Turning Strategy In Action

Presenter: Ajay M. Pangarkar, CTDP, CPA, CMA
Based Upon the Book
The Trainer’s Balanced Scorecard:
A Complete Resource for Linking Learning
to Organizational Strategy
CentralKnowledge
Where Learning…Means Business

CentralKnowledge.com
Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar
Building Business Acumen for Trainers:
Skills to Empower the Learning Function (with CD)
Published by Wiley
Terrence Gargiulo, Ajay M. Pangarkar, Teresa Kirkwood
additional resources
The Trainer’s Balanced Scorecard:
A Complete Resource for Linking Learning
to Organizational Strategy
Ajay M. Pangarkar, Teresa Kirkwood
Published by Wiley

Identify variables supporting
strategy and to deliver results
what to expect
Develop critical process to
strategy formulation
Implement a strategy for
performance expectations
turning
strategy into
action
Learning objectives:
Develop a framework to
support strategy execution

strategy facts…

“approximately 5% of all organizations implement
their strategies successfully, and 70% of
strategic initiatives fail to meet their objectives.
the remaining 25% have some mild success but
do not meet the full potential of the strategy
devised.
- Kotter International

quick question…

what’s strategy to you?
•  Turn to the person next to you
•  Take 3 minutes and describe
what strategy means for you

how strategy is seen…

what strategy is not…

Strategy is more than
just financial results…
…financial success is a
result of a well executed,
performance focused
strategy
- Ajay M. Pangarkar CTDP, CPA, CMA

what strategy is not…

•  provides long-term coherence and direction
•  documents key choices to make
a strategic plan is not a ‘to do list’
•  focuses on ‘big picture’ direction
•  provides operational action items
What it is…It…

deﬁning strategy…

simply as going from
point A to point B…
Where
you are
Where you
want to be


then…
why do so many
still get it wrong?


Mission
Why we exist
Values
What’s important to us
Vision
What’s we want to be
Strategy
Our game plan
Strategy Map
Connecting the strategy
Balanced Scorecard
Managing strategy performance
Targets and Initiatives
What we need to do
Personal Objectives
What I need to do
Satisfied
Shareholders
Happy
Customers
Effective
Processes
Motivated
Workforce
Strategic Outcomes
Ref:
Kaplan
&
Norton

?
core strategy concepts

Getting to… B
Where are
we now
Where are
we going
How will we
get there?
?
Can you answer these questions?
Take 5 minutes; turn to your neighbour and try

?
core strategy concepts

Getting to… B
Where are
we now
Where are
we going
How will we
get there?
?

core strategy concepts!
Mission and
Objectives
Environmental
Scan
Strategy
Implementation
Strategy
Formulation
Evaluation &
Control
?
where are
we now
how will we
get there?
where are
we going?

strategy development!
1
define the
mission 2
3
identify
expectations
evaluate
situation
4
address
options 5
implement
option(s) 6
align
operations
we’re going to “storyboard” strategy

the case: sky air

•  Sky Air, a value driven airline
•  Strategy shift from market growth to profitability
•  Profit growth through revenue or efficiency
•  Loyal clients enjoying value from SkyAir
•  CEO wants efficiency over revenue growth

where do we begin?

we need to start
somewhere…
what do you think?

basic mission concepts

Current focus:
•  what is the mission? none?…imply one
•  does it clearly communicate intent? no, why?
Future direction:
•  does the current one fit? no, why?
•  what changes/modification is required?
Keep in mind
mission components
why; what; how; where; values
1
define the
mission

basic mission concepts

HOW an organization
accomplishes what it
does to exist!
Corporate Strategy
Mission
WHAT an organization
must do to become
what it aspires to be!
Vision
Business Strategy
1
define the
mission

what a mission can do…

Be the world's best quick service restaurant
experience. Being best means providing outstanding
quality, service, cleanliness, and value, so that we
make every customer in every restaurant smile
McDonald’s mission:
1
define the
mission
what are your observations about the mission?

now it’s your turn…

In your group:
§  read the SkyAir case
§  together, identify Sky Air’s mission
§  what is the current focus?
we’re going to “storyboard” SkyAir
1
define the
mission

sky air’s mission

Dedication to building a recognized brand with…
•  the highest quality customer service and respect
•  delivered with a sense of warmth, friendliness,
individual pride, and company spirit
•  continuing building our unique position as a
leading short haul, point-to-point carrier in North
America.
1
define the
mission

anchor your strategy…

customer
intimacy
product
leadership
operational
excellence
value disciplines focus
•  customer needs
•  value not price
•  market leader
•  innovator, adopters
•  lean operations
•  efficiency, reliability
example
2
identify
expectations
Can a company have more than one?

other analysis tools?

Core Competence (P&H)
•  what do we do better
than others
Porter’s ‘what is strategy?’
•  cost leadership,
differentiation, market focus
2
identify
expectations


In your group:
§  revisit the mission
§  decide on a primary discipline
§  what is their strategy focus?
what’s SkyAir’s “anchor”?
2
identify
expectations

strategic analysis

Strategically analyze
industry/competitive
conditions
your company’s
situation
What strategic
options does the
company have?
What is the
best strategy?
mission
à opportunities
à threats
à strengths
à weaknesses
à stakeholder needs
revised mission
3
evaluate
situation

strategic analysis – external

Key Questions:
•  What are the industry’s dominant features?
•  What’s changing the competitive/business
environment?
•  Which companies are in strong/weak positions?
•  What strategic moves are rivals likely to make?
•  What are key factors for competitive success?
•  Is the industry attractive and what are the
prospects for above-average profitability?
industry/competitive
conditions
3
evaluate
situation
external focus

strategic analysis – internal

Key Questions:
•  How well is the present strategy working?
•  What are the company’s strengths,
weaknesses, opportunities, and threats?
•  Are the company’s prices/costs competitive?
•  How strong is the company’s competitive
position?
•  What strategic issues does the company face?
your company’s
situation
3
evaluate
situation
internal focus

swot analysis

S = what do we do well
W= what do we do poorly
O = what is the industry growth
T= what are industry challenges
3
evaluate
situation

‘keys’ to the company

key success factors
•  necessary to achieve the mission
•  vital for a successful strategy
•  drives the strategy forward;
makes or breaks it
key risk factors
•  not meeting a KSF
•  external threats or festering
weaknesses
3
evaluate
situation

quick question…

what are your ksf’s?
•  Take 5 minutes; come up with
3 ksf’s for your company
•  Ensure they are ksf’s and not
competitive advantages
3
evaluate
situation

other analysis tools?

Porters 5 Forces
•  Supplier, buyer, rivalry,
substitution, new entry
others you use?
PESTEL
•  Political, economic, social,
technology, environmental, legal
3
evaluate
situation


In your group:
§  review the SWOT provided
§  identify additional SWOT points
§  identify KSFs/KRFs
§  define is the stakeholder need
evaluate SkyAir’s “situation”
3
evaluate
situation

address strategic options

evaluate options to address issues:
1.  operational efficiencies (flight turnaround)
2.  revenue growth (premium packages)
strategy alignment ‘test’:
•  align with the mission?
•  meet with stakeholder needs?
•  fit with the value discipline?
•  capitalizes on KSFs?
4
address
options


In your group:
§  select one option
§  evaluate its pros and cons
§  how well does it align?
§  hint: review the current situation
evaluate SkyAir’s strategic “options”
4
address
options

strategic ﬁt

Best
Strategy
A good fit?
Competitive
advantage?
Performance
objectives?
Fit the Mission?
5
implement
option(s)
overall objectiveoperational performance


In your group:
§  review the original mission
§  does it need to be modified?
§  if yes, then modify it
evaluate SkyAir’s “mission”…again
mission revised mission
5
implement
option(s)

sky air’s (revised) mission

Dedication to building a recognized brand with…
•  the highest quality customer service and respect
•  delivered with a sense of warmth, friendliness,
individual pride, and company spirit
•  continuing building our position as a leading
operationally efficient short haul, value driven
fares, point-to-point carrier in North America.
5
implement
option(s)
time to ‘operationalize’ the mission

operational performance

“a set of management processes help to improve
management, strategy execution and decision making.
it helps execute strategy and to measure and monitor
performance to make strategic decisions and learning.
it is the quality of those decisions that separate
successful companies from the rest
- Advanced Performance Institute
6
align
operations
performance management is…

operational performance

6
align
operations
Financial objectives
“What stakeholders want?”
Customer expectations
“How customers see us?”
operational
financial results
market reality and
expectations
support external
requirements
enable operational
requirements
Internal focus
“What must we do well?”
Learning capacity
“Improve/create value?”
• operationalize
the mission
this how you:
• measure strategy
performance

Customer
Need
Identified
Design Develop Make Market
Customer
Need
Satisfied
Service
Time to Market Supply Chain
CUSTOMER CUSTOMERINTERNAL PROCESS
LEARNING & GROWTH
Innovation Operations
FINANCIAL
performance & value chain

6
align
operations

• Sales training
program
• Custom. service
training
• HR hiring plan
• 50% incr leads
• 10% incr. satisf
• Maintain/incr.
level by 15% /
month
• Sales/month
• Client satisf.
• Client retention
• Weekly perform
reviews
• Develop/hire
sales staff
• Develop/hire
cust. Service
staff
Learning
• Incr. Resource
to R&D
• Benchmarking
• <$2M/quarter
• >75 days from
current
• >10 min/client
• Invst. in R&D
• Development to
mkt turnaround
• Cust. resp time
• Develop innov.
products
• Reduce client
handling
Internal
• Cust. service
• Innovation
management
• Customer
loyalty program
• < 90% satisf.
rate from 2005
• Survey 75%
clients
• % change
• Cust. satisf
survey/levels
• Survey current
customers
• Increase client
loyalty
• Build client relat.
And identify
client needs
Customer
• Ident. markets
• Stabilize prod
cost
• Acquire sales
tools
• 35% in 2 years
• 22% / year
• 40% / year
• Revenue stmt.
• Production level
• Sales forecasts
• Revenue incr.
• Increase prod.
• Increase sales
Financial
InitiativesTargetsMeasuresObjectivesStrategy Map
Incr. revenue
Increase
production
Increase
sales levels
Increase
client loyalty
Develop
cust. relation.
Develop
new products
Align
Sales team
Develop
cust. service
staff
Facilitate
client interaction
performance framework

6
align
operations


In your group:
§  use the revised mission and swot
§  complete the BSC provided
§  map the performance links
operationalize SkyAir’s “strategy”
6
align
operations

sky air performance

6
align
operations
Objectives Measures Target Initiative
Financial 1.  Increase profits
2.  Increase revenue
3.  Fleet management
• P&L forecast to actual
• Incrm. revenue report
• Reduce fleet size;
reduce cost; incr. profit
• 10% net profit/yr
• 15% / year
• 35 planes
• Optimize flight time
• Intro high margin products
• Increase customer capacity of
existing fleet
Customer 1.  Flight is on-time
2.  Lowest prices
3.  Customer
satisfaction
• FAA OnTime arrival
rating
• SA to industry price
report
• Customer survey
• 90% on-time arrival
• Currently #2 by
Consumer Report
• 85% satisfaction
• Quality management
• Manage prices to 5% lower than
competitors
• Customer loyalty program
Internal 1.  Fast turn around
2.  Fast passenger
processing
3.  Effective resource
utilization
• On ground time
• Time to disembark and
board
• Resource utilization
report
• 30 minutes or less
• 25 minutes or less
• 90% resource use
• Cycle time optimization for ground
crew
• Cycle time optimization for gate/
boarding crew
Learning 1.  Ground crew
alignment
2.  Boarding/Gate staff
alignment
• Cycle time optimization
benchmark report
• Cycle time optimization
benchmark report
• 30min turnaround
(15% improve)
• 90% resource use
• 25 min. boarding
• 95% satisfaction
• Ground crew activity analysis
• Optimize value add activities
• Assess resource utilization
• Boarding/gate staff analysis
• Identify passengers concern

quick question…

what are you taking
away today?
•  Take 3 minutes to name what is your
take-away and how you will apply it

turning strategy into action
learning objectives review:
§  Failure occurs when not operationalized
§  Creates tangible connections
throughout the organization
§  Recognize strategy is not just financial
§  Aligns with the mission
§  Need to know where you want to go
§  An evolving process to achieve the mission
§  Objectively assess its current situation
§  Leverages what it does well,
mitigates what it doesn’t

turning strategy into action
turning
strategy into
action
learning objectives review:
§  Failure occurs when not operationalized
§  Creates tangible connections
throughout the organization
§  Recognize strategy is not just financial
§  Aligns with the mission
§  Need to know where you want to go
§  An evolving process to achieve the mission
§  Objectively assess its current situation
§  Leverages what it does well,
mitigates what it doesn’t

TrainingIndustry.com
—  The CLO Reality:
What It Takes to Lead & Manage the Learning Function
—  The Business Leaders Bottom Line:
Aligning Learning With Organizational Needs
—  Building Strategic Learning Linkages:
Mapping & Measuring Your Learning Strategy
TrainingMag “Last Word”
—  Taking Care of Business
—  Let’s Get Naked!
“Workforce Revolution!” blog.centralknowledge.com
thank you…please follow my blog

Ajay M. Pangarkar CTDP, CPA, CMA
t: 866-489-7378 x 1
e: ajayp@centralknowledge.com

@ajaypangarkar

30% DISCOUNT CODE: WLY15 @Wiley.com

Turning Strategy In Action

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Ähnlich wie Turning Strategy In Action

Ähnlich wie Turning Strategy In Action (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Turning Strategy In Action