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Knowing me, knowing you
STRATEGIC PROGRAM MANAGEMENT
With your permission
Content
1. Intro: Vision, Mission, Values, Strategy
2. Definitions: Strategy, Portfolio, Program, PMO
3. Strategy Execution - core competence
4. Program Management & Role in Strategy Execution
Content
• Intro: Vision, Mission, Values, Strategy
• Definitions: Strategy, Portfolio, Program, PMO
• Strategy Execution - core competence
• Program Management & role in Strategy Execution
Vision, Mission, Values, Strategy
Why do we exist?
Who we are?
What do we want?
How will we get there?
Values – Who are we?
• Amazon: – Customer Obsession
– Innovation
– Bias for Action
– Ownership
– High Hiring Bar
– Frugality
• Vodafone – Speed
– Simplicity
– Trust
• MTN – Integrity
– Leadership
– Innovation
– Can-Do
– Relationships
Mission – why do we exist?
• Wal-Mart Stores:
– To help people save money so they can live better.
• Metro:
– To bring together people and products in all corners of the globe.
• Tesco:
– To create value for our customers to earn their lifetime loyalty.
• Honda:
– To seek technology that helps realize true peace and happiness on earth.
• Google:
– To organize the world's information and make it universally accessible and useful.
Try it yourself!
1. short 2. catchy, easy to remember 3. inspiring 4. ambitious 5. realistic and measurable 6. differentiating from competition
Vision – What do we want?
• Wal-Mart Stores:
– To become the worldwide leader in retailing.
• Sony:
– To have the world look to Sony for comprehensive entertainment.
• Samsung:
– To lead the digital convergence movement.
Try It yourself!
1. specific 2. achievable 3. motivating 4. guideline for daily decisions 5. shapes organisation culture 6. BHAG
Strategy
Hierarchy of Needs
Strategic Planning Process
Assumptions Forecasts
STRATEGY
•PEST •Porter’s 5 Forces •Stakeholder Analysis
External Analysis
•Resource Based View •Value Chain •SWOT •Functional, etc
Internal Analysis
OPPORTUNITIES &
THREATS
STRENGTHS &
WEAKNESSES
KEY ISSUES/WORRY LIST
ENVIRONMENTAL SCANNING
STRATEGY EXECUTION
Monitoring & Control Monitoring & Control Monitoring & Control Monitoring & Control
Content
• Intro: Vision, Mission, Values, Strategy
• Definitions: Strategy, Portfolio, Program, PMO
• Strategy Execution - core competence
• Program Management & role in Strategy Execution
Strategy Definition
Project, Program, Portfolio, PMO
• is the planning, organizing, directing, and controlling of company resources... for a relatively short-term objective
Project Management
•a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually
Program Management
•A portfolio is a collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives.
Portfolio Management
•An organizational body or entity assigned various responsibilities related to the centralized and coordinated management of those programs under its domain.
•The responsibilities of a PMO can range from providing PM support functions to actually being responsible for the direct management of a project.
PMO
Projects, Programs, Portfolio Rlnship
Content
• Intro: Vision, Mission, Values, Strategy
• Definitions: Strategy, Portfolio, Program, PMO
• Strategy Execution, a core competence
• Program Management & role in Strategy Execution
FACT! Most Organizations Have a STRATEGY
The Challenge
Management Barriers
85% of executive teams spend less than one hour
per month discussing strategy
Resource Barrier
60% of organizations don’t link budgets
People Barrier
Only 25% of the managers have
incentives linked to strategy
Vision Barrier
Only 5% of the workforce
understands the strategy
Barriers to Strategy Execution
Only 10% of organizations execute their
strategy
Culled from Harvard Business Review
ABC Bank Strategy Map
Financial Perspective
Customer Perspective
Internal Perspective
Learning Perspective
The Revenue Growth Strategy The Productivity Strategy
Improve
Returns
Improve
Operating
Efficiency
Broaden
Revenue Mix
Increase Employee
Productivity
Access to
Strategic Info
Develop
Strategic Skills
Align Personal
Goals
Increase Customer
Confidence in Our
Financial Advice
Increase Customer
Satisfaction Through
Superior Execution
Cross-Sell
the Product
Line
Shift to
Appropriate
Channel
Provide
Rapid
Response
Develop New
Products
Minimize
Problems
Innovation Customer Management Operational Excellence
Understand
Customer
Segments
Employee Satisfaction Revenue per Employee
Strategic Job
Coverage Ratio
Strategic Info
Availability
Personal Goals
Alignment (%)
Strategy Execution - Balanced Scorecard
BSC
Strategy
Specific initiatives to support the implementation of the company's strategies
Action/
Operations
Strategic guidance will be communicated and implemented on all relevant levels
Balanced Scorecard should be understood as the LINK between
strategy and action
BSC
Enable an agenda for the requiered changes and define a coherent strategy that is aligned with the Mision, Vison and values of the organization
Translate the strategy in operational terms using the Balanced Scorecard so everyone can understand it
Align the organization around its strategy so it becomes everyone’s job
Monitor the strategy momentum and adapt the strategy based on the results achieved
6 steps to achieve it
Link the stratetgy with the organizations budget and the adequate process to assure its execution
Turn the strategy in a continuos process, establishing a formal follow-up process based on the strategy performance
2 Translate
the Strategy
1 Develop
the Strategy
6 Test
and Adapt
5 Monitor
and Learn
4 Plan
Operations
3 Align the
Organization
Operating/Financial Plan
Strategic Plan
Process
Execution
Business
Intelligence
Palladium’s Methodological approach
Leadin
g Laggin
g
Soft
Hard
Vision &
Strategy
CUSTOMER “To achieve
our vision,
how should
we appear to
our
customers?”
Objectives Measures Targets Initiatives
FINANCIAL “To succeed
financially, how
should we appear
to our
shareholders?”
Objectives Measures Targets Initiatives
INTERNAL BUSINESS PROCESSES
“To satisfy our
shareholders
and customers,
what business
processes must
we excel at?”
Objectives Measures Targets Initiatives
INNOVATION LEARNING & GROWTH “To achieve our
vision, how will
we sustain our
ability to
change and
improve?”
Objectives Measures Targets Initiatives
BSC - 4 Quadrants & Causal Links
Typical Corporate Scorecard Strategic Theme
Strategic Objective Strategic Measures Initiatives Budget Owner
Fin
anci
al GROW F1: Increase shareholder value
F2: Profitable Growth across all commercial areas
EBITDA Revenue Market Share ROCE OFCF, FCF Growth Rate vs Competition Full Cost vs Competition
Initiative A Initiative B
GHC XXX GHC YYY
Director, Finance
Cu
sto
mer
CUSTOMER ADMIRATION TRUSTED BRAND WIN-WIN DEALER RELATIONS
C1: Delight targeted segment C2: Improve Dealer profitability
Market Share per segments CDI, NPS per segment ARPU Brand KPIs Gross/Net adds Dealer Gross profit Growth Dealer Survey
Programs B Project C Project D
GHC ZZZ GHC RRR GHC PPP
Director, Marketing Director, Sales
Inte
rnal
NEW PRODUCTS COST EFFICIENCY OPERATIONAL EXCELLENCE
I1: Innovative Products and services I2: Technology Excellence I3: Inventory Management I4: On spec – On Time I5: Cost Saving Initiatives I6: Improve H&S
New Product ROI New product Acceptance Rate Perfect Orders SLA adherence (Delivery, MTTR) Cost Initiatives ROI Incidents per month vs Group
Program E
GHC FFF CTO Director, HR
Lear
nin
g &
G
row
th
INVIGORATE UNDERSTAND THE BUSINESS
L1: Employee engagement L2: Key Business systems (CRM, DR, BIs) L3: Core competencies and skills L3: Business rating (Ghana Club 100)
Employee engagement scores Employee surveys per region Strategic competency Availability % successors identified Strategic Information availability
Project F Program G
GHC KKK CEO Director , HR
Cascading the corporate scorecard
© 2007 Palladium Group, Inc.
Bu
sin
es
s
Lin
ka
ge
M1. Create Shareholder Value M2. M3. M4.
Stock Price Multiple
Strategic Objectives Strategic Measures Targets Strategic Initiatives
Competitive norms
Budget
Fin
an
cia
l
F1. Improve HR Efficiency Budget Cost vs Actual
HR Cost / Employee
100%
90% of norm
Objectives on Enterprise Scorecard
Impacted by HR
Cu
sto
me
r C1. Create a Positive Work Environment C2. Build Strategic Partnership C2. Insure Human Capital Readiness
Employee Satisfaction Survey
Service Agreement Feedback
Human Capital Readiness
80% rating
85% Rating
75%
Employee Survey
Account Review Program
Human Capital Readiness Report
$ CCC $ BBB $ AAA
I1. Achieve HR Operational Excellence I2. Develop Business Unit Partnerships I3. Provide Strategic Support to
Business a) Build Strategic Staff
Competencies b) Develop Leaders &
Supportive Culture c) Create a High Performance
Organization
Cost per Transaction Cycle Time Error Rate / Complaints Service Agreements in Place (%) HR Strategic Plans in Place (%) Time with Customer
Human Capital Readiness
Leadership Alignment Cultural Alignment
Staff Alignment
5% Reduction 21 Days 50% reduction
90% 90% 10 hrs / week
100%
100% 100%
100%
Activity Based Costing Process reengineering TQM for HR Processes
Service Agreements Program HR Strategic Planning Process Relationship Management Program
Strategic Job Family Identification Competency Profiles Training & Development
Leadership Development Mission, Vision, Values
Strategic Communications Performance Management Program
$ NNN $ OOO $ PPP $ KKK $ LLL $ MMM $ DDD $ EEE $ FFF $ GGG $ HHH $ III $ JJJ
Le
arn
ing
&
Gro
wth
L1. Provide Strategic HR Info L2. Develop Strategic HR Competencies L3. Fill HR Leadership Pipeline L4. Increase Best Practice Sharing L5. Insure Strategic Alignment L6. Create Shared Vision / Culture
HR Application System Readiness
HR Competencies: Readiness
Key Position Depth Chart
Best Practices Transferred (#)
Personal Goals Linked to BSC (%)
Strategic Awareness (%)
100% (vs. plan)
100% (vs. plan)
80%
50%
80%
80%
HR Systems Plan
HR Competency Plan
HR Leadership Development Program
Knowledge Management Program
BSC Cascade
Strategic Education / Communication
$ QQQ $ RRR $ SSS $ TTT
$ UUU $ VVV $XYZ TOTAL:
Measures on Enterprise Scorecard
Impacted by HR
Inte
rna
l Example: HR Organization Scorecard
Content
• Intro: Vision, Mission, Values, Strategy
• Definitions: Strategy, Portfolio, Program, PMO
• Strategy Execution - core competence
• Program Management & role in Strategy Execution
Recap: Projects, Programs, Portfolio Rlnship
Bu
sin
es
s
Lin
ka
ge
M1. Create Shareholder Value M2. M3. M4.
Stock Price Multiple
Strategic Objectives Strategic Measures Targets Strategic Initiatives
Competitive norms
Budget
Fin
an
cia
l
F1. Improve HR Efficiency Budget Cost vs Actual
HR Cost / Employee
100%
90% of norm
Objectives on Enterprise Scorecard
Impacted by HR
Cu
sto
me
r C1. Create a Positive Work Environment C2. Build Strategic Partnership C2. Insure Human Capital Readiness
Employee Satisfaction Survey
Service Agreement Feedback
Human Capital Readiness
80% rating
85% Rating
75%
Employee Survey
Account Review Program
Human Capital Readiness Report
$ CCC $ BBB $ AAA
I1. Achieve HR Operational Excellence I2. Develop Business Unit Partnerships I3. Provide Strategic Support to
Business a) Build Strategic Staff
Competencies b) Develop Leaders &
Supportive Culture c) Create a High Performance
Organization
Cost per Transaction Cycle Time Error Rate / Complaints Service Agreements in Place (%) HR Strategic Plans in Place (%) Time with Customer
Human Capital Readiness
Leadership Alignment Cultural Alignment
Staff Alignment
5% Reduction 21 Days 50% reduction
90% 90% 10 hrs / week
100%
100% 100%
100%
Activity Based Costing Process reengineering TQM for HR Processes
Service Agreements Program HR Strategic Planning Process Relationship Management Program
Strategic Job Family Identification Competency Profiles Training & Development
Leadership Development Mission, Vision, Values
Strategic Communications Performance Management Program
$ NNN $ OOO $ PPP $ KKK $ LLL $ MMM $ DDD $ EEE $ FFF $ GGG $ HHH $ III $ JJJ
Le
arn
ing
&
Gro
wth
L1. Provide Strategic HR Info L2. Develop Strategic HR Competencies L3. Fill HR Leadership Pipeline L4. Increase Best Practice Sharing L5. Insure Strategic Alignment L6. Create Shared Vision / Culture
HR Application System Readiness
HR Competencies: Readiness
Key Position Depth Chart
Best Practices Transferred (#)
Personal Goals Linked to BSC (%)
Strategic Awareness (%)
100% (vs. plan)
100% (vs. plan)
80%
50%
80%
80%
HR Systems Plan
HR Competency Plan
HR Leadership Development Program
Knowledge Management Program
BSC Cascade
Strategic Education / Communication
$ QQQ $ RRR $ SSS $ TTT
$ UUU $ VVV $XYZ TOTAL:
Measures on Enterprise Scorecard
Impacted by HR
Inte
rna
l
Recap: HR Balanced Scorecard
• Strategic Objective:
– Achieve Operational Excellence owned by Dick
• Initiatives Required to Achieve Objective
– Project 1: Activity Based Costing @ $NNN, PM: DY
– Project 2: Process Re-engineering @ $OOO, PM: PN
– Program 1: TQM for HR Processes @ $PPP, PM: JM
• Program Manager
– Edwin Provencal
Project/Program Requirement Matrix
Balanced Scorecard Project
Plot Impact of Programs against
all Strategic Objectives
x x x
Strategic ObjectivePerspective Pro
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Pro
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Activ
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ased C
oatin
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Pro
cess r
eengin
eering
Pro
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TQ
M for
HR
Pro
cesses
Pro
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CustomerAchieve Operational excellence
Financial
Internal Processes
Learning & Growth
Pro
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P
rog
ram
Pro
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Pro
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Pro
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Pro
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Benefits of Program Management Area of Impact Benefit
Delivery of Change More effective delivery of changes because the changes can be planned and implemented in an integrated way ensuring that current business operations are not adversely affected
Alignment between strategy and project levels
Effective response to strategic initiatives by filling the gap between strategies and projects
Management support Keeping activities focused on the business change objectives by providing a framework for senior management to direct and manage the change process
Resource management More efficient management of resources by providing a mechanism for project prioritization and project integration
Risk management Better management of risk because the wider context is understood and explicitly acknowledged
Benefit realization Help to achieve real business benefits through a formal process of benefit identification, management, realization and measurement
Management control Improved control through a framework within which the costs of introducing new infrastructure, standards and quality regimes can be justified, measured and assessed
Business operations Clarification of how new business operations will deliver improved performance by defining the desired benefits and linking these to the achievement of new working practices
Management of Business Case
More effective management of the Business Case by building and maintaining a Business Case that clearly compares current business operations with the more beneficial future business operations
Co-ordination and control More efficient co-ordination and control of the often complex range of activities by clearly defining roles and responsibilities for managing the Project Portfolio and realizing the benefits delivered by the program
Transition management Smooth transition from current to future business operations through the clear recognition and responsibility for preparing the organization for migration to new ways of working
Consistency Achieving a consistent system of new or amended policies, standards, and work practices through the integrated definition, planning, delivery and assurance of the required changes
Key Skills
Leadership Benefit Focus Motivation Communication
Influencing Decision-making
Political Awareness
Cultural Awareness
Negotiation Risk
Management Mindset
Creativity Project
Management Principles
Flexibility Comfortable in
an uncertain environment
Time Management
Conflict Management
In summary
• Most organizations have a strategy
• 90% of organizations fail to execute
• Strategy Execution can be a core competence
• Program Management plays a key role in effective Strategy Execution