Post on 29-Dec-2015
Copyright © 2009 Metrus Group, Inc.
Why Good Strategies Fail:Why Good Strategies Fail:Creating Sustainable Performance in Creating Sustainable Performance in
Turbulent TimesTurbulent Times
William A. Schiemann, Ph.D.ASP – Metro New York Chapter
April 2009
Copyright © 2009 Metrus Group, Inc.
AgendaAgenda
• The Context of Sustainability
• What’s the Value Proposition?
• Role of Measurement
• Social and Human Capital
• Barriers to Success
• Key Actions—Now!
Copyright © 2009 Metrus Group, Inc.
ContextContext
• Sustainability and the Bottom Line: – Planet– Societal – Organizations
• Triple Bottom Line– Financial– Environmental– Social
Copyright © 2009 Metrus Group, Inc.
How Might Sustainability Be Important to How Might Sustainability Be Important to Your Organization?Your Organization?
Intentionally left blank
Copyright © 2009 Metrus Group, Inc.
Qualities of Most Sustainable CompaniesQualities of Most Sustainable Companies
• Holistic integration• Broad stakeholder engagement• Metrics• Systems alignment• Strategic centrality• Senior management support• Deeply embedded values
Wirtenberg, et. al. 2007 based on Alcoa, Band of America, BASF, Coca Cola, Eastman Kodak, Intel, Novartis, Royal Philips, Unilever
Copyright © 2009 Metrus Group, Inc.
AgendaAgenda
• The Context of Sustainability
• What’s the Value Proposition?
• Role of Measurement
• Social and Human Capital
• Barriers to Success
• Key Actions—Now!
Copyright © 2009 Metrus Group, Inc.
Six Perspectives (Schiemann & Lingle)Six Perspectives (Schiemann & Lingle)
• Financial• Market• Operational• People• Supplier• Environmental
– Community– Environment– Regulatory
Adaptability
Copyright © 2009 Metrus Group, Inc.
Value MapValue Map
CustomerEquity
ShareholderEquity
People
Suppliers
Environmental
Product/Service
Value Creation
Copyright © 2009 Metrus Group, Inc.
AgendaAgenda
• The Context of Sustainability
• What’s the Value Proposition?
• Role of Measurement
• Social and Human Capital
• Barriers to Success
• Key Actions—Now!
Copyright © 2009 Metrus Group, Inc.
What is the Role of Measurement (e.g, What is the Role of Measurement (e.g, Balanced Scorecards)? Balanced Scorecards)?
• Clarity of the goals• Targets (current, stretch)• Managing change (current vs. goal)• Accountability (visibility)• Focus on manageable• Resource focus• Evaluation of strategy execution• Guiding and testing strategic alignment
Copyright © 2009 Metrus Group, Inc.
AgendaAgenda
• The Context of Sustainability
• What’s the Value Proposition?
• Role of Measurement
• Social and Human Capital
• Barriers to Success
• Key Actions—Now!
Copyright © 2009 Metrus Group, Inc.
Social Factors to ConsiderSocial Factors to Consider
• Labor practices (health & safety, training, diversity, employee well being)
• Human Rights (discrimination, security, child labor)
• Society (community, corruption, fair competition)
• Product Responsibility (e.g, consumer health, privacy)
Copyright © 2009 Metrus Group, Inc.
People Equity is Key Driver of People Equity is Key Driver of Shareholder EquityShareholder Equity
ShareholderEquity
People Equity• Alignment
• Capabilities• Engagement
CustomerEquity
Initiatives
Productivity
Copyright © 2009 Metrus Group, Inc.
Connection to Human CapitalConnection to Human Capital
ShareholderEquity
People Equity• Alignment
• Capabilities• Engagement
CustomerEquity
Initiatives
Productivity
Environment
Safety
Community
Regulatory
Copyright © 2009 Metrus Group, Inc.
Alignment• Are we going in the same direction?
Capabilities• Do we have what we need to succeed?
Engagement• Are we committed?
People EquityPeople Equity
Copyright © 2009 Metrus Group, Inc.
Industry LeadersIndustry Leaders
71%
18%
65%
37%
0%10%20%30%40%50%60%70%80%90%
100%
Quality Performance Financial Performance
High People Equity Low People Equity
Copyright © 2009 Metrus Group, Inc.
CHANGE PROCESS
Structure
Capabilities
Systems
Culture
TOMORROW
Strategy
WorkProcesses
WorkProcesses
Structure
Capabilities
Systems
Culture
TODAY
Strategy
Creating AlignmentCreating Alignment
Copyright © 2009 Metrus Group, Inc.
Alignment: Community GoalAlignment: Community Goal
• Values statement (J&J Credo)• Success defined (image)• Scorecard (hours given)• Operating plan
– Community outreach
– Communications
– Who? What? When? Where? How?
• Tracking progress (pulse)• Validate linkage to goals
Copyright © 2009 Metrus Group, Inc.
Capabilities: Community ImageCapabilities: Community Image
• Attracting talent -- Employer brand:– Reputation: values, benefits, growth, communications,
innovation– Google “Do no evil!”
• Safety – DuPont –It’s a lifestyle and value at all levels– Attitudes, skills are learned
• Improve community– Image conveyed through employee behaviors and
communications
Copyright © 2009 Metrus Group, Inc.
Engagement & Sustainability at SunEngagement & Sustainability at Sun
• Flexibility an important value today; linked to Attraction, Engagement and Retention
• More than 50% work at home; commuting 98% of employees carbon footprint
• Saved $1700 annually on gas/vehicles
• Home office equip less energy
• Flex created 2.5 weeks of new time
Copyright © 2009 Metrus Group, Inc.
AQ 1
A C E
49 53 53
A C E
56 52 63
A C E
29 56 53
BUYER
A C E
61 84 76
A C E
37 51 45
A C E
43 28 76
A C E
54 26 54
A C E
34 25 40
A C E
66 84 83
A C E
49 61 69
A C E
58 87 80
AQ 2
A C E
44 27 51
A - Alignment C - Capabilities E - Engagement
Red = Trouble Yellow = OK Green = Strength
People Equity Scorecard People Equity Scorecard
A C E
48 52 61
Copyright © 2009 Metrus Group, Inc.
Turbulent TimesTurbulent Times
• Sustainability is a long term agenda and value proposition
• Implications during:– Weak economic period?– Strong economic period?
Copyright © 2009 Metrus Group, Inc.
AgendaAgenda
• The Context of Sustainability
• What’s the Value Proposition?
• Role of Measurement
• Social and Human Capital
• Barriers to Success
• Key Actions—Now!
Copyright © 2009 Metrus Group, Inc.
Critical Barriers to OvercomeCritical Barriers to Overcome
• Creating a broad inclusive and transparent process• Selling sr. management on longer horizon• The “right” measurement process• Accountability• Picking the critical few• Scenario planning & modeling• Benchmarking• Evaluation
Copyright © 2009 Metrus Group, Inc.
Potential Actions for the Strategic PlannerPotential Actions for the Strategic Planner
• Education regarding sustainability, triple, CSR and value equation
• Deepen the strategic review process:
– Environmental scan (broad and long term)
– Conduct more risk analysis (cradle to grave thinking)
– Use broader frameworks (like 6 dimensions)
• Build more holistic strategic measures that encompass sustainability goals
Copyright © 2009 Metrus Group, Inc.
Potential Actions for the Strategic PlannerPotential Actions for the Strategic Planner
• Stronger modeling– Scenario testing of alternative futures (using broader assumptions)
– Modeling of competitor, government, & other stakeholder actions
• Create process and context to guide holistic solutions (across structural silos)
• Test for resolve (visible communications, accountability, milestones, resources)
• Ensure that sustainable plans are linked with HC systems, capabilities, & culture
Copyright © 2009 Metrus Group, Inc.
www.metrus.cominfo@metrus.com
953 Route 202, Somerville, NJ 08876908-231-1900
Metrus Group is an industry leader in strategic performance measurement, assessment, and organizational change. For nearly twenty years we have partnered with the most successful – and challenging – organizations in the world to help them achieve superior, sustainable business results through the development of their People Equity and the creation of a high performance, measurement-managed culture.
Our Services Include: Human Capital ROI Assessment & Solutions Strategy Mapping Balanced Scorecard Design and Assessment Development of Quantifiable Performance Metrics Return on Training Investment Employee and Customer Survey Research Leadership Assessment and Development Corporate Governance, Alignment, and Accountability Audits Measurement-Driven Organizational Change Functional (e.g. HR, IT, Security, Sales) Strategies, Measures and Execution
About MetrusAbout Metrus