Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

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Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Transcript of Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Page 1: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Turning Strategy Into Results

Dr. Bill CaseyWendi Peck

ExecutiveLeadershipGroup, Inc.

Page 2: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Danny GilbertSelf-made billionaire

“We have a saying in our companies that ‘innovation is rewarded, but execution is

worshipped.’ A great idea is just the first step. The real talent is bringing that idea to life with

great execution.”

Admiral Mike MullenCNO

“It is time to execute.”

Page 3: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

THINK ofa strategy

Executethe

strategy

A Think-Do Chasm Exists

Page 4: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Fortunately, you don’t have to re-invent

anything; there is a time-tested approach Private & Military

entities who have benefited from this approach:

SybaseMolson-CoorsSPL WorldgroupSeagateCiticorpQwestGreat West Life

US Coast GuardUS Navy:•SUBFOR•Navy Medicine•NETWARCOM•Deep Blue•SPAWAR

Page 5: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Adopt this 3-part formula to cut through the Fog of Turning Strategy

into Results

. . . and give leaders a

way to steer their

organizations

Page 6: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Course Objectives: You’ll be able to

1. Translate strategy into measurable effects/results

2. Express effects-sans-side effects as Whole Goals

3. Create an effects-based strategy with Force Field Analysis

4. Use Whole Goals to execute strategy, using them as a a basis for:

• Focus• Alignment• Accountability

In short, you should leave with the basic know-how to develop and execute astrategy that is scalable to almost any size organization or initiative.

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Principles and MethodsWe’ll explore this formula for success in two

ways:1. Principles (for thinking)2. Methods (for doing)

However, there will be about 60 – 90 minutes of

ground school before weget to take flight.

Page 8: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Use three elements to turn strategy into results

Let’s start with some important principles on creating FOCUS. . .

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Effect

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A results-focus helps us avoid the activity trap

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"Great leaders never tell people how to do their jobs.

Great leaders tell people what to do and establish a framework within which it must be done.

Then they let people on the front lines, who know best, figure out how to get it done."~ General H. Norman Schwarzkopf

A results-focus promotes innovation

Page 12: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

What’s really,

really the point?

FIRST ask:

ONLY THEN ask:

How will I know when I

succeed?

What happens if you ask the

second(metrics) question FIRST?

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When you lead an initiative or execute a strategy, it’s good to know what “good”

looks like . . .

GOOD

FASTCHEAP

Those first twoquestions help

you figure this out

Page 14: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

“Good” comes in 4 flavors

Successful Efforts

Successful Results

DisputableSuccess

IndisputableSuccess

Page 15: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

We’ll focus on indisputable resultsSuccessful Results

IndisputableSuccess

Our focus

Because the “indisputable

result” is a smart way to write

effects

And I ABSOLUTELY GUARANTEE

it will make YOU strategically smarter

Page 16: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

“Indisputable” means we can ALL agree on

whether or not success has occurred, which is why we

measure.

“Who are you gonna believe:

me, or your own eyes?”

How will we know we’ve achieved objectives such as

“Win the War on terrorism”or, “Achieve transformation”?

Page 17: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

If There’s Room For Interpretation . . .

Execution will:• Take longer than it should,• Cost more than it should, and• Produce unpredictable, and often undesired results

Oh, and frustrate a lot of people in the process!

I THINK I know what they mean.

Sort of.

Page 18: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Are These Indisputable?

1. Defeat violent extremism as a threat to our way of life as a free and open society,

2. Create a global environment inhospitable to violent extremists and all who support them

From the National Military Strategic Plan for the War on Terrorism

Page 19: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Decrease Lost Underway Days by at least 25%.

Metric

Target

Communicating Indisputable Results Means combining the Metric and the

Target

Page 20: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

It is easier to focus on indisputable results when they are stated simply

In our personal lives, we would never think this way:

“Dollars/year”“Make a good living”

Outcome: Metric: Target:

“100,000”

Instead, we’d simply say:

“Make a $100,000 per year.”

Page 21: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Imagine that you’re betting on

your own success.

Twenty bucks says you’ll fail.

You already know how to answer the question: How will

we know?

Page 22: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Summary: Key Principles

• Focus on Results (aka Effects) – Not Activities• First ask: What’s The Point?• Then ask: How will I know I’ve succeeded?• The answer to the second question must be

answered in indisputable language to avoid misinterpretation

• Indisputable results must include both the metric and the target to be achieved

• Indisputable results must be defined UP FRONT• Indisputable results are the foundation for

achieving the focus, alignment and accountability required for successful execution

Page 23: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Now Let’s Explore One Method

For Applying These Principles

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Whole Goals are an exquisite method for depicting indisputable

results.

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Whole Goals are the “hub” of this success formula

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Whole Goals are exceptionally robust because of their two

parts

½

½

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The first half

states the

result you want

Here’s what I want to achieve. ½

“Result”

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And, here’s what I really don’t want

along the way.

½

The second

half bans the

side-effects

you don’t want

“Restrictions”

Page 29: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Prescribe results; proscribe side-effects

½

Here’s the indisputable

result I want . . . ½

Result

Restrictions

. . . but without these side-

effects!

Bind thesecommitmentstogether into

a single, Whole Goal

Page 30: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Some indisputable results• Increase the skill fit between all billets and all

employees (civilian and military) to at least 90%.

• Ensure that at least 60% of the fleet is C1 or C2.

• Decrease customer wait time by 40% for high priority (c3/c4) CASREP parts.

• 100% theater ASW Commanders agree or strongly agree that, “The IUSS community provides information that is accurate, actionable, and timely.” [quarterly, 5-second survey]

• Increase the breadth and depth of commanders’ use of IO as reflected in incorporation of IO in deliberate & crisis action planning, exercises, and current operations as indicated by achieving > X on our IO maturity model.[“maturity model,” “behaviorally anchored rating scale,” some “measures of effectiveness”]

Page 31: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

What’s the right strategic level?

• Increase company share price by > X%• Increase the company’s profit > X%• Increase the company’s revenue > X%• Increase sales of VAD by > X%• Increase add-on sales of VAD by > X%• > 90% service reps can answer at least 19

out of 20 questions on VAD• > 90% of service reps sent to VAD sales

training

Page 32: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Conquer the Dark Side2nd Half of aWhole Goal:

Q: How do we achieve The Point, while protecting what’s precious?

A: We use restrictions.

Page 33: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Restrictions state the co-LATERAL damage you won’t allow

RestrictionsStay within them

Indisputable Result

Cross the finish line, then (typically)

keep going The Finish Line

Result + Restrictions = Whole Goal

Page 34: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Non-violence wasn’t his dream. It was the restriction he placed on achieving his dream.

Use restrictions to protect what’s precious while pursuing your goals

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Restrictions can help promote collaborative behaviors

Or . . . at least they can muzzle

a lot of uncollaborative

behaviors

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The difference between resultsand restrictions

“Drive Warfighter Medical Readiness”Owner: VADM Arthur, Navy Surgeon General

Indisputable Result

Restrictions

At least 90% of all Sailors & Marines are Operationally Medically Ready.

At least 75% of all Sailors and Marines are Class 1

Page 37: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Here’s a before & after example(From the Navy’s Network Warfare

Command)Workforce exampleStarting point: “Develop a cadre of cyber-warriors.”

Indisputable resultSustain, retain, attract, and develop a qualified/certified, diverse workforce to meet mission requirements as measured by ratings from recipient organizations, achieving ratings of “meet requirements” or “exceed requirements” for personnel within the information domain.

Restrictions• Cannot receive ratings of “fails to meet requirements” from any customer.• Ensure billets are coded/characterized correctly to meet actual requirements.

Ending point:

Page 38: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Restrictions help manage some risks

You will have risks of collateral damage and risks of failure.

Restrictions help you manage the first kind.

Page 39: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Restrictions vs. Constraints: Same thing?

Restrictions Constraints

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Use these criteria for restrictions

Measurable and verifiable (yeah, you’ve got to track restrictions, too)

Not objectives-in-disguise

Keep your list of restrictions short

Page 41: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Simple

Whole Goals add a beautiful simplicity

to clarifying and communicating direction

because they combine the ideas of desired effects, objectives,

measures of effectiveness, and collateral damage.

Page 42: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Summary: Effective GoalsThe mechanism for applying the success principles

• Goals should reflect the appropriate strategic level for the role trying to achieve them

• Indisputable Results (expressed as measurable goals) are the centerpiece for achieving successful strategy or initiative execution

• Goals should prescribe indisputable results while proscribing collateral damage.

• We like Whole Goals because they:– Articulate indisputable results/effects– Include critical restrictions that help prevent

unintended negative consequences– Simplify communication and create greater focus

by integrating desired effects, objectives, and MOE’s into one place

Page 43: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Exercise:Make It a Whole Goal

Page 44: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

AlignmentUse Whole Goalsto help achieve

Page 45: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

So What Are We Trying to Align Anyway?

Personality types?

Philosophies?Intentions?Motivation?The stars?

Page 46: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

What We MUST Align:• Strategies to ultimate desired

effects/results• Individual performance to these strategies• Interdependent roles to each other• Performance consequences (such as pay)

to the achievement of desired results (more to come on accountability later)

Good News: Whole Goals will help you with all of these

Page 47: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Strategy is your theory about how to step from the present to a specific, desired future

Start by aligning strategy to results

Page 48: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Strategies Must Be Clear, Too

Unfortunately, most strategies get expressed as “fuzzy” concepts that can also be interpreted in many ways.

“We will lead with innovation!”

“We will adopt a fast-follower strategy.”

“We will shed non-essential activities and stick to our knitting.”

Page 49: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Solution: State strategies as subordinate, indisputable results that prove you have successfully implemented your strategy

Reduce by at least80% the cycle time

for response torequests for ADJET briefs

Reduce flag officerchops to no more

than 1

Standardize allinputs

on XML

Reach agreementwith customers to consolidate ADJET

& ADTIR briefs

“We need to reduce flag involvement, and do better at standardizing and consolidating.”

Page 50: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Goals to the rescue!

Use Whole GoalsTo clearly express

strategy as Results in cause and effect fashion

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This is a Results MapIt’s like “strategy mapping” on

steroids

purp

ose,

vis

ion,

val

ues

WB

S,

task

s, t

ime

fra

mes

, re

sour

ces,

etc

. (a

ctio

ns)

Page 52: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

This provides a common definition of success, and of successful contribution

The people down here have a deep understanding of the

strategy – and where they fit in!

Single, over-arching “metric”

Page 53: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Notice that strategic thinking occurs at every level of the

organization

purp

ose,

vis

ion,

val

ues

Page 54: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

There are many ways to pry loose good theories

(strategies)SWOT Analysis

Listen to your people

Force Field Analysis

Talk with your customers

Be brilliant and insightful

Shamelessly steal ideas

Benchmarking

Just brainstorm with smart people

Gap Analysis

Force Field Analysis

Page 55: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Force Field Analysis is Brilliantly Basic

Kurt Lewin

The schtuck point

Ve get schtuck betveen equal,

opposing forces.

Page 56: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Force Field Analysis

Disequilibrium yields movement

My C

urrent Weight

My D

esired Weight

Enablers Barriers

Goal:20# Less

Page 57: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

FFA Pumped UP

1. First, decide on categories of enablers & barriers– E.g., suppliers, customers,

funding, internal resistance2. Then do a FFA for each

category.

Do this to net more than twice as many useable ideas as ordinary FFA:

Examples of categories:People, Money, Communications, IT/IM, Diversity, Change Management, Risks, Stakeholder Interests

Page 58: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Here are some FFA tips

Barriers & Enablers are not:• Pro’s & con’s• Absence of a pre-conceived solution• Fuzzy abstractions

If you don’t know whether something is an enableror a barrier (e.g., budget), don’t worry. Just put it somewhere.

Page 59: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Part One:Do a force field analysis on your Whole

GoalYou will receive instructions for Part Two in approximately 30 minutes.

Two-Part Exercise

Page 60: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Pull forth strategies from FFA(The second part of your

exercise)1. Identify where you are now

& where you want to be.2. Brainstorm the forces

– Enablers & Barriers (AKA Drivers & Constraints)

– Weight them (1 – 5)

3. Circle what you can change or influence

4. For the items you circled, decide the implications for strategy:

– Generate COAs that would . . .. . . strengthen or add enablers. . . weaken or eliminate barriers

Sta

tus Q

uo

De

sired

Re

sult

Enablers Barriers

Page 61: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Your strategy(ies) must address the risk of failure

You will have risks of collateral damage and risks of failure.

Your judgment of what’s “necessary & sufficient” are how you manage the second kind.

Bonus: good judgment here drives efficiency, too.

Page 62: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Tight alignment asks the “necessary & sufficient”

questions

Is each of these really necessary

to cause the result?

Tier 1 Result Tier 2 Results

Taken together, are they sufficient to cause

the result?

Page 63: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Traditional “alignment” asks a less rigorous question

“Can I claim that what I am doing somehow contributes to the boss’

goals?”

I’m sure aligned!

Me too!

Page 64: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Tight alignment enables strategic “goal alignment”

Versus Potluck Alignment

Hey, everybody, bring something to the party that

supports my goals!

Okay, folks, to accomplish our top goal,there are exactly four results

we’ll have to achieve.

Question: which do we mean by “common metrics”?

In OtherWords . . .

Page 65: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Tight alignmentrequires that you

cascade goals one tier

at a time

This is also how you ARTICULATE and TRANSLATE strategy at every level

Page 66: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

The organization’s strategy drive subordinate strategies

Enablers support your effects

Initiatives

Organizational Design

Strategy for Our People

Lean Six SigmaI.T. Strategy

Policies

Page 67: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Summary: The Alignment Logic

• If desired effects and strategies are expressed as measurable Whole Goals,

• If these goals represent the necessary and sufficient achievements for success, and

• If these goals will effectively be used to drive individual performance (yes, we’re about to discuss accountability) . . .

• Then:The very FIRST thing we need to align

is: GOALS

Page 68: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Decrease customerwait time for highfailure parts > 40%

-No increase in shipping costs-No increase in personnel-No increase in stock on ships

Vendor agreements will reflectprovision of high priority partswithin 24 hours

-No increase in parts cost

Redesign of high failure/highcost parts will achieve > 50%MTBF

-Investment breakeven in no more than 36 months.

Reduce internal sourcingprocess > 20%

-No more than 5% increase incustomer wait time for non-priority parts.

Decrease logistics pipelinefor overseas forces > 30%

-No impact on CONUSlogistics pipeline

Can you begin to imagine a results map that articulates

subordinate Whole Goals that reflect your strategies and align to your top-level

Whole Goal?

Page 69: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

AccountabilityUse Whole Goalsto help achieve

Again, let’s start with somekey principles . . . . . .

Page 70: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Bottom Line:People must be held accountable for producing the results (Whole Goals) to which they committed

Page 71: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Accountability is not about

bullying people

(This is not the sense in which we are using the

word “execution”)

However,

Page 72: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

The Three C’s of Accountability

Commitment

from the direct report

Consequences for performance

Clear GoalAssignment

from the manager

Mostly positive work best

Page 73: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Some leaders use Whole Goals & FitReps

Page 74: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Accountability is for individuals(not groups)

Each Whole Goal belongs to an actual, real person.This means each person has an excruciatingly clear role.

Page 75: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Whole Goals stay with the position, even when the person has moved

on.

This promotes the role clarity that results in

Predictable organizational performance

despite personnel churn.

Accountabilities stay with the role

With Whole Goals, it doesn’t matter who’s in the picture

Page 76: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Summary: Accountability Concepts

• Accountability only exists if there is (1) a clear assignment (2) commitment (3) consequences (preferably positive) for performance.

• Accountabilities are best expressed as Whole Goals that are tightly aligned vertically and horizontally

• Whole Goals stay with the role in order to drive predictable organizational performance over time (despite frequent churn)

• Authorities of the role must be commensurate with the accountabilities (Whole Goals) of the role

Page 77: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Bringing it All Together

Let’s look at a process that applies the principles we’ve

discussed and turns strategies into results

Page 78: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Strategic Planning & Execution

Current-State Assessment

Validate Vision and Mission

Tier 1

Tier 2

Tier 3

strategy strategy strategy

Establish Tier 1 Whole Goals

Drive your strategies deeper with lower tier Whole Goals that:

• Articulate and operationalize strategy

• Align vertically and horizontally

• Enable accountability for strategy execution

Assess Landscape

Validate Vision, Purpose

Identify strategies for closing the gap between current state and desired ultimate success

Employ an ongoing governance process

to ensure accountability for goal achievement

Page 79: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

A Few Tips For Making TheProcess Work . . .

Page 80: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

First, you gotta talk with people

Baseline (assess) your current performance. Figure out what you need, what customers need, what you can or

can’t count on from suppliers, how you fit into your boss’ success, and the point of your command, organization or

initiative.

Page 81: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Then, float your draft Whole Goals with your leadership team

Hey, team, whatdya think of my great, new Whole Goals?

Uh, boss. I do have an idea or two.

So, THAT’s what he’s

been trying to tell us!

Page 82: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Don’t forget to . . .

Validate and align your Whole Goals with interdependent

organizations (i.e. customers, suppliers)

Page 83: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Cascade Whole Goals one tier

at a time

This is how you ARTICULATE and TRANSLATE strategy

Then:

Page 84: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Resolve WHO is on the hook for each goal

It makes perfect sense thatmy role “owns” this goal!

Make sure the role assigned toachieve the goal has the appropriate authorities

Page 85: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Boss Subord 1 Subord 2 Subord 3

Et Cetera. Look for:

• Gaps• Overlaps• Conflicts• Danglers

Use team discussions to achieve goal alignment and give the boss better

strategic control

Page 86: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Much is UN-delegatable

• Sponsorship of the process cannot be delegated, but day-to-day management of it can

• Strategic thinking cannot be delegated, but data-gathering can

• Expressing strategy as a measurable result cannot be delegated, but building tracking mechanisms and using them can

Page 87: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Do not confuse these roles They are really quite different

Make the gauge Move the gaugeRead the gauge

Our discussion has been focused on accountability for MOVING

the gauge

Page 88: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Once a boss and team have their Whole Goals, it’s time for

governance

• Keep people focused and motivated

• Ensure agility (Keep the plan updated and relevant)

• Promote risk identification and collaborative solutions

Regular Whole Goal reviews

Page 89: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

The governance

process is your organization’s

adaptive conscience

(Just kidding about the ruler. Effective governance is rarely punitive.)

and it mustnever, never

shut up

Page 90: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Adjust your governance cycle to the speed of your organization

Page 91: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Use these 3 elements

for strategic control

In Summary Apply the principles and

methods we’ve

discussed and drive

your organizations and projects

to the desired

destination

Page 92: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Supplemental MaterialPretty Good

Page 93: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Educate• Whole Goals, Strategy Dev. & Execution

4 Align Externally• Discuss & confirm Whole Goals

with external organizations• Include customers & suppliers

• For the senior leader of the organization• These are baseline (revisable) Whole Goals

5 Accountability to Sustain Alignment & Focus Every 30 – 45 days:

Phase I: Senior Team Alignment

• Review Whole Goals to sustain alignment• Modify Whole Goals only as new information

becomes available – and strategy needs to change

• Again, review sequence is based onleader’s Whole Goals, not based on routinedepartment head readouts

Tiers 1 & 2: Senior Leader & Direct Reports

Direct & Involve• Explain leader’s (i.e. the org’s) Whole Goals• Solicit feedback & questions

2 Alignment Session #1(for sr. leader and direct reports)

Challenge• Homework: “Develop your own Whole Goals.”

1 Develop Senior Leader Whole Goals

3 Alignment Session #2(for senior leader and direct reports)• Each direct report “proposes” his/her Whole Goals to the group• Discussion & debate encouraged• Presentation sequence based on leader’s Whole Goals• Results: Vertical alignment of Whole Goals to Tier 1

Horizontal alignment to each other

Alignment Process

Build linkages between performance on Whole Goals (achievement ofdesired results) and meaningful performance consequences

Develop/Refine Strategies to • Achieve Whole Goals

Page 94: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

1 Tier 3 Education

4 Cascade Whole Goals (optional)

• Align Tier 4, 5 etc.• Sustain alignment & focus

2 Tier 3 Alignment• Alignment session for each Tier 2 manager and team• Inter-team gallery walks to ensure horizontal alignment

Phase II: Aligning Tier 3 & Below

Alignment Process

• Strategy articulation: Whole Goals & alignment• Execution: accountability & authority

3 Accountability to Sustain Alignment & Focus Every 30 – 45 days review Whole Goals to sustain alignment (procedures as described previously for Tier 2 Whole Goal Reviews)

Page 95: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

CONOPS: Strategy creation & deployment for the effects-based

enterprise

These are tough questionsasked and answered

recursively down the organization

What’s thepoint?

Why do we exist?What are we trying to be in the world that’s going to be?

How will wemeasureresults?

The results that reallymatter (desired results) are sometimes the most difficult to measure.

How will we achieve accountability?

• How will we regularly review and consequate results achievement?

•What results are necessary & sufficient?•What unintended consequences must we explicitly proscribe?

What results/resultswill achieve the

point?

Who’s onthe hook?

•For each result, what INDIVIDUAL will be held accountable?•Does that INDIVIDUAL have the resources, information and authority to really deliver on the commitment?

And then . . .What results

will achieve thoseresults?

Page 96: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

“Metrics” Comments worth sharing

     (1) Are you measuring because you have threshold/objective MOEs...or is the measuring just to find out what you are doing over time?

     (2) What assumptions were the basis for each metric as a useful MOE?  In other words, do you know how meaningful the measure is?

     (3) Do management meetings address how the leadership enables or constrains efforts to achieve the useful MOEs?   In other words, is there a feedback loop making senior management responsive to lower tiers (that actually do...or don't do...the work)?

     (4) If the metrics are going in a good direction, what do you do?  Reward?  Cut efforts as they exceed threshold or as payoff on the way to objective does not balance against other needs?  In short, how does management react to its own metrics?  Same is true for metrics headed south.  It is interesting to see that, when an MOE heads south, and an enterprise actually set conditions for that to happen, senior leaders often blithely just change and lower the output metric.     We also are very good at not changing goals and MOEs, even if the leadership cannot enable them, they then become enterprise cultural totems, not real performance metrics..

“My experience with metrics leads to a couple of questions for the enterprise leaders who choose them:”

Informal communication from

Gen. Robert MagnusAssistant Commandant of the Marine Corps2 APR 2006

Page 97: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Example of a results mapDecrease customerwait time for highfailure parts > 40%

-No increase in shipping costs-No increase in personnel-No increase in stock on ships

Vendor agreements will reflectprovision of high priority partswithin 24 hours

-No increase in parts cost

Redesign of high failure/highcost parts will achieve > 50%MTBF

-Investment breakeven in no more than 36 months.

Reduce internal sourcingprocess > 20%

-No more than 5% increase incustomer wait time for non-priority parts.

Decrease logistics pipelinefor overseas forces > 30%

-No impact on CONUSlogistics pipeline

(cont)

Page 98: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

Example continued

Decrease logistics pipelinefor overseas forces > 30%

-No impact to CONUSlogistics pipeline

Decrease handoffs > 50%

-No use of uncertified agents

Decrease transit time > 20%

-No more than 10% increase incosts-No increase in lost shipments

Decrease time at customs > 25%

-No additional personnel-No newsworthy incidents

Page 99: Turning Strategy Into Results Dr. Bill Casey Wendi Peck Executive Leadership Group, Inc.

A simple maturity model(A concept that is sometimes useful in measuring complex

things)