Presenter: Karen Fryday-Field, MBA, Senior Consultant Meridian Edge Management & Governance...

Presenter:

Karen Fryday-Field, MBA, Senior Consultant

Meridian Edge Management & Governance Consulting

Cascading Ends Policies Cascading The Focus and Impact of Ends Policies

[An Application of Policy Governance)Throughout the Organization Through:•Ends Policy Interpretation•Strategic Planning•Operational Execution•Monitoring

IPGA 2013

Meridian Edge, 2011, 2012, 2013

Prime, Leading, First –Exploring the Leading Edge of Successwww.meridianedgeconsulting.com

5 Key Components Related to Achieving Ends

• Effective Ends Policy Development

• Ends Policy Interpretation

• Strategic Planning

• Operational Execution

• Monitoring

Meridian Edge, 2011, 2012, 2013


Ends Policies – A different kind of thinking and a challenging role for the BoardWe need high performance Boards … yet we still

frequently hear…

That Boards are:

– under-involved,

– excessively involved, or

– unclear about their responsibilities

These are common Board performance complaints.

Meridian Edge, 2011, 2012, 2013


How to cascade Policy Governance – Further impacts with Policy Governance -

Area #1

Viewing the job of the Board through another lens

. . . 3 governance leadership modes

Meridian Edge, 2011, 2012, 2013


Chait’s Thesis

• That it is not enough to do the tasks of the Board– Boards need to provide governance leadership about:

– Purpose - Desired Results/Outcomes– Values - Risk Tolerance– Accountability

• Who provides leadership for your Board?– The Board? – The CEO? - Both?

• Chait sees three modes of Board Leadership1. Fiduciary2. Strategic3. Generative

Meridian Edge, 2011, 2012, 2013


Reframing the Board’s 3 key job products around 3 governance leadership ‘modes’

Fiduciary

Generativ

e

Stra

tegi

c•All ‘modes’ are important•Usually an over emphasis on fiduciary by Boards

PG Definition ofBoard’s 3 Key Jobs•Ownership Linkage•Policy Direction•Assurance of Executive Performance

Adapted from Chait

Meridian Edge, 2011, 2012, 2013


Mode 1: Fiduciary Governance LeadershipWhere the Board exercises its legal responsibilities of oversight and stewardship

Fiduciary

The Bedrock of Governance

•Stewardship of Assets•Legal Compliance•Select and Evaluate CEO•Monitoring of Efficiency and Effectiveness•Fixed Meetings, Standard Agendas but not closely linked to motivation / Ends Achievement, i.e. having an impact in the worldReference: Chait

Meridian Edge, 2011, 2012, 2013


. . . in which the Board is involved in assessing reasonableness of major decisions directing resources and expected program outcomes – Board connects with the CEO/management to provide insight into reasonableness of Ends Interpretation. Are we getting the right amount of good for the investment being made?

FiduciaryStra

tegi

c

Mode 2: Strategic Governance Leadership

Reference: Chait

Meridian Edge, 2011, 2012, 2013


Mode 2: Strategic Governance Leadership

• Charting new territories for the organization

• Moving from thinking “inside out” to “outside in”

• Strategic thinking

• New form of monitoring: critical success factors, benchmarking, competitive position, outcome/results/ends/measures

• Use task forces and temporary structures to deal with key issues

[We will return to Strategic Governance later in this seminar]

Meridian Edge, 2011, 2012, 2013


. . . in which the Board engages in deeper inquiry, exploring root causes and issues, values, optional directions for impact/Ends, and new ideas related to core purpose

FiduciaryStra

tegi

c

Mode 3: Generative Governance Leadership

Generativ

e

Meridian Edge, 2011, 2012, 2013


Mode 3: Generative Governance Leadership

• Making Sense of the Mega Ends/The Desired Outcomes

• Discern and Frame Adaptive Issues• Asking “What is the key question?” we need to think

about as a Board• Work at the Boundaries of the current vision for

Ends impact (for the future)• Retreat Like Meetings, More Teamwork, and Free

Thinking Deliberation / Discussion (less tired to a specific agenda)

Meridian Edge, 2011, 2012, 2013


What Generative Governance does

• Engages and challenges directors (trustees/governors) intellectually

• It is what leaders do best

• Yet most Boards spend most time on fiduciary work and devote little time to the generative mode

Fiduciary

How do these three governance leadership modes link with policy governance?

Stra

tegi

cGenerativ

e

Executive Boundaries and Governing Processes

Ends

Inte

rpre

tation

Linkage and Ends

Development

Policy Governance offers the practical tools to act on these 3 modes of governing

Meridian Edge, 2011, 2012, 2013


Generative Governance

• Creative thought-leadership is crucial in Policy Governance.

• Listening to the owners.

• Listening to dissenting perspectives.

• Synthesizing environmental scanning information to build Ends Policies.

• It’s where we have to think hard – it’s not fast; it can be messy, and it is meaningful for those who engage in it.

Meridian Edge, 2011, 2012, 2013


Generative Governance Results in

New Covenant Between Board and CEO• Less micromanagement, more macro-engagement.

• Both parties have partial control of complete perspective.

• Board more active upstream, less active downstream.

• Board well-prepared and self-disciplined.

• Executives more candid and open-minded.

Meridian Edge, 2011, 2012, 2013


Return on investment benefit• That return may come in the form of a social impact:

– A safe airport that ensures access to the rest of the world.– A strong education system which produces effective citizens

for the region.– Healthy citizens.– A safe community.

• Or, it can come in the form of a financial return on a financial investment.

• The types of returns are as diverse as the number of organizations in the world working to accomplish something.

Meridian Edge, 2011, 2012, 2013


So on to the challenge of cascading the impact of Ends

• How do Boards solve the challenge of getting from lofty Ends Statements to Tangible Ends Results for specific groups of people at specific levels of investment?

… Clear, purposeful CEO Ends Interpretation

Meridian Edge, 2011, 2012, 2013


Ends Policy Interpretation

Translating Ends Policies into

Real and Positive Change in the World

[Return on Investment]

Meridian Edge, 2011, 2012, 2013


CEO Ends Interpretation - From Lofty Ends to Down-to-Earth Plans and Tangible Ends/Outcomes• Many organizations operating today make program

decisions based on a mission rather than on a considered strategy.

• In fact, many organizations don’t have a strategy at all.• They rally under the banner of a particular cause, be it

“Fight homelessness” or “End hunger.”• And then, since that cause is so worthwhile, nonprofits

support any program that’s related to it – even if only tangentially

• While it’s hard to fault people for trying to improve the state of the world, this approach can be misguided

• Acting without a clear long-term strategy can stretch an agency’s core capabilities and push it in un-intended directions

The Ends to Strategy to Results Stairway• Too many organizations rely on their highest core Ends to guide their program delivery

decisions. They miss two critical intermediate steps: formulating an operational mission/operational definition of the Ends, i.e. an Ends Interpretation and devising a strategy platform (how to achieve the desired Ends). Without those steps, nonprofits easily fall prey to the stick-and-stretch syndrome.

Ends Policy

Ends Achieved(+ve change)

2. Ends Operational Definitions/”Operational Mission” (CEO Interpretation)

1. Ends Policy Statement

3. Strategy Platform(Key Strategic Themes and Actions

4. Programs(Operational Process to Achieve Ends)

5. Ends [Operational Definition/Results] Achieved

Getting from Ends Policies to Actual ResultsEnds

Ends Achieved (+ve change)

1. Ends Statement

• What need of what group of beneficiaries will we serve (eg. (homeless, unemployment) and why

• It inspires.

• A powerful and compelling long term ‘end’ (outcome) will draw the attention of funders, workers, and volunteers

• The Ends Policy does tell you the nature of the problem / need and describes the end result – it does answer the question ‘what good will we do, for what people, at what investment’.

• It often doesn’t identify how it will address the need or how much the need will be served by the organization, or how much progress toward the end result can be reasonably achieved by the organization in a reasonable period.

2. Ends Operational Definition/Operational Mission

3. Strategy Platform

4. Programs Offered

Note: Over time, the core Ends does not necessarily change much. The need rarely disappears. (The need may decrease in size and scope).

5. Ends Operational Definition Achieved

CEO Interpretation



Ends Policy







Getting from Ends Policies to Actual Results

Ends

Programs


2. Ends Definition / Operational Interpretation / “Operational Mission”

• This brings the lofty inspirational Ends into the realm of quantitative results.

• This operational mission, i.e. more specific Ends Statement must be specific enough to guide action to achieve the Ends and to allow the organization to trace its impact (an organization’s work should always be measurable, even if it uses proxies). Eg. Habitat for Humanity measures # of houses built and % of poverty housing still to be eliminated.

• Answers provocative questions: What specific results / outcomes will you address within the need? What is your unique role?

• While the big Ends Policy is usually sacrosanct, the operational definition/mission should more frequently reflect environmental changes that constrain or provide new opportunities for accomplishing the overall Ends.

• The Board can interpret or further define the highest level Ends with more specific/defined Sub-Ends Policies in as much detail as it believes it needs to such that it has provided clear policy direction to the CEO – the CEO then interprets what the Board has directed/creating this operational definition/mission.


4. Programs Offered

5. Ends Operational Definitions Achieved

The most common pattern where Ends Policy implementation goes off the rails looks like this…

No or Little alignment Parallel Processes

BOARD CEO

Sets strategic objectives

Develops and runs products and services

May have some program measures

Towards Ends Monitoring Reporting time, CEO scrambles to identify measures/description of results to meet the Board’s request for evidence of Ends achievement

Board may educate itself well to inform Ends Policy decisions

Board declares its Ends Policy and delegates authority to CEO to achieve Ends impact

Genuine evaluation of whether Ends got achieved. Are we getting the desired outcomes?

No or little follow-up as to whether Ends are being achieved

Do these continue to be the right outcomes?

Meridian Edge, 2011, 2012, 2013


BIG IDEA

Achievable idea in a time frame with available

resources

CEO Ends Interpretation

Meridian Edge, 2011, 2012, 2013


So what does this process of Ends Policy Interpretation look like when it’s done well?• The Board may say…

– The End Policy of the organization is to eliminate cancer as a cause of human suffering and death.

• The CEO may then create an operational definition or “operational mission” that says…

– I interpret the Board’s direction to mean that we will eliminate cancer as a cause of human suffering and death in the 5 most common categories of cancer – this is as far as we can reach with the $400M we have to work with.

Meridian Edge, 2011, 2012, 2013


What’s Reasonable?

… is that a reasonable interpretation?

Meridian Edge, 2011, 2012, 2013


Anatomy of a CEO Ends Interpretation• The CEO operational interpretation of the Ends Policy has several

key elements:1. Operational Definition/Mission which narrows the field from the

statement of the big impact on the need being served to an actual achievable change in the world.

2. Environmental Scan – it should reflect environmental changes that constrain or provide new opportunities for accomplishing the overall Ends.

3. Some clear statement about the type and amount of good/change/impact that will occur in a period… i.e. what will be the return on investment measured quantitatively or qualitatively.

4. A rationale for the target should be provided.5. A way to measure the impact, i.e. the good being done.

Meridian Edge, 2011, 2012, 2013


CEO Ends Policy Interpretation Process

The Anatomy (Structure) of An Ends Policy CEO Interpretation End Policy (policy criteria)List the policy criteria established by the Board CEO InterpretationOperational definitions to focus the End and translate to actionable items Milestones or Targets to say what results/outcomes will reasonably be achieved toward the End Policy within a specific business cycle(s) or period

Meridian Edge, 2011, 2012, 2013


Anatomy of a CEO Ends Interpretation• If your Board is not getting these

components, it is not getting a reasonable interpretation!!!

Meridian Edge, 2011, 2012, 2013


Examples of CEO Translation/Interpretation

Board’s Big Ends IdeaCancer as a cause of human suffering and death is eliminated.

CEO Interpretation to Operating Definition/Mission

Cancer as a cause of human suffering and death is reduced and/or eliminated for the 5 top most cancers.

(Needs to be measureable)

Meridian Edge, 2011, 2012, 2013


End Policy Operational Definition

Good to be Done in the Period (i.e. return on the investment)

Measures / Indicator

Cancer is eliminated as a cause of human suffering and death

Over the next 4 years, the top 5 cancers will be reduced and/or eliminated as a cause of human suffering and death

• Colon Reduction of deaths 5% decreased mortality rate

• Prostate Increased longevity 50% of cases have life span of greater than 10 years after diagnosis

• Lung Reduced incidence 20% decrease in population incidence

• Breast Reduction of deaths within 5 years

25% more cases diagnosed in period live longer than 5 years

• Uterine/Ovarian Earlier detection 50% of cases will be diagnosed before any mastitis is diagnosed

Example CEO Operational Definition of Ends Policy

Meridian Edge, 2011, 2012, 2013



Board’s Big Ends Idea


New immigrants are functionally literate

All new immigrants who have landed within 2 years are able to complete a job application, conduct banking, and carry a basic conversation

Meridian Edge, 2011, 2012, 2013



Board’s Big Ends Idea


Consumers of our cars will have safe, enjoyable transportation

Consumers of our cars will have:•No accidents based on car design flaws•Will rank their car very high on visual design and function•Reduced injury compared to other vehicles when in a car crash

Meridian Edge, 2011, 2012, 2013


Many Cultures IncorporatedEnds Interpretation Example

High Level End: New immigrants in Harold County will have functional literacy skills.

President & CEO Interpretation:“Immigrants” are interpreted as people who have landed immigrant status in Canada. Statistics Canada defines landed immigrants as people who have been permitted by immigration authorities to live in Canada permanently. I have interpreted “new immigrants" as those who have been in the country for less than 2 years. "Functional literacy skills" is interpreted to mean the ability to use English in their daily life activities such as shopping, banking, applying for employment, reading instructions, and completing forms.

Milestone:I interpret that this End Policy #1 will be achieved this year when functional literacy results of the people served have increased by more than 5% over the previous year. A recent study by Greenlake University published in 2009, in Languages Around the World demonstrated that functional literacy scores of 85% should be able to be achieved.

Meridian Edge, 2011, 2012, 2013


Hospital ABC – At Program Level (Total Hip Arthroplasty) - Ends Interpretation Example

High Level End: Maximum recovery and health status is achieved within expected timeframes.

Program End Interpretation:Patients’ pain will be reduced and function significantly improved within three months of surgery.

Measure:SF 35 Outcome Measure change

Meridian Edge, 2011, 2012, 2013


Hospital XYZ - Ends Interpretation Example

Hospital Ends Interpretation:We interpret health care needs are met to include the eight key dimensions of health care needs as defined by Picker Commonwealth including: Respect for patient-centered values, preferences, and expressed needs, including an awareness of quality-of-life issues, involvement in decision-making, dignity, and attention to patient needs and autonomy. Coordination and integration of care across clinical, ancillary, and support services and in the context of receiving “frontline” care. Information, communication, and education on clinical status, progress, prognosis, and processes of care in order to facilitate autonomy, self-care, and health promotion. Physical comfort, including pain management, help with activities of daily living, and clean and comfortable surroundings. Emotional support and alleviation of fear and anxiety about such issues as clinical status, prognosis, and the impact of illness on patients, their families and their finances. Involvement of family and friends in decision-making and awareness and accommodation of their needs as caregivers. Transition and continuity as regards information that will help patients care for themselves away from a clinical setting, and coordination, planning, and support to ease transitions. Access to care, with attention to time spent waiting for admission or time between admission and placement in a room in the inpatient setting, and waiting time for an appointment or visit in the outpatient setting.

Hospital Ends Policy: People’s health care needs are met.

Measure: Patient Needs MetSurvey for all discharged patients.

INPUTS TRANSITION/TRANSFORMATION

OUTPUTS

OUTCOMES

LONG TERM IMPACT

People with health challenges

Clinical diagnostics, therapeutics, rehabStaff development/knowledge transferProcess development/efficienciesFacilities and capacity building

Achieving ResultsENDS

•For specified people•At a specified level of priority of investment.

Meridian Edge, 2011, 2012, 2013


Cascading the Board’s Intent to Achieve Ends

• Through Ends Interpretation• Through Strategic Planning• Through Strategic Operations Management….to Desired Results/Impact/Return on

Investment for specified people

I hate doing these visioning exercises by

myself…

Governance at WorkBoard Policy Delegation, Interpretation, and Monitoring At a Glance

OWNERSHIP

LINKAGE WITH OWNERSHIP(e.g. public, community)

BOARD (made up of owner representatives)

ENDS & EXECUTIVE LIMITATIONS POLICY DEVELOPMENT BY BOARD

CEO is delegated responsibility for achieving Ends Policies (Strategic Directions) within

Executive Limitations Policies

CEO interprets Ends and Executive Limitations Policies (develops strategic goals,

milestones/targets)

BALANCED SCORECARD METRICS Financial Value Innovation and Learning Internal Process Beneficiaries

CEO STRATEGIC PLANS AND

LEADS/MANAGESOPERATIONS (builds

operational plans, budgets, etc.)

ACHIEVES RESULTSFor specific people,

a specific investment

DEVELOPS MONITORING

FEEDBACK TOOLS ON PROCESS &

RESULTS

Ends (Outcomes) Achievement MonitoringCompliance with Executive Limitations Monitoring

Process and results monitoring to lead and manage the organization and course correction

The Community

the BeneficiariesThe Impact on

Getting from Ends Policies to Actual Results[Strategic Planning Under the Umbrella of Ends Policies]

Ends

Ends Achieved +ve change

1. Ends Statement (by Board)

2. Ends Definition / Operational Interpretation/ Operational Mission (by CEO)

3. Strategy Platform (by CEO)• Strategy delineates how the Ends or operational

interpretation of the Ends will be achieved. Including what programs to run and how to run them – what to do more of or less of.

• Consists of 4 components: • Client and market development• Program and service development• Revenue, funder, or donor development• Organizational development

• Each component of the strategy should support achievement of the Ends Policy directives and each should dovetail with the other components.

4. Programs Offered (by CEO)

5. Ends Operational Definitions Achieved

ENVIRONMENTAL SCANNING

& SWOT ANALYSIS

Ends (Strategic Outcomes i.e. expected return on investment)

Policy Development

what good we do what outcomes we are striving for for what people at what investment (i.e. the Board’s strategic vision and direction to the organization on desired/expected return on investment)

Internal – our role, capacity, previous resultsExternal – the needs, the environment, the trends in the field, opportunities, and threats

VISION for Results

CEO Ends (outcomes) Policy Interpretation

Defining operational definitions, outcomes, setting strategic goals to achieve the outcomes, identifying measures

Board assessment of CEO Ends Policy Interpretation for Reasonableness

Strategic Three Year PlanVision Goals Metrics Milestones Themes

Strategy Map (a one page visual summary of

key strategies)

One Year Operating Plan Goals Key Initiatives Metrics Staff AssignmentsMilestones Tactics Strategic Activities

Balanced Scorecard Tracking Ends (outcomes)

Results

Monitoring Reports to Board on Ends (results/outcomes/return on investment) Achieved

Program Area Operational Plan, Performance Plans, and Scorecard

Strategic Planning Under Policy Governance

Meridian Edge, 2011, 2012, 2013


Why Strategic Planning is a Useful Process

• Ensure the desired Ends/results are achieved for the target groups at the appropriate cost.

• Provide inspiration, direction, and guidance to the workforce.• Communicate: up, down, and across the organization, the

role, intent, and needs of the organization and beneficiaries.• Ensure alignment across different subsets of the organization.• Engender staff “buy-in”

The organization and its subsets (divisions, departments, teams, business units) should engage in Strategic Planning to:

Diamond E – Putting Ends Policies to Work through Strategic Planning

"What Organization wants to do" i.e. the needs it wants to/will serve

GOVERNANCE & MANAGEMENT

STRATEGY

"Tension"

ENVIRONMENT

"What the Organization needs to do"

ORGANIZATIONALSTRUCTURE

CAPABILITIESAND

RESOURCES

"What the Organization can do"

Meridian Edge, 2011, 2012, 2013


From Mission and Vision to Strategy

Competitive Premise

BusinessSystem Focus

Product Market Focus

GOALS

taken from Fry and Killing

Meridian Edge, 2011, 2012, 2013


Strategy - Product Market Focus

• nature of the products/services that an organization intends to offer

• the boundaries of the specific markets that it intends to serve– where is the keenest competition or biggest

threat?– where are upstream or downstream

opportunities?

Meridian Edge, 2011, 2012, 2013


Strategy -Competitive Premise• an expression of how the organization intends

to win in the market place• what do you intend to offer to your customers

that is:– important to them– different from competitors– economically feasible– difficult to match

If you don’t have a competitive advantage, don’t compete

Meridian Edge, 2011, 2012, 2013


Strategy - Business System Focus• which particular activities an organization intends to

perform and which it will obtain from external suppliers

• the choices that an organization makes about the activities that it will perform determines its basic operating structure (its business system)

Meridian Edge, 2011, 2012, 2013


Goals

• Strategic goals provide the main link between a firm’s mission and vision and its concrete operations

• Having a goal structure for a business sets priorities and minimizes conflicts

Meridian Edge, 2011, 2012, 2013


Hard Goals• Profitability

– return on sales, net assets, and equity

– earnings per share– balanced budget– enhancing reserves

• Market Position– rank in industry– share of market– diversification

• Growth– increase in sales, assets,

earnings• Risk

– liquidity– debt-equity

Meridian Edge, 2011, 2012, 2013


Soft Goals

• Management– autonomy– development– succession

• Employees– economic security– opportunities to advance– working conditions

• Community– linkages– contributions to

community– capacity and culture

• Society– general benefits through

innovation, efficiency, responsible political involvement

Strategy Map of Environmental Services Group of the Unified Port of San DiegoStrategy Map of Environmental Services Group of the Unified Port of San Diego

Customer and Stakeholder

Financial

Run the Business

Learning and Growth

Improve the expertise of staff

Four balanced perspectives from which we assess the department’s progress

Manage projects well

Ensure regulatory compliance

Create cost savings

Optimize the use of interns

Properly design and meet budget

Be responsiveto stakeholders

Develop solid relationships

Our objective for the department

Arrows represent cause and effect relationships among the objectives

FIN

AN

CIA

L V

AL

UE

P

ER

SP

EC

TIV

E

F1 Fair Profit Margin is Being Achieved

F2 Revenue is growing through relevant market share and product

growth

P1 Market opportunity assessment process is well developed (new markets /

new products

P5 Information Management Processes support business process and decisions

CUSTOMER INTIMACYC

US

TO

ME

R

PE

RS

PE

CT

IVE

INT

ER

NA

L P

RO

CE

SS

ES

PE

RS

PE

CT

IVE

LE

AR

NIN

G &

GR

OW

TH

PE

RS

PE

CT

IVE

C3 Excellent Value in Insurance and Related Services exists

C1 Customer Loyalty to Our Brand is Growing

C5 Unique Needs of Customers Segments are Understood and Met

C2 Exceptional Customer Service is Being Delivered

P4 Innovative Product Development Process in Place (speed to market)

Distribution system is leveraged

P3 Operationalize a Focused Strategy for Each Customer Segment

L5 Increase staff and agent capability to deliver our products &

service

L2 Optimize performance management system to create a high performance culture

that encourages innovation

L4 Optimize recruitment and selection to build the talent

base

L6 Progressive organizational training and

development program

L1 Develop human capital with the ability to execute the strategy

L3 Recognition and Rewards drive strategy implementation

L7 Manage ethics and prudence

C4 Customers Find it Easy to do Business with Us



Ends Policy







Getting from Ends Policies to Actual Results

Ends

Ends Achieved +ve change

1. Ends Statement

2. Ends Operational Definition / Operational Mission/Ends


4. Programs Offered• What programs to run? What programs to discontinue?

• What activities / strategic initiatives need to be undertaken to achieve the desired results?

• When potential new programs emerge – ask how do new programs contribute to the strategy for getting Ends achieved?

• How effective are our programs, i.e. in producing the desired results?

• How efficiently are they executed, i.e. is the investment with the return?5. Ends Operational

Definition Achieved

Meridian Edge, 2011, 2012, 2013


• The translation of the Ends Policy to the operational interpretation by the CEO takes:

– Evidence, knowledge, insight

– Wisdom, careful thought

– Decision-making

– Clarity

• So the strategy platform and the strategic operating plan to act on and implement the Ends Policy operational interpretation is another step that results in clarity and a definitive plan for action.

Meridian Edge, 2011, 2012, 2013


Building the strategic/operating plan – the CEO’s job

• The plan needs to take into consideration the basic strategy to be followed and build specifics around:– Client and market development– Program and service development– Revenue, funder or donor development/business

model– Organizational development/enabling goals

Meridian Edge, 2011, 2012, 2013


Strategic operating planning frameworks

• There are a thousand frameworks that a CEO can use to work with his/her team to create the ‘plan’ – here is one that works…

Meridian Edge, 2011, 2012, 2013


Strategic Operating Plan

Meridian Edge, 2011, 2012, 2013


The future is not some place we are going, but one we are creating. The paths to it are not found but made, and the activity of making them changes both the maker and the destination.

John Schaar, American Sociologist

Meridian Edge, 2011, 2012, 2013


Conclusions on CEO Ends Interpretation and Strategic Planning

• You may think that this process as outlined is basic and obvious.

• Yet many organizations practising Policy Governance have a substantial gap in one or all of the following areas:

– Clarity and Relevance of Board Ends

– CEO Ends Interpretation

– CEO Strategy Planning to Achieve Ends

– Strategic Operating Plan to Translate the Plan into Action

ALIGNED AND EFFECTIVE

NOT ALIGNED USUALLY LESS EFFECTIVE

Board Ends

CEO Interpretation Operation Definition /

Milestone / Target / Amount of Good

Strategic Platform

Strategic Goals, Strategic Initiatives

Operating Plan

Programs and Services

Measures and Monitoring

Board Ends

Fuzzy CEO Operating Definition of Ends

Real Strategic

Plan, Goals, Initiatives, Measures(Business

Plan)

Race to Relevant Measures and Milestones to

Satisfy the Board or No Monitoring

on Ends

Cascading Ends to Strategic IntentENVIRONMENTAL SCANNING (SWOT Analysis, PEST Analysis)ENVIRONMENTAL SCANNING (SWOT Analysis, PEST Analysis)

Ends

Strategic Outcomes

i.e. the Vision for Strategic Outcomes for Specific Groups at Specific Value/Worth

CEO Ends Interpretation[Milestones and Operational

Definitions of Outcomes]

Strategic Plan/Framework[Key Strategic Themes to Advance Ends

Achievement]

Critical Success Factors/Organizational Capacity[Enabling Organizational Capacity to Perform]

Strategic Operating Plan[Strategic Initiatives, Tactics, Delivery of Service]

Ends Achieved

Karen Fryday-Field, MBASenior Consultant190 Wortley Rd. LL-8London, ON, N6C 4Y7Tel: 519-439-7503 Fax: 519-963-2962E: kfryday-field@meridianedgeconsulting.comwww.meridianedgeconsulting.com

mailto:[email protected]

http://www.meridianedgeconsulting.com/

http://ca.linkedin.com/pub/karen-fryday-field/21/57b/65a

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Presenter: Karen Fryday-Field, MBA, Senior Consultant Meridian Edge Management & Governance...

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