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Strategic PlanningStrategic PlanningStrategic PlanningStrategic Planning
P Narayan MurthyP Narayan Murthy
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What is Strategic Planning?What is Strategic Planning?What is Strategic Planning?What is Strategic Planning?Process to establish priorities on what you willProcess to establish priorities on what you will
accomplish in the futureaccomplish in the futureForces you to make choices on what you will doForces you to make choices on what you will doand what you will not doand what you will not do
Pulls the entire organization together aroundPulls the entire organization together arounda single game plan for executiona single game plan for executionBroad outline on where resources will getBroad outline on where resources will get
allocatedallocated
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Why do Strategic Planning?Why do Strategic Planning?Why do Strategic Planning?Why do Strategic Planning?If you fail to plan, then you plan to failIf you fail to plan, then you plan to fail bebe
proactive about the futureproactive about the futureStrategic planning improves performanceStrategic planning improves performanceCounter excessive inward and shortCounter excessive inward and short--termterm
t in ingt in ingSolve major issues at a macro levelSolve major issues at a macro levelCommunicate to everyone what is mostCommunicate to everyone what is most
importantimportant
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Fundamental Questions to AskFundamental Questions to AskFundamental Questions to AskFundamental Questions to Ask
Where are we now? (Assessment)Where are we now? (Assessment) Where do we need to be? (Gap / Future EndWhere do we need to be? (Gap / Future End
State)State)
How will we close the gap (Strategic Plan)How will we close the gap (Strategic Plan) How will we monitor our progress (BalancedHow will we monitor our progress (Balanced
Scorecard)Scorecard)
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A Good Strategic Plan should...A Good Strategic Plan should...A Good Strategic Plan should...A Good Strategic Plan should... Address critical performance issuesAddress critical performance issues
Create the right balance between what theCreate the right balance between what theorganization is capable of doing vs. what theorganization is capable of doing vs. what theorganization would like to doorganization would like to do
performance gapperformance gap VisionaryVisionary convey a desired future end stateconvey a desired future end state FlexibleFlexible allow and accommodate changeallow and accommodate change
Guide decision making at lower levelsGuide decision making at lower levels operational, tactical, individualoperational, tactical, individual
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Strategic Planning ModelStrategic Planning Model
A B C D EA B C D E
Strategic Planning ModelStrategic Planning Model
A B C D EA B C D E
EnvironmentalScan
Assessment
Situation Past,Present and
Mission & Vision PerformanceMeasurement
Baseline Components
PerformanceManagement
Down toSpecifics Evaluate
Where we are Where we want to be How we will do it How are we doing
BackgroundInformation
SituationalAnalysis
SWOT
Strengths,Weaknesses,Opportunities,Threats
SignificantIssues
Align / Fit withCapabilities
Values / GuidingPrinciples
Major Goals
Specific
Objectives
Targets /Standards ofPerformance
Initiatives andProjects
Review Progress BalancedScorecard
Take CorrectiveActions
Gaps Action Plans Feedback
upstream revise plans
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PrePre--Requisites to PlanningRequisites to PlanningPrePre--Requisites to PlanningRequisites to Planning
Senior leadership commitmentSenior leadership commitment Who will do what?Who will do what? How will we do it?How will we do it? When is the best time?When is the best time?
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Assessment Model:Assessment Model:
S W O TS W O T
Assessment Model:Assessment Model:
S W O TS W O TAssessment
External Assessment: Marketplace,competitors, social trends,External Assessment: Marketplace,competitors, social trends,
Internal Assessment:Organizational assets, resources,
people, culture, systems,partnerships, suppliers, . . .
Internal Assessment:Organizational assets, resources,
people, culture, systems,partnerships, suppliers, . . .
technology, regulatory environment,economic cycles .technology, regulatory environment,economic cycles .
Easy toUnderstand
Apply at anyorganizationallevel
Needs to beAnalytical andSpecific
Be honest aboutyour weaknesses
Good Points Possible Pitfalls
SWOT SWOT
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StrengthsStrengthsStrengthsStrengthsAssessment
StrengthsStrengths Those things that you do well, theThose things that you do well, the
high value or performance pointshigh value or performance points Strengths can be tangible: Loyal customers,Strengths can be tangible: Loyal customers,efficient distribution channels, very high qualityefficient distribution channels, very high qualityproducts, excellent financial conditionproducts, excellent financial condition
reng can e n ang e oo ea er ,reng can e n ang e oo ea er ,strategic insights, customer intelligence, solidstrategic insights, customer intelligence, solidreputation, high skilled workforcereputation, high skilled workforce
Often considered Core CompetenciesOften considered Core Competencies BestBestleverage points for growth without draining yourleverage points for growth without draining your
resourcesresources
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WeaknessesWeaknessesWeaknessesWeaknessesAssessment
WeaknessesWeaknesses Those things that prevent you fromThose things that prevent you fromdoing what you really need to dodoing what you really need to do
Since weaknesses are internal, they are withinSince weaknesses are internal, they are withinyour controlyour control
Weaknesses include: Bad leadership, unskilledWeaknesses include: Bad leadership, unskilledworkforce, insufficient resources, poor productworkforce, insufficient resources, poor productquality, slow distribution and delivery channels,quality, slow distribution and delivery channels,outdated technologies, lack of planning, . . .outdated technologies, lack of planning, . . .
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OpportunitiesOpportunitiesOpportunitiesOpportunitiesAssessment
OpportunitiesOpportunities Potential areas for growth andPotential areas for growth and
higher performancehigher performance External in natureExternal in nature marketplace, unhappymarketplace, unhappy
customers with com etitors better economiccustomers with com etitors better economic
conditions, more open trading policies, . .conditions, more open trading policies, . . Internal opportunities should be classified asInternal opportunities should be classified as
StrengthsStrengths
Timing may be important for capitalizing onTiming may be important for capitalizing onopportunitiesopportunities
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ThreatsThreatsThreatsThreatsAssessment
ThreatsThreats Challenges confronting the organization,Challenges confronting the organization,
external in natureexternal in nature Threats can take a wide rangeThreats can take a wide range bad pressbad press
coverage, shifts in consumer behavior, substitutecoverage, shifts in consumer behavior, substitute, , . . ., , . . .
May be useful to classify or assign probabilities toMay be useful to classify or assign probabilities tothreatsthreats
The more accurate you are in identifying threats,The more accurate you are in identifying threats,
the better position you are for dealing with thethe better position you are for dealing with thesudden ripples of changesudden ripples of change
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Why create a baseline?Why create a baseline?Why create a baseline?Why create a baseline?Baseline
Puts everything about the organization into aPuts everything about the organization into asingle context for comparability and planningsingle context for comparability and planning
Descriptive about the company as well as theDescriptive about the company as well as the
Include information about relationshipsInclude information about relationships customers, suppliers, partners, . . .customers, suppliers, partners, . . .
Preferred format is the OrganizationalPreferred format is the Organizational
ProfileProfile
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Organizational ProfileOrganizational Profile1. Operating Environment1. Operating Environment
Organizational ProfileOrganizational Profile1. Operating Environment1. Operating Environment
Baseline
Products and ServicesProducts and Services Suppliers, DeliverySuppliers, DeliveryChannels, Contracts, Arrangements, . . .Channels, Contracts, Arrangements, . . . Organizational CultureOrganizational Culture Barriers, Leadership,Barriers, Leadership,
Communication, Cohesiveness . . . .Communication, Cohesiveness . . . .
Workforce ProductivityWorkforce Productivity Skill levels, diversity,Skill levels, diversity,contractors, aging workforce, . . .contractors, aging workforce, . . .
InfrastructureInfrastructure Systems, technology, facilities, . .Systems, technology, facilities, . . RegulatoryRegulatory Product / Service Regulation, ISOProduct / Service Regulation, ISO
Quality Standards, Safety, Environmental, . . .Quality Standards, Safety, Environmental, . . .
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Organizational ProfileOrganizational Profile2. Business Relationships2. Business RelationshipsOrganizational ProfileOrganizational Profile2. Business Relationships2. Business RelationshipsB
aseline
Organizational StructureOrganizational Structure Business Units,Business Units,Functions, Board, Management Layers, . . .Functions, Board, Management Layers, . . . Customer RelationshipsCustomer Relationships Requirements,Requirements,
a ac on, oya y, pec a on , . . .a ac on, oya y, pec a on , . . . Value ChainValue Chain Relationship between everyone inRelationship between everyone inthe value chain . . . .the value chain . . . .
Partner RelationshipsPartner Relationships Alliances, longAlliances, long--termtermsuppliers, customer partnerships, . . .suppliers, customer partnerships, . . .
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Organizational ProfileOrganizational Profile
3. Key Performance3. Key PerformanceCategoriesCategories
Organizational ProfileOrganizational Profile
3. Key Performance3. Key PerformanceCategoriesCategories
Baseline
CustomerCustomer Products and ServicesProducts and Services Human CapitalHuman Capital OperationalOperational External (Regulatory Compliance, SocialExternal (Regulatory Compliance, Social
Responsibility, . . . )Responsibility, . . . )
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Gap AnalysisGap AnalysisGap AnalysisGap AnalysisBaseline
Baseline / Org Profile Challenges / SWOT
Gap = Basis for Long-Term Strategic PlanGap = Basis for Long-Term Strategic Plan
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Major Components of theMajor Components of the
Strategic Plan / Down to ActionStrategic Plan / Down to Action
Major Components of theMajor Components of the
Strategic Plan / Down to ActionStrategic Plan / Down to ActionComponents
Mission
Vision
Goals
Why we existWhy we exist
What we want to beWhat we want to be
Strategic Plan
Action Plans
Evaluate Progress
What we must achieve to be successfulWhat we must achieve to be successful
Measures Indicators andIndicators andMonitors of successMonitors of success
Desired level ofDesired level ofperformance andperformance andtimelinestimelines
Planned Actions toPlanned Actions toAchieve ObjectivesAchieve ObjectivesAI1 AI2 AI3
M1 M2 M3
T1 T1 T1
measurable terms (NOT activities)measurable terms (NOT activities)
Targets
Initiatives
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Mission StatementMission StatementMission StatementMission StatementComponents
Captures the essence of why the organizationCaptures the essence of why the organizationexistsexists Who we are, what we doWho we are, what we do
Explains the basic needs that you fulfillExplains the basic needs that you fulfill Ex resses the core values of the or anizationEx resses the core values of the or anization
Should be brief and to the pointShould be brief and to the point Easy to understandEasy to understand If possible, try to convey the unique nature of yourIf possible, try to convey the unique nature of yourorganization and the role it plays that differentiatesorganization and the role it plays that differentiates
it from othersit from others
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ExamplesExamples Good and BadGood and Bad
Mission StatementsMission Statements
ExamplesExamples Good and BadGood and Bad
Mission StatementsMission StatementsComponents
To Explore theUniverse andSearch for Lifeand to Inspirethe Next
NASA
Does a good job of expressingthe core values of theorganization. Also conveys uniqueualities about the or anization.
To Make PeopleHappy
Generation ofExplorers
Walt Disney
Too vague and unclear. Needmore descriptive informationabout what makes theorganization special.
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VisionVisionVisionVisionComponents
How the organization wants to be perceived inHow the organization wants to be perceived inthe futurethe future what success looks likewhat success looks like An expression of the desired end stateAn expression of the desired end state
a enge everyone o reac or o e nga enge everyone o reac or o e ngsignificantsignificant inspires a compelling futureinspires a compelling future Provides a longProvides a long--term focus for the entireterm focus for the entire
organizationorganization
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Examples of VisionExamples of Vision
DescriptorsDescriptors
Examples of VisionExamples of Vision
DescriptorsDescriptors Adept
Aggressive
Agile Aligned
Assertive
Available
Equal
Disciplined
Effective
Efficient
Enduring
Solid
Solvent
Stable
State of theArt
Strong
Informative
Innovative
Leading
Logical
Major
Components
Best-in-class Challenging
Clear
Competent
Complex
Compliant
Conservative
Coordinated
Critical
Direct
Expert
Fast
Fast-paced
Financially-sound
Focused Growth
Healthy
Improving
Incentivized Increasing
Streamlined Sufficient
Strategic
Sustainable
Timely
Value-added
Vigilant
Visionary
World-class
Pioneering
Protected
Organized
Over-Arching
Quick Ready
Responsive
Savvy
Simple
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Guiding Principles andGuiding Principles and
ValuesValues
Guiding Principles andGuiding Principles and
ValuesValuesComponents
Every organization should be guided by a set ofEvery organization should be guided by a set ofvalues and beliefsvalues and beliefs
Provides an underlying framework for makingProvides an underlying framework for makingdecisionsdecisions part of the organizations culturepart of the organizations culture
Values are often rooted in ethical themes, such asValues are often rooted in ethical themes, such asones y, rus , n egr y, respec , a rness, . . . .ones y, rus , n egr y, respec , a rness, . . . .
Values should be applicable across the entireValues should be applicable across the entireorganizationorganization
Values may be appropriate for certain bestValues may be appropriate for certain best
management practicesmanagement practices best in terms of quality,best in terms of quality,exceptional customer service, etc.exceptional customer service, etc.
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Examples ofExamples of
Guiding Principles and ValuesGuiding Principles and Values
Examples ofExamples of
Guiding Principles and ValuesGuiding Principles and ValuesComponents
We obey the law and do not compromise moral or ethical principles ever!We expect to be measured by what we do, as well as what we say.We obey the law and do not compromise moral or ethical principles ever!We expect to be measured by what we do, as well as what we say.
We treat everyone with respect and appreciate individual differences.We carefully consider the impact of business decisions on our people and wereco nize exce tional contributions.
We treat everyone with respect and appreciate individual differences.We carefully consider the impact of business decisions on our people and wereco nize exce tional contributions.
We are strategically entrepreneurial in the pursuit of excellence, encouraging originalthought and its application, and willing to take risks based on sound business judgment.We are strategically entrepreneurial in the pursuit of excellence, encouraging originalthought and its application, and willing to take risks based on sound business judgment.
We are committed to forging public and private partnerships that combine diversestrengths, skills and resources.We are committed to forging public and private partnerships that combine diversestrengths, skills and resources.
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GoalsGoalsGoalsGoalsComponents
Describes a future endDescribes a future end--statestate desired outcome that isdesired outcome that issupportive of the mission and vision.supportive of the mission and vision.
Shapes the way ahead in actionable terms.Shapes the way ahead in actionable terms. Best applied where there are clear choices about theBest applied where there are clear choices about thefuture.future.
u s s ra eg c ocus n o e organ za onu s s ra eg c ocus n o e organ za on spec cspec cownership of the goal should be assigned to someoneownership of the goal should be assigned to someonewithin the organization.within the organization. May not work well where things are changing fastMay not work well where things are changing fast
goals tend to be longgoals tend to be long--term for environments thatterm for environments thathave limited choices about the future.have limited choices about the future.
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Developing GoalsDeveloping GoalsDeveloping GoalsDeveloping GoalsComponents
Cascade from the top of the Strategic PlanCascade from the top of the Strategic Plan Mission,Mission,Vision, Guiding Principles.Vision, Guiding Principles. Look at your strategic analysisLook at your strategic analysis SWOT, EnvironmentalSWOT, EnvironmentalScan Past Performance Ga s . .Scan Past Performance Ga s . .
Limit to a critical fewLimit to a critical few such as five to eight goals.such as five to eight goals. Broad participation in the development of goals:Broad participation in the development of goals:
Consensus from aboveConsensus from above buybuy--in at the execution level.in at the execution level. Should drive higher levels of performance and close aShould drive higher levels of performance and close a
critical performance gap.critical performance gap.
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Examples of GoalsExamples of GoalsExamples of GoalsExamples of GoalsComponents
Reorganize the entire organization for better responsiveness to customersReorganize the entire organization for better responsiveness to customers
We will partner with other businesses, industry leaders, and government agencies inorder to better meet the needs of stakeholders across the entire value stream.We will partner with other businesses, industry leaders, and government agencies inorder to better meet the needs of stakeholders across the entire value stream.
Manage our resources with fiscal responsibility and efficiency through a singleManage our resources with fiscal responsibility and efficiency through a single..
Improve the quality and accuracy of service support information provided to our internalcustomers.Improve the quality and accuracy of service support information provided to our internalcustomers.
Establish a means by which our decision making process is market and customer focus.Establish a means by which our decision making process is market and customer focus.
Maintain and enhance the physical conditions of our public facilities.Maintain and enhance the physical conditions of our public facilities.
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ObjectivesObjectivesObjectivesObjectives RelevantRelevant -- directly supports the goaldirectly supports the goal
Compels the organization into actionCompels the organization into action Specific enough so we can quantify and measureSpecific enough so we can quantify and measurethe resultsthe results
Components
mp e an easy o un ers anmp e an easy o un ers an
Realistic and attainableRealistic and attainable
Conveys responsibility and ownershipConveys responsibility and ownership
Acceptable to those who must executeAcceptable to those who must execute
May need several objectives to meet a goalMay need several objectives to meet a goal
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Goals vs. ObjectivesGoals vs. ObjectivesGoals vs. ObjectivesGoals vs. Objectives
GOALS OBJECTIVES
Very short statement, fewwords
Longer statement, moredescriptive
Components
Broad in scope Narrow in scopeDirectly relates to theMission Statement
Indirectly relates to the MissionStatement
Covers long time period (such
as 10 years)
Covers short time period (such 1
year budget cycle)
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Examples of ObjectivesExamples of ObjectivesExamples of ObjectivesExamples of ObjectivesDevelop a customer intelligence database system to capture and analyze patterns inpurchasing behavior across our product line.Develop a customer intelligence database system to capture and analyze patterns inpurchasing behavior across our product line.
Launch at least three value stream pilot projects to kick-off our transformation to a leanerorganization.Launch at least three value stream pilot projects to kick-off our transformation to a leanerorganization.
Components
Centralize the procurement process for improvements in enterprise-wide purchasing power.Centralize the procurement process for improvements in enterprise-wide purchasing power.
Consolidate payable processing through a P-Card System over the next two years.Consolidate payable processing through a P-Card System over the next two years.
Monitor and address employee morale issues through an annual employee satisfactionsurvey across all business functions.Monitor and address employee morale issues through an annual employee satisfactionsurvey across all business functions.
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Down toDown to
SpecificsSpecifics
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What are Action Plans?What are Action Plans?What are Action Plans?What are Action Plans?
The Action Plan identifies the specific steps that will be taken toachieve the initiatives and strategic objectives where the rubbermeets the road
Each Initiative has a supporting Action Plan(s) attached to it
Action Plans are geared toward operations, procedures, and processes
They describe who does what, when it will be completed, and how the
Down to
Specifics
Objectives
Initiatives
ActionPlans
Like Initiatives, Action Plans require the monitoring of progress onObjectives, for which measures are needed
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Characteristics of ActionCharacteristics of Action
PlansPlans
Characteristics of ActionCharacteristics of Action
PlansPlansDown to
Specifics
Assign responsibility for the successful completion of the Action Plan. Whois responsible? What are the roles and responsibilities?
Detail all required steps to achieve the Initiative that the Action Plan is
supporting. Where will the actions be taken? Establish a time frame for the completion each steps. When will we need totake these actions?
Establish the resources required to complete the steps. How much will ittake to execute these actions?
initiative. Determine the deliverables (in measurable terms) that shouldresult from completion of individual steps. Identify in-process measures toensure the processes used to carry out the action are working as intended.Define the expected results and milestones of the action plan.
Provide a brief status report on each stepbrief status report on each step, whether completed or not. Whatcommunication process will we follow? How well are we doing in executing ouraction plan?
Based on the above criteria, you should be able to clearly define your actionplan. If you have several action plans, you may have to prioritize.
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Action Plan ExecutionAction Plan ExecutionAction Plan ExecutionAction Plan Execution
Down to
Specifics
Requires that you have answered the Who, What, How, Where,and When questions related to the project or initiative that
drives strategic execution Coordinate with lower level sections, administrative andoperating personnel since they will execute the Action Plan inthe form of specific work plans
plans and schedules that have specific action steps Resource the project or initiative and document in the form ofdetail budgets (may require reallocation prior to execution)
Monitor progress against milestones and measurements Correct and revise action plans per comparison of actual
results against original action plan
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Quantify from Action Level UpQuantify from Action Level Up
in terms of Measurementsin terms of Measurements
Quantify from Action Level UpQuantify from Action Level Up
in terms of Measurementsin terms of Measurements
Down to
Specifics
Measure your milestonesMeasure your milestones shortshort--term outcomes atterm outcomes atthe Action Item level.the Action Item level. Measure the outcomes of your objectives.Measure the outcomes of your objectives. Try to keep your measures one per objective.Try to keep your measures one per objective. Ma want to include lead and la measures toMa want to include lead and la measures to
depict causedepict cause--effect relationships if you areeffect relationships if you areuncertain about driving (leading) the desireduncertain about driving (leading) the desiredoutcome.outcome.
Establish measures using a template to captureEstablish measures using a template to capture
critical data elementscritical data elements
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Integrity Complete; useful; inclusive of several typesof measure; designed to measure the most important
activities of the organizationReliable: Consistent
Criteria for Good MeasuresCriteria for Good MeasuresCriteria for Good MeasuresCriteria for Good Measures
Down to
Specifics
ccura e - orrec
Timely Available when needed: designed to use andreport data in a usable timeframe
Confidential and Secure: Free from inappropriaterelease or attack
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Examples of MeasurementsExamples of Measurements
Lead IndicatorsLead Indicators
Examples of MeasurementsExamples of Measurements
Lead IndicatorsLead Indicators
Down to
Specifics
Average time to initiate customer contact =>
shorter time should lead to better customerservice
Avera e res onse time to incident => below
verage response times should lead to increasedeffectiveness in dealing with incident
Facilities that meet facility quality A1 rating =>should lead to improved operational readiness for
meeting customer needs
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Examples of MeasurementsExamples of Measurements
Lag IndicatorsLag Indicators
Examples of MeasurementsExamples of Measurements
Lag IndicatorsLag Indicators
Down to
Specifics
Overall customer satisfaction rating => how
well you are doing looking back Business Units met budgeted service hour
tar ets => a ter the act re ortin o
service delivery volume Number of category C safety accidents at
construction sites => historical report of
what has already taken place
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TargetsTargetsTargetsTargetsDown toSpecifics
For each measurement, you should have at least
one target Targets should stretch the organization to higher
levels of performance
Incremental improvements over currentperformance can be used to establish your targets
Targets put focus on your strategy
When you reach your targets, you havesuccessfully executed your strategy
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Examples of TargetsExamples of TargetsExamples of TargetsExamples of TargetsAverage Time to Process NewEmployee Setups in DB
65 days Year2007
60 days Year2008
55 days Year2009
Utilization Rate for Rental HousingUnits
90% forYear 2007
92% for Year2008
95% for Year2009
Toxic Sites meeting in-servicecompliance
55% for Year2007
70% for Year2008
95% for Year2009
Down to
Specifics
Personnel Fully Trained in Safety andEmergency 65% by 2rd
Quarter 75% by 3th
Quarter 90% by 4th
Quarter
Open Positions Filled after 30 daypromotion period
75 positionsSept 2007
100 positionsJan 2008
135 positionsJuly 2008
% Reduction in Orders Filled Short in
1st Cycle
50% by Year
2008
65% by Year
2009
85% by Year
2010
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Make sure everything is linked and connected for atight end-to-end model for driving strategic execution.
OBJECTIVE
Sanity Check . . .Sanity Check . . .Sanity Check . . .Sanity Check . . .Down toSpecifics
INITIATIVE
Employee
ProductivityImprovementProgram
EmployeeSatisfaction
SurveyRating
90%favorable
overall
Measure
Target
Target Actual
90%
45%
Percent
Sa
tisfaction
gap
MEASURE / TARGET
Improve EmployeeSatisfaction
ACTION PLAN
Identify issues pera company wide
survey
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EvaluateEvaluate
Continuous FeedbackContinuous FeedbackContinuous FeedbackContinuous Feedback
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Continuous FeedbackContinuous Feedback
through the Balancedthrough the BalancedScorecardScorecard
Continuous FeedbackContinuous Feedback
through the Balancedthrough the BalancedScorecardScorecard
Evaluate
Cascade and align from the top to create aStrategic Management System.
Use the Balanced Scorecard framework toorganize and report actionable components.
Use the Scorecard for mana in the execution of
your strategy. Scorecard forces you to look at differentperspectives and take into account cause-effectrelationships (lead and lag indicators)
Improves how you communicate your strategy critical to execution.
P f MP f MP f MP f M
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Performance ManagementPerformance ManagementPerformance ManagementPerformance ManagementEvaluate
Establish a regular review cycle using your balanced scorecard.
Analyze and compare trends using graphs for rapidcommunication of performance. Dont be afraid to change your metrics life cycle (inputs to
outputs to outcomes) Work back upstream to revise your plans: Action Plans >
Operating Plans > Strategic Plans Planning is very dynamic must be flexible to change. Recognize and reward good performance results Brainstorm and change take corrective action on poor
performance results.
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Link Budgets toLink Budgets toStrategic PlanStrategic PlanLink Budgets toLink Budgets toStrategic PlanStrategic Plan
The worlds best Strategic Plan will fail if it is notadequately resourced through the budgetingprocess
Evaluate
Strategic Plans cannot succeed without people,time, money, and other key resources Aligning resources validates that initiatives and
action plans comprising the strategic plan support
the strategic objectives
Wh t R ?Wh t R ?Wh t R ?Wh t R ?
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Every Action Plan should identify the following:
The people resources needed to succeed
The time resources needed to succeed
The money resources needed to succeed
The physical resources (facilities, technology, etc.) needed to
What Resources?What Resources?How to Link?How to Link?
What Resources?What Resources?How to Link?How to Link?
Evaluate
succee
Resource information is gathered by Objective Owners which is providedto the Budget Coordinators for each Business Unit.
Resources identified for each Action Plan are used to establish the totalcost of the Initiative.
Cost-bundling of Initiatives at the Objective level is used by Business UnitBudget Coordinators to create the Operating Plan Budget
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Some Final ThoughtsSome Final ThoughtsSome Final ThoughtsSome Final Thoughts
Integrate all components from the top to thebottom: Vision > Mission > Goals > Objectives >
Measures > Targets > Initiatives > Action Plans >Budgets. Get Early Wins (Quick Kills) to create some
Seek external expertise (where possible andpermissible)
Articulate your requirements to senior leadership ifthey are really serious about strategic execution
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Thank ouThank ou
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