CONNECTING STRATEGY WITH EXECUTION Building an Integrated Strategy

CONNECTING STRATEGY WITH EXECUTION Building an Integrated Strategy Execution System Paul Docherty – Founder and Executive Director, i-nexus

KEY TOPICS 1 Is Poor Execution Inevitable? 2 Why Do the Best Outperform the Rest? 3 Why Do the Majority of Organizations Struggle With Execution? 4 How Does an ISE System Ensure Consistently Great Execution? 5 How Can Rapidly Build an ISE Business System? 6 How Does the Right Infrastructure Accelerate the Journey? 7 Summary/Key “Take-aways” Copyright i-nexus 2013. All rights reserved.

SYMPTOMS OF POOR EXECUTION…

IT’S NOT ALL BAD NEWS…

CONSISTENTLY GREAT EXECUTION IS POSSIBLE…

THE EVOLUTION OF THE “BUSINESS SYSTEM”…

IT’S REPLICABLE! John S Stroup Lawrence Kingsley

STRATEGY EXECUTION 1. 0? The Off-site Strategy Day(s) The Ivory Tower Exercise • Grow Sales of New Product • Customer Focus • Invest in China • Improve employee satisfaction . ppt deck Poorly Defined Goals Unclear Accountabilities Divisional President Functional Heads The Ad Hoc Cascade Give me your numbers. . . Way too much! Cut by 25%! Funding Constraints If I don’t include it I’ll lose it. . . Departmental Heads Project The Budget Dance I need to include some contingency. . . It’s close enough for Military work. . . Middle Managers Employees

THE EMERGENCE OF THE ISE BUSINESS SYSTEM… Process + Tools & Methods + Guiding Principles/ Behaviours + Supporting Infrastructure

CLOSED LOOP STRATEGY EXECUTION PROCESS… • Connects the Goals to Programs that realise them to the KPIs that track their achievement • Essential a “macro” PDCA cycle to ensure we adapt the plan (or strategy) as we execute • Ensures focus on Impact not Just Progress – Look Forward not just Backward

A SET OF SUPPORTING TOOLS AND METHODOLOGIES… • Integrates the “best” components of best practice methodologies: • Balanced Scorecards • Hoshin Planning • Project, Program and Portfolio Management • Systematic Innovation • Operational Excellence/Lean Six Sigma into a coherent integrated framework that supports each stage of the strategy execution cycle.

A SET OF GUIDING EXECUTION PRINCIPLES…

A SUPPORTING INFRASTRUCTURE… • A technology platform that enables a closed loop process by ensuring goals are connected to the programs that realise them and the KPIs that track their achievement. • A platform designed to support the best practice tools and methods used to define, deploy, execute and track achievement of goals.

WHAT RESOURCES ARE AVAILABLE TO HELP YOU BUILD A WORLD CLASS EXECUTION SYSTEM? 1. 2. 3. 4. The Strategy Execution Maturity Model The Execution Readiness Assessment The Stratex Hub The i-nexus Integrated Strategy Execution Software Platform

THE STRATEGY EXECUTION MATURITY MODEL… Basic Execution Disciplines & Performance Management Framework Level 1 Traditional Largely financially driven using traditional (and often fragmented) approaches to defining strategy, budgeting, target setting, executing and following-up actions. Increased Focus on Alignment & Making Hard Choices Level 2 Disciplined A more structured approach to strategic planning and follow -up built on a foundation of strong project execution and improvement disciplines Closure of the “Loop” & Increasing Reflection Level 3 Aligned Level 4 Integrated Increasing focus on top-down/bottom-up alignment typically via a more systematic and collaborative goal cascade process and/or by establishing a cross-functional enterprise program office Creation of a “feedback loop” that enables earlier course correction and continual “testing” of strategic assumptions plus internalisation of “execution” culture

WHERE ARE THE MAJORITY OF GLOBAL 5000 ORGANISATIONS? Basic Execution Disciplines & Performance Management Framework Level 1 Traditional Increased Focus on Alignment & Making Hard Choices Level 2 Disciplined 15 154 7. 3% 75% Closure of the “Loop” & Increasing Reflection Level 3 Aligned Level 4 Integrated 31 5 15. 1% 2. 4% http: //www. surveymonkey. com/s/Execution_Maturity_Assessment

THE EXECUTION READINESS ASSESSMENT COMBINES THE MATURITY MODEL WITH THE STANFORD SEF Stanford Strategy Execution Framework

Ideation Nature Vision Engement Synthesis Transition THE FOCUS OF THE ERA IS ON THE PRE-REQUISITES OF SUCCESSFUL EXECUTION… Daily Management Continuous Improvement Discipline Critical Few Leading Indicators Effective ‘Plan the. Clear Separation Program & Capability to Relentlessly Work’ Progress of working “on” Project Management and ‘Work the Plan’ Reporting and “in” Discipline Effective ‘Catchball’ Effective. Plan and Capability Believable Effective Benefit/ Portfolio Impact Tracking to Course Management. Correct (Quickly) Aligned Goals High Execution Review Cadence Effective Communication Process Credible Strategy Aligned and Widely Understood Strategy Servant Leaders Clear Mission Supportive Culture Aligned Execution. Effective Governance Values. Organisation Structure and Aligned Structure” Inspiring Unambiguous Clear Breakthroughs Vision “True North” Aligned Organisational Structure Aligned Identity

THE STRATEX HUB… www. i-nexus. com/stratex-hub

A SINGLE INTEGRATED PLATFORM TO HELP PLAN AND DRIVE EXECUTION… A fully The traditional approach to managing execution… integrated platform

SUMMARY – KEY POINTS 1 Consistently Great Execution is Possible! 2 The Key is Building an Integrated Strategy Execution System 3 There is a “Blueprint” that Your Leverage and Adapt 4 The Maturity Model Can Give You A Map for the Journey 5 The Readiness Assessment Can Help You Build A Tailored Action Plan 6 The Stratex Hub is Your Free Source of Strategy Execution Resources 7 i-nexus Software Can Help You Achieve the Results You Want Faster Copyright i-nexus 2013. All rights reserved.

ANY QUESTIONS? Paul Docherty paul. docherty@i-nexus. com Skype: pauldocherty +44 (0) 7985 117784 For demo and sales enquiries please contact: alan. mace@i-nexus. com