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Inside Talk
1
Best Pract ices in Strategic Planning -Learn how to bui ld your playbook to
thr ive in peri lous t imes
Bob Paladino
August 13, 2013
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Webinar Materials and Access to Recording
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CPE Credit Requirements
4
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Moderator
5
Steve Shannon
Director
Business Development
IMA
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Featured Presenter
6
Bob Paladino, CPAManaging Partner
Bob Paladino & Associates, LLC
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Bob Paladinos Biography
Bob Paladino is the Founder and Managing Partner of his firm, which focuses on advisingexecutives and their teams on implementing and integrating CPM competencies includingestablishing a CPM function, Strategic Planning, Performance Management/BalancedScorecard, Quality Improvement, and Knowledge Management competencies.
He has authored the three of the top four best-selling books in the Corporate PerformanceManagement (CPM) field: Five Key Principles of Corporate Performance Management,
Innovative Corporate Performance Management and Corporate PerformanceManagement Best Practices.
As a former Chief Performance Officer of Crown Castle International in the Office of theCEO, Mr. Paladino directed the global CPM/Balanced Scorecard program to win both thecoveted international Hall of Fame Balanced Scorecard Award and American Productivity& Quality Centers (APQC) Best Practice Partner award. Wall Street Journal ranked CrownTop 20 Most Improved in Shareholder Value.
In his formative years, Bob was a global consultant for PricewaterhouseCoopers, theBalanced Scorecard Collaborative, and Towers Perrin; he is a Wharton dual MBA inFinance and Management, a CPA and a member of the AICPA.
Mr. Paladino donates book royalties to the United Flight 93 Memorial near his home. He ispublished in leading journals and is among the highest rated speakers at corporate andindustry events in over 60 cities globally.
7
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Upon completing this webinar, you will be able to:
1. Learn practical tools, methods and templates to
create value2. Acquire best practice models from successful
companies
3. Gain insights into the changing frequency of strategic
planning4. Understand strategic planning integration with
performance management
Learning Objectives
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How Can We Help You Achieve Results?
Years of Live Case Studies to Close the Strategy Gap(Page 1 of 3)
9
Please [email protected] secure your comp l imentary cop ies of top 5 art ic les
1. AICPA, (American Institute of Certified Public Accountants) How Can the CFO Contribute to the Top Line? atM7/Elbit Aerospace
2. APQC (American Productivity Quality Center), Crown Castle International's Corporate PerformanceManagement (CPM) System
3. APQC Magazine, Integrating Balanced Scorecard, Six Sigma, and Knowledge Management to Drive Value atCrown Castle International
4. APQC Magazine, Integrating Balanced Scorecard, Sarbanes Oxley and Knowledge Management (NadiaUpley)
5. APQC Research Reports: Enterprise Risk Management Reports I & II Executive Summaries only (BestPractice Company Cases)
6. ASMI (American Strategic Management Institute), Realizing Strategies Through Balanced Scorecard BasedBudgeting
7. ASMI, Innovative Corporate Performance Management, Boy Scout of Americas Journey to Excellence8. Better Management, Integrating the Balanced Scorecard and Total Rewards to Drive Value9. Business Finance Magazine, Fitting the Balanced Scorecard into BPM10. Business Finance Magazine, Retaining Knowledge Capital (TVAs response to an Aging Technical Workforce) 11. Business Performance Magazine, A New Brand Value: Integrating Branding in Corporate Performance
Management12. Business Performance Magazine, Moving Strategy Forward: Merging the Balanced Scorecard and Business
Intelligence To Drive Value
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How Can We Help You Achieve Results?
Years of Live Case Studies to Close the Strategy Gap(Page 2 of 3)
10
Please [email protected] secure your comp l imentary cop ies of top 5 art ic les
13. Business Performance Magazine, Performance Promotion: Why CPM needs it Own Office, (with Gary Cokins)14. Business Week Research, The Payoff of Pervasive Performance Management, (Joe Mullich)15. Certified Management Accountant (CMA Institute), 5 Key Principles of CPM 3 Article set City of Coral Springs16. Coach (Russia), Excellence in Corporate Performance Management at Intercomp Global Solutions
(HR Outsourcing Firm)17. CFO Magazine Research, What CEOs want from Their CFOs Today18. CIO Insights, Corporate Performance Management and Metrics that Matter19. CorVu, Crown Castle International Case Balanced Scorecard Hall of Fame case summary20. Executive Insight, Finance Strategies & CPM for the New Normal, Co-author with CFO, MidMichigan Health21. HBS, (Harvard Business School Publishing), Balanced Scorecard Hall of Fame Case Crown Castle International
#1 HBS case22. HBS, How to Conduct a Balanced Scorecard Review to Create Alignment23. HBS, Survival Strategies for Unmerciful Markets: The Telecom Experience
24. HBS, The Challenge of Global Alignment, Crown CEO Shares his Perspectives25. HBS, Global Alignment: A Telecoms Tale Crown Castle International26. xxx IIE (Institute of Industrial Engineering ), 5 Key Principles of CPM, Strategic Product Development at Bayer/Medrad27. JCAF (Journal of Corporate Accounting & Finance Wiley), What is Strategic-Operational Misalignment Costing your Firm
Each Year?28. JCAF, Enterprise Risk Management, a Best Practice Approach, (with Sebastian Francis)29. JCAF, Missed Opportunities in Strategy and Enterprise Risk Management,(with DePaul Dr. Frigo & Federal Reserve
Banks CIO)30. JCAF, Strategic Financials: What Does the CFO Need in the Rapidly Changing Utility Market?
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Five Key Principles of CPMTraining, Consul t ing , Speaking c ontact
Please [email protected] secure your comp l imentary copies of top 5 art ic les
31. JCAF, Innovative Corporate Performance Management (Office) at Omaha Public Power District32. JCAF, Innovative Corporate Performance Management at Delta Dental of Kansas33. JCAF, Improve Earnings by Shifting Finance Dept. Resources to CPM Services at MidMichigan Health34. Knowledge Management Review, Taking its Knowledge Mgt Portal to the Next Level at Crown Castle
International35. Strategic Finance (Institute Management Accountants), Balanced Forecasts Drive Value36. Strategic Finance, (IMA), Strategically Managing Risk in Todays Perilous Markets at United Illuminating37. Strategic Finance (IMA), 5 Key Principles of Corporate Performance Management- 3 Article set on Bronson
Methodist Hospital38. Strategic Finance, (IMA), Innovative Corporate Performance Management 3 Article set on Sharp Healthcare
System39. Strategy Magazine, The Role of the Chief Performance Officer During these Perilous Times
How Can We Help You Achieve Results?
Years of Live Case Studies to Close the Strategy Gap(Page 3 of 3)
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Five Key Principles of CPM: 26 Award Winning
Public, Private & Government Organizations
2013 www.paladinoassociates.comBob Paladino & Associates, LLC
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The Five Key Principles of Corporate Performance
Management Consists of Over 30 Best Practices
13
1. EstablishCPM Office &
Officer
2. Refresh &Communicate
Strategy
3. Cascade& ManageStrategy
4. ImprovePerformance
5. Leverage& ManageKnowledge
2013 www.paladinoassociates.comBob Paladino & Associates, LLC
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011
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PRINCIPLE 1.
ESTABLISH CPM OFFICE & CPM OFFICER
PRINCIPLE 2.
REFRESH & COMMUNICATE STRATEGY
1.2 Organization Reporting Level
1.1 Executive Sponsorship
1.3 CPM Office Staff
1.4 Leadership, Ability to Influence
1.5 CPM Process Ownership
1.6 CPM, Industry & Co Knowledge
1.7 Collaborative Maturity
1.8 Ability to Learn
2.2 Core & Adjacent Products/Svcs
2.1 Strategic Planning
2.3 Strategic Plan
2.4 Map Strategy
2.5 Link Strategy & Budget
2.6 Communication Plan
PRINCIPLE 5.
MANAGE & LEVERAGE KNOWLEDGE
PRINCIPLE 3.
CASCADE & MANAGE STRATEGY
PRINCIPLE 4.
IMPROVE PERFORMANCE
5.1 Develop KM Processes
5.2 Leverage Technology
5.3 Develop Expert Locator System
5.4 Link KM to Improve Performance
5.5 Link KM to Strategic Planning
5.6 Maintain Virtual KM Network
3.1 Partner with Business Owners
3.2 Level 1 Balanced Scorecard
3.3 Leverage Scorecard Design
3.4 Cascade to Lower Levels
3.5 Align Support Services
3.6 Align Teams & Individuals
3.7 Link Rewards & Recognition3.8 Manage Using Measures
3.9 Automate Measures4.1 Prioritize Improvement Projects
4.2 Leverage Customer Processes
4.3 Leverage Process Improvement
4.4 Benefit from Benchmarking
4.5 Create a Performance Improvement Culture
CPMAWARD WINNING
BEST
PRACTICES
5 Key Principles of CPM Core Best Practices
The Five Key Principles of CorporatePerformance Management:
Best Practices Pentagon
2013 www.paladinoassociates.comBob Paladino & Associates, LLC
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011
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CFOs Provide StrategicLeadership
15 2013 www.paladinoassociates.comBob Paladino & Associates, LLC
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Finances Strategic Leadership isEnabled byThe Five Key Principles ofCorporate Performance Management
1. EstablishCPM Office &
Officer
2. Refresh &Communicate
Strategy
3. Cascade& ManageStrategy
4. ImprovePerformance
5. Leverage &Manage
Knowledge
2013 www.paladinoassociates.comBob Paladino & Associates, LLC
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011
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a) Growing
b) Holding steady
c) Declining
17
How would you characterize your enterprise
performance (revenue) in the past two years?
Polling Question 1
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Polling Question 1 Results
a) Growing
b) Holding steady
c) Declining
48%
38%
14%
How would you characterize your enterprise
performance (revenue) in the past two years?
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M7 Aerospace: Strategic Growth
19
M7 Aerospace LP has beenbought out by Israeli defenseelectronics company Elbit
Systems Ltd. for $85 millionin cash.
Haifa, Israel-based Elbit(NASDAQ: ESLT) specializesin developing aerospace,land and naval systems;
communications; computers;intelligence surveillance andreconnaissance; unmannedaircraft systems and airbornewarning systems
San Antonio Business Journal
2013 www.paladinoassociates.comBob Paladino & Associates, LLC
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011
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M7 Aerospace: Best Practice Case
20
Executive Views on Corporate Performance Management
CPM has literally transformed M7 from a start-up organization that was operating inbusiness unit silos with limited communication among the management team into anintegrated company with a full understanding of cause and effect across the entireorganization. Aiding the management team in fully understanding and reviewing the keyaspects of its business on a continual basis is essential for any high-performanceorganization.
Kevin Brown, (CFO Promoted to) President and Chief Executive Officer
The whole strategic evaluation process has been a great opportunity to get some of ournew personnels ideas and strategies on the table as well as rekindle our legacyemployees thoughts and perspectives. The BSC has given us a consistent perspectiveof how other departments are doing and how their capabilities could potentially assistupcoming ventures.
Steve Leland, Vice President, General Manager, Government Programs
The BSC has allowed us to do the analysis necessary to put the proper resources inplace to improve our business.
Mark Provost, Director, Engineering
The Balanced Scorecard has been instrumental in driving M7 Aerospace toward best inclass processes and procedures.
Brian Dannewitz, VP Supply Chain Management and Spares Sales
2013 www.paladinoassociates.comBob Paladino & Associates, LLC
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011
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a) Yes
b) No
c) I dont know
21
Does your organization have a CPM function or
at least a person who acts in this capacity?
Polling Question 2
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Polling Question 2 Results
a) Yes
b) No
c) I dont know
33%
45%
22%
Does your organization have a CPM function or
at least a person who acts in this capacity?
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M7 Aerospace: Best Practice Case
23
Awards & Honors Northrop Grumman World Class Team Supplier For the third consecutive year M7 Aerospace was awarded a supplier
award from Northrop Grumman Corporation. M7 Aerospace was selectedto receive a World Class Team Supplier award for its consistentlydemonstrated outstanding achievements and support of Northrop
Grumman programs. Institute of Supply Management (ISM) Excellence in Innovative Supply
Management (EISM)Award For the third year in a row M7 was one of just six companies to win this
award which is given annually to recognize and reward organizationalexcellence in the purchasing and supply management field.
The Boeing Company Supplier Quality Award The Boeing Company honored M7 Aerospace for its manufacturing
support of Boeings C-130 Avionics Modernization Program (AMP). Workperformed by M7 includes fabricating sheet metal parts, building hydroform parts; painting and priming; building cable assemblies and bendingtubes for precise applications.
2013 www.paladinoassociates.comBob Paladino & Associates, LLC
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011
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M7 Aerospace: Best Practice Case
24
Highlights, Notable Performance Results Financial (lagging indicators) M7 Aerospace has increased consolidated revenue by over 500% during
the past five years M7 Aerospace has increased consolidated EBITDA by over 1,000% in the
past two years
C23 BU maximized cash flow by reducing accounts receivable over 60days past due from $140,000 to zero
Engineering Services BU maximized cash flow by reducing accountsreceivable over 60 days past due from $160,000 to zero
Customer (lagging indicators) Customer: C23 BU achieved customer provided Customer Performance
Assessment Report (CPAR) Card ratings of very good for most of year Customer: Engineering Services BU achieved Boeing customer Best
Rating for Quality for most of year Customer: Engineering Services BU achieved Boeing customer Best on
Schedule Rating for Quality for most of year
2013 www.paladinoassociates.comBob Paladino & Associates, LLC
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011
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M7 Aerospace: Best Practice Case
25
Highlights, Notable Performance Results
Process (leading indicators)
Supply Chain: BU response time to provide parts to C23 BU program wasgreen, under 30 minutes for the entire year.
Process/Productivity: Government Business Development BU increased
the number of new Programs Identified for Evaluation from four to 32 inone year, an increase of 800%. C26 Peru program inventory accuracy exceeded agreed target of 98%, a
key customer requirement, for most of the year. Supply Chain Management BU response time to provide parts to C23 BU
program was green, under 30 minutes for the entire year. MRO BU amount of backlog booked exceed target for six consecutive
months. MRO BU on time delivery of services to internal customers or other M7
BUs was at or above target of 97% for the year. MRO BU on time delivery of services to external (outside M7 family of
BUs) customers was at or above target of 97% for the year.
2013 www.paladinoassociates.comBob Paladino & Associates, LLC
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011
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M7 Aerospace: Best Practice Case
26
Highlights, Notable Performance Results
Process (leading indicators) MRO BU amount of backlog booked exceed target for six consecutive months MRO BU on time delivery of services to internal customers or other M7 BUs
was at or above target of 97% for the year MRO BU on time delivery of services to external (outside M7 family of BUs)
customers was at or above target of 97% for the year Parts/Spares BU secured more new customers than target for most of the year Quality BU increased percentage of in-bound parts cleared in 24 hours from
78% to 90% Finance Support provided necessary business analytics within 12 days after
month end consistently throughout the year
Contracts SU maintained all contract terms as current over 90% of the timefor the entire year Corporate Development SU provided timely quotes and modeling services
over 95% of the time for the whole year Development SU provided delivered Consolidated Scorecards on time 100%
of the time all year
2013 www.paladinoassociates.comBob Paladino & Associates, LLC
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011
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M7 Aerospace: Best Practice Case
27
Highlights, Notable Performance Results
People (leading indicators)
People: HR SU improved selection and hiring process, thepercentage of employees successfully completing hiring
probationary period (30/60/90 day appraisals) increased to90 percent.
Information Technology: IT SU completed 100% of targetedtraining and certifications for the entire year.
Representative Lean Six Sigma team results: Dock to StockSpan Time Reduction project team successfully reduced
work-in-progress from 206.1 jobs to 38.3 jobs, an 81%decrease; and reduced process Lead Time from 30 hours to5.2 hours, an 82% decrease!
2013 www.paladinoassociates.comBob Paladino & Associates, LLC
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011
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The Five Key Principles of Corporate Performance
Management Consists of Over 30 Best Practices
28
1. EstablishCPM Office &
Officer
2. Refresh &Communicate
Strategy
3. Cascade& ManageStrategy
4. ImprovePerformance
5. Leverage& ManageKnowledge
2013 www.paladinoassociates.comBob Paladino & Associates, LLC
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011
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a) Annually
b) Every six months
c) Quarterly
d) As needed
e) Never
29
How often do you conduct strategic planning?
Polling Question 3
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2013 Institute of Management Accountants. All rights reserved .
Polling Question 3 Results
a) Annually
b) Every six months
c) Quarterly
d) As needed
e) Never
8%
15%
24%
4%
49%
How often do you conduct strategic planning?
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Strategic Planning Approach Used by BUs,Support Functions to Create a Strategic Plan
CPM Principle 2: Refresh and Communicate Strategy (Formulate)
Input Strategic Input
Documents Annual Report Industry Reports Market Research Industry Experts
AnalysesCore and AdjacencyAnalyses
Risk RewardMatrices
Business CasesFive ForcesSWOT
Pro FormaStatements
Strategies Products,
Services Geographies Customers Competencies Processes
Technologies Others
Strategic Plan Strategy Map Strategic
Objectives Draft BSC
Measures Draft BSC Targets Major Initiatives Budgets
2013 www.paladinoassociates.comBob Paladino & Associates, LLC
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011
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Principle 2: Refresh andCommunicate Strategy
Process Stage Approach Deliverables By BU Corp Rollup
Input Review company documentsand prepare strategic inputdocuments
Strategic Input Documents Templates for completion by team Draft core and adjacency map
X X
Analyses
Workshop 1Prepare Vector Maps,Identify Opportunities
Work shop 1 materials Core & Adjacency Maps X X
Workshop 2Prepare Opportunities Risk /Reward matrices +
Work shop 2 materials Risk reward matrices Five Forces SWOTs Business cases
X X
Strategies Workshop 3Formulate strategies
Facilitation Workshop 3 Customer, Financial, Process, Market,
Product, Service, People, Technology,Engineering Strategies
X X
Strategic plan Update Strategic Plan(ongoing)
Strategy Maps Strategic Objectives
Draft BSC Measures Draft BSC Targets Major Initiatives Capital and Operating Budgets
X X
Refine StrategicPlanning Process
Refine Strategic PlanningProcess (ongoing)
Flow chart of strategic planning process Process steps defined Work instruction level Source documents/ templates used
X X
2013 www.paladinoassociates.comBob Paladino & Associates, LLC
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011
Process to Build a Strategic Plan
S i
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Strategic InputDocuments
Strategic Plan Element Primary Leader Contact Secondary Leader ContactExecutive Summary
History
Markets- Regulatory
Markets- Competitors
Markets - Customers
Products/Services
Strategic Processes
Suppliers / Providers
Strategic Technologies
Facilitates
People & Competencies
Financial Condition
2013 www.paladinoassociates.comBob Paladino & Associates, LLC
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011
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Markets/Customers U.S. Military UAV/ISR SpendingUAV (Unmanned Aerial Vehicle) and ISR (Intelligence, Surveillance and Reconnaissance vehicle)
The Teal Group estimates that UAV spending will double in the next ten years. That amounts to a spendof $62 billion over the next decade. Over that same Timeframe, the United States will account for 72% ofResearch, Development, Testing and Evaluation (RDT&E) and 61% of all procurement expenses.
2013 www.paladinoassociates.comBob Paladino & Associates, LLC
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011
http://images.google.com/imgres?imgurl=http://www.air-attack.com/MIL/predator/predator_header.jpg&imgrefurl=http://www.air-attack.com/page/53/RQ-1-Predator.html&usg=__LsT-6LeuvWS1l19un0noGfMeOL0=&h=231&w=360&sz=9&hl=en&start=37&sig2=65yNbewSxuxLNN1YZs4diQ&tbnid=tGttU8LMOIgifM:&tbnh=78&tbnw=121&prev=/images?q=RQ+1+predator+uav&gbv=2&ndsp=20&hl=en&sa=N&start=20&ei=nNbUSvuVH4qcMMLX3JUDhttp://images.google.com/imgres?imgurl=http://ubisurv.files.wordpress.com/2009/03/hawk.jpg&imgrefurl=http://ubisurv.wordpress.com/2009/03/27/flying-into-trouble/&usg=__zPx8KVKJruuV4Dpkij1UneYrfUU=&h=347&w=550&sz=45&hl=en&start=5&sig2=a3jqgl2bYmvx8WetMEhfOw&tbnid=SFsW30cDemxi6M:&tbnh=84&tbnw=133&prev=/images?q=globle+hawke+uav&gbv=2&hl=en&sa=G&ei=XdbUSuz3PJHQNIHqtJQDhttp://images.google.com/imgres?imgurl=http://www.barnardmicrosystems.com/a_Shadow_200_2.jpg&imgrefurl=http://www.barnardmicrosystems.com/L4E_shadow_200.htm&usg=__hqFTYWhMIakikrpJQ1Jdz4x-voA=&h=934&w=1563&sz=67&hl=en&start=12&sig2=cHaPlGGp6bq5bxlJvWZg0g&tbnid=6Eumipe9_QMlfM:&tbnh=90&tbnw=150&prev=/images?q=rQ+7+shadow+uav&gbv=2&hl=en&sa=G&ei=AdbUStHUH5HkNcKr_ZQDhttp://images.google.com/imgres?imgurl=http://upload.wikimedia.org/wikipedia/commons/thumb/e/e9/MQ-1C_Warrior.jpg/180px-MQ-1C_Warrior.jpg&imgrefurl=http://en.wikipedia.org/wiki/MQ-1C_Warrior&usg=__8ljtjVAbgbG6SEKwjVONFyC5744=&h=129&w=180&sz=5&hl=en&start=8&sig2=sckC9eoBP92rvhGPuk3kLA&tbnid=3h8vBk9b8LhP-M:&tbnh=72&tbnw=101&prev=/images?q=1C+warrier+uav&gbv=2&hl=en&sa=G&ei=w9XUSvavGpGiMduuqZQDhttp://images.google.com/imgres?imgurl=http://fotogaleri.hurriyet.com.tr/LiveImages/Foto%20Haber/MQ-9%20Reaper/071127-F-2185F-105.jpg&imgrefurl=http://www.militaryphotos.net/forums/showthread.php?p=3857929&usg=__L-EFuo2Y_YTl6t3EnbnhSWeignU=&h=392&w=550&sz=14&hl=en&start=16&sig2=k1DvS5X1wiceUoRWEHKDjA&tbnid=Fuc7YCJJgVWPmM:&tbnh=95&tbnw=133&prev=/images?q=reaper+uav&gbv=2&hl=en&sa=G&ei=j9XUSr-UMJzUNISMqZQDhttp://images.google.com/imgres?imgurl=http://images.pennnet.com/articles/mae/thm/th_0701mae_sr04.jpg&imgrefurl=http://mae.pennnet.com/articles/article_display.cfm?Section=ARCHI&C=Feat&ARTICLE_ID=281659&KEYWORDS=ADS-B&p=32&usg=__kylcNjeaqvH-TKW6DDyBEFrbnzU=&h=235&w=300&sz=6&hl=en&start=31&sig2=B0Bue8s874z_L0h2s62VjQ&tbnid=PE4FybM5VsfdeM:&tbnh=91&tbnw=116&prev=/images?q=raven+uav&gbv=2&ndsp=20&hl=en&sa=N&start=20&ei=c9XUSvrULoTKNdPjtJQD7/30/2019 IMA IT Webinar from Aug 13 2013
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Vector Map to Determine Current Business Profile
Regulators
CustomersTechnology
Channel Markets
People Skills,Capabilities
Processes
Strong
Core
Current
Future
Geography
ProcessDocuments
CDRLSubmittals
ProgramManagement
Databasecollectionsystem
EVMS Module
BAESystems
Web BasedApplications
CONUSOperations
USAF
NAVAIR
State Dept.
FAA 135Structure
FAA 145 RS ArmyRegulatoryCompliant
WeaponsSystemDCMACompliant
Army FixedWing
OCONUSOperations
SpaceOperations
Fixed WingLCCS
Rotor WingLCCS
ISR /UAVInstallations
WeaponsSystem CLS
MaintenanceLogistics
Field Repairs
Rotor Wing
FieldModificationsProgramManagement
Maintenance
Program Management
Quality Control
Configuration Management
Maintenance ForecastingDepot Mods
Products / Services
InternationalDirect
DCAA
(CAS)
Sr. Program Mgmt
ISR: Intelligence Surveillance and Reconnaissance
UAV Unmanned Aerial Vehicles
1
2013 www.paladinoassociates.comBob Paladino & Associates, LLC
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011
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Vector Map to Determine Future Growth:#1 New Market for UAV and ISR
Regulators
CustomersTechnology
Channel Markets
People Skills,Capabilities
Processes
Strong
Core
Current
Future
Geography
ProcessDocuments
CDRLSubmittals
ProgramManagement
Databasecollection
system
EVMS Module
BAESystems
Web BasedApplications
CONUSOperations
USAF
NAVAIR
State Dept.
FAA 135Structure
FAA 145 RS ArmyRegulatoryCompliant
WeaponsSystemDCMACompliant
Army FixedWing
OCONUSOperations
SpaceOperations
Fixed WingLCCS
Rotor WingLCCS
ISR /UAVInstallations
WeaponsSystem CLS
MaintenanceLogistics
Field Repairs
Rotor Wing
FieldModificationsProgramManagement
Maintenance
Program Management
Quality Control
Configuration Management
Maintenance ForecastingDepot Mods
Products / Services
InternationalDirect
DCAA
(CAS)
Sr. Program Mgmt
ISR: Intelligence Surveillance and Reconnaissance
UAV Unmanned Aerial Vehicles
1
CurrentCapability
Adjacency
GameChanger
2013 www.paladinoassociates.comBob Paladino & Associates, LLC
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011
i i i k d
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Opportunities Risk andReward Matrix:
1d
1. ISR/UAVa) Structural
Engineering
b) SystemsEngineering
c) AircraftSystems Mods
d) StructuralModification
e) Installation
Risk
Reward
High Risk/ High RewardGame Changers?
Plums
Why do It?
1c
2b
4
1b
12a
10
9
8b
7c
13
14
16
17
18
19
20
7b
8a
11b
11a
4b
2c
4b 1a
4e
4c
5b
5c
5d
Easy Wins
Current Capability Adjacency Game Changer Processes
1e
High
Low
High Low
2013 www.paladinoassociates.comBob Paladino & Associates, LLC
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011
Opportunity #1 has five key sub opportunities
R i St t C & Adj
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Review Strategy: Core & AdjacencyVector Definitions
Implications for IT
Growth Vector Core Business(current business)
Potential Adjacencies(potential growth
opportunities)
Implications for IT Comments(for IT Portion of
Strategy Map)
ExpandChannel andMarkets
Fixed Wing,maintainexistingcustomer baseand servicebacklog
Expansion intoRotary Wing, ISRand UAV
Likely enter theseopportunitiesthrough JV tier 1customer as JVpartner
Core: Service maintenanceof accounts
Adjacencies:
Expand engineeringsystems for design, newcertifications, newdrawings
Update source transactionregisters to accommodatenew vendors, newcustomers, new partnumbers, new bills of
materials, and severalother new requirements
New JV partner and datasecurity in sharing files,access, clearances,numerous IT implications
Create newobjectiveson StrategyMap for theimplicationson IT
2013 www.paladinoassociates.comBob Paladino & Associates, LLC
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011
Strateg Map
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Strategy Map
Learning&
Capabilities
Customers
InternalProcess
Financial Stability
Financial
F2 Drive RevenueGrowth
F5 ContinuouslyImprove
Profitability
I10 ProduceQuality Products
P1 MeetTraining
Commitments
P2 MaintainRegulatory EPA Safety
& Govt SecurityRequirements
I15 SellIntegratedServices &Solutions
I4 MaximizeExisting
Account
P3 DevelopHigh Performing
Organization
Government Services
C0 ATP Ratings
I14 ImproveProcesses and
Procedures
I12 Deliver
Products OnTime
P4 EstablishBalancedScorecard
Accountability
Grow the Business New and Sustainment Operational Excellence
Voice of the Custom er
I6 Closing Sales
(Bids intoAwards)
F4 OptimizeWIP
I3 JV, Partner with Tier1 Supplier on UAV/ ISR
Program Pilot
I1 Win AdditionalBAE CMWS Design /
Installation Fixed
Wing Program
I2 Win initial rotorwing BAE CMWS
program
2013 www.paladinoassociates.comBob Paladino & Associates, LLC
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011
Ch t Y P th U i th 5
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Chart Your Path Using the 5Level Maturity Model
CPM Principles 1-5 Roadmap and Maturity Year 1 Year 2 Year 3
Key Supporting Processes Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Principle 1: Establish & Deploy CPM Office
1.1 Executive Sponsorship (example) 1 2 3 4 5
1.2 Org Level, Reporting Level
1.3 CPM Office Staff
1.4 Leadership, Ability to Influence
1.5 CPM Process Ownership
1.6 CPM, Industry, Co Knowledge
1.7 Collaborative Maturity
1.8 Ability to Learn
Principle 2: Refresh & Communicate Strategy
2.1 Strategic Planning
2.2 Core, Adjacent Products2.3 Strategic Plan
2.4 Map Strategy
2.5 Link Strategy to Budgeting
2.6 Communication Plan
2013 www.paladinoassociates.com
Bob Paladino & Associates, LLC
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011
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a) Vector mapb) Risk reward matrix
c) SWOT (Strengths, Weaknesses, Opportunities & Threats)
d) Five Forces
e) Other
41
What primary strategic planning method does your
enterprise rely on?Polling Question 4
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Polling Question 4 Results
a) Vector map
b) Risk reward matrix
c) SWOT (Strengths, Weaknesses, Opportunities & Threats)
d) Five Forces
e) Other
2%
6%
26%
8%
58%
What primary strategic planning method does your
enterprise rely on?
Leverage Level 5
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Leverage Level 5Best Practice Cases
Page Organization Key Point
91 Chapter 5 Principle 2 Refresh and Communicate Strategy
92 Summary Best Practice Table
94 Cargill (104) Leadership System, Strategy Formulation, ERM
104 City Coral Springs (111) Strategic Planning Process (SPP), KIOs, Customer Inputs
112 Delta Dental (120) SPP year round, LR Plan, Budgeting, Strategy Map
120 Lockheed Martin (128) PESTEL, CCM CMU, Strategy Map/Themes diagram
129 M7 Aerospace/Elbit (136) SPP, Core/Adjacency, Five Forces, SWOT, Strategy Map
136 Mueller(144) Culture Maturity Model, Strategy Map, Budgeting
145 NStar SPP, Budgeting, CPM
148 Omaha Public Power(156) SPP, Strategy Map, Communications Plan
157 Poudre Valley Health System (165) Path to Success, 7 Steps, Objectives Table
165 PSE&G (170) SPP, Strategic Initiatives, Strategy Map diagram
170 Sharp Healthcare System (181) SPP Diagram, Pillars table, Comms Plan table,
2013 www.paladinoassociates.com
Bob Paladino & Associates, LLC
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011
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[email protected] Wiley Publishing
Available on www.amazon.com
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Questions & AnswersUse the Q & A Panel to send your questions to our panelists
Bob PaladinoManaging Partner
Bob Paladino & Associates, LLC
Steve ShannonDirector
Business DevelopmentIMA
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Thank You to Our Featured Presenter!
Bob Paladino, CPAManaging Partner
Bob Paladino & Associates, [email protected]
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Final Reminders Complete the Evaluation poll on your screen
Access to your CPE Certificate 2 Options
Click the CPE icon at the bottom of your screen
or
Click the link in your post-event email
Please print or save a copy of the CPE certificate
Your CPE credit will be automatically recorded in yourtranscript.
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Wednesday, August 21, 2013 1 p.m. EDT
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