GOAL SUMMIT 2015

Mind the Gap: Avoid the disconnect between strategy and execution

Rich ClaytonOracle Corporation April 16, 2016

The Next World Series Champions Will Be….

On your smart phone, go to pollev.com

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Digital Disruption Driving Greater Competition and Innovation

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Company Lifespans Are Decreasing

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Disruption Challenging Static Strategies

“The senior management team needs to have regular, probably monthly, meetings that focus only on strategy.”

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Connecting Strategy with Planning & Execution

40%

13%

of organizations claim they are very successful in executing their strategy

link strategy with annual budgets

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What are the top obstacles for

connecting strategy and execution in your

company?

Five Myths in Connecting Strategy with Execution

1 Execution Equals Alignment

2 Execution Means Sticking to the

Plan

3 Communication Equals

Understanding

4 A Performance Culture Drives

Execution

5 Execution Should Be Driven

from the Top

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Five Strategies for Success

1. Broaden strategic objectives beyond financial outcomes

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Five Strategies for Success

1. Broaden strategic objectives beyond financial outcomes

2. Scrap spreadsheets for planning processes

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Five Strategies for Success

1. Broaden strategic objectives beyond financial outcomes

2. Scrap spreadsheets for planning processes

3. Invest in Goal Management Platform as connective tissue

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Five Strategies for Success

1. Broaden strategic objectives beyond financial outcomes

2. Scrap spreadsheets for planning processes

3. Invest in Goal Management Platform as connective tissue

4. Condense, crystalize and communicate KPI’s broadly

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Five Strategies for Success

1. Broaden strategic objectives beyond financial outcomes

2. Scrap spreadsheets for planning processes

3. Invest in Goal Management Platform as connective tissue

4. Condense, crystalize and communicate KPI’s broadly

5. Develop dynamic enterprise guidance system

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Broaden Strategic Objectives Beyond Financial Outcomes

VisionLagging indicators measuring tangible

outcomes

FINANCIALCreate value for

customers & stakeholders

PROCESS

Defines the source of value

CUSTOMER

Align resources to drive improvement in

processes

LEARNING & GROWTH

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Strategy Maps Illustrate Connectedness of Goals and Networks

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Lessons from Frontline in Public Sector

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Planning Provides the Bridge to Link Strategy with Execution…

Strategy OperationsThe planning

process is at the core of linking

strategy to operations

60% of organizations do

not link operational plans

to strategy

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Limited Visibility into Revenue Forecast

Revenue forecast accuracy for the current quarter is +/- 5% by:

5%

26%

16%40%

14%

1-4 Weeks5-8 Weeks9-10 Weeks11-12 WeeksWeek 13

Source: Loras College, Center for Business Analytics

46% of companies don’t have

visibility into revenue until week 11 of the quarter

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• Centralize financial assumptions

• Gather wisdom beyond finance

• Leverage cloud services

• Develop dynamic scenarios

• Focus on forecast accuracy

Scrap Spreadsheets for Planning Processes

spreadsheets contain mathematical errors 88%

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Don’t Do This with Goals

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Ideally, how often would you set or calibrate goals?

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3 Invest in Goal Management System

Connected Supported Progress-based Adaptable Aspirational

Vertical / horizontal

alignment and clarity

Working transparently with

social reinforcement and

recognition

Frequent, measurable

feedback and frequent wins

Flexibility to respond to

changing goals and business

needs

Greater achievement and

encourage excellence

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All Metrics Aren’t Created Equal

Attributes

Type

Rate of Change

Quantity

Ownership

Comparative

Operational Metrics

Activity/Outcome

Rapidly

Scores

Single LOB

Prior Year

Financial Metrics

Outcome

Rarely

Dozens

CFO

Prior Year

KPI’s

Outcome

Rarely

<10

Cross LOB

Target

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Total Transparency of KPI’s4

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Studies have shown that specific and

ambitious goals lead to a higher level of

performance than easy or general goals.

As long as the individual accepts the

goal, has the ability to attain it, and does

not have conflicting goals, there is a

positive linear relationship between goal

difficulty and task performance.”

“Edwin Locke and Gary Latham

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ENTERPRISE PERFORMANCE MANAGEMENT• Strategy Map & Long Range Planning• Financial Budgeting & Planning• Profitability Modeling

BUSINESS INTELLIGENCE• Dashboards & Self-Service Analysis• Predictive Analysis• Data Discovery & Visualization

GOAL MANAGEMENT• Organizational Alignment• Transparency of Work• Engaged Team Members

Develop a Dynamic Enterprise Guidance System5

KPI’s

PROGRESS

OBJECTIVES

PLAN

CONNECTMEASURE

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Vision withoutEXECUTION is hallucination

Questions?