Innovative execution measures to improve business results. Creating business and organizational alignment. From NJOD Annual Day of Sharing, May 2007

1. Measure for Measure
Innovative Execution Measures to
Improve Business Results
Presented By:
Rosanna D’Orazio – Franklin Covey
Christine Troianello – Avaya
NJOD Annual Sharing Day
May 3, 2007

2. What Causes Strategy Failures?
The execution gap is the great
‪
unaddressed issue in the business
world today
—Larry Bossidy & Ram Charan,
‪
Execution: The Discipline of Getting Things Done
‪

3. Does Execution Matter?
Companies with Strong Alignment Return 4 Times More to
Shareholders
25%
20%
15%
Total Return to
10% Shareholders
1999-2001
5%
0%
Weak Strong
Alignment Alignment
Source: Watson Wyatt study of 12,750 US Workers in 2002

4. Barriers to Execution
Clarity Do people know what’s most
important?
Commitment Have they embraced the organization’s
most critical goals?
Translation to Action Do they know what they must do to achieve
the goals?
Does the organization make it easy for
Enabling workers to achieve the goals?
Is the organization working effectively
Synergy
together to achieve goals?
Accountability Is everyone accountable to their peers to
achieve the goals?

5. Execution Happens on 3 Levels
 Individual goal clarity
 Engagement/commitment
Individual  Personal planning discipline
 Responsibility for results
 Time spent on key priorities
 Success measures
 Team planning
Team  Communications
 Trust
 Accountability
 Focus on key priorities
 Purpose & Strategy
 Line of sight to goals
Organization  Collaboration
 Values
 Systems
 Leadership

6. Cross-Industry Perspective
Comm/ Finan- Tech Tele-
Media cial Pharma Svs. Com
Clarity 63 57 68 72 56 63
Commitment 65 62 67 69 60 63
Translate to Action 60 56 62 66 55 59
Enabling 58 53 64 59 52 56
Synergy 53 47 58 56 47 51
Accountability 55 51 59 63 53 57
Overall Score 59 54 63 64 53 58

7. Building a Culture of Execution
Execution Execution
Gauge Process
Results
4 Disciplines
Of
Execution

8. Christine Troianello
Dir. Of Information Products and Training

9. Why Change?
 Background:
 ~550 learning leaders and managers, instructional designers and
developers, technical writers and instructors globally
 Supported corporate-wide audiences both: sales, customer and
services training and technical publications
 Organizational Culture and Climate
 Lacked leadership, “old
school”, individualistic, silo’d, noncollaborative
 Unresponsive, complex, “hard to do business with”
 Growing quality issues, internally focused, expensive
 Low morale, continued downsizing, survivor mentality
 Not viewed as value added and considered for outsourcing
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10. All Rights Reserved © Alcatel-Lucent 2006, #####

11. 2004-2005 Results
Situation Results  Solution
“Fuzzy”‪strategy‪to‪goals‪translation Unclear direction Strengthen alignment using goal
cascade process
Associates were not highly energized Poor Improved‪“line‪of‪sight”‪from‪
by organizational direction commitment organization, to team, to individual
Too many priorities Confusion, Prioritized and focused on Wildly
burnout Important Goals
Poor cross-functional collaboration Poor teamwork, Created shared goals and
and team-to-team communications Infighting implemented team to team
accountability
Gaps between Mgmt and Associate Low Increased communication to
perceptions accountability frontline management and drove
accountability to all levels
Lost momentum Missed Created and aligned leading
deliverables measures at all levels
Implemented weekly/monthly
tracking meetings
Measured progress with xQ survey
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12. Intent and Learnings
 Intent:
 Assess the organization to measure effectiveness in focusing and
executing on our key strategic priorities.
 learnings:
 Gaps between Mgmt and Associate perceptions
 Limited “line of sight” to organizational goals and measures
 Associates not highly energized by organizational direction
 Insufficient cross-functional collaboration and communication
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13. Create and Measure Metrics that Matter
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14. Goals Cascade
• Franklin Covey and Lucent certified 6 people globally
• Taught the 4 Disciplines of Execution to all employees
• Senior management met with their teams to decide top 3-4
priorities
• Teams met weekly to go over action plans and clear the path
• Success factors:
 Overall result 27% increase in xQ scores
 Associates indicate they have a clear line of sight to company
Leadership and their goals
 Associates have an improved understanding of their role in
achieving the organizational goals
 Substantial increase in organizational collaboration between
teams
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15. xQ Scores Reflect Changes Over Time
xQ1 xQ2 xQ3 xQ1 xQ2 xQ3
Clarity 61 79 78 50 70 71
Commitment 55 71 73 Organiza-
Overall
tion
Translation 57 76 77 xQ Score:
Level
into Action xQ1: 54
xQ2: 72 50 72 73
Team
Enabling 48 64 65 xQ3: 73
Level
Synergy 47 68 70 63 75 76
Individual
Level
Account- 56 75 75
ability
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16. Changes in Behaviors Show Results!
Measurement Target Result Status
Reduce Unit Cost 10% 11%
Work Reduction Savings $2.2M $2.6M
Globalization Savings $1.5M $1.7M
Customer AR Responsiveness 80% 100%
IP Timeliness 95% 98%
Documentation IP Quality 7.75 7.75
Voice of Customer- Relevant 8.13 8.29
information for enhancing
job performance
Documentation Student Instructor Led – 89.2% Instructor Led – 89.2%
Satisfaction Virtual Classroom – Virtual Classroom –
79.6% 86.2%
Alternate Delivery – Alternate Delivery –
73.6% 75.4%
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17. Lessons Learned
Focus – the more narrow the focus the greater chance of achieving the
goals with excellence
Keep score – Identify key metrics for your goals and track the progress
through use of visual effects
Action plans – “Real strategy” is what people do on a daily basis that
can move the goal forward
Behavior Changes – Change the way you do things or think to achieve
the goals
Commitment – Needed the commitment from the Leadership and
associates to achieve the goals
Accountability – All associates needed to be accountable for their part
in achieving the goals
Implementation – weekly meetings, clear the path issues
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18. Thank You !
Thanks for coming today.
Any questions?
Feel free to contact:
Gretchen.Gill@FranklinCovey.com
Rosanna.Dorazio@FranklinCovey.com
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