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STATE OF THE ART REPORT REINVENTING STRATEGIC PLANNING TO DELIVER CUSTOMER VALUE The Top 12 Common Mistakes Most Organizations Make Using The Systems Thinking.

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Presentation on theme: "STATE OF THE ART REPORT REINVENTING STRATEGIC PLANNING TO DELIVER CUSTOMER VALUE The Top 12 Common Mistakes Most Organizations Make Using The Systems Thinking."— Presentation transcript:

1 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® OD NETWORK CERTIFICATION, JUNE 2007PART I

2 2 FOUNDED 1990OFFICES IN OVER 20 COUNTRIES THE CENTRES GLOBAL MAP: We Are The World Leader in Strategic Management Powered by Systems Thinking A GLOBAL ALLIANCE OF MASTER CONSULTANTS AND TRAINERS

3 3 WHO IS STEVE HAINES? STEVE HAINES Founder & CEO: Centre for Strategic Management ® Systems Thinking Press ® Founded in 199038 Offices20 Countries STEVE is a: CEOEntrepreneurGlobal Strategist and A FacilitatorSystems ThinkerProlific Author (of 12+ books) A graduate of the US NAVAL ACADEMYs Legendary Leadership Class of 1968

4 4 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? 26131210 432432 THESE ARE THE UNIVERSAL ORGANIZING FRAMEWORKS OF OUR LIVES!!!

5 5 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

6 6 SIMPLICITY AND COMPLEXITY I wouldnt give a fig for the Simplicity this side of Complexity (Simplistic) But Id 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 But It takes real genius to simplify by including the complications --John Johnson (TEC Chair)

7 7 GREAT LEADERS 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 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

8 8 COMMON STRENGTHS OF MOST ORGANIZATIONS 1.Strategic Plan and Document itself 2.The focus on Goals (Different Names) 3.The Continuity of the process-year after year 4.An Annual Review and Update of the Document 5.The focus on Mission, Vision and Core Values 6.A detailed list of Annual Actions that underlie the Goals 7.The extensive use of Measures/Metrics-especially financial 8.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

9 9 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

10 10 A NEW APPROACH PLANNING & CHANGE IS REQUIRED IN THE 21 ST CENTURY THINK DIFFERENTLYTHINK 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) NEW APPROACH NEEDED THE 21 ST CENTURY MACRO BEST PRACTICE:

11 11 LEADING STRATEGIC MANAGEMENT TO DELIVER CUSTOMER VALUE Strategic Strategic Planning Planning StrategicChange StrategicThinking VALUE

12 12 COMMON SENSE IF NOTHING ELSE WORKS, THIS MAY BE A PERFECT OPPORTUNITY TO USE COMMON SENSE.

13 13 LOGISTICS

14 14 STRATEGIC PLANNING DEFINED 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? ixix

15 15 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

16 16 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

17 17 FAILURE OF ENTERPRISE-WIDE STRATEGIC CHANGE MAJOR CHANGE FAILS 75% OF THE TIME: WHY?

18 18 STATE OF ART BEST PRACTICES: STRATEGIC PLANNING # 1 Begin with the end in mindStephen Covey FAILURE TO CLARIFY THE FUTURE AND YOUR DESIRED OUTCOMES FIRST PRACTICE #1

19 19 #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.

20 20 SYSTEMS THINKING The Science of Living Systems The natural way the world works Backed by 50+ Years of Scientific Research

21 21 THE LAWS OF NATURE What Shall We Plant This Year? Cycle of Productive Life What Shall We Plant Next Year?

22 22 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 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 So...if we generally use analytical thinking, we now need real Systems Thinking to resolve our issues. Stephen G. Haines

23 23 THINKPLANACTRESULTS How you think Is how you plan Is how you act And that Determines the results you get in work and life

24 24 OUR COMPLEX WORLD TODAY!

25 25 COMPLEXITY – THE RUBIKS CUBE "The Organization as a System" From: Chaos & Complexity To: Elegant Simplicity How to Start Moving:

26 26 GET A HIGHER AND BROADER PERSPECTIVE Take a Helicopter View of Life!

27 27 A SYSTEM DEFINED A SYSTEM : IS A SET OF PARTS OR COMPONENTS THAT WORK TOGETHER FOR THE OVERALL OBJECTIVES OF THE WHOLE

28 28 SYSTEMS THINKING BASICS HOW WOULD YOU DRAW A SYSTEMANY SYSTEM????

29 29 SIMPLICITY OF SYSTEMS THINKING Which question goes where? 1.What do we do? 2.What do we achieve? Which is: The Means? The Ends? Where should you start your thinking and planning for Change ?

30 30 SIMPLICITY OF SYSTEMS THINKING ENVIRONMENT The Best, Most Holistic, Integrated, Organizing Framework There is!

31 31 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).

32 32 STRATEGIC THINKING – ABCs TEMPLATE Clarify and Simplify Your Thinking – About your Project ___________________________________________________________________ (Name of the Organization – Issue – Problem – Project – Change Effort, etc Future Environmental Scan: What will be changing in your future environment that will affect us? E E C C D D A A System Throughput/Processes: How do we get there (close the gap from C A )? C C A A ___________ Todays Date Feedback Loop/ Key Success Measurements: How will we know when we get there? B B Desired Outcomes- #1 System Question: Where do we want to be? Strengths Threats Weaknesses Opportunities1 2 3 4 5 4 ___________ Future Date Inputs (SWOT):CORE STRATEGIES:TOP PRIORITY ACTIONS:OUTPUTS/OUTCOMES: Current State Assessment: Where are you now?..........

33 33 ORGANIZING FRAMEWORKS ARE KEY Give people the conceptual tools – The integrated frameworks – models to organize their evidence – their experience – their learnings Give people the conceptual tools – The integrated frameworks – models to organize their evidence – their experience – their learnings

34 34 ORGANIZING FRAMEWORKS ARE KEY Otherwise, adults do NOT learn best by doing things Otherwise, adults do NOT learn best by doing things

35 35 ORGANIZING FRAMEWORKS ARE KEY 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 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

36 36 SYSTEMS THINKING: 50 YEARS OF SCIENTIFIC RESEARCH FATHER OF SYSTEMS THINKINGLUDWIG von BERTALANFFY 1954-Society of General Systems ResearchThree Nobel Prize Winners +LvB Ken Boulding (Economics)Anatol Rapoport (Math)Ralph Gerard (Physiology) Margaret MeadBuckminster FullerJames G. Miller Abraham MaslowErik EriksonJuan Piaget Peter DruckerEdward DemingRussell Ackoff Jay ForresterDick BeckhardSteven Covey Peter SengeMargaret WheatleyBarry OshrySteve Haines

37 37 STATE OF ART BEST PRACTICES: STRATEGIC PLANNING # 2 MOS: MORE OF THE SAME = INSANITY Due to lack of understanding of a Yearly Strategic Management System and Cycle PRACTICE #2

38 38 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 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

39 39 THE ABCs OF STRATEGIC CHANGE MANAGEMENT STRATEGIC PLANNING HAS BEEN REINVENTED: IT IS NOW STRATEGIC CHANGE MANAGEMENTFOUR COMPONENTS: Planning 2. People 3. Leadership 4. Change To Deliver Customer Value SO... Strategic Change Management is the new wayA yearly cycle on How to ACHIEVE Business Excellence & Superior Results

40 40 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)

41 41 REINVENTING STRATEGIC MANAGEMENT Planning People Leadership Change 1.PLAN TO-PLAN BEGIN HERE 9. STRATEGY IMPLEMENTATION (AND ENTERPRISE-WIDE CHANGE) CUSTOMER VALUE 10. ANNUAL STRATEGIC REVIEW (AND UPDATE) 8. PLAN-TO IMPLEMENT THE SYSTEMS THINKING APPROACH TM TO CREATING YOUR COMPETITIVE EDGE C INPUT A OUTCOMES FUTURE STATE STRATEGIC CHANGE MANAGEMENT D PROCESSES B. FEEDBACK E FUTURE ENVIRONMENT SCAN 2. IDEAL FUTURE VISION STATE CURRENT ENV. SCAN VISION MISSION CORE VALUES POSITIONING RALLY CRY ALIGNMENT OF DELIVERY ATTUNEMENT OF PEOPLE 3. KEY SUCCESS MEASURES/GOALS 4. CURRENT STATE ASSESSMENT 5. STATEGY DEVELOPMENT 6. THREE-YEAR BUSINESS PLANS 7. ANNUAL PLANS/ STRATEGIC BUDGETS

42 42 YEARLY STRATEGIC MANAGEMENT CYCLE THE SYSTEMS THINKING APPROACH TM "Thinking Backwards to the Future" B C A D Strategic Management System (Yearly Cycle) Your Ideal Future Today Vision, Mission And Values Feedback/Goals And Measures Strategies, Business Plans and Priorities +++++++ Actions, Change And Follow-Up E FUTURE ENVIRONMENT SCAN

43 43 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 GENERAL ELECTRICS STRATEGIC MANAGEMENT SYSTEM First Quarter Second Quarter Third QuarterFourth Quarter January March September October February August April November June December July May Intense Energizing of Initiatives Across Businesses Corporate Executive council: CEC at Crotonville 35 Business and Senior Corporate Leaders Early Learning? Customer Reaction? Initiative Resources Sufficient? 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? 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 Corporate Executive Council: (CEC at Crotonville) 35 business and Senior Corporate Leaders Agenda for Boca Individual Business Initiative Highlights Business Management (BCM) Course Recommendations Operating Plans Presented: All Business Leaders Initiatives Stretch Targets Individual Business Operating Plans Economic Outlook 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 Informal Idea Exchanges at Corporate and Businesses Session 1: 3-Year Strategy Economic / Competitive Environment General Earnings Outlook Initiatives Update/ Strategy Customer Impact Initiative Resource Requirements

44 44 ANNUAL STRATEGIC REVIEW (AND UPDATE) START Within a Strategic Management System and Yearly Cycle The Flywheel And The Rollercoaster Strategic Management System And Yearly Cycle E E D D C C B B A A YEAR 1YEAR 2 YEAR 3 YEAR 4 BUSINESS EXCELLENCE & SUPERIOR RESULTS (Planning – People – Leadership – Change – Customer Value) 1 2 3 4 TIMELINE ANNUAL STRATEGIC REVIEWS

45 45 THE SINGAPORE CITY-STATE STRATEGIC MANAGEMENT SYSTEM URBAN REDEVELOPMENT AUTHORITY (URA) CONCEPT PLAN -1971/2001 MASTER PLAN -10 to 15 years - Supported by numerous Citizen involvement and Feedback D D CB A DEVELOPMENT IMPLEMENTATION DEVELOPMENT CONTROL -Formal Review 5 Years LAND STRATEGIC MANAGEMENT SYSTEM

46 46 GAO SHARED BUSINESS MODEL

47 47 San Diego Police Depts STRATEGIC MANAGEMENT ANNUAL CYCLE YEARLY STRATEGIC MANAGEMENT CYCLE Look back at past year Celebrate Successes New F.Y. Priorities Assess and Adapt as Needed Ensure F.Y. Priorities Guide/Focus Strategies Environmental Scan Update Discussion by COs Review Current Goals & Revise and/or Re-Commit! Finish Strong To Years End Preview of Planning Process Continue meetings, Stay focused Annual Strategic Planning Process Weekly CFC Discussion Monthly Zoo Mgmt Meetings Tri-Annual Report Out (TARO) Support Goals and Long Term Projects Annual Strategic Review Annual Strategic Review 2 of 2

48 48 STATE OF ART BEST PRACTICES: STRATEGIC PLANNING # 3 PHASE E: FUTURE ENVIRONMENTAL SCANNING (Versus SWOT of Today) SKEPTIC FRAMEWORK IS THE NEW STANDARD PRACTICE #3

49 49 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

50 50 IMPORTANCE OF FUTURE ENVIRONMENTAL SCAN The future is shaped by those who see the possibilities before they become obvious Straits Times The future is shaped by those who see the possibilities before they become obvious Straits Times

51 51 FUTURE ENVIRONMENTAL SCANNING (SKEPTIC)

52 52 FUTURE ENVIRONMENTAL SCANNING TEAMS FORM SKEPTIC TEAMS Scanning Area S K E 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.

53 53 FUTURE ENVIRONMENTAL SCANNING / TRENDS TODAY – IMPLICATIONS ( O pportunities – T hreats) SPONSOR SKEPTIC – FUTURE SCAN List the 5-10 environmental trends – projections Facing you over the life of your plan S Socio-Demographics (People/Society): K Competition/Substitutes: E Economics: E Ecology: P Political / Regulatory: T Technical: I Industry / Supplier: C Customers/Citizens: BACKWARDS THINKING

54 54 STATE OF ART BEST PRACTICES: STRATEGIC PLANNING # 4 PHASE A: IDEAL FUTURE VISION PLATITUDES: (Form over Substance) VISIONARY STATEMENTVS. 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? PRACTICE #4

55 55 MISSION DEVELOPMENT TRIANGLE EXERCISE 2. Who We Serve (As our customers) - Geography - Segments - Names 3. What We Produce? (As outcome benefits) - Products - Services - Goods - Uses 1. Why We Exist? (If not already in vision statement) - Societal Need - Stockholder/Stakeholder Need (Rallying Cry) Positioning: 4. Our Driving Force

56 56 TIME FOR FORMAL QUESTIONS AND ANSWERS

57 57 PRESENT LEARNINGS 1-2 MINUTES ONLY: 1-3 KEY LEARNINGS HOW TO APPLY THEM IN YOUR CASE CASE STUDY

58 58 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 www.HainesCentre.com

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

60 60

61 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® OD NETWORK CERTIFICATION, JUNE 2007PART iI

62 62 REVIEW OF LAST SESSION

63 63 A NEW APPROACH PLANNING & CHANGE IS REQUIRED IN THE 21 ST CENTURY THINK DIFFERENTLYTHINK 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) NEW APPROACH NEEDED THE 21 ST CENTURY MACRO BEST PRACTICE:

64 64 STATE OF ART BEST PRACTICES: STRATEGIC PLANNING # 1 Begin with the end in mindStephen Covey FAILURE TO CLARIFY THE FUTURE AND YOUR DESIRED OUTCOMES FIRST PRACTICE #1

65 65 STATE OF ART BEST PRACTICES: STRATEGIC PLANNING # 2 MOS: MORE OF THE SAME = INSANITY Due to lack of understanding of a Yearly Strategic Management System and Cycle PRACTICE #2

66 66 STATE OF ART BEST PRACTICES: STRATEGIC PLANNING # 3 PHASE E: FUTURE ENVIRONMENTAL SCANNING (Versus SWOT of Today) SKEPTIC FRAMEWORK IS THE NEW STANDARD PRACTICE #3

67 67 STATE OF ART BEST PRACTICES: STRATEGIC PLANNING # 4 PHASE A: IDEAL FUTURE VISION PLATITUDES: (Form over Substance) VISIONARY STATEMENT FLUFFVS. 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? PRACTICE #4

68 68 SESSION TWO BEGINS: STATE OF ART BEST PRACTICES: STRATEGIC PLANNING # 5 MISSING AND MIS-UNDERSTOOD MARKETPLACE POSITIONING (The PhD of Strategy) POSITIONING TERMINOLOGY VS. A STANDARD DEFINITION PRACTICE #5

69 69 CUSTOMER VALUE POSITIONING POSITIONING IS CALLED MANY CONFUSING THINGS: Driving ForceGrand Strategy Competitive Advantage Competitive Edge Strategic IntentImage ReputationBrand Identity/Brand STRATEGY USP MEGA STRATEGY Value Value Proposition Identity Market LeaderValue-Added

70 70 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

71 71 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)

72 72 WORLD-CLASS STAR POSITIONING YOUR COMPETITIVE BUSINESS EDGE - VALUE PROPOSITION

73 73 STATE OF ART BEST PRACTICES: STRATEGIC PLANNING # 6 PHASE B: LINKING KEY SUCCESS MEASURES/GOALS: TO THE VISION, CORE VALUES & POSITIONING (Vs. Enshrining Activities) BALANCED SCORECARD OR QUADRUPTLE BOTTOM LINE PRACTICE #6

74 74 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)

75 75 THE QUADRUPLE BOTTOM LINE SM BALANCE The Systems Thinking Approach SM to Key Success Measures (KSMs) 1.Employees a.Operations 2.Customers 3.Stockholders (Owners) 4.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.

76 76 Base Target 2006 KEY SUCCESS MEASURES CONTINUOUS IMPROVEMENT MATRIX KSM Overall Coordinator for Accountability is (Name/Title) _________________ (BACKWARDS THINKING) KSM Areas (Headers) Intermediate Targets 2007200820092010 Ultimate Target Comp Bench mark KSM Account Specific Header: Factors: 1. 2. 3. Target Goal 2011

77 77 STATE OF ART BEST PRACTICES: STRATEGIC PLANNING # 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) PRACTICE #7 2. Building on the Baldrige a Systems View For SW

78 78 FUTURE ENVIRONMENTAL SCANNING / TRENDS TODAY – IMPLICATIONS ( O pportunities – T hreats) SPONSOR SKEPTIC – FUTURE SCAN List the 5-10 environmental trends – projections Facing you over the life of your plan S Socio-Demographics (People/Society): K Competition/Substitutes: E Economics: E Ecology: P Political / Regulatory: T Technical: I Industry / Supplier: C Customers/Citizens: BACKWARDS THINKING

79 79 SWOT: STRATEGIC BUSINESS DESIGN HOW TO CONDUCT THE STRENGTHS AND WEAKNESSES PART OF A SWOT?

80 80 SYSTEMS THE INNER WORKINGS USING THE BUSINESS EXCELLENCE ARCHITECTURE TM BEST PRACTICES: ENTERPRISE-WIDE ASSESSMENT CREATING THE PEOPLE EDGE BUILDING A CULTURE OF EXCELLENCE REINVENTING STRATEGIC PLANNING LEADING ENTERPRISE- WIDE CHANGE ACHIEVING LEADERSHIP EXCELLENCE BECOMING CUSTOMER FOCUSED ALIGNING DELIVERY CUSTOMER VALUE B C D E A BEST PRACTICES ASSESSMENT RESULTS FUTURE ENVIRONMENT FEEDBACK LOOP QUADRUPLE BOTTOM LINE

81 81

82 82 STATE OF ART BEST PRACTICES: STRATEGIC PLANNING # 8 CONFUSION OF MEANS AND ENDS (Regarding Goals, Objectives and Strategies) PRACTICE #8

83 83 SYSTEMS THINKING AND STRATEGIC THINKING: INPUTS MEANS ENDS CDA Means Ends Strategies Actions How To Behaviors Tasks Activities Tactics Work Plans Throughputs Vision Mission/Purposes Values/Culture What Results Outputs Outcomes Goals Success Measures Strategic Thinkers Focus on the relationships between means and ends in their daily work. Begin with the End in Mind Inputs Resources: People Money Equipment Materials Technology Information B

84 84 STATE OF ART BEST PRACTICES: STRATEGIC PLANNING # 9 IMPORTANCE AND LACK OF SHARED CORE STRATEGIES (As Department Goals for ALL Departments/Units) Three Shared Documentsnot Two PRACTICE #9

85 85 SHARED VISION AND VALUES SHARED VISION AND VALUES ARE KEYIN 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?

86 86 SHARED VISION AND SHARED VALUES YES! 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? IT IS SHARED STRATEGIES!!

87 87 GAP ANALYSIS: BRIDGING THE GAP B B D D C C A A Means Ends! Current State Assessment Today Ideal Future Vision Year xxxx Strategies and Priorities The purpose of having strategies is To keep yourself from being seduced By something that is nice to do. 1. Core Strategies – Bridging the Gap 2. Strategic Action Items for Next Year Plus Key Success Measures/Goals Means

88 88 CORE STRATEGIES ARE LIKE THE WEBBING IN A CHAIR The Glue That Holds It All Together CEO A DECB 1. CORE STRATEGIES ARE CROSS FUNCTIONAL 2. CORE STRATEGIES 3. CORE STRATEGIES 4. CORE STRATEGIES F u n c t i o n s - S i l o s: Business Unit Drivers ENTERPRISE-WIDE DRIVERS:

89 89 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?) PRACTICE #10

90 90

91 91 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! Boundaries and Inter-Connectedness: Nothing exists in isolation Relationships are everything!

92 92 THE CASCADE OF PLANNING/CHANGE Strategic Consistency And Operational Flexibility LEADING TO ENTERPRISE-WIDE RESULTS

93 93 WORK PLAN FORMAT (FOR FUNCTIONAL/DIVISION WORK PLANS) #: Strategy/Goals: Yearly Priority # Action ItemsSupport/ Resources Needed Who is Responsible Who else to Involve When Done How to Measure Status

94 94 STATE OF ART BEST PRACTICES: STRATEGIC PLANNING # 11 FAILURE TO CASCADE PLANNING AND ACCOUNTABILITY (To ALL Employees) Performance Management System: And the Recognition and Rewards System PRACTICE #11

95 95 SCORECARD CASCADELINKAGE The Cascade-Vertical Linkages 1 of 2

96 96 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

97 97 STATE OF ART BEST PRACTICES: STRATEGIC PLANNING # 12 LACK OF OWNERSHIP (BY Senior and Middle Management) TWO EXTREMES: Private SectorLow Involvement Public SectorToo much Involvement When does Change begin? What is the PRIMARY job of Leaders today? PRACTICE #12

98 98 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 THINKINGFOCUS ON OUTCOMESSERVE THE CUSTOMER!

99 99 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 TARGET AUDIENCE: Senior Management Senior Staff Support

100 100 STATE OF ART BEST PRACTICES: NO #: JUST SIMPLICITY CLARITY AND SIMPLICITY = SUCCESS FINAL BONUS

101 101 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

102 102 KEEP IT SIMPLEIN 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-SheetTo Do List) Key Success Measures Matrix (Continuous Improvementyear/year) Yearly Comprehensive Map of Implementation

103 SUMMARY: THE STATE OF THE ART REPORT

104 104 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 Steps #2-5 Strategic Planning Customer- Focused Compet. Strategy Leader. Develop. System 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 Change Step #10 Strategic IQ Audit Annual Strategic Review Capacity Building Creating Customer Value Part II – Goal #2: 40% Effort: cascade of Change Phase D: Ensure Successful Enterprise-Wide Change 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 Phase E-A-B-C-D = Business Excellence Superior Results

105 105 STRATEGIC & SYSTEMS THINKING A NEW WAY TO THINK Think Differently START THINKING ABOUT: 1 of 2 B A D E D B A 1.The Environment 2.The Outcomes 3.The Future 4.The Feedback 5.The Goals 6.The Whole Organization 7.The Relationships (and opportunities) (and results) (and direction) (and learning) (and measures) (and helicopters @ 5,000 feet) (and patterns)

106 106 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 STRATEGIC & SYSTEMS THINKING A NEW WAY TO THINK

107 107 PRESENT LEARNINGS 1-2 MINUTES ONLY: 1-3 KEY LEARNINGS HOW TO APPLY THEM IN YOUR CASE CASE STUDY

108 108 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! 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!

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


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