Using “The Systems Thinking Approach®”

Using “The Systems Thinking Approach®”
OD NETWORK CERTIFICATION, JUNE 2007—PART I STATE OF THE ART REPORT REINVENTING STRATEGIC PLANNING TO DELIVER CUSTOMER VALUE The Top 12 Common Mistakes Most Organizations Make Using “The Systems Thinking Approach®”

A GLOBAL ALLIANCE OF MASTER CONSULTANTS AND TRAINERS
FOUNDED 1990—OFFICES IN OVER 20 COUNTRIES THE CENTRE’S GLOBAL MAP: “We Are The World Leader in Strategic Management Powered by Systems Thinking”

WHO IS STEVE HAINES? STEVE
Founder & CEO: Centre for Strategic Management® Systems Thinking Press® Founded in 1990—38 Offices—20 Countries STEVE is a: “CEO—Entrepreneur—Global Strategist” and “A Facilitator—Systems Thinker—Prolific Author” (of 12+ books) A graduate of the US NAVAL ACADEMY’s Legendary Leadership Class of 1968

BACKGROUND OF THIS STATE-OF-THE-ART BEST PRACTICES REPORT
This Report is the result of a blend of three fundamental sources: The Strategic IQ Audits that the Haines Centre does Our Interpretation and Translation of Others Best Practices Research (We do not do original research ourselves-rarely paid for) Our consulting practices around the world in over 20 countries What do these #s represent as the “Natural Way the World Works”? THESE ARE THE UNIVERSAL ORGANIZING FRAMEWORKS OF OUR LIVES!!!

“EVERYTHING IS SIMPLE, YOU SEE CLARITY AND SIMPLICITY = SUCCESS
SIMPLICITY YOU SEE “EVERYTHING IS SIMPLE, YOU SEE BUT YOU JUST HAVE TO SEE IT” KEYS: Ask the #1 Systems Question: Clarity of Purpose/Goal? One piece of paper documents Rule of 3 CLARITY AND SIMPLICITY = SUCCESS

SIMPLICITY AND COMPLEXITY
“I wouldn’t give a fig for the Simplicity this side of Complexity (Simplistic) But I’d give my life for the Simplicity on the far side of Complexity” (Elegant Simplicity) --Justice Oliver Wendell Holmes SIMPLICITY AND GENIUS “Any idiot can simplify by ignoring the complications It takes real genius to simplify by including the complications” --John Johnson (TEC Chair)

Great leaders know how to keep it simple . . .
"Great leaders are almost always great simplifiers, who can cut through argument, debate, and doubt to offer a solution everybody can understand." - General Colin Powell

COMMON STRENGTHS OF MOST ORGANIZATIONS
Strategic Plan and Document itself The focus on Goals (Different Names) The Continuity of the process-year after year An Annual Review and Update of the Document The focus on Mission, Vision and Core Values A detailed list of Annual Actions that underlie the Goals The extensive use of Measures/Metrics-especially financial A highly committed Strategic Planning staff YET, WHY DO ABOUT 75% OF ALL MAJOR CHANGES FAIL?? These Strengths are “Necessary but not Sufficient for Success”

SINGLULAR PLANNING AND CHANGE EFFORTS FAIL
A SINGLE AND ONE TIME INTERVENTION WILL NOT CHANGE MUCH OF ANYTHING EXCEPT FOR ANOTHER SHORT TERM FIX REAL CHANGE REQUIRES MULTIPLE STRATEGIES FOCUSED ON CLEAR OUTCOMES OD Practitioner, May 2007

A NEW APPROACH PLANNING & CHANGE IS REQUIRED IN THE 21ST CENTURY
THE 21ST CENTURY MACRO BEST PRACTICE: NEW APPROACH NEEDED THINK DIFFERENTLY—THINK STRATEGICALLY Use The Systems Thinking Approach® LOOK FOR SYSTEMS SOLUTIONS TO SYSTEMS PROBLEMS (Not Analytic & Piecemeal Solutions to Systems Problems) CLARITY AND SIMPLICITY = SUCCESS (Simplicity Wins the Game Every Time) THIS IS WHAT THIS STATE OF THE ART REPORT IS ALL ABOUT (So Do Not Take These Best Practices Separately)

LEADING STRATEGIC MANAGEMENT TO DELIVER CUSTOMER VALUE
A Yearly Strategic Management System and Cycle Strategic Thinking Strategic Planning VALUE Strategic Change The Systems Thinking Approach

COMMON SENSE “IF NOTHING ELSE WORKS, THIS MAY BE A PERFECT
OPPORTUNITY TO USE COMMON SENSE.”

LOGISTICS

STRATEGIC PLANNING DEFINED
ix Is it: An event? A process? A change in our roles? A change in the way we run the business day-to-day? What's your belief? Why?

STRATEGIC MANAGEMENT DESIRED OUTCOMES-RESULTS
WHAT ARE YOUR DESIRED OUTCOMES-RESULTS? Higher Profits?_______________________________ Greater Revenue? ____________________________ Lower Costs/Decrease? _______________________ Enhance Market Share? ________________________ Drive Competitive Advantage? ___________________ Increase Customer Service & Satisfaction? ________ Deliver Better Customer Value ___________________ Implement New Product/Service Offerings? ________ Growing Community/Society Reputation___________ Change the Employee Culture? ___________________ Execute a Merger or Acquisition? _________________ Enhancing our Commitment to the Community______ Develop Strategic Alliances or Partnerships? _______ Turn Around an Underperforming Business? _______ Enhance safety? _______________________________ Protect and Enhance the Environment? ___________ Decrease Waste/Simplify your Bureaucracy? _______ CASE STUDY

(unless we have infinite resources).
CRITICAL ISSUES LIST What are the 3-5 most important Critical Issues facing you today as an organization regarding Strategic Planning? 1. 2. 3. 4. 5. If Strategic Planning & Change is going smoothly, we're doing something wrong (unless we have infinite resources). Challenge the Obvious CASE STUDY

FAILURE OF ENTERPRISE-WIDE STRATEGIC CHANGE
MAJOR CHANGE FAILS 75% OF THE TIME: WHY?

STATE OF ART BEST PRACTICES: STRATEGIC PLANNING # 1
#1 “Begin with the end in mind”—Stephen Covey FAILURE TO CLARIFY THE FUTURE AND YOUR DESIRED OUTCOMES FIRST

#1 KEYS TO SUCCESSFUL ORGANIZATIONAL RESULTS
#1 DAILY QUESTION: Always ask the #1 Systems Thinking question (over and over again): “What are our desired results?” “Begin with the end in mind.”

The Science of Living Systems
SYSTEMS THINKING The Science of Living Systems “The natural way the world works” Backed by 50+ Years of Scientific Research

THE LAWS OF NATURE Cycle of Productive Life
What Shall We Plant This Year? What Shall We Plant Next Year?

OUR LEVEL OF THINKING Problems that are created by our current level of thinking can't be solved by that same level of thinking. —Albert Einstein So ...if we generally use analytical thinking, we now need real “Systems Thinking ” to resolve our issues. —Stephen G. Haines

THINK—PLAN—ACT—RESULTS
How you think Is how you plan Is how you act And that Determines the results you get in work and life

OUR COMPLEX WORLD TODAY!

COMPLEXITY – THE RUBIKS CUBE
"The Organization as a System" How to Start Moving: From: Chaos & Complexity To: Elegant Simplicity

GET A HIGHER AND BROADER PERSPECTIVE
Take a Helicopter View of Life!

A SYSTEM DEFINED A SYSTEM :
IS A SET OF PARTS OR COMPONENTS THAT WORK TOGETHER FOR THE OVERALL OBJECTIVES OF THE WHOLE

SYSTEMS THINKING BASICS
HOW WOULD YOU DRAW A SYSTEM—ANY SYSTEM????

SIMPLICITY OF SYSTEMS THINKING
Which question goes where? What do we do? What do we achieve? Which is: The Means? The Ends? Where should you start your thinking and planning for Change?

SIMPLICITY OF SYSTEMS THINKING
The Best, Most Holistic, Integrated, Organizing Framework There is! ENVIRONMENT

THE SYSTEMS THINKING APPROACH
Five Strategic Thinking Questions – In Sequence: PHASE A: Where do we want to be? PHASE B: How will we know when we get there? PHASE C: Where are we now? PHASE D: How do we get there? PHASE E: Ongoing: What will/may change in your environment in the future? vs. Analytic Thinking Which: Starts with today and the current state, issues, and problems. Breaks the issues and/or problems into their smallest components. Solves each component separately (i.e., maximizes the solution). Has no far-reaching vision or goal (just the absence of the problem).

STRATEGIC THINKING – ABCs TEMPLATE
“Clarify and Simplify Your Thinking” – About your Project ___________________________________________________________________(Name of the Organization – Issue – Problem – Project – Change Effort, etc E Future Environmental Scan: What will be changing in your future environment that will affect us? C ___________ Today’s Date D Current State Assessment: Where are you now? System Throughput/Processes: How do we get there (close the gap from C A )? C A ___________ Future Date A Inputs (SWOT): CORE STRATEGIES: TOP PRIORITY ACTIONS: OUTPUTS/OUTCOMES: . Strengths Weaknesses Desired Outcomes- #1 System Question: Where do we want to be? Opportunities1 2 3 4 5 Threats B Feedback Loop/ Key Success Measurements: How will we know when we get there?

ORGANIZING FRAMEWORKS ARE KEY
Give people the conceptual tools – The integrated frameworks – models to organize their evidence – their experience – their learnings

Otherwise, adults do NOT learn best by doing things

The BEST conceptual, integrated ORGANIZING FRAMEWORK that exists is The Systems Thinking Approach® because “It is the natural way the world works” – The world is composed of living/human systems

SYSTEMS THINKING: 50 YEARS OF SCIENTIFIC RESEARCH
FATHER OF SYSTEMS THINKING—LUDWIG von BERTALANFFY 1954-Society of General Systems Research—Three Nobel Prize Winners +LvB Ken Boulding (Economics)—Anatol Rapoport (Math)—Ralph Gerard (Physiology) Margaret Mead—Buckminster Fuller—James G. Miller Abraham Maslow—Erik Erikson—Juan Piaget Peter Drucker—Edward Deming—Russell Ackoff Jay Forrester—Dick Beckhard—Steven Covey Peter Senge—Margaret Wheatley—Barry Oshry—Steve Haines

#2 MOS: “MORE OF THE SAME” = INSANITY Due to lack of understanding of a Yearly Strategic Management System and Cycle

RATE OF CHANGE IN THE WORLD
“If the rate of change on the outside exceeds the rate of change on the inside, the end is near.” —Jack Welch Former Chairman and CEO General Electric Corporation

THE ABCs OF STRATEGIC CHANGE MANAGEMENT
STRATEGIC PLANNING HAS BEEN REINVENTED: IT IS NOW STRATEGIC CHANGE MANAGEMENT—FOUR COMPONENTS: Planning 2. People 3. Leadership 4. Change To Deliver Customer Value SO. . . Strategic Change Management is the new way—A yearly cycle on How to ACHIEVE Business Excellence & Superior Results

THREE GOALS OF STRATEGIC MANAGEMENT
GOAL #1: DEVELOPING STRATEGIC, BUSINESS, AND ANNUAL PLANS (AND DOCUMENTS) GOAL #2: ENSURING SUCCESSFUL IMPLEMENTATION (AND ENTERPRISE-WIDE CHANGE) GOAL #3: BUILDING & SUSTAINING HIGH PERFORMANCE (YEAR AFTER YEAR) THE DESIRED RESULTS: BUSINESS EXCELLENCE & SUPERIOR RESULTS (YEAR AFTER YEAR)

REINVENTING STRATEGIC MANAGEMENT • Planning • People • Leadership • Change •
THE SYSTEMS THINKING APPROACHTM TO CREATING YOUR COMPETITIVE EDGE PLAN TO-PLAN “BEGIN HERE” D PROCESSES A OUTCOMES CUSTOMER VALUE C INPUT CURRENT STATE “STRATEGIC CHANGE MANAGEMENT” 8. PLAN-TO IMPLEMENT 10. ANNUAL STRATEGIC REVIEW (AND UPDATE) FUTURE STATE 9. STRATEGY IMPLEMENTATION (AND ENTERPRISE-WIDE CHANGE) 7. ANNUAL PLANS/ STRATEGIC BUDGETS ENV. SCAN 2. IDEAL FUTURE VISION 6. THREE-YEAR BUSINESS PLANS 5. STATEGY DEVELOPMENT VISION MISSION CORE VALUES POSITIONING RALLY CRY ALIGNMENT OF DELIVERY ATTUNEMENT OF PEOPLE B. FEEDBACK E ENVIRONMENT FUTURE SCAN 4. CURRENT STATE ASSESSMENT 3. KEY SUCCESS MEASURES/GOALS

YEARLY STRATEGIC MANAGEMENT CYCLE THE SYSTEMS THINKING APPROACHTM
D E ENVIRONMENT FUTURE SCAN Actions, Change And Follow-Up "Thinking Backwards to the Future" Today Your Ideal Future Strategic Management System (Yearly Cycle) C A Strategies, Business Plans and Priorities Vision, Mission And Values B Feedback/Goals And Measures

GENERAL ELECTRIC’S STRATEGIC MANAGEMENT SYSTEM
Leadership Performance Reviews at Business Locations: All Business Staffs Initiative Leadership Review Level of Commitment/ Quality of Talent on Initiatives Differentiation (20% / 70% / 10%) Promote / Reward / Remove Corporate Executive Council: (CEC at Crotonville Locations: 35 Business and Senior Corporate Leaders Initiative Best Practices Level of commitment/ Rev. of Initiative Leadership Customer Impact Business Management Course (BMC) Recommendations Anonymous Online CEO Survey: 11,000 Employees Do you “Feel” Initiated Yet? Do your customers feel it? Sufficient Resources To Execute? Messages Clear And Credible? Operating Managers Meeting (Boca) 600 Leaders INITIATIVE LAUNCH Case for New Initiative Outside Company Initiative Experience One Year Search Targets Role Model Presentations Re-Launch of Current Initiatives First Quarter Corporate Executive council: CEC at Crotonville 35 Business and Senior Corporate Leaders Early Learning? Customer Reaction? Initiative Resources Sufficient? Business Management Course (BMC) Recommendations Intense Energizing of Initiatives Across Businesses Second Quarter February January March April May June November October September July December August Corporate Officers Meeting: (Crotonville) 150 Officers Next-Year Operating Plan Focus Role Models Present Initiative Successes Executive Development Course (EDC) Recommendations All Business Dialogues: What Have we Learned? Corporate Executive Council: (CEC at Crotonville) 35 business and Senior Corporate Leaders Business Management Course (BMC) Recommendations Clear Role Models Identified Outside Company Best Practices Presented Initiative Best Practices (All Businesses) Customer Impact of Initiatives Corporate Executive Council: (CEC at Crotonville) 35 business and Senior Corporate Leaders Agenda for Boca Individual Business Initiative Highlights Business Management (BCM) Course Recommendations Session 1: 3-Year Strategy Economic / Competitive Environment General Earnings Outlook Initiatives Update/ Strategy Customer Impact Initiative Resource Requirements Operating Plans Presented: All Business Leaders Initiatives Stretch Targets Individual Business Economic Outlook Informal Idea Exchanges at Corporate and Businesses Fourth Quarter Third Quarter

ANNUAL STRATEGIC REVIEW (AND UPDATE)
Within a Strategic Management System and Yearly Cycle (Planning – People – Leadership – Change – Customer Value) BUSINESS EXCELLENCE & SUPERIOR RESULTS The Flywheel And The Rollercoaster 4 3 E Strategic Management System And Yearly Cycle D A 2 1 C B TIMELINE ANNUAL STRATEGIC REVIEWS START YEAR 1 YEAR 2 YEAR 3 YEAR 4

THE SINGAPORE CITY-STATE STRATEGIC MANAGEMENT SYSTEM
URBAN REDEVELOPMENT AUTHORITY (URA) A CONCEPT PLAN -1971/2001 LAND STRATEGIC MANAGEMENT SYSTEM D B - C DEVELOPMENT CONTROL -Formal Review 5 Years MASTER PLAN -10 to 15 years D DEVELOPMENT IMPLEMENTATION Supported by numerous Citizen involvement and Feedback

GAO SHARED BUSINESS MODEL

San Diego Police Dept’s STRATEGIC MANAGEMENT ANNUAL CYCLE
Annual Strategic Planning Process Environmental Scan Look back at past year Celebrate Successes Review Current Goals & Revise and/or Re-Commit! New F.Y. Priorities Annual Strategic Review YEARLY STRATEGIC MANAGEMENT CYCLE Weekly CFC Discussion Preview of Planning Process Finish Strong To Years End Assess and Adapt as Needed Support Goals and Long Term Projects Monthly Zoo Mgmt Meetings Update Discussion by CO’s Tri-Annual Report Out (TARO) Ensure F.Y. Priorities Guide/Focus Strategies Continue meetings, Stay focused 2 of 2

#3 PHASE E: FUTURE ENVIRONMENTAL SCANNING (Versus SWOT of Today) “SKEPTIC” FRAMEWORK IS THE NEW STANDARD

SWOT FRAMEWORK Internal to the Organization/department (In Here)
Strengths “Build On” Weaknesses “Eliminate/Cope” External to the Organization/department (In the environment – Out There) Opportunities “Exploit” Threats “Ease/Lower”

IMPORTANCE OF FUTURE ENVIRONMENTAL SCAN
“The future is shaped by those who see the possibilities before they become obvious” Straits Times

FUTURE ENVIRONMENTAL SCANNING (SKEPTIC)

FUTURE ENVIRONMENTAL SCANNING TEAMS
FORM “SKEPTIC” TEAMS Scanning Area S K E P T I C Senior Management Team Leader Team Members (Max 6) Goal: Quarterly one-page reports to the change leadership team by each team.

FUTURE ENVIRONMENTAL SCANNING / TRENDS
BACKWARDS THINKING SKEPTIC – FUTURE SCAN List the 5-10 environmental trends – projections Facing you over the life of your plan TODAY – IMPLICATIONS (Opportunities – Threats) SPONSOR S Socio-Demographics (People/Society): K Competition/Substitutes: E Economics: E Ecology: P Political / Regulatory: T Technical: I Industry / Supplier: C Customers/Citizens:

#4 PHASE A: IDEAL FUTURE VISION PLATITUDES: (Form over Substance) VISIONARY STATEMENT—VS. DETAILED BACK UP “Provider of Choice” “The best” “World-Class” “Best Value” “Value Added” MISSION STATEMENT: Focus on Keeping it Short Vs. Meaningful: Who? What? Why?

MISSION DEVELOPMENT TRIANGLE EXERCISE
1. Why We Exist? (If not already in vision statement) - Societal Need - Stockholder/Stakeholder Need (Rallying Cry) Positioning: 4. Our Driving Force 3. What We Produce? (As outcome benefits) - Products - Services - Goods - Uses 2. Who We Serve (As our customers) - Geography - Segments - Names

TIME FOR FORMAL QUESTIONS AND ANSWERS

HOW TO APPLY THEM IN YOUR CASE
STUDY PRESENT LEARNINGS 1-2 MINUTES ONLY: 1-3 KEY LEARNINGS HOW TO APPLY THEM IN YOUR CASE

TAKE A BREAK UNTIL NEXT WEEK
SESSION TWO NEXT WEEK IN BETWEEN: IF YOU WANT MORE DETAIL AND FREE ARTICLES ON ANY OF THIS, GO TO

THANK YOU FOR YOUR PARTICIPATION
Stephen Haines Founder and CEO Haines Centre for Strategic Management

Using “The Systems Thinking Approach®”
OD NETWORK CERTIFICATION, JUNE 2007—PART iI STATE OF THE ART REPORT REINVENTING STRATEGIC PLANNING TO DELIVER CUSTOMER VALUE The Top 12 Common Mistakes Most Organizations Make Using “The Systems Thinking Approach®”

REVIEW OF LAST SESSION

A NEW APPROACH PLANNING & CHANGE IS REQUIRED IN THE 21ST CENTURY
THE 21ST CENTURY MACRO BEST PRACTICE: NEW APPROACH NEEDED THINK DIFFERENTLY—THINK STRATEGICALLY Use The Systems Thinking Approach® LOOK FOR SYSTEMS SOLUTIONS TO SYSTEMS PROBLEMS (Not Analytic & Piecemeal Solutions to Systems Problems) CLARITY AND SIMPLICITY = SUCCESS (Simplicity Wins the Game Every Time) THIS IS WHAT THIS STATE OF THE ART REPORT IS ALL ABOUT (So Do Not Take These Best Practices Separately)

#1 “Begin with the end in mind”—Stephen Covey FAILURE TO CLARIFY THE FUTURE AND YOUR DESIRED OUTCOMES FIRST

#2 MOS: “MORE OF THE SAME” = INSANITY Due to lack of understanding of a Yearly Strategic Management System and Cycle

#3 PHASE E: FUTURE ENVIRONMENTAL SCANNING (Versus SWOT of Today) “SKEPTIC” FRAMEWORK IS THE NEW STANDARD

#4 PHASE A: IDEAL FUTURE VISION PLATITUDES: (Form over Substance) VISIONARY STATEMENT FLUFF—VS. DETAILED BACK UP “Provider of Choice” “The best” “World-Class” “Best Value” “Value Added” MISSION STATEMENT: Wrong Focus on Keeping it Short Vs. Meaningful: Who? What? Why?

MISSING AND MIS-UNDERSTOOD “MARKETPLACE POSITIONING”
SESSION TWO BEGINS: STATE OF ART BEST PRACTICES: STRATEGIC PLANNING # 5 PRACTICE #5 MISSING AND MIS-UNDERSTOOD “MARKETPLACE POSITIONING” (The PhD of Strategy) POSITIONING TERMINOLOGY VS. A STANDARD DEFINITION

CUSTOMER VALUE POSITIONING
POSITIONING IS CALLED MANY CONFUSING THINGS: Driving Force Grand Strategy Competitive Advantage Competitive Edge Strategic Intent Image Reputation Brand Identity/Brand STRATEGY USP MEGA STRATEGY Value Value Proposition Identity Market Leader Value-Added

CUSTOMER VALUE POSITIONING
DEFINITION: What is one thing that: is unique, different and better about us in the eyes of the customer vs. the competition in the marketplace that causes them to do business with us? KISS: THIS IS NOT ROCKET SCIENCE

POSITIONING VS. THE COMPETITION
THE DILEMMA: WHERE ARE YOU ON EACH STAR POSITIONING FACTOR? 1. UNIQUE-DIFFERENT & BETTER THAN ALL THE COMPETITION (YOUR COMPETITIVE ADVANTAGE AND POSITIONING IN THE MARKETPLACE) 2. COMPETITIVE VS. THE COMPETITION (COMPETITIVE IN THE MARKETPLACE) 3. NONCOMPETITIVE VS. THE COMPETITON (UNCOMPETITIVE IN THE MARKETPLACE)

WORLD-CLASS STAR POSITIONING
YOUR COMPETITIVE BUSINESS EDGE - “VALUE PROPOSITION”

#6 PHASE B: LINKING KEY SUCCESS MEASURES/GOALS: TO THE VISION, CORE VALUES & POSITIONING (Vs. Enshrining Activities) BALANCED SCORECARD OR QUADRUPTLE BOTTOM LINE

KEY VS. COMPREHENSIVE MEASURES
THESE ARE: KEY SUCCESS MEASURES (OUTCOMES/RESULTS) (STRATEGIC) NOT COMPREHENSIVE ACTIVITY METRICS (DATA) (OPERATIONAL) MEASURE TEN OR LESS KEY SUCCESS RESULTS— THEN, REDUCE THIS TO YOUR THREE MOST IMPORTANT RESULTS (BHAG)

THE QUADRUPLE BOTTOM LINESM BALANCE
The Systems Thinking ApproachSM to Key Success Measures (KSMs) Employees Operations Customers Stockholders (Owners) Stakeholders (Community/Society) Note: The popular “Balanced Scorecard” concept is not a systems approach, but it covers some of the same KSM areas that we do, especially 1,2, and 3.

KEY SUCCESS MEASURES CONTINUOUS IMPROVEMENT MATRIX
(BACKWARDS THINKING) KSM Overall Coordinator for Accountability is (Name/Title) _________________ Base Target 2006 KSM Areas (Headers) Intermediate Targets Target Goal 2011 Comp Bench mark KSM Account Ultimate Target 2007 2008 2009 2010 Specific Header: Factors: 1. 2. 3.

#7 PHASE C: RITUALISTIC AND MEANINGLESS SWOT ANALYSIS (Vs. a Rigorous, in Depth, Best Practices Audit) 1. Future Environmental Scan —a Systems View— For OT (Implications of the Scan vs. the Scan itself) 2. “Building on the Baldrige” —a Systems View— For SW

FUTURE ENVIRONMENTAL SCANNING / TRENDS
BACKWARDS THINKING SKEPTIC – FUTURE SCAN List the 5-10 environmental trends – projections Facing you over the life of your plan TODAY – IMPLICATIONS (Opportunities – Threats) SPONSOR S Socio-Demographics (People/Society): K Competition/Substitutes: E Economics: E Ecology: P Political / Regulatory: T Technical: I Industry / Supplier: C Customers/Citizens:

SWOT: STRATEGIC BUSINESS DESIGN
HOW TO CONDUCT THE STRENGTHS AND WEAKNESSES PART OF A SWOT?

ENTERPRISE-WIDE ASSESSMENT
SYSTEMS —THE INNER WORKINGS USING THE BUSINESS EXCELLENCE ARCHITECTURETM BEST PRACTICES: ENTERPRISE-WIDE ASSESSMENT E FUTURE ENVIRONMENT D ALIGNING DELIVERY A BECOMING CUSTOMER FOCUSED REINVENTING STRATEGIC PLANNING CUSTOMER VALUE C BUILDING A CULTURE OF EXCELLENCE BEST PRACTICES ASSESSMENT RESULTS ACHIEVING LEADERSHIP EXCELLENCE LEADING ENTERPRISE- WIDE CHANGE CREATING THE PEOPLE EDGE B FEEDBACK LOOP QUADRUPLE BOTTOM LINE

#8 CONFUSION OF MEANS AND ENDS (Regarding Goals, Objectives and Strategies)

SYSTEMS THINKING AND STRATEGIC THINKING:
INPUTS  MEANS  ENDS C  D A B Inputs Means Ends Vision Mission/Purposes Values/Culture What Results Outputs Outcomes Goals Success Measures Resources: People Money Equipment Materials Technology Information Strategies Actions How To Behaviors Tasks Activities Tactics Work Plans Throughputs Strategic Thinkers Focus on the relationships between means and ends in their daily work. “Begin with the End in Mind”

#9 IMPORTANCE AND LACK OF SHARED CORE STRATEGIES (As Department Goals for ALL Departments/Units) Three Shared Documents—not Two

SHARED VISION AND VALUES
SHARED VISION AND VALUES ARE KEY—IN ALL MGMT. BOOKS HOWEVER, THERE IS A THIRD “SHARED” DOCUMENT THAT IS KEY TO: STRATEGIC THINKING ON A DAILY BASIS (EAB) EXECUTING AND CASCADING YOUR POSITIONING (DOWN AND ACROSS THE ENTIRE ENTERPRISE) THE ONLY REASON FOR THE EXISTENCE OF YOUR ENTIRE ORGANIZATIONAL CHART WHAT IS IT?

SHARED VISION AND SHARED VALUES —YES!
IT IS SHARED STRATEGIES!! “The Business Glue ”—of an organization is for employee teamwork. The Shared Vision is usually too high a level. It is Shared Strategies across all departments/units that is also needed. “The Social Glue ”--of an organization holds its culture together. It is the Values that guide behavior and “How we do things around here.” “The Glue ” is THE Decision Making Criteria: a. Social =Shared Values =How to do it? b. Business =Shared Strategies =What to do?

GAP ANALYSIS: “BRIDGING THE GAP”
Means     Ends! C D A Current State Assessment Today 1. Core Strategies – “Bridging the Gap” Ideal Future Vision Year xxxx Means 2. Strategic Action Items for Next Year Plus Key Success Measures/Goals B Strategies and Priorities The purpose of having strategies is To keep yourself from being seduced By something that is “nice to do.”

CORE STRATEGIES ARE LIKE THE WEBBING IN A CHAIR
“The Glue That Holds It All Together” CEO F u n c t i o n s S i l o s: Business Unit Drivers A B C D E 1. CORE STRATEGIES ARE CROSS FUNCTIONAL ENTERPRISE-WIDE DRIVERS: 2. CORE STRATEGIES 3. CORE STRATEGIES 4. CORE STRATEGIES

STATE OF ART BEST PRACTICES: STRATEGIC PLANNING #10
FAILURE TO CASCADE STRATEGIC PLANS DOWN (To Three- Year Business Plans for all Units/Departments) Business Units (Line Organization) MFAs (Major Functional Areas) MPAs (Major Program Areas-public?)

LIVING SYSTEMS WITHIN LIVING SYSTEMS ON EARTH
Nested and Interdependent Systems: Systems within Systems within Systems Boundaries and Inter-Connectedness: Nothing exists in isolation— Relationships are everything!

THE CASCADE OF PLANNING/CHANGE
LEADING TO ENTERPRISE-WIDE RESULTS “Strategic Consistency And Operational Flexibility”

“WORK PLAN” FORMAT (FOR FUNCTIONAL/DIVISION WORK PLANS)
# : Strategy/Goals: Yearly Priority # Action Items Support/ Resources Needed Who is Responsible Who else to Involve When Done How to Measure Status

#11 FAILURE TO CASCADE PLANNING AND ACCOUNTABILITY (To ALL Employees) Performance Management System: And the Recognition and Rewards System

SCORECARD CASCADE—LINKAGE
The Cascade-Vertical Linkages 1 of 2

PERFORMANCE APPRAISALS...KISS
Tied to Strategic Planning Performance Appraisals — must be tied to support ... #1 Your organization's Core Strategies (i.e., results) #2 Your organization's Core Values (i.e., behaviors) and #3 Their own learning and growth (i.e., career development) If you are serious about your Strategic Plan Implementation

#12 LACK OF OWNERSHIP (BY Senior and Middle Management) TWO EXTREMES: Private Sector—Low Involvement Public Sector—Too much Involvement When does Change begin? What is the PRIMARY job of Leaders today?

THREE MAIN PREMISES MAIN PREMISE #1 “PLANNING AND CHANGE ARE THE PRIMARY JOB OF LEADERS” MAIN PREMISE #2 “PEOPLE SUPPORT WHAT THEY HELP CREATE ” MAIN PREMISE #3 USE SYSTEMS THINKING—FOCUS ON OUTCOMES—SERVE THE CUSTOMER!

PLAN-TO-PLAN DAY OVERVIEW
AM: EXECUTIVE BRIEFING: 1. Educating 2. Assessing TARGET AUDIENCE: Senior Management Senior Staff Support Board of Directors? Middle Management? Anyone is fine for AM PM: PLAN-TO-PLAN TASKS 3. Organizing 4. Tailoring

STATE OF ART BEST PRACTICES: NO #: JUST SIMPLICITY
FINAL BONUS CLARITY AND SIMPLICITY = SUCCESS

“EVERYTHING IS SIMPLE, YOU SEE
SIMPLICITY YOU SEE “EVERYTHING IS SIMPLE, YOU SEE BUT YOU JUST HAVE TO SEE IT” KEYS: Ask the #1 Systems Question: Clarity of Purpose/Goal? One piece of paper documents Rule of 3

KEEP IT SIMPLE—IN STRATEGIC MANAGEMENT
SIMPLICITY WINS THE GAME EVERY TIME: ONE PIECE OF PAPER DOCUMENTS: ABCs of Strategic Thinking Template Strategic Plan Trifold Annual Plan Priorities (Cheat-Sheet—To Do List) Key Success Measures Matrix (Continuous Improvement—year/year) Yearly Comprehensive Map of Implementation

SUMMARY: THE STATE OF THE ART REPORT

CREATING CUSTOMER VALUE A Totally Integrated Systems Solution
"A THREE-PART STRATEGIC MANAGEMENT SYSTEM” Part I - Goal #1: 20% Effort: Cascade of Planning Phases E-A-B-C: Develop Plans and Documents Step #1 Environ Scan Executive Briefing Support Cadre Training Enterprise Assessmt Part II – Goal #2: 40% Effort: cascade of Change Steps #2-5 Strategic Planning Customer- Focused Compet. Strategy Leader. Develop. System Phase D: Ensure Successful Enterprise-Wide Change Steps #6-7 3-Year Bus. Plans . Annual Plans & Budgets Personal Ldr. Plans HR Mgmt System Step #8 EWC Game Pln Plan-to- Implemt. Capacity Building Blow-Out Bureauc.& Simplicity Step #9 CLT PMO Project Mgmt Teams Waves of Change Culture Step #10 Strategic IQ Audit Annual Review Capacity Building Creating Customer Value SMART START: PLAN-TO-PLAN STRATEGIC THINKING BUSINESS & ANNUAL PLANS SMART START: PLAN TO IMPLEMENT ENTERPRISE WIDE CHANGE SUSTAIN RESULTS Goal# 3: 40% Effort: Year After Year Recycle Superior Results Phase E-A-B-C-D = Business Excellence

STRATEGIC & SYSTEMS THINKING— A NEW WAY TO THINK
“Think Differently” START THINKING ABOUT: (and opportunities) The Environment E (and results) The Outcomes A (and direction) The Future A (and learning) The Feedback B (and measures) The Goals B (and 5,000 feet) The Whole Organization D (and patterns) The Relationships D 1 of 2

STRATEGIC & SYSTEMS THINKING— A NEW WAY TO THINK
STOP THINKING JUST ABOUT: Issues and Problems Parts and Events Boxes/Silos Single Activities of Change Defensiveness Inputs and Resources Separateness How we think ... is how we plan... is how we act And that determines the results we get in work and life

HOW TO APPLY THEM IN YOUR CASE
STUDY PRESENT LEARNINGS 1-2 MINUTES ONLY: 1-3 KEY LEARNINGS HOW TO APPLY THEM IN YOUR CASE

THE BOTTOM LINE What we think, or what we know, or what we believe is,
in the end, of little consequence. The only consequence ... is… what we do!

THANK YOU FOR YOUR PARTICIPATION
Stephen Haines Founder and CEO Haines Centre for Strategic Management

Using “The Systems Thinking Approach®”

Similar presentations

Presentation on theme: "Using “The Systems Thinking Approach®”"— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

Using “The Systems Thinking Approach®”

Similar presentations

Presentation on theme: "Using “The Systems Thinking Approach®”"— Presentation transcript:

Similar presentations

About project

Feedback