential. All rights reserved.

What Content Attracts Leadership?
• Performance-Value assessments
• Capability operational spending Pareto charts
• Project to Capability Gantt
• Capability Financials

Performance and Value Assessment

Level 1 Capability Costs
26%
47%
61%
73%
83%
92%
100%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000

17%
25%
30%
36%
42%
47%
51%
55%
58%
61%
63%
66%
68% 70% 72%
0%
10%
20%
30%
40%
50%
60%
70%
80%
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
Budget
Cumulative
Top 15 Level 2 Capabilities by Cost

Attracting Leaders: Does Our Spending Match our Priorities?
$10,656,692 , 6%
$66,916,806 , 36%
$59,365,122 , 31%
$51,280,885 , 27%
Budget by Classification View
Advantage
Business Necessity
Essential
Strategic Support

How Does Our Spend Align with Performance?
4/17/2015 19
$98,378,839 , 52%
$42,859,394 , 23%
$46,981,271 , 25%
CxO Capability Cost by Heat
High Low Medium

What Capability Will that Project Improve or Create?

2. Connecting Investments to Capabilities

How Good Is Your S2E Process?
The Project Spend to Capability Heat Test

A Project Canvas Links Investments to Capabilities
(Template)

Project Canvas with Relevant Sections Completed
(2 pieces of data)
4/17/2015 24
Capability
Family
Estimate
Project Cost

3. Building the 2X Project Manager

Principles of the 2X Project Manager
2X more productive = (context; working on the right things) x (speed; working
much faster)
1. Context; working on the right things
– With the right (x-functional) perspective
– Make project execution a “process”
2. Speed; working much faster
– CLM and simplifying the SDLC, picking the right path, getting
beyond the methodology silo’s
– Build in transparency to avoid surprises
– Assign an Accountable Executive to every initiative

CLM – a stage gate for programs

1. The Process of Project Execution

2. Build in Transparency to Avoid Surprises
(Broad access to every project)

3. Assign Executives to Every Initiative
(and publish the scorecard!)

4. Find Your 2X Project Managers
What is a 2X Business Architect, Analyst, Project Manager? A 2X
architect, analyst, project manager is a person who is 2X more
productive than a typical player.
• The 2X player has two qualities that make them unique:
1. Strategy to Execution Process Master – they understand and help
project sponsors and teams apply strategy, business model redesign
and change leadership techniques (at a local project level)
2. Agile/Scrum Master – they can apply agile/scrum techniques to both
the business and technical elements of the project to increase
velocity and quality

The combination of strategic orientation (S2E) and agility
and speed (SCRUM) are needed to increase velocity
• “Scrum teams that work well are able to
achieve hyper-productivity. We regularly see
330-400 percent improvement in
productivity… the best teams can achieve
800 percent gains and they also end up more
than doubling the quality of their work”
— Jeff Sutherland

CONFIDENTIALITY AND INTELLECTUAL PROPERTY
These materials contain valuable confidential and proprietary information belonging to Accelare. All information contained herein
is protected by law, including but not limited to, copyright law. None of such information may be copied or otherwise reproduced,
repackaged, further transmitted, transferred, disseminated, redistributed or stored for subsequent use for any such purpose, in
whole or in part, in any means whatsoever, by any person without Accelare’s prior written consent.
4/17/2015 33
Question & Answers

Strategy Lesson From the Trenches - S2E Case Study

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