Turning Strategy Into ResultsDr. Bill CaseyWendi Peck

Executive Leadership Group, Inc.

Danny GilbertSelf-made billionaireWe 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 MullenCNOIt is time to execute.

A Think-Do Chasm ExistsTHINK of a strategyExecute thestrategy

Fortunately, you dont have to re-inventanything; there is a time-tested approachPrivate & Military entities who have benefited from this approach:

SybaseMolson-CoorsSPL WorldgroupSeagateCiticorpQwestGreat West Life

US Coast GuardUS Navy:SUBFORNavy MedicineNETWARCOMDeep BlueSPAWAR

Adopt this 3-part formula to cut through the Fog of Turning Strategy into Results. . . and give leaders a way to steer their organizations

Course Objectives: Youll be able toTranslate strategy into measurable effects/resultsExpress effects-sans-side effects as Whole GoalsCreate an effects-based strategy with Force Field AnalysisUse Whole Goals to execute strategy, using them as a a basis for:FocusAlignmentAccountabilityIn short, you should leave with the basic know-how to develop and execute a strategy that is scalable to almost any size organization or initiative.

Principles and MethodsWell explore this formula for success in two ways: Principles (for thinking) Methods (for doing)However, there will be about 60 90 minutes of ground school before we get to take flight.

Use three elements to turn strategy into resultsLets start with some important principles on creating FOCUS. . .

Effect

A results-focus helps us avoid the activity trap

A results-focus promotes innovation"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

FIRST ask: Whats really, really the point?ONLY THEN ask:How will I know when I succeed?What happens if you ask the second (metrics) question FIRST?

When you lead an initiative or execute a strategy, its good to know what good looks like . . .GOODFASTCHEAP

Good comes in 4 flavorsSuccessful EffortsSuccessful ResultsDisputable SuccessIndisputable Success

Well focus on indisputable resultsSuccessful ResultsIndisputable SuccessOur focusBecause the indisputable result is a smart way to write effectsAnd I ABSOLUTELY GUARANTEE it will make YOU strategically smarter

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 weve achieved objectives such as Win the War on terrorismor, Achieve transformation?

If Theres 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.

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

Decrease Lost Underway Days by at least 25%.Communicating Indisputable Results Means combining the Metric and the Target

It is easier to focus on indisputable results when they are stated simplyIn our personal lives, we would never think this way:Dollars/yearMake a good livingOutcome:Metric:Target:100,000Instead, wed simply say:Make a $100,000 per year.

Imagine that youre betting on your own success.Twenty bucks says youll fail.You already know how to answer the question: How will we know?

Summary: Key PrinciplesFocus on Results (aka Effects) Not ActivitiesFirst ask: Whats The Point?Then ask: How will I know Ive succeeded?The answer to the second question must be answered in indisputable language to avoid misinterpretationIndisputable results must include both the metric and the target to be achievedIndisputable results must be defined UP FRONTIndisputable results are the foundation for achieving the focus, alignment and accountability required for successful execution

Now Lets Explore One Method For Applying These Principles

Whole Goals are an exquisite method for depicting indisputable results.

Whole Goals are the hub of this success formula

Whole Goals are exceptionally robust because of their two parts

The first half states the result you wantResult

The second half bans the side-effects you dont wantRestrictions

Prescribe results; proscribe side-effectsResultRestrictions. . . but without these side-effects!Bind these commitments together into a single, Whole Goal

Some indisputable resultsIncrease 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]

Whats the right strategic level?Increase company share price by > X%Increase the companys profit > X%Increase the companys 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

Conquer the Dark Side2nd Half of a Whole Goal:Q: How do we achieve The Point, while protecting whats precious?A: We use restrictions.

Restrictions state the co-LATERAL damage you wont allowResult + Restrictions = Whole Goal

Non-violence wasnt his dream. It was the restriction he placed on achieving his dream.Use restrictions to protect whats precious while pursuing your goals

Restrictions can help promote collaborative behaviorsOr . . . at least they can muzzle a lot of uncollaborative behaviors

The difference between resultsand restrictionsDrive Warfighter Medical ReadinessOwner: VADM Arthur, Navy Surgeon GeneralIndisputable ResultRestrictionsAt least 90% of all Sailors & Marines are Operationally Medically Ready.At least 75% of all Sailors and Marines are Class 1

Heres a before & after example(From the Navys Network Warfare Command)Workforce exampleStarting point: Develop a cadre of cyber-warriors.

Restrictions help manage some risksYou will have risks of collateral damage and risks of failure. Restrictions help you manage the first kind.

Restrictions vs. Constraints: Same thing?RestrictionsConstraints

Use these criteria for restrictionsMeasurable and verifiable (yeah, youve got to track restrictions, too)Not objectives-in-disguiseKeep your list of restrictions short

SimpleWhole 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.

Summary: Effective GoalsThe mechanism for applying the success principlesGoals should reflect the appropriate strategic level for the role trying to achieve themIndisputable Results (expressed as measurable goals) are the centerpiece for achieving successful strategy or initiative executionGoals should prescribe indisputable results while proscribing collateral damage.We like Whole Goals because they:Articulate indisputable results/effectsInclude critical restrictions that help prevent unintended negative consequencesSimplify communication and create greater focus by integrating desired effects, objectives, and MOEs into one place

Exercise:Make It a Whole Goal

AlignmentUse Whole Goals to help achieve

So What Are We Trying to Align Anyway?Personality types?Philosophies?Intentions?Motivation?The stars?

What We MUST Align:Strategies to ultimate desired effects/resultsIndividual performance to these strategiesInterdependent roles to each otherPerformance 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

Start by aligning strategy to resultsStrategy is your theory about how to step from the present to a specific, desired future

Strategies Must Be Clear, TooUnfortunately, 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.

Solution: State strategies as subordinate, indisputable results that prove you have successfully implemented your strategyWe need to reduce flag involvement, and do better at standardizing and consolidating.

Goals to the rescue!Use Whole GoalsTo clearly express strategy as Results in cause and effect fashion

This is a Results MapIts like strategy mapping on steroidsWBS, tasks, timeframes, resources, etc. (actions)

This provides a common definition of success, and of successful contributionThe people down here have a deep understanding of the strategy and where they fit in!Single, over-arching metric

Notice that strategic thinking occurs at every level of the organization

There are many ways to pry loose good theories (strategies)SWOT AnalysisListen to your peopleForce Field AnalysisTalk with your customersBe brilliant and insightfulShamelessly steal ideasBenchmarkingJust brainstorm with smart peopleGap AnalysisForce Field Analysis

Force Field Analysis is Brilliantly BasicKurt LewinThe schtuck pointVe get schtuck betveen equal, opposing forces.

Force Field AnalysisDisequilibrium yields movementMy Current WeightMy Desired WeightEnablersBarriersGoal:20# Less

FFA Pumped UPFirst, decide on categories of enablers & barriersE.g., suppliers, customers, funding, internal resistanceThen 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

Here are some FFA tipsBarriers & Enablers are not:Pros & consAbsence of a pre-conceived solutionFuzzy abstractions If you dont know whether something is an enabler or a barrier (e.g., budget), dont worry. Just put it somewhere.

Part One:Do a force field analysis on your Whole GoalYou will receive instructions for Part Two in approximately 30 minutes.Two-Part Exercise

Pull forth strategies from FFA(The second part of your exercise)Identify where you are now & where you want to be.Brainstorm the forcesEnablers & Barriers (AKA Drivers & Constraints)Weight them (1 5)Circle what you can change or influence For the items you circled, decide the implications for strategy:Generate COAs that would . . . . . . strengthen or add enablers . . . weaken or eliminate barriers

Your strategy(ies) must address the risk of failure You will have risks of collateral damage and risks of failure. Your judgment of whats necessary & sufficient are how you manage the second kind.Bonus: good judgment here drives efficiency, too.

Tight alignment asks the necessary & sufficient questionsIs each of these really necessary to cause the result?Tier 1 ResultTier 2 ResultsTaken together, are they sufficient to cause the result?

Traditional alignment asks a less rigorous questionCan I claim that what I am doing somehow contributes to the boss goals?Im sure aligned!Me too!

Tight alignment enables strategic goal alignmentVersus Potluck AlignmentHey, everybody, bring something to the party that supports my goals!Okay, folks, to accomplish our top goal, there are exactly four results well have to achieve.Question: which do we mean by common metrics?In OtherWords . . .

Tight alignmentrequires that youcascade goals one tier at a timeThis is also how you ARTICULATE and TRANSLATE strategy at every level

The organizations strategy drive subordinate strategiesEnablers support your effectsInitiativesOrganizational DesignStrategy for Our PeopleLean Six SigmaI.T. StrategyPolicies

Summary: The Alignment LogicIf desired effects and strategies are expressed as measurable Whole Goals,If these goals represent the necessary and sufficient achievements for success, andIf these goals will effectively be used to drive individual performance (yes, were about to discuss accountability) . . .Then:The very FIRST thing we need to align is: GOALS

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?

AccountabilityUse Whole Goals to help achieveAgain, lets start with somekey principles . . . . . .

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

Accountability is not about bullying people

(This is not the sense in which we are using the word execution)However,

The Three Cs of AccountabilityCommitment from the direct reportConsequences for performanceClear GoalAssignment from the managerMostly positive work best

Some leaders use Whole Goals & FitReps

Accountability is for individuals(not groups)Each Whole Goal belongs to an actual, real person.This means each person has an excruciatingly clear role.

Accountabilities stay with the roleWhole 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.With Whole Goals, it doesnt matter whos in the picture

Summary: Accountability ConceptsAccountability 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 horizontallyWhole 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

Bringing it All TogetherLets look at a process that applies the principles weve discussed and turns strategies into results

Strategic Planning & ExecutionCurrent-State AssessmentValidate Vision and MissionTier 1Tier 2Tier 3strategystrategystrategyEstablish 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 executionAssess LandscapeValidate Vision, PurposeIdentify strategies for closing the gap between current state and desired ultimate successEmploy an ongoing governance process to ensure accountability for goal achievement

A Few Tips For Making TheProcess Work . . .

First, you gotta talk with peopleBaseline (assess) your current performance. Figure out what you need, what customers need, what you can or cant count on from suppliers, how you fit into your boss success, and the point of your command, organization or initiative.

Then, float your draft Whole Goals with your leadership teamHey, team, whatdya think of my great, new Whole Goals?Uh, boss. I do have an idea or two.So, THATs what hes been trying to tell us!

Dont forget to . . .

Validate and align your Whole Goals with interdependent organizations (i.e. customers, suppliers)

Cascade Whole Goals one tier at a timeThis is how you ARTICULATE and TRANSLATE strategy Then:

Resolve WHO is on the hook for each goalIt makes perfect sense thatmy role owns this goal! Make sure the role assigned toachieve the goal has the appropriate authorities

BossEt Cetera. Look for:GapsOverlapsConflictsDanglersUse team discussions to achieve goal alignment and give the boss better strategic control

Much is UN-delegatableSponsorship of the process cannot be delegated, but day-to-day management of it canStrategic thinking cannot be delegated, but data-gathering canExpressing strategy as a measurable result cannot be delegated, but building tracking mechanisms and using them can

Do not confuse these roles They are really quite differentMake the gaugeMove the gaugeRead the gaugeOur discussion has been focused on accountability for MOVING the gauge

Once a boss and team have their Whole Goals, its time for governanceKeep people focused and motivatedEnsure agility (Keep the plan updated and relevant)Promote risk identification and collaborative solutionsRegular Whole Goal reviews

The governance process is your organizations adaptive conscience (Just kidding about the ruler. Effective governance is rarely punitive.)and it mustnever, never shut up

Adjust your governance cycle to the speed of your organization

Use these 3 elements for strategic controlIn SummaryApply the principles and methods weve discussed and drive your organizations and projects to the desired destination

Supplemental MaterialPretty Good

Educate Whole Goals, Strategy Dev. & Execution

4 Align ExternallyDiscuss & confirm Whole Goals with external organizationsInclude customers & suppliers

For the senior leader of the organization These are baseline (revisable) Whole Goals5 Accountability to Sustain Alignment & Focus Every 30 45 days:Phase I: Senior Team AlignmentReview Whole Goals to sustain alignmentModify Whole Goals only as new information becomes available and strategy needs to changeAgain, review sequence is based on leaders Whole Goals, not based on routine department head readoutsTiers 1 & 2: Senior Leader & Direct ReportsDirect & Involve Explain leaders (i.e. the orgs) Whole Goals Solicit feedback & questions2 Alignment Session #1(for sr. leader and direct reports)Challenge Homework: Develop your own Whole Goals.1 Develop Senior Leader Whole Goals3 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 leaders Whole Goals Results: Vertical alignment of Whole Goals to Tier 1 Horizontal alignment to each otherAlignment ProcessBuild linkages between performance on Whole Goals (achievement ofdesired results) and meaningful performance consequencesDevelop/Refine Strategies to Achieve Whole Goals

1 Tier 3 Education4 Cascade Whole Goals (optional)Align Tier 4, 5 etc.Sustain alignment & focus2 Tier 3 Alignment Alignment session for each Tier 2 manager and team Inter-team gallery walks to ensure horizontal alignmentPhase II: Aligning Tier 3 & BelowAlignment 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)

CONOPS: Strategy creation & deployment for the effects-based enterprise

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 fromGen. Robert Magnus Assistant Commandant of the Marine Corps2 APR 2006

Example of a results map(cont)

Example continued

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

Our strategy creation and deployment process is conceptually quite simple. Heres the one-page overview. This approach works for organizations that are private, governmental, or non-profit.It begins by asking What is the point of your organization? Even publicly traded organizations struggle mightily with this one, because earning per share gives no more strategic direction to the corporation than defense of country does to the military. Sharper, clearer thinking is required for this question to be answered in a way thats actually usable in the management of the organization.But once thats figured out, one must create a theory or strategy about what will achieve the point of the organization. Most strategic planning processes settle here for rather notional statements called strategic thrust or strategic intent. Thats fine, but we prefer to massage these general ideas into statements of specific results which, if achieved, will achieve the point of the organization.Now, things get interesting, because it is not enough to plan a strategic result, its also important to be able to say when success has been achieved. For that, you need metrics. But note: how you define success should drive your metrics. NOT the other way around.And we need to designate an owner, an accountable individual, who will be charged to use their talents and their resources to produce this measurable result. For the top-level results of a corporation, that person is the CEO. At the top of a large military organization, it will usually be a high-ranking flag officer, sometimes sharing the accountability with a deputy.But, results drive results, so the accountability for results must be cascaded down the organization, a layer at a time. Results must drive results, and results must drive results. At each layer, people must produce results that cause the intended results one layer up. Results have to ADD UP to the success of the organization.Lets take these ideas one at a time . . .