strategy execution and shared value in the public sector · d’i. rls i s de t púc i l·iu r ls i...

Strategy Execution and Shared Value

in the Public Sector

June 2016

Robert S. (Bob) Kaplan

Marvin Bower Professor of Leadership Development, Emeritus

2

Why do public sector ministries need a formal strategy

execution system?

Government entities should be

o Effective –achieve and deliver desired outcomes, and

o Efficient –use best practices to manage the use of personnel, financial, and

physical resources.

Robust Strategic Planning and Execution processes help governments select

and communicate the political, economic and social outcomes they strive to

deliver:

o Set stakeholders expectations through a powerful vision.

o Coordinate the different stakeholders to deliver value.

o Implement policies, programmes and initiatives efficiently.

o Reinforce trust in public institutions.

3

Our experience has shown that most governments encounter

several Strategy Planning and Execution barriers.

1. Unclear Vision and Strategy

2. Lack of Organizational Alignment

3. Disconnected Strategic Planning and Budgeting

Processes

4. Inability to Monitor, Test, and Adapt Performance

4

1. Unclear Vision and Strategy

• “Our leadership team does not agree on our key priorities,

and they keep changing, and are influenced by political

agenda.”

• “We have a strategy, we just can’t explain it that easily, too

many interdependencies.”

• “We are trying to do 100 things across various provinces

and departments, rather than do the critical few things

well.”

5

2. Lack of Organizational Alignment

• “Our Ministry operates as a collection of silos internally, and we

struggle with cross-ministries collaboration.”

• “Staff and departments do not understand our key focus areas,

and how they can help us achieve their goals.”

• “How can we integrate our various initiatives to achieve greater

impact?”

• “We need to become transparent and drive accountability from

the top to every level.”

6

3. Disconnected Strategic Planning and Budgeting

Processes

• “Our strategic, operational, and financial plans are not

aligned.”

• “We spend too much time and effort creating plans instead of

delivering results to citizens.”

• “Our resources are not allocated against priorities and our

best opportunities.”

• “We increasingly need to justify to our stakeholders - our

existence and how our spending delivers results.”

7

4. Inability to Monitor, Test, and Adapt Performance

• “We don’t have the right measures. There are too many of

them and we’re not sure which ones to use.”

• “We have poor data about our performance.”

• “We do not know if our strategy is working until it is too

late.”

• “We can not consistently monitor, evaluate and report on

our performance.”

8

The Balanced Scorecard: the central component in a

Strategy Execution management system

Private Sector Organizations

"If we succeed, how will

we look to our

shareholders?”

"To achieve our vision,

how must we look to

our customers?”

"To satisfy our customers

and shareholders, at which

processes must we excel?”

“How do we align our

intangible assets to

improve critical

processes?”

“How do we have a social

impact with our

citizens/constituents?”

“To have a social impact and to

attract resources and support, at

which processes must we excel?”

“How do we align our

intangible assets to improve

critical processes?”

“How should we manage and

allocate our resources for

maximum social impact?”

Financial Perspective

Customer Perspective

Process Perspective

Learning & Growth

Process

Learning & Growth

Financial

“How do we attract resources and

authorization for our mission?”

Resource Perspective

Non Profit and Public Sector Organizations

Mission Perspective

9

The Kaplan-Norton six-stage closed loop management

system for Strategy Execution

2

TRANSLATE THE STRATEGY

1

DEVELOP THE STRATEGY

6

TEST & ADAPT

5

MONITOR & LEARN

4

PLAN OPERATIONS

3

ALIGN THE ORGANIZATION

STRATEGIC PLAN

PROCESS

INITIATIVE

EXECUTION

DEVELOP THE STRATEGY

• Mission, Values, Vision

• Strategy Formulation

TRANSLATE THE STRATEGY

• Strategy Map/Themes

• Measures / Targets

• Initiative Portfolios

• Funding / Stratex

ALIGN THE ORGANIZATION

• Business Units

• Support Units

• Employees

PLAN OPERAITONS

• Key process improvement

• Sales planning

• Resource capacity plan

• Budgeting

MONITOR & LEARN

• Strategy Reviews

• Operating Reviews

TEST & ADAPT

• Profitability Analysis

• Strategy Correlations

• Emerging Strategies

1

2

3

4

5

6

10

Balanced Scorecard Hall of Fame: 2000 - 2014

11

Jeollabuk-do Province, South Korea

• Population had decreased from 2.5 mm (1966) to 1.87 mm (2006)

• Last place in every index among the nation’s 16 provincial governments

Gross regional domestic product

Income per capita

Financial self-sufficiency

# of businesses and employed workers

Reliance on raw materials extraction and agriculture

© DMTHOTH via Wikimedia Commons

12

New Governor, Wanjoo Kim, Takes Office in July 2006, Re-Elected in 2010

• Adopts Balanced Scorecard as the Province’s performance management system

• Strong opposition from labor union and some employees

• Challenges to develop quantifiable performance goals

© www.jeonbuk.go.kr/

http://en.jeonbuk.go.kr/

13

Goals achieved: 2007 to 2011

• Population has begun to increase, reversing 45 years of

decline

• 8.6% CAGR in GRDP; national average is 3.7%

• 1st among 16 provinces in growth rate of exports o Exports in 2011 = $12.8 bn

o Exports in 2006 = $ 5.4 bn

• Increase in percentage of GRDP from secondary

(value-added) industries from 23% to 29%

• 350% increase in number of businesses attracted (five

year average)

• Number of paying tourists increases 70%

• Fiscal self-reliance percentage increases from 15% to

21%

14

Countries that excel in Strategy Planning and

Execution deliver more value to their citizens

*The Global Competitiveness Report 2011-2012 © 2011 World Economic Forum (WEF)

•Human Development Index 2011-2012 @ United Nation Development Programme

•World Bank Database

•Transparency International : Corruption perception index

•Economist Intelligence Unit (EIU)

•The Research Division of the Federal Reserve Bank of St. Louis

•* OECD: http://www.oecd.org/governance/budgetingandpublicexpenditures/1902913.pdf

Countries referenced below have achieved growth on all aspects of development; Economic, Social and Political/Governance.

Second most competitive country in the world

with a continuous improvements in economic,

human development and governance

indicators

Malaysia climbed five places on the global

competitiveness index in 2011 to become the

21st in the global rankings

Botswana

Malaysia Singapore

“A critical determinant of successful government is the ability to make good decisions, and

manage their implementation. Modern government is complex. It requires thousands of decisions to

be taken and acted upon each day.”*

With high levels of economic and structural

complexities the Philippines moved ten

positions on the global competitiveness index

from 85 to 75

Philippines

Recognised as the “one of the best

managed governments in Africa” and in the

world. Achieved the highest per capita

income growth in the world in the last 35

years

15

How does a country, ministry, province, or city deliver

breakthrough performance for its citizens?

Set ambitious goals along with a change agenda to achieve them

Translate their strategy and vision into a strategy map and

Balanced Scorecard

Link and align organizational units and employees around the

new strategy

Link resource allocation and budgets to the new strategy

1

2

3

4

16

Financial

Stakeholder: Become an effective, efficient, results-

oriented agencyTaxpayers

White House/OMB

Congress

Dept of Commerce

Customer

Process

Learning & Growth

Be Knowledgeable &Prompt Economic

Development Advisors

AdvanceAdministration’s

DomesticAgenda

Show VisibleResults

Maximize EDAImpact onDistressed

Communities

MaximizeAdministrative

Efficiency &Effectiveness

MaximizePrivate Sector

Leverage

Maximize HigherSkill / HigherWage Jobs

Provide aTransparent &

ResponsiveProcess

ProvideInformation &

TechnicalAssistance

Policy Leadership High Impact Investment Organizational ExcellenceUpdate &Expand

InvestmentPolicyProvide

PolicyOptions

EnhanceResearchCapability

Enhance DueDiligence

Expand Deal Flow(Invest with New

Partners)

EmphasizeFundingPriorities

ImproveCommunication

Strategy

StandardizeProcesses

Align Resourceswith Strategic

Priorities

TechnologyEnable KeyBusinessProcesses

ImproveAnalytical

Skills

Attract TopTalent

DevelopTechnologyProficiency

EstablishEnterprise

Information System

EstablishPerformance

Culture

Make Investmentsthat are Engines of

Growth

Distressed Communities

Investment Partners

Private Sector

Enhance PostApproval

Monitoring

Vision: Become the Premier Standard

Bearer for Domestic Economic Development

Mission: To help our partners across the nation create

wealth and minimize poverty by promoting a favorable business

environment to attract private capital investment and jobs

Strategy Map for the US Economic Development Administration

17

US Economic Development Administration Balanced Scorecard

Objective Measure

Stakeholder

Maximize EDA Impact on Distressed Communities

Number of Higher Skill, Higher Wage Jobs Created

During the Last Six Years

Increase In Payroll Directly Related to EDA Investments

Increase in Ad Valorum Property Tax Related to EDA

Investment

Advance Administration’s Domestic Agenda

Percent of Dollars Invested that Support EDA Investment

Priorities

Be Knowledgeable & Prompt Economic Development

Advisors Number of Stakeholder Inquiries

Show Visible Results Number of Positive Media Mentions About Investments

Make Investments that are Engines of Growth Percent of Investments that Support Cluster Priorities

Financial

Maximize Administrative Efficiency & Effectiveness Percent of Reports Filed on Time

Percent of Funds Obligated

Maximize Private Sector Leverage Private Sector Dollars Invested per EDA Dollar

Total Dollars of Private Sector investment

Customer

Maximize Higher Skill / Higher Wage Jobs

Percent of Jobs Created that Meet EDA's Standard as

Higher Skill / Higher Wage

Provide Information & Technical Assistance

Percent of Applicants Surveyed that Believe EDA Provides

Useful Information and Technical Advice

Provide a Transparent & Responsive Process

Percent of Applicants Surveyed that Consider EDA's

Process Transparent and Responsive

R E

S U

L T

S

Customer

Value

Proposition

Dir

ec

t C

usto

me

rs

Enhance

Communication

and Dialogue

with Customers

and Stakeholders

Initiate &

Promote R&D,

increasing the

effectiveness of

HRDF programs

Improve

Budgeting and Risk

management process

Ensure financial

Adequacy & Solvency

A C

T I

O N

S

Saudi Arabia Government & Society

Promote

Sustainable

EmploymentFin

al S

take

ho

lde

rsL

ea

rnin

g &

Gro

wth

Inte

rna

l P

roc

es

se

s

Contribute to KSA Economic

Growth & Social Development

Optimize total

lifecycle time and

costs for placements

Optimize HRDF

spending,

achieving highest ROI

on HRDF initiatives

Ensure the correct

usage of HRDF

programs

Maximize

the effectiveness of

Hafiz support by

aligning with other

national stakeholders

Manage Hafiz in

compliance with

international

social safety nets

standards

Identify and channel

matching candidates

for each jobs

Saudi Job

SeekerPrivate

Firm

KSA Labor Ministry’s Vision: “Have a Productive and Sustainable National Workforce”

Partner with

the private sector

to target attractive

jobs for Saudis

“Provide me access

to fair and equitable

unemployment

assistance”

“Become our Source /

For Producing

and Sustainable

Employment”

“Become the regional

thought leader/

think tank in

HR Development”

Human, Information and Organization Capital

Recruit,

Develop and Retain

HRDF

Human Capital

Automate all HRDF

operations, delivering

e-services via

multiple channels

Ensure an effective

and healthy

working environment

Grow HRDF as a

Learning Organization

based on accurate

labor market data

Establish a culture

of performance

excellence

“Provide me access to

high quality training to

enhance my

employability

& productivity”

Design

Market-Focused

programs and

services

Optimize the quality

and outcomes of

training programs

HRDF CORE VALUES: Customer Focus / Excellence / Fairness / Learning / Team Spirit / Loyalty / Inspiration

Develop a Highly Demanded

National Workforce

Operational Excellence Support & Enable Employ & Enhance

19

Va

lor

Ciu

tad

àS

erv

eis

Infr

ae

str

uc

ture

sR

ec

urs

os

Organització i Persones

• Atraure i retenir el talent.

• Impulsar l'excel·lència en la gestió.

• Formalitzar, coordinar i fer el seguiment de les

relacions amb els operadors.

Aliances

• Impulsar les relacions i les aliances amb els organismes del transport i mobilitat a nivell municipal i metropolità.

• Cooperació amb altres institucions de mobilitat de l’Estat.

• Impulsar relacions internacionals per al intercanvi d’experiències.

Sistemes d’Informació

• Millorar l’explotació dels Sistemes d’Informació

existents.

• Fomentar les noves tecnologies per a la gestió

de serveis.

Una mobilitat globalment sostenible

Infraestructures de Transport Instal·lacions Espais Públics

Prioritzar els vianants tot i potenciant els

desplaçaments a peu.

Impulsar l'ús eficient i racional del vehicle

privat.

Garantir la qualitat i la cobertura del transport públic, especialment en

desplaçaments de connexió.

Consolidar la bicicleta com a mode de

transport.

Millorar les operacions de càrrega i

descàrrega de mercaderies.

Sostenibilitat VitalMillorar la seguretat viària i reduir

els efectes del transport en la salut

Sostenibilitat AmbientalReduir les conseqüències ambientals de la mobilitat.

Sostenibilitat SocialGarantir la universalitat dels

serveis.

Sostenibilitat EconòmicaOptimar els recursos i reduir la

necessitat de mobilitat.

Gestió d’Operacions Comunicació i ParticipacióPlanificació

Millorar la capacitat d’anàlisi i

detecció de nous fenòmens

urbans.

Definir les infraestructures i els

serveis necessaris per impulsar

una mobilitat sostenible a la

ciutat de Barcelona.

Disposar de criteris

per a una millor

senyalització.

Assegurar la informació i la

formació de la ciutadania.

Impulsar les comissions

cíviques relacionades amb la

mobilitat.

Millorar la gestió del

sistema Bicing.

Optimitzar els usos de

la via pública.

Millorar la gestió i

regulació del transit.

Millorar l’accessibilitat

del espai i dels

edificis públics

Assolir la utilització de

les vies en base a la

seva jerarquització ja

definida.

Impulsar la millora de

la xarxa ferroviària i

els aparcaments

d’intercanvi.

Millorar carrils i

parades de transport

públic i col·lectiu

Millorar carrils i

estacionaments

bicicletes.

Millorar les

infraestructures del

Bicing. Millorar la oferta

d’aparcaments per

residents.

Millorar les

instal·lacions

semafòriques.

Millorar la

senyalització de la via

pública.

Millorar els sistemes

de seguretat als

túnels.

Optimitzar

l’aprofitament de la

xarxa de fibra òptica.

V1 V2 V3 V4

C1 C2 C3 C4 C5

S1

S2

S3

S4

S5

S6

S7

S8

I1

I2

I3

I4

I5

I6

I7

I8

I9

I10

I11

R1R2

R3

R4

R5

R6

R7

R8

Ajuntament Persones

Formació i desenvolupament

SeleccióGestió de RH Atenció i comunicacióPlanificació de necessitats de RH

Disseny de l’estructura organitzativa

Processos i sistemes de RH

Va

lor

Cli

en

tsS

erv

eis

Rec

urs

os

Estructura organitzativa de GRHO

Contribuir a la millora de la qualitat en la prestació dels serveis als ciutadans

Equip de GRHO

Disposar d'equips de persones amb

competències adequades, polivalents i flexibles C2

Garantir una organització i un dimensionament

que donin resposta a les necessitats

de servei

Oferir a les persones un projecte de

desenvolupament professional

Millorar la productivitat de l’equip de l’Ajuntament

Oferir un bon lloc per treballar

Promoure un bon ambient de treball que impliqui i motivi a les persones

Esdevenir el soci estratègic als àmbits de

RH i organització

Planificar els recursos en base a

les prioritats de l'organització

Enfortir la funciódirectiva i el rol de

comandament

Desenvolupar les competències

d’acord amb les funcions dels llocs

de treball

Donar suport a les persones en el

procés de transformació de

l’organització

S10

S11

S1

Cohesionar la xarxa de gestors

de RH R1

V1

V2

Impulsar els plans de carrera vertical i

horitzontal

Oferir una atenciópropera i de qualitat a les persones de l’Ajuntament

Renovar i tecnificar la plantilla

Garantir un sistema

d’ordenació dels llocs de treball adequat que

incorpori criteris objectius i

transparents d’accés, promoció i

retribució

Desenvolupar mecanismes per atraure el talent

Adaptar l'estructura i el dimensionament de la

GRHO a les necessitats de l'organització

S3

Retenir el talent i reduir la

temporalitat de la plantilla de

l’Ajuntament

C1

V3

C4

R2

C3

S2

S12

S13

S8

S9

S5

Procurar l'adequació de la persona al lloc de

treballS6

Incorporar la dimensió humana

en la gestió de persones S7

S4

Responsabilitat Social Corporativa

Implicar als agents socials en els processos de canvi de l’Ajuntament

Integrar la prevenció de riscos laborals en totes

les actuacions de l'Ajuntament

Impulsar pràctiques que contribueixin a l’equilibri

entre dimensióeconòmica i social.S14 S15 S16

Disposar d’un equip motivat,

capacitat i orientat al client

Agilitzar els processos i garantir l'acompliment

dels nivells de servei de la GRHO

R3

Unificar els sistemes

d’informació de RHR5R4

Ajuntament Persones





Va

lor

Cli

en

tsS

erv

eis

Rec

urs

os



Equip de GRHO





de servei







RH i organització




comandament



de treball



l’organització

S10

S11

S1


de RH R1

V1

V2


horitzontal



Garantir un sistema




retribució




S3



l’Ajuntament

C1

V3

C4

R2

C3

S2

S12

S13

S8

S9

S5


treballS6



S4











R3



Ajuntament Persones





Va

lor

Cli

en

tsS

erv

eis

Rec

urs

os



Equip de GRHO





de servei







RH i organització




comandament



de treball



l’organització

S10

S11

S1


de RH R1

V1

V2


horitzontal



Garantir un sistema




retribució




S3



l’Ajuntament

C1

V3

C4

R2

C3

S2

S12

S13

S8

S9

S5


treballS6



S4











R3



Ajuntament Persones





Va

lor

Cli

en

tsS

erv

eis

Rec

urs

os



Equip de GRHO





de servei







RH i organització




comandament



de treball



l’organització

S10

S11

S1


de RH R1

V1

V2


horitzontal



Garantir un sistema




retribució




S3



l’Ajuntament

C1

V3

C4

R2

C3

S2

S12

S13

S8

S9

S5


treballS6



S4











R3



Ajuntament Persones





Va

lor

Cli

en

tsS

erv

eis

Rec

urs

os



Equip de GRHO





de servei







RH i organització




comandament



de treball



l’organització

S10

S11

S1


de RH R1

V1

V2


horitzontal



Garantir un sistema




retribució




S3



l’Ajuntament

C1

V3

C4

R2

C3

S2

S12

S13

S8

S9

S5


treballS6



S4











R3



Ajuntament Persones





Va

lor

Cli

en

tsS

erv

eis

Rec

urs

os



Equip de GRHO





de servei







RH i organització




comandament



de treball



l’organització

S10

S11

S1


de RH R1

V1

V2


horitzontal



Garantir un sistema




retribució




S3



l’Ajuntament

C1

V3

C4

R2

C3

S2

S12

S13

S8

S9

S5


treballS6



S4











R3



Ajuntament Persones





Va

lor

Cli

en

tsS

erv

eis

Rec

urs

os



Equip de GRHO





de servei







RH i organització




comandament



de treball



l’organització

S10

S11

S1


de RH R1

V1

V2


horitzontal



Garantir un sistema




retribució




S3



l’Ajuntament

C1

V3

C4

R2

C3

S2

S12

S13

S8

S9

S5


treballS6



S4











R3



Ajuntament Persones





Va

lor

Cli

en

tsS

erv

eis

Rec

urs

os



Equip de GRHO





de servei







RH i organització




comandament



de treball



l’organització

S10

S11

S1


de RH R1

V1

V2


horitzontal



Garantir un sistema




retribució




S3



l’Ajuntament

C1

V3

C4

R2

C3

S2

S12

S13

S8

S9

S5


treballS6



S4











R3



Ajuntament Persones





Va

lor

Cli

en

tsS

erv

eis

Rec

urs

os



Equip de GRHO





de servei







RH i organització




comandament



de treball



l’organització

S10

S11

S1


de RH R1

V1

V2


horitzontal



Garantir un sistema




retribució




S3



l’Ajuntament

C1

V3

C4

R2

C3

S2

S12

S13

S8

S9

S5


treballS6



S4











R3



Ajuntament Persones





Va

lor

Cli

en

tsS

erv

eis

Rec

urs

os



Equip de GRHO





de servei







RH i organització




comandament



de treball



l’organització

S10

S11

S1


de RH R1

V1

V2


horitzontal



Garantir un sistema




retribució




S3



l’Ajuntament

C1

V3

C4

R2

C3

S2

S12

S13

S8

S9

S5


treballS6



S4











R3



Ajuntament Persones





Va

lor

Cli

en

tsS

erv

eis

Rec

urs

os



Equip de GRHO





de servei







RH i organització




comandament



de treball



l’organització

S10

S11

S1


de RH R1

V1

V2


horitzontal



Garantir un sistema




retribució




S3



l’Ajuntament

C1

V3

C4

R2

C3

S2

S12

S13

S8

S9

S5


treballS6



S4











R3



Ajuntament Persones





Va

lor

Cli

en

tsS

erv

eis

Rec

urs

os



Equip de GRHO





de servei







RH i organització




comandament



de treball



l’organització

S10

S11

S1


de RH R1

V1

V2


horitzontal



Garantir un sistema




retribució




S3



l’Ajuntament

C1

V3

C4

R2

C3

S2

S12

S13

S8

S9

S5


treballS6



S4











R3



Ajuntament Persones





Va

lor

Cli

en

tsS

erv

eis

Rec

urs

os



Equip de GRHO





de servei







RH i organització




comandament



de treball



l’organització

S10

S11

S1


de RH R1

V1

V2


horitzontal



Garantir un sistema




retribució




S3



l’Ajuntament

C1

V3

C4

R2

C3

S2

S12

S13

S8

S9

S5


treballS6



S4











R3



Ajuntament Persones





Va

lor

Cli

en

tsS

erv

eis

Rec

urs

os



Equip de GRHO





de servei







RH i organització




comandament



de treball



l’organització

S10

S11

S1


de RH R1

V1

V2


horitzontal



Garantir un sistema




retribució




S3



l’Ajuntament

C1

V3

C4

R2

C3

S2

S12

S13

S8

S9

S5


treballS6



S4











R3



Ajuntament Persones





Va

lor

Cli

en

tsS

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Barcelona City - Aligning Sectors and Districts

Global Map for the City Hall

Drill-down into 20 Maps:

• One for each Sector

• One for each District

20

City Manager

Sectors & Districts

Managers

Are we

executing

our

strategy?

Global view of each District and Sector:

– 80+ KPIs by Sector and District

– Consolidated information

What KPIs and

action plans

will achieve

our targets?

URBANISME

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Improve conditions

of urban buildings

# of buildings restoredObjectives detailsStrategy Map

KPI performance against target

Budget assigned to a

given Objective

Management

Report

Are we allocating

resources to the

correct actions and

initiatives? Are they

bringing the expected

results?

Finance DepartmentBudgetary Programs

Where should we

allocate our

budget in order

to reach the

targets

stablished at our

plan?

CONSTRUCCIÓ

MANTENIMENT

URBANITZACIÓ

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Status of objectives linked to a

given budgetary program

A new way of managing Barcelona City

21

City of Barcelona

Barcelona was named the Best European City in Quality of Life and ranked within the

top 10 for establishing a business

City Hall’s total public debt decreased 20%.

The number of new businesses registered increased by 55%.

Revenues rose 21%.

Traffic accidents decreased 10%.

The number of municipal job opportunities covered internally increased 150%.

More than 700 municipal employees have been trained in strategy management.

Implementation of a robust, comprehensive Strategy Management System to

support their new management framework sharpened their strategic focus.

They are the pioneers of strategic management of government in Spain,

starting with “making Barcelona a better city.”

RESULTS:

22

SUMMARY: How government ministries and agencies use

strategy maps and scorecards

STRATEGY

MAP

EXECUTIVE

CONSENSUS AND

ACCOUNTABILITY

Building the strategy map

eliminates ambiguity and

clarifies responsibility.

CREATE

ALIGNMENT

All parts of the

organization and all

individuals link their

objectives to the

strategy map.

EDUCATE AND

COMMUNICATE

Communicate and

educate the workforce

about the strategy.

FEEDBACK AND

LEARNING

Monitor and guide the

strategyACCOUNT-

ABILITY

Feedback and

monitoring by

external

constituencies

23

• Endangered Species Listing of 18 Species

• Either Federal Government Approves Recovery Plans

or

o no government or private entity make “take” any salmon - - thus

o forestry, agriculture, hydro power production, transportation improvements and land use changes stopped or curtailed

o i.e., a train wreck

Integrating Across Organizational Boundaries

Washington State: The Salmon Recovery Problem

24

24

Multiple Governments Involved

Alaska

Montana

Canada

IdahoOregon CA

27 Tribes

25

25

Federal Agencies Involved

Department of Agricultureo Natural Resource Conservation Service

o Forest Service

Department of Commerceo National Marine Fisheries Service

Department of Interioro Fish & Wildlife Service

o Bureau of Reclamation

Environmental Protection Agency

State Department

Council on Environmental Quality

26

26

State Agencies Involved

Indirect reporting Direct reporting

o Natural Resources Health

o Transportation Ecology

o Fish & Wildlife Agriculture

o State Parks Community, Trade and ED

o NW Power Planning Salmon Recovery Team

Council Puget Sound Water Quality

o Salmon Recovery Conservation Commission

o Funding Board Interagency Comm for

Outdoor Recreation

27

27

Local Governments Involved

o 39 Counties

o 277 Cities

o 44 Sewer Districts

o 125 Water Districts

o 36 Irrigation Districts

o 32 Public Utility Districts

o 14 Port Districts

o 48 Conservation Districts

o 170 Municipal Water Suppliers

28

State & State

Agencies

FWS Bull Trout

“Definable Population

Segments”

NMFS Salmon

“Evolutionarily Significant

Units”

NGO’s and Enhancement

Groups

Salmon, Bull Trout,

Environmental Quality, and

Hydropower DevelopmentWatershed

Councils

Tribes

Tri-Co

HB2496

Restoration

Projects

US/Canada

TreatyBull Trout Sec

7 Consultation

Bull Trout

Sec 4(d)

Rules

Early

Action

Package

Salmon

Sec 4(d)

Rules

Salmon Sec

7

Consultation

SRF

Board

NMFS

Recovery

Team

Independent

Science

Panel

HB2514

WRIA

Planning

SSHIAP

Water

Legislation

The Regulatory Picture (Simplified)

29

The Solution:

A Co-Created Salmon Recovery Scorecard

Goal: Restore salmon, steelhead, and trout populations to healthy and harvestable levels and improve habitats on which fish rely.

Customer: To protect an important element of Washington’s quality of life

• We will have productive and diverse wild salmon populations.

• We will meet the requirements of the Endangered Species Act/Clean Water Act.

Processes: Our habitat, harvest, hatchery, and hydropower activities will benefit wild salmon.

• Freshwater and estuarine habitats are healthy and accessible

• Rivers and streams have flows to support salmon.

• Water is clean and cool enough for salmon

• Harvest management actions protect wild salmon.

• Enhance compliance with resource protection laws.

Collaboration: We are engaged with citizens and our salmon recovery partners.• We will reach out to citizens

• Salmon recovery roles are defined and partnerships strengthened.

Financial and Infrastructure: Our building blocks for success include • Achieve cost-effective recovery and efficient use of government resources

• Use best available science and integrate monitoring and research with planning and implementation

• Citizens, salmon recovery partners and state employees have timely access to the information, technical assistance, and funding they need to be successful.

30

A 2008 Harvard Business School Study Identified 11

Disruptive Forces to the Global Market System

1. Fragility of Financial System

2. Breakdowns in Global Trade

3. Inequality and Populism

4. Migration

5. Environment

6. Breakdowns in Rule of Law

7. Decline of Public Health and Education

8. State Capitalism

9. Radical Movements, Terrorism and War

10. Biological evolution and pandemics

11. Ineffectiveness of National and International

Institutions

31

• Stage 1: Philanthropy

o Donate to worthy social causes

o Employees Volunteer

o Corporate Foundation Report

• Stage 2: Corporate Social Responsibility (CSR)

o Comply with community and environmental standards

o Be a good corporate citizen

o Launch “sustainability” initiatives”

o Publish annual CSR report, Integrated (triple bottom line) reporting

o Improve trust and reputation; “Greenwashing”

• Stage 3: Create Shared Value (CSV)

o Make an economic profit while addressing societal needs within the

context of a sustainable business model

Innovating Businesses Want to Address these Issues

through Private-Public Partnerships

32

How Companies Create Shared Value

Definition: Companies create shared value when they enhance their

competitiveness while advancing economic and social

conditions in the communities in which they operate.M. Porter and M. Kramer, “Creating Shared Value,” Harvard Business Review (Jan-Feb 2011)

Examples of creating shared value:

1. Introduce new products and markets to meet societal needs

(nutrition, energy and water conservation, employee skills, health

and safety, finance for bottom-of-pyramid, … )

2. Enhance productivity through reduced pollution, energy and water

consumption

3. Facilitate local cluster development

• Local infrastructure: ports, rail, roads, telecom, energy

• More competitive local product and labor markets

• More employment

33

Community And Business Interdependency

This interdependence means that public policies that undermine the productivity

and competitiveness of businesses are self-defeating, especially in a global

economy where facilities and jobs can easily move elsewhere.

A business needs a

successful community,

not only to create

demand for its products

but also to provide

critical public assets and

a supportive

environment

A community needs

successful businesses

to provide jobs and

wealth creation

opportunities for its

citizens

Businesses Community

The competitiveness of a company and the health of the communities

around it are closely intertwined:

34

Business

Opportunities

& Challenges

Shared value is

the intersection

of business

opportunities &

challenges, social

needs and

corporate assets

and expertise.

Social

Needs

Corporate

Assets and

Expertise

Social

Needs

Corporate

Assets and

Expertise

Identifying the OpportunityThe core value of Shared Value

35

Use the creation of a strategy map and scorecard to

create a shared vision and agenda

Co-Creating the strategy map and scorecard creates consensus,

commitment and a common agenda among

1. The enterprise’s Executive Leadership Team

2. A government and its multiple corporate, community and

environmental stakeholders for a long-term, sustainable, shared-

value strategy (Salmon Recovery Project)

36

Recall the closing words in Abraham Lincoln’s Gettysburg

Address (1863)

“We here highly resolve that these dead shall not have died in vain

…

and that government

of the people,

by the people,

for the people

shall not perish from the earth.”

Today, many companies attempt to deliver social value for the people

in the communities where they market, produce, and sell.

But what about introducing value created by the people or of the

people?

37

The Future for Shared Value

• Multiple players, private and public, must concur on the vision

and the plan to execute a shared-value strategy successfully.

• Bringing a company and its multiple community and

environmental stakeholders (local governments and NGOs)

together to co-create a strategy map and scorecard …

• will create consensus and commitment as well as

accountability and a governance structure … for a long-term,

sustainable, shared-value strategy.

strategy execution and shared value in the public sector · d’i. rls i s de t púc i l·iu r ls i...

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