operationalizing strategy

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Operationalizing Strategy:How to link our everyday work to organizational

strategy

Jenine Serviolo Environmental Leadership Program (ELP) Senior Fellow,

PMP, SDI® Facilitator

SMART Management Consulting, LLC

January 24, 2013

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Introduction

ELP Senior Fellow/New England Regional Network 2012

Harvard Extension School• Masters in Sustainability

Management student

Project Management Institute (PMI) Involvement

• PMP• Portfolio Management for the PM• Managing Strategic Performance• Standard for PfM 3rd Edition

Other• SDI® Facilitator• Master’s Certificate in PM,

GWU• Performance Measure

Blueprint with Stacey Barr• Balanced Scorecard Strategic

(BSC) Execution with Kaplan and Norton

• LEED Green Associate (in progress)


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SMART Management Consulting

President & CEO Federal Government Clients Consulting, Training, and

Workshops• Strategic Planning, Execution,

and Managemento Strategic Planning using

Balanced Scorecard (BSC)

• Sustainable Leadership• Business and Professional

Communicationo Mentoring and Coachingo Effective Collaboration


Member of US Green Building Council

Free Whitepapers

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Outline

Strategy Discussion Relationship to

Strategy• Organizational role• Commitment

The Strategic Chain• Cause and Effect• Linking Up

Questions Contact Information References Backup Slides

• Definitions of Portfolios, Programs, Projects

• Strategy & Results Mapping

• Outreach Plano Communication Matrix

• Other Tips for Embedding Strategy


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Organizational Strategy

Strategy is an integrated set of choices that include a series of cause and effect relationships and position an organization within its market to achieve targets in a specified time horizon.

• Integrated set of choices- reflects systems thinking based decisions that support each other

• Cause and Effect - links actions to outcomes in a successive fashion - often called What-If or Means-End thinking

• Position - place in the competitive environment • Target- quantitative or qualitative measures• Time horizon- deadline by which the targets are to be achieved


Strategy Discussion

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Strategy

Strategy is about being intentional in your thoughts, words, and actions to achieve change or maintain performance/reputation. It is about systematically addressing• Where are we now?• Where do we want to go?• What is the best way to get there?

Strategy stretches the organization• Far enough for productive tension• Not so far to cause it to snap


Strategy Discussion

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Organizational Strategy Elements

MISSION: explains why an organization exists• Communicates the organization’s enduring nature, its grand purpose - to people

both inside and outside the organization

CORE VALUES: a set of guiding principles• Reflects the organization’s collective attitudes, behaviors, decisions and actions

VALUE PROPOSITION: underscores the organization’s unique blend of products, services, relationships, and image.

• Differentiates the organization from competitors

VISION: describes a more ideal future place • Captures where we will be once we achieve our current strategy. It answers the

question, where are we going? Why are we changing? Sometimes captured in a BHAG (Big Hairy Audacious Goal) or strategic themes

GOALS, OBJECTIVES, MEASURES, AND TARGETS: typically the first major step to operationalizing strategy

• Goals & objectives are made up of initiatives, programs, projects, and activities• They should be SMART…


Strategy Discussion

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SMART Strategy


SPECIFIC Stated in a way that is clear to the reader

MEASURABLE

Expressed in quantifiable way and includes a target

ACHIEVABLE

Doable within known constraints

RELEVANT Will directly support achievement of overall strategy

TIME-BOUND

Provides a due date

Strategy Discussion

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SMART BHAG


Strategy Discussion

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SMART Goal


Steven VanRoekel

Strategy Discussion

11SMART Management Consulting, LLC

Our discussion assumes that your organization has a formal or informal

strategy to which you can align

If it doesn’t, your first step may be to ask some questions…

Strategy Discussion

Role-based Relationship to Strategy

Organizational Role

StrategyContribution

Executive Leadership

Define strategy. Give direction to achieve the mission and vision

Meet mission and achieve vision

Portfolio Management

Ensures we do the best combination of work to meet the mission and achieve the vision

Meet objectives

Program Management

Ensures we do the work most efficiently to deliver benefits in a coordinated fashion

Deliver benefits

Project Management & Operations

Ensures we do the work right - on schedule, within budget and scope (including quality)

Meet milestones and service level

agreements

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Consistently Manifest Core Values

Relationship to Strategy

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Individual Strategy Commitment

Conscious of

Cognizant of

Concur with

Champion for

Knows it’s there but can’t articulate it and doesn’t knowingly play an active role

Can articulate the strategy but doesn’t knowingly play an active role

Can articulate the strategy and plays active role as directed

Can articulate the strategy, plays an active role and consistently seeks out opportunities to further strategy


Contrary to

Is at least conscious or cognizant of strategy but is opposed to it…

Also may be important to note…


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Assessing Strategy Commitment


Commitment Level ChampionConcur XCognizant

Conscious OContrary

How committed are you to organizational strategy (O)?

How committed should you be (X)?


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Building Strategy Commitment


Discuss commitment to strategy with peers, mentor, supervisor and/or strategy officer

• Consider who else you directly influenceo Peerso Managerso Subordinateso Customerso Partnerso External agencies

• What do you need to get to target level?o Trainingo Awareness sessions

What do you need to Start, Stop, or Continue doing to live up to your strategy commitment?

o Attitudeso Behaviorso Actions


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Strategic Cause and Effect

Direct correlation between completing a work effort and ultimately gaining an organizational benefit or meeting an objective

• Causeo Work and Effort

Initiatives Operational Activities, Projects, Programs, Portfolios

• Effecto Results (outputs and outcomes)o Benefits, Objectives, Mission, Vision


The Strategic Chain

A strategy map assigns strategic objectives to each BSC perspective and defines relationships between them

• Organizational strategy map shows complete set of key objectives needed to achieve the vision

• Defines cause and effect relationships between objectives

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Strategy MappingThe Strategic Chain

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Placement of Customer & Financial perspectives reflect Government and non-profit organizations

Objective

Statement of what must be achieved

The desired performance level or improvement

How success will be determined

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Measures Targets

Vision

Operationalizing Objectives

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The Strategic Chain

Programs, projects, operations, required to achieve target

Initiatives

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Strategy Gantt Chart


Excerpt from PMI’s Project Management Journal, December 2010: Measuring Portfolio Strategic Performance Using Key Performance Indicators by Hynuk Sanchez and Benoît Robert

Strategy Gantt Chart shows

work that supports specific

objectives

The Strategic Chain

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Linking Up to Strategy


What do you need to Start, Stop, or Continue to help achieve strategy?• Consider all strategy elements• Walk through each objective, measure, and target to determine

your contribution • Record findings, assumptions, ideas for each• Review with supervisor and/or strategy officer• Publish and track

Some of the most important strategy conversations will be around how to

handle competing objectives

The Strategic Chain

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Linking with a Strategy Map


Organizational strategy map – shows full set of objectives

Individual’s strategy map shows subset of objectives supported by one person’s work

The Strategic Chain

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Linking with Work Plans


Slide used with permission of Mieko Ozeki from Project Management Strategies for the Environmental Leader: Organizational Toolkit for Long-Term Sanity http://ELPnet.org/webinar-archive

Strategy Gantt Chart – shows full set of objectives with supporting Projects

Work Plan shows subset of objectives supported by unit/department and one person’s work

The Strategic Chain

http://elpnet.org/webinar-archive

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Ongoing Tracking

Once linkage is made, communicate, communicate, communicate

• Status Reports• Performance Reports• Quarterly/Annual Strategy Reports• Question and Answer Sessions• Celebrations


Supporting Pieces


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Take Action

Identify your organizational strategy Determine your current and target level of commitment

to strategy• Identify how to achieve your target level of commitment

Link your work to the organizational strategy• Identify cause and effect• Document and communicate the relationship

Track and communicate your progress

Effectively communicating our part in achieving strategy gives meaning to the work we do every day and connects our work to the larger mission


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Questions

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Contact Information

Jenine Serviolo, PMP | SDI Facilitator | ELP SENIOR FELLOWPRESIDENT & CEO SMART MANAGEMENT CONSULTING Get-SMART.com757.615.6865 | 1231 Boissevain Ave, Norfolk, VA 23507 | [email protected]

TRAINING AND CONSULTING IN o Strategic Planning, Execution, and Managemento Sustainable Leadershipo Business and Professional Communication


APPLICATIONS FOR 2013 PROGRAMS ARE NOW OPENELP is one of the only leadership organizations bringing together environmental and social change leaders from academia, business, government and the non-profit sector.

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mailto:[email protected]

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mailto:[email protected]

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References

Strategic Planning with Balanced Scorecard• Kaplan and Norton• Palladium Group• Balanced Scorecard Institute

Performance Measurement• www.StaceyBarr.com

o Performance Measurement Specialisto Performance Measurement Blueprinto Key Performance Indictor Library

Project, Program, Portfolio Management• www.PMI.org

Leadership• How leaders kill meaning at work

https://www.mckinseyquarterly.com/Governance/Leadership/How_leaders_kill_meaning_at_work_2910

• From Good to Great by Jim Collinso www.jimcollins.com


http://www.staceybarr.com/

http://www.pmi.org/



http://www.jimcollins.com/

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References

Mieko Ozeki Project Management Strategies for the Environmental Leader: Organizational Toolkit for Long-Term Sanity http://ELPnet.org/webinar-archive


http://elpnet.org/webinar-archive

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Project Portfolios

A portfolio is a collection of projects or programs and other work grouped together to facilitate effective management to meet strategic business objectives. (PMBOK® Guide – Fourth Edition)

The components of a portfolio are quantifiable; that is, they can be measured, ranked, and prioritized. A portfolio is a true measure of an organization’s intent, direction, and progress

Portfolio management (PfM) is the coordinated management of portfolio components to achieve specific organizational objectives. (PMI® Standard for Portfolio Management – Second Edition)


Backup Slide

Programs and Projects

A program is a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually

Program management (PgM) is the centralized coordinated management of a program to achieve the program’s strategic objectives and benefits. It involves aligning multiple projects to achieve the program goals and allows for optimized or integrated cost, schedule, and effort (PMI® Standard for Program Management – Second Edition)

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A project is temporary endeavor undertaken to create a unique product, service or result

Project Management (PM) is the application of knowledge, skills, tools and techniques to project activities to meet the project requirements (PMBOK® Guide – Fourth Edition)

Backup Slide

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Strategy Mapping

Part of BSC methodology (Kaplan and Norton)

BSC balances the Financial perspective with• Customer • Internal processes • Learning and growth

Requires us to develop objectives, measures, and targets

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Mission/Vision

Backup Slide

The balanced scorecard framework is recognized by the General Accountability Office (GAO) and used by the Department of Defense and other government agencies

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Results Mapping

Stacey Barr • Performance Measure

Blueprint• Define the results that

spell success and depict them showing cause and effect relationships


Success

Corporate Capability

Process

Activity

Results Mapping www.StaceyBarr.com

Backup Slide

Results Mapping: another way to depict strategy relationships


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Results Mapping

Focuses on the results of each area

Lines indicate key relationships• Companion• Cause and effect• Lead-Lag• Conflict


Results Mapping www.StaceyBarr.com

Backup Slide

Results Mapping: another way to depict strategy relationships


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Outreach Plan


Discuss Current and Target Commitment Levels• Use discussion to determine Outreach &

Communication activities

The Outreach and Communications Plan• Includes outline of stakeholders and

activities/communications that will be done to communicate strategy

Backup Slide

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Using the Communication Matrix…

Communication Matrix: Strategic Plan Planning Phase

Audience Response Needed

Message Content

Methods Sender

1. Identify the target audiences (by role or name) that are important for successful strategy achievement

2. Identify the response needed from each target audience3. Choose message content appropriate for the target audience and the

response needed4. Define best methods to deliver the message content for the target

audience and response needed5. Identify who should send the message

Identify what information needs to be provided to key stakeholders by to make strategic planning successful . Use this information to complete the Communications Plan.

Backup Slide

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Embed Strategy

• Work Plans• Training Plans• Professional Goals• Performance

Objectives

• Project/Work Selection Processes• Federal Capital Planning &

Investment Control (CPIC) Process

• Status Reports• Meeting Agendas• Correspondence

• Headers• Email signatures


Backup Slide

operationalizing strategy

Documents

operationalizing strategy

informal strategy

articulatethe strategy

current strategy

strategy goals objectives

norton portfolio management

strategic themes goals

organization core values