Strategic Planning Workshop Strategic Planning Session One Part

+ Strategic Planning Workshop

+ Strategic Planning • Session One: • Part One: Introduction • Part Two: Discovering the Strategic Priorities in Your Organization Course Overview Day One • Session Two: Increasing Corporate Competitive Agility • Session Three: Thinking Competitively About Your Organization’s Future • Session Four: Visualizing the Future

+ Strategic Planning • Session One: Building a Robust Corporate Strategy Course Overview • Session Two: Turning Strategy into Action Day Two • Session Three: Thinking for Change • Session Four: Making Realistic and Sustainable Organizational Change a Reality

+ “The real path to greatness, it turns out, requires simplicity and diligence. It requires clarity, not instant illumination. It demands each of us to focus on what is vital —and to eliminate all of the extraneous distractions. ” —Jim Collins from “Good to Great”

+ Group Exercise: Introductions What is your experience with strategic planning? 1. 2. 3. What role have you taken in strategic planning initiatives in the past? What are some examples of strategic planning efforts that you have seen that were particularly problematic? What has not worked? What are some examples of strategic planning efforts that you have seen that were particularly successful? What has worked?

+ Day One Session One Part One: Introduction Wall Chart

+ 7 Introduction to Strategic Planning 2. Where do you want to go? Develop vision & formulate strategy 3. How will you get there? Implementation 1. Where are you? Internal & External Analysis Monitoring & Evaluation

+ Group Exercise: Thought Question What do you think the new trends in strategic planning are? n How do you think the definition of “strategic planning” is changing in the business world as a whole? n What must you do to impact your organization’s approach to strategic planning over the next 5 years?

+ Three Keys to Successful Strategic Planning Dynamic approach Strengthsbased thinking (appreciative inquiry) Open-source decision making

+ Strengths-Based Thinking (Appreciative Inquiry) n Focus on core strengths of an organization rather than its weaknesses n Elicits enhanced performance at both an individual and an organizational level n Creates a heightened sense of momentum and positive energy n Necessary components when dealing with change

+ Group Exercise: Thought Question What are your organization’s current strengths? n What do you do well? n What resources do you have? n What are you capable of doing? How can these strengths be leveraged to create new opportunities?

+ Open-Source Decision Making n Everyone is involved and collaborates to discuss and create a solution n Creates synergy in large groups where there are many complex and diverse ideas n Creates collective ownership and a greater wealth of ideas n Must extend outside the organization

+ Dynamic Approach n Modern strategic plans should be dynamic and adaptive, not static: n “Strategy, as we knew it, is dead. Corporate clients decided that increased flexibility and accelerated decision making are much more important than simply predicting the future. ” - Walt Shill, head of North American management consulting at Accenture

+ Day One Session One Part Two: Discovering the Strategic Priorities in Your Organization

+Discovering the Strategic Priorities in Your Organization 2. Where do you want to go? Develop vision & formulate strategy 3. How will you get there? Implementation 1. Where are you? Internal & External Analysis Monitoring & Evaluation 15

+ Overview This session will prepare you to: n Adapt to the current business environment by restructuring your strategy making process n Address the future of strategic processes by redefining strategic planning in a new light n Explore the keys to successful strategic planning in the new decade for corporate leaders

+ Restructuring Your Strategy. Making Processes n Adapt your process to the current business environment n Be aware of the assumptions you’ve made about the environment and its future n Question your assumptions; encourage debate *The factors you need to consider in developing a strategic plan are probably not the same ones you needed to consider 10, 5, or even 2 years ago. Make sure to remain adaptable and avoid resting on prior knowledge.

+ Group Exercise: Thought Question What were some of the assumptions made the last time your organization devised a plan? n How did these assumptions guide planning? n How did they affect the success of the plan? n How would you challenge these assumptions going forward?

+ Explore the New Keys to Success Outline specific goals and objectives • How can they be attained? Are they realistic? • When will they be realized? Is there an adequate time frame? • Who will be responsible for completing what? Be attentive to balance • Financial goals balanced with operational issues, HR issues Build in flexibility • A mechanism for changing and updating the plan

+ Group Exercise: Thought Question What does success look like to your company?

+ Case Study

+ Day One Session Two Increasing Corporate Competitive Agility

+Increasing Corporate Competitive Agility 2. Where do you want to go? Develop vision & formulate strategy 3. How will you get there? Implementation 1. Where are you? Internal & External Analysis Monitoring & Evaluation 23

+ Overview This session will prepare you to: n Examine your organization critically with S. W. O. T. analysis n Perform an environmental scan to identify true opportunities and threats with external analysis n Stay one step ahead of the competition by forecasting future trends and market evolution n Analyze organizational effectiveness your vision

+ Examining Your Organization Critically: S. W. O. T. Analysis n Strengths n Weaknesses n Opportunities n Threats

+ S. W. O. T. Analysis SWOT Factors Example Factors Present or Future Factors? Strengths and Weaknesses Internal Products, pricing, quality, people, reputation, processes, etc. Present Markets, audience, seasonality, trends, culture, technology, etc. Future Opportunities and External Threats

+ Identify Opportunities and Threats n Changing composition of the workforce and shifting work patterns n n Diversity Outsourcing n Government influences (rules and regulations) n Economic conditions n n Availability of qualified labor pools Willing customer and client base n Global/Geographic conditions

+ Group Exercise S. W. O. T. n Internal and external analysis n In addition to a traditional SWOT analysis, what other factors might you need to consider in planning the future of your business?

+ Stay One Step Ahead of Your Competition n Focus your attention toward growing trends n Look to new developments in technology n Manufacturing n Marketing n Employee engagement n Evaluate how competitors function n Product development n Employee engagement and retention n Profitability and cost reduction n Succession planning

+ Group Exercise: Thought Question How would your company compare to others in a competitive analysis?

+ Vision n. What is your company doing? n. What should/could your company do?

+ Group Exercise: Thought Question When someone thinks of your company now, what words do you think come to their mind? What images? How is your company perceived in the marketplace?

+ Case Study

+ Day One Session Three Thinking Competitively About Your Organization’s Future

+Thinking Competitively About Your Organization’s Future 2. Where do you want to go? Develop vision & formulate strategy 3. How will you get there? Implementation 1. Where are you? Internal & External Analysis Monitoring & Evaluation 35

+ Overview This session will prepare you to: n Stop, look, listen and proceed: think strategically about moving forward n Ensure flexibility and practicality in strategy development n Strengthen your leaders’ capabilities to think strategically and act effectively n Evaluate key factors and avoid common decision traps that derail your strategic decisions

+ Group Exercise: Thought Question What kind of strategic actions are currently being taken at your organization? To what extent are these actions addressing (or not addressing) the challenges ahead?

+ Thinking Strategically: Moving Forward n STOP: understand your goal. n LOOK: look toward future trends. n LISTEN: listen to new ideas. n PROCEED: start moving toward your goal.

+ Four cornerstone principles of the life sciences and organizations: 1. Equilibrium is death 2. Innovation usually takes place on the edge of chaos 3. Self-organization and emergence occur naturally 4. Organizations can only be disturbed, not directed From “Surfing the Edge of Chaos” Pascale et al

+ Ensuring Flexibility and Practicality in Strategy Development Strategic flexibility calls for a balance between the following: Committing the resources necessary to carry out a good decision Avoiding investment of good money in bad projects

+ Strengthen Your Leaders’ Abilities to Think Strategically and Act Effectively n Give leaders a deep understanding of the underlying dynamics of the business. n Ensure that strategy is understood by all and is successfully implemented.

+ Group Exercise: Thought Question What traps have hindered a decision within your organization? n What were the traps? n How did they affect your organization’s strategy? n What can be done to avoid these traps?

+ Case Study

+ Day One Session Four Visualizing the Future with Effective Strategic Vision

+Visualizing the Future with Effective Strategic Vision 2. Where do you want to go? Develop vision & formulate strategy 3. How will you get there? Implementation 1. Where are you? Internal & External Analysis Monitoring & Evaluation 45

+ Overview This session will prepare you to: n Formulate an intuitive strategic vision as the foundation of a solid strategy n Achieve your strategic vision and objectives with tangible and quantifiable goals n Incorporate your competitive advantage into your strategic vision statements

+ What Is Strategic Vision? n REALISTIC: based in reality n CREDIBLE: believable to the employees, the organization, and the customer or client being serviced n ATTRACTIVE: inspiring desire on the part of the employees to be part of the organization n LASTING: demonstrate the ability to remain as time passes

+ Formulate an Intuitive Strategic Vision as the Foundation of a Solid Strategy Credible Attractive Realistic Lasting VISION

+ Developing an Effective Vision 7. Select final vision 6. Generate alternative visions 5. Develop future scenarios 4. Set vision context 3. Target the vision 2. Conduct an audit of the vision 1. Understand the organization

+ Developing an Effective Vision Understand the organization. 1. n What’s the purpose? Mission? Value? n What’s the character of the industry? Who are the internal and external stakeholders? n Conduct a vision audit. 2. n Assess direction and momentum Does the organization have a clearly stated vision? n Does the organization’s structure support the direction? n

+ Developing an Effective Vision Target the vision. 3. n What are the boundaries or constraints of this vision? n What must the vision accomplish? Set the vision’s context. 4. n What might the future environment look like? Categorize future developments List your expectations Ascertain the expectation that is most likely to occur

+ Developing an Effective Vision Develop future scenarios. 5. n Use previous expectations as predictors for what could happen in the future Generate alternative visions. 6. n n Create several different scenarios for future possibilities Generate several different solutions to the same problem Choose final vision. 7. n n Must be compatible with the organization’s values and culture Cannot be applied to alternative scenarios

+ Achieve a Clear Strategic Vision and Objectives n Make your goals tangible and quantifiable. n Provide solid feedback regarding performance in the process of attaining your goals. n Be open to constant reevaluation of the process. n Create quick wins to build momentum. *The easier it is to measure the goal progress, the more effective the evaluation process becomes. The effectiveness of the vision is dependent on how it withstands measurement.

+ Group Exercise: Thought Question What are some goals you could set that are positive and tangible and also help capture your organization’s overall strategic vision?

+ Group Exercise: Thought Question Why are “quick wins” a vital component of strategy formulation? n What do they provide?

+ Incorporate Competitive Advantage into Your Strategic Vision n Ascertain what makes your company unique and competitive n Evaluate your organization’s value system n Commitment and energy are both fueled by values

+ Case Study

+ Strategic Planning • Session One: Building a Robust Overview Corporate Strategy • Session Two: Turning Strategy into Action Day Two • Session Three: Thinking for Change • Session Four: Making Realistic and Sustainable Organizational Change a Reality

+ Day Two Session One Building a Robust Corporate Strategy

+Building a Robust Corporate Strategy 2. Where do you want to go? Develop vision & formulate strategy 3. How will you get there? Implementation 1. Where are you? Internal & External Analysis Monitoring & Evaluation 60

+ Overview This session will prepare you to: n Reveal the process of successful strategy formulation n Demonstrate techniques and highlight keys to formulating a successful strategy n Explore the keys to developing a healthy strategy program

+ Five Keys to Successful Strategy Formulation 1. Context and environment 2. Content 4. Outcomes 3. Key players 5. Implementation

+ Five Keys to Successful Strategy Formulation Context and Environment 1. n Where are decisions made? n Where will action be taken? Content 2. n n What does the organization’s industry look like? How does the organization choose to compete? Key Players 3. n n Who will carry out these decisions? Who gets to make these decisions?

+ Five Keys to Successful Strategy Formulation Outcomes 4. n Who will be affected? n How will they be affected? How will the outcome be measured? Is the decision consistent with the values and culture of the organization? n n Implementation 5. n n n How will your organization ensure tenacity of the decision? How will changes be made to the decision if necessary? How will you ensure that the decision sticks in all parts of the organization?

+ Six Suggestions for Creating a Healthy Strategy Program 1 Designate strategy process “champion” 2 5 6 Communicate strategy to organization 3 Clarify management’s role in implementation 4 Begin implementation of strategy by communicating & educating Create a Strategy Execution Team Establish an evaluation and monitoring system

+ Ten Southwest Practices for Building High Performance Relationships 1. Lead with credibility and caring 2. Invest in frontline leadership 3. Hire and train for relational competence 4. Use conflicts to build relationships 5. Bridge the work/ family divide 6. Create boundary spanners 7. Measure performance broadly 8. Keep jobs flexible at the boundaries 9. Make unions your partners 10. Build relationships with suppliers Relational Coordination • Shared goals • Shared knowledge • Mutual respect • Frequent communication • Timely communication • Problem-solving behavior Do the right things! At the right time! In the right way! With the right people!

+ Six Suggestions for Creating a Healthy Strategy Program Designate a strategy process “champion” to define a process incorporating SWOT analysis. 1. n Assign someone the responsibility of taking into account the strengths, weaknesses, opportunities, and threats of your organization to begin to formulate a plan moving forward.

+ Six Suggestions for Creating a Healthy Strategy Program Communicate the nature of the strategy program to the organization, and provide milestone completion dates. 2. n n Keep in mind a realistic time frame for the completion of the strategy program, but build in quick wins to gather momentum surrounding its implementation. Make sure everyone is informed about the beginning of the project.

+ Six Suggestions for Creating a Healthy Strategy Program Ensure that the management team understands their role in the strategy implementation and ensures proper and adequate communication between the two groups. 3. n CEOs should be onboarded to make certain that the people who can make change are working to do so and keeping all affected well informed.

+ Six Suggestions for Creating a Healthy Strategy Program After the strategy is approved, shift focus to communication, education, and implementation. 4. n Make sure all parts of the organization are not only aware of what the strategy will require but also about their role within the implementation of the strategy. All parts should be clearly outlined.

+ Six Suggestions for Creating a Healthy Strategy Program Create a Strategy Execution Team that is comprised of managers to translate objectives into tasks. 5. n The CEO/COO should be responsible for providing progress reports and sessions to update those who have a hand in the implementation of these tasks.

+ Six Suggestions for Creating a Healthy Strategy Program Establish an ongoing commitment to monitor results, gauge market acceptance, and report competitor reactions. 6. n The implementation of the plan is not the final step. Measures need to be put in place to test the effectiveness of the plan and to make changes should they be necessary moving forward.

+ Case Study

+ Day Two Session Two Turning Strategy into Action

+ 75 Turning Strategy into Action 2. Where do you want to go? Develop vision & formulate strategy 3. How will you get there? Implementation 1. Where are you? Internal & External Analysis Monitoring & Evaluation

+ Overview This session will prepare you to: n Ensure competitive superiority by translating strategy into effective implementation n Create a strategy road map that aligns operating activities with strategic goals n Achieve goals by addressing the who, where, when, and how in strategic implementation n Monitor implementation using a balanced scorecard and key performance indicators n Ensure full employee participation by developing an integrated implementation plan

+ Translating Strategy into Implementation “Effective implementation of an average strategy beats mediocre implementation of a great strategy every time. ” - John Sterling, management consultant and strategic planning expert

+ Translating Strategy into Implementation According to the Balanced Scorecard Collective, more than 70% of companies with strategic plans never successfully execute their plans. How can you set yourself apart?

+ Group Exercise: Thought Question What are some of the strategic goals you have for your organization or business unit? What actionable steps can you take to link your day-to-day actions and decisions to higher-level strategic goals?

+ Create a Strategy Road Map n Align day-to-day operations with strategic goals n Connect vision, values, and objectives with strategic actions required to achieve those objectives Actionable Steps Strategic Actions Daily Actions Policies Strategic Goals Vision Values Objectives

+ Group Exercise: Thought Question What are some activities that help formulate a strategic roadmap? n How do these operating activities aid in the achievement of overall strategic goals?

+ Address the Logistics of Strategic Implementation n Who is responsible for what action steps? n When will key steps be completed? n Where will these steps take place? Internally or externally? n Is everyone aware why this change needs to take place? n How will actionable steps be linked to the long-term strategic plan?

+ Monitor Implementation: Balanced Scorecards, Key Performance Indicators n About 50% of Fortune 500 Companies currently use balanced scorecards (BSCs) n n BSCs combine financial and non-financial measures Translate strategic plans from passive visions into specific actions n Key Performance Indicators (KPIs) n Can include targets such as 100% customer satisfaction, zero product defects, etc.

+ Develop an integrated implementation plan n Ensure employee participation n A successful strategic plan is supported at the organizational level as well as at the level of each individual employee

+ Group Exercise: Thought Question Is “ensuring employee participation” easier said than done? n How can you accomplish this in your organization?

+ Case Study

+ Day Two Session Three Thinking for Change

+ 89 Thinking for Change 2. Where do you want to go? Develop vision & formulate strategy 3. How will you get there? Implementation 1. Where are you? Internal & External Analysis Monitoring & Evaluation

+ Overview This session will prepare you to: n Build strategies that create new opportunities while steadily managing changes n Assure change is incorporated into the organization appropriately and effectively n Select the right leadership and management style to influence the effectiveness of change n Appraise major forces of change and catalysts to strategic reorientation

+ Create new opportunities while steadily managing changes n Build strategies that create new opportunities: n As the market changes, so will the opportunities n “Even if you are on the right track, you will get run over if you just sit there. ” – Will Rogers, actor/comedian and social commentator

+ Group Exercise: Thought Question Why are strategies that emphasize new opportunities so critical in creating steady changes? n What role does management style play in this process?

+ Ensure that change is incorporated appropriately and effectively “People don’t resist change; they resist being changed. ” – Peter Senge, MIT Sloan School of Management

+ Group Exercise: Thought Question What are the keys to incorporating change “appropriately and effectively” in your organization?

+ Group Exercise: Thought Question What are the characteristics you need to promote the effectiveness of change in your business unit, or in your organization as a whole? n What does each stakeholder need to… n BE? n DO? n KNOW? n HAVE? n FEEL?

+ Appraise major forces of change and catalysts to strategic reorientation n Catalysts or forces of change can include: n People n Technology n Information

+ Group Exercise: Thought Question What are the most likely forces that will promote change in your organization? How can you make the most out of these catalysts; how can they be an advantage in the implementation of your strategic plan?

+ Case Study

+ Day Two Session Four Making Realistic and Sustainable Organizational Change a Reality

+Making Realistic and Sustainable Organizational Change a Reality 2. Where do you want to go? Develop vision & formulate strategy 3. How will you get there? Implementation 1. Where are you? Internal & External Analysis Monitoring & Evaluation 100

+ Overview This session will prepare you to: n Facilitate acceptance of change by setting a clear purpose and joint commitment within the organization n Uncover the process of implementing, evaluating, and monitoring new business plans n Create buy-in within the organization by communicating the true value of change n Drive organizational change and know how your organization will adapt

+ Facilitate acceptance of change: set a clear purpose and get joint commitment n Five steps toward building commitment for change 1. 2. 3. Determine whose commitment is needed Specify what level of commitment is needed Estimate the critical mass n Who is currently receptive toward the change? 4. Get the commitment of the critical mass 5. Monitor level of commitment n Through status-checks

+ Group Exercise: Thought Question What are some ways of increasing communication within an organization to maximize buy-in?

+ Create buy-in by communicating the true value of change n Commitment and energy are fueled by values n Convince the organization n Sway employees through a short-term benefits analysis n Hold Q&A sessions to address employee issues n n Generate feedback Minimize conflict and stress

+ Drive organizational change and know how your organization will adapt n n Effectively communicate change Engage the attention of all individuals within the organization

+ Case Study

+Conclusion: Putting It All Together 2. Where do you want to go? Develop vision & formulate strategy 3. How will you get there? Implementation 1. Where are you? Internal & External Analysis Monitoring & Evaluation 107

+ Conclusion: Putting it All Together Strategic planning efforts should be… Strengthsfocused • Leverage your company’s strengths and your team’s strengths as competitive advantages Based on open-source decision making • Broad involvement and collaboration Dynamic, not static • Flexible, adaptive to environmental changes

+ Dynamic Approach to Strategic Planning “Uncertainty – in the economy, society, politics – has become so great as to render futile, if not counterproductive, the kind of planning most companies still practice: forecasting based on probabilities. ” - Peter Drucker, management consultant (Wall Street Journal, ‘ 92)

+ "As a general rule, adults are much more likely to act their way into a new way of thinking than to think their way into a new way of acting" From "Surfing the Edge of Chaos" by Pascale, Millemann and Gioja

+ Gallup Q-12 n • Overall Satisfaction – How satisfied are you with ______ as a place to work? n 1. I know what is expected of me at work. n 2. I have the materials and equipment I need to do my work right. n 3. At work, I have the opportunity to do what I do best every day. n 4. In the last seven days, I have received recognition or praise for doing good work. n 5. My supervisor, or someone at work, seems to care about me as a person. n 6. There is someone at work who encourages my development.

+ n 7. At work, my opinions seem to count. n 8. The mission/purpose of my company makes me feel my job is important. n 9. My associates (fellow employees) are committed to doing quality work. n 10. I have a best friend at work. n 11. In the last six months, someone at work has talked to me about my progress. n 12. This last year, I have had opportunities at work to learn and grow.

+ Performance and health can be viewed through five frames. Performance imperative Health imperative Aspire: Where do we want to go? Develop a change vision and targets that are deeply meaningful to employees. Determine what “healthy” looks like for the organization in view of your change vision. Assess: How ready are we to go there? Identify and diagnose your organization’s ability to achieve its vision and targets. Uncover the root causes of mind-sets that support or undermine organizational health. Architect: What must we do to get there? Develop a concrete, balanced set of performanceimprovement initiatives. Reshape the work environment to create healthy mind-sets. Act: How do we manage the journey? Determine and execute the right scaling-up approach for each initiative in the portfolio. Ensure that energy for change is continually infused and unleashed. Advance: How do we keep moving forward? Put in place a continuousimprovement infrastructure to take the company forward beyond one-time change. Equip leaders to lead from a core of self-mastery. From: “Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage” by Keller/Price

+ SOA Competency Framework Board of Directors March 16, 2009 Stacy Lin – Deputy Executive Director and Chief Financial Officer Mike Monar – President, Monar Consulting Ken Guthrie – Education Managing Director

+ Purpose n n Introduce you to the competency framework: n Process. n Findings. n Next steps. n Questions. Advisory/Validation group Webinar on April 13 th.

+ Framework Goals n Input for other strategic and operational goals. n Support to members as individuals. n Support to Sections. n Assist Education committees. n Support other volunteers.

+ Process

+ “Provide me with opportunities to continually evolve and leverage my skill set” “Continually supply me with highly qualified experts relevant to my needs” Members Transfer Knowledge §Offer a prestigious credential and maintain its value through leading- edge and relevant educational systems and programs §Leverage a variety of delivery channels to disseminate and facilitate knowledge transfer Employers/Clients “Preserve our trust and contribute to the common good” Public “Promote Sections as knowledge communities and networking facilitators”

+ Wide Participation n Over 2300* members. n Guidance from Advisory/Validation Groups, Section Leadership and Staff Leadership. *of 13, 675

+ Stakeholder Input n Qualitative and quantitative data collection. n Stakeholder interviews. n “Pulse” survey. n Data Collection/Analysis. n Brainstorming, rating and structuring. n Consensus building

+ Brainstorming Focus Statement n "Looking 3 to 5 years into the future, to be valued for their professionalism, technical expertise and business acumen, actuaries must have or develop skills that include. . . " Generated over 1500 responses across all practice areas n Narrowed to 100/practice

+Structuring/Sorting 3 2 Point Map 5 34 4 8 24 43 85 9 13 Each number corresponds to a knowledge/skill/ability. The map shows the relationships among these. 40 77 96 36 80 79 53 23 39 91 45 75 92 19 33 11 41 14 52 78 87 22 35 84 6 68 60 93 38 46 98 89 55 25 95 7 37 44 6458 17 42 94 31 18 76 28 61 63 82 21 67 62 9756 30 83 88 70 99 27 51 86 71 90 57 16 72 15 49 47 29 50 3254 48 26 66 59 69 74 1273 165 10 20

+Cluster & Point Map 3 2 5 34 4 Cluster analysis is used to statistically group skills into distinct groups or competencies. 8 24 43 85 9 13 40 77 96 36 80 79 53 23 39 91 45 75 92 19 33 11 41 14 52 78 87 22 35 84 6 68 60 93 38 46 98 89 55 25 95 7 37 44 6458 17 42 94 31 18 76 28 61 63 82 21 67 62 9756 30 83 88 70 99 27 51 86 71 90 57 16 72 15 49 47 29 50 3254 48 26 66 59 69 74 1273 165 10 20

+Rating Relative 1. Professional Values Importance Labels depict theme within each competency cluster. 2. Relationship Management and Interpersonal Collaboration Height = Level of importance 6. Leadership 5 Strategic Insight and Integration 3. Communication 7. External Forces and Industry Knowledge Layer Value 5 4. 15 to 4. 38 4 3. 91 to 4. 14 3 3. 67 to 3. 90 2 3. 43 to 3. 66 1 3. 19 to 3. 42 4. Results-Oriented Solutions 8. Technical Skills and Analytical Problem Solving

+Rating Performance 1. Professional Values 2. Relationship Management and Interpersonal Collaboration 6. Leadership 5 Strategic Insight and Integration 3. Communication 7. External Forces and Industry Knowledge Color Value █ 3. 93 to 4. 17 █ 3. 68 to 3. 92 █ 3. 43 to 3. 67 █ 3. 18 to 3. 42 █ 2. 93 to 3. 17 4. Results-Oriented Solutions 8. Technical Skills and Analytical Problem Solving

+ 1. Professional Values 2. Relationship Management and Interpersonal Collaboration Importance Performance 3. Communication 4. Results Oriented Solutions 5. Strategic Insight and Integration 6. Leadership 7. External Forces and Industry Knowledge 8. Technical Skills and Analytical Problem Solving 1 2 3 4 5

6. Leadership 77. Develop future actuaries with competencies of business leaders not just subject matter experts. 40. Build relationship of trust with the client by honoring commitments and seeking to understand issues from the client’s perspective. 19. Work collaboratively and across functions to solve complex financial problems. 45. Demonstrate an understanding/knowledge of the client’s environment and the issues the client is facing. 9. Be a trusted advisor. 33. Understand how the client looks at issues. 52. Anticipate and answer high level questions that impact business decisions. 80. Be flexible and open to change. 13. Demonstrate thought leadership - making things happen that are outside the bounds of the "way we’ve always done it". 43. Demonstrate leadership. 91. Expand the scope in which actuaries can play an important role. 85. Work co-operatively in a team environment with professionals from other disciplines. 36. Influence business decisions. 39. Partner with management to provide the vision to see a range of possibilities for the future. 24. Be recognized and admired as a forward-thinking thought leader, role model, and strategic business partner both within the industry and beyond. 96. Be more proactive and visible so that the market will become more aware of the contributions an actuary can make to the normal business process. 75. Understand, at a deep level, the client or the employers business and how the actuary’s work relates to it. 92. Work collaboratively with actuaries and non-actuaries in a business or regulatory environment. 79. Work effectively with many other professional groups that work in related areas such as accountants, economists, demographers, statisticians, computer specialists etc. 23. Serve and be viewed as a bridge and a multi-disciplinary facilitator to ensure enterprise wide profitable growth, financial integrity and shareholder/policy holder value. 8. Demonstrate strong, dynamic leadership providing inspiration, respect, and loyalty for others. + 7. External Forces and Industry Knowledge 7. Look at issues from an overall business framework, rather than only from a technical framework. 25. Understand bottom line impact of business decisions. 44. Understand the impacts to an organization from a variety of sources, not just the standard mortality, morbidity and interest rate impacts. 17. Being able to take new information (such as changes in standards or legislation) and applying it to client situations. 30. Translate complex actuarial issues/findings into business action. 76. Appropriately balance theoretical "correctness" with practical business realities. 58. Sort through a business problem and determine the underlying basic issue that needs to be addressed or resolved. 56. Strike a balance between actuarial exactness and reality. 28. Understand financial statements and drivers of product profitability. 62. Challenge basic assumptions, continually look for new and better ways of doing things instead of doing things the same old way. 89. Step outside actuarial core competencies and develop a broader business acumen. 64. Make the link between technical actuarial detail and the bottom line. 98. Understand the big picture of how businesses make money and the actuaries role in that picture. 18. Demonstrate general business skills to complement technical expertise. 95. Demonstrate creative problem solving that goes beyond traditional analysis. 37. Be able to access a situation from a high level, yet know when it is prudent to dive deeper. 94. Creatively apply technical and business skills to situations and issues beyond the traditional roles of an actuary. 88. Provide timely analysis to reach a recommendation, sometimes with incomplete data. 82. Develop non-traditional solutions to current challenges 97. Integrate complex actuarial concepts with other related technical disciplines. 5. Strategic Insight and Integration 41. Demonstrate sound business judgment/acumen. 35. Recommend business decisions that are accurate, timely, actionable, and relevant based on the analysis results. 46. Make effective decisions using available facts. 78. Demonstrate big picture thinking: incorporating economic, political, and technological knowledge. 55. Understand a company’s risk tolerance and its impact. 60. Anticipate downstream consequences to business decisions. 38. Go beyond the technical aspect of a problem. 84. Look beyond traditional silos of knowledge to understand, and impact, the bigger picture for a business 87. Demonstrate knowledge of the clients core business model and the potential risks that may prevent financial success. 68. Align actuarial analysis and findings with the broader goals of an organization. 22. Develop strategies to add value to the business and company’s finances. 93. Develop a broader view in order to understand the actuarial issues of today’s social problems and not just focus on product sales or specific client concerns. 1. Professional Values 3. Demonstrate high ethical standards to ensure the profession is valued. 2. Display a high degree of honesty, loyalty, and integrity. 5. Apply high ethical standards in serving our clients and public. 4. Tell the truth about risk even when it is uncomfortable to do so. 34. Be professional, reliable, unbiased, and focused in serving client needs. 2. Relationship Management and Interpersonal Collaboration 53. Present difficult messages clearly despite pressure to withhold the message. 11. Listen and understand a clients needs before designing a solution. 14. Demonstrate strong interpersonal skills in order to interact effectively with non-actuaries. 1. Professional Values 2. Relationship Management and Interpersonal Collaboration 6. Leadership 5. Strategic Insight and Integration 3. Communication 7. External Forces and Industry Knowledge Color Value █ 3. 93 to 4. 17 █ 3. 68 to 3. 92 █ 3. 43 to 3. 67 █ 3. 18 to 3. 42 █ 2. 93 to 3. 17 4. Results-Oriented Solutions 8. Technical Skills and Analytical Problem Solving 16. Demonstrate superior analytical skills; the ability to take large amounts of complex information and synthesize it into something meaningful. 21. Understand manage new risks as technology and/or society develops. 47. Demonstrate ability to answer the question "why? " - demonstrating a grasp of the underlying drivers of the given results. 86. Calculate risk in complex, ambiguous, or risky situations and understand the trade offs. 51. Keep abreast with the technical developments in the field of expertise, beyond the exam syllabus once studied. 42. Demonstrate practical problem solving skills. 57. Identify, set, and defend the key assumptions that go into an actuarial analysis. 71. Learn new methodologies (for example, reserving/capital) and understand the risks inherent in moving to these new methodologies. 27. Understand interpret regulations governing the practice area and correctly apply them. 70. Be current with regulatory issues and development. 83. Demonstrate innovative and creative skills in problem solving taking into account broad issues beyond the specific subject matter at hand. 100. Demonstrate a complete and thorough understanding of the subject matter that constitutes an area of practice. 90. Produce financial analyses that take into consideration the distribution of risks appropriately associated with the current financial engagement. 49. Decipher complex, and often ambiguous, government regulations and distill the knowledge into clear and useful advice to clients. 99. Quickly and simply approximate an answer, without detailed analysis (a return to "back of the envelope"). Layer Value 5 4. 15 to 4. 38 4 3. 91 to 4. 14 3 3. 67 to 3. 90 2 3. 43 to 3. 66 1 3. 19 to 3. 42 3. Communication 1. Present complicated information in an organized, logical, and understandable manner. 10. Effectively communicate and present ideas and findings so that audiences such as clients, senior management and other non-actuaries can understand utilize the information. 20. Communicate complex financial models to senior management in a way that enables them to understand risks and opportunities. 15. Condense complex actuarial calculations and risk analyses and present them to management so that they understand the impacts. 50. Clearly communicate opinions and solutions using language appropriate to the audience. 48. Communicate effectively with all levels of management. 63. Understand explain business issues and alternative solutions to constituents in a way that results in informed decision making. 26. Effectively communicate information to several different audience levels and recognize the level of the audience in each situation. 6. Influence and persuade non-technical audiences. 72. Express complex ideas in simple terms. 32. Effectively communicate both the problem and solution to an audience. 66. Communicate effectively with different audiences: employees, employers (HR, finance), other professionals (accountants, lawyers). 73. Effectively communicate complex actuarial concepts to a diverse audience including business professionals and politicians not well versed in mathematical concepts. 81. Clearly, concisely, and passionately communicate ideas in a language that is meaningful to business leaders. 74. Communicate persuasively and concisely. 59. Deliver simple, summary level, financial models that effectively communicate business issues and risks. 65. Communicate technical findings to management and the public, both verbally and in writing. 61. Prioritize and communicate key issues in a timely manner and understandable fashion. 54. Write in a form that is grammatically correct, well organized, well reasoned, concise, and to the point. 12. Prepare structured reports covering technical topics for a non-technical audience. 4. Results-Oriented Solutions 29. Demonstrate superior analytical skills that are combined (but not overshadowed) by the ability to communicate technical concepts to a non-technical audience. 67. Distill the results of complicated models and formulas into actionable recommendations (i. e. don’t just point out there is a problem--suggest a solution). 69. Explain the immediate ramifications of a decision and the potential long-term impact of the decision. 31. Provide creative business solutions and communicate them clearly to nonactuaries.

+ Overall Findings

+ Key Insights – Overall n Many commonalities across areas of practice. n “Technical” is core. n Non-technical and business management competencies are differentiators. n Career paths are NOT “one size fits all. n Ability to support different paths.

+ Key Insights – Professional Development n Focus on life-long learning, not paperwork. n Keep new FSAs engaged via professional development. n Promote benefits of non-technical and business management competence.

+ Key Insights – Professional Development Offerings n Provide deeper/current technical content. n Engage experienced/expert presenters. n Develop/deliver varied offerings. n Partner with other organizations.

+ Key Insights – Key Topic Areas n ERM. n Business acumen, management, leadership, communication, interpersonal skills. n Repackage ASA and FSA education for professional development audience.

+ Key Insights – Instructional Design n Create engaging learner experiences. n Integrate non-technical and business management skills. n Provide interactive and case-driven experiences. n Integrate education and career development.

+ Deliverables

+ Overall Framework 1. Personal and Professional Values. 2. Relationship Management and Interpersonal Collaboration. 3. Communication. 4. Results Oriented Solutions. 5. Strategic Insight/Opportunity. 6. Leadership. 7. External Forces and Industry Knowledge. 8. Technical and Analytical Problem Solving.

+ Self-Assessment Instrument n Excel-based and downloadable from SOA Web site. n Assess current and desired performance. n Identify gaps. n Create development plan.

+ Career Journey Stories n Matrix for each practice n n Searchable, downloadable PDF. Individual stories focused on: n n …… trigger for entering the field …… mentors …… turning points …… key learning experiences

+ User Guide for Sections and Staff n Searchable PDF with Excel data file. n Provide information as input for those who design, develop and deliver continuing education. n Includes tips for all delivery modalities, including: n n meeting sessions, Webinars, e-Learning modules, seminars, workshops, etc. ). Users include, but are not limited to, SOA staff and Section leadership.

+ Next Steps

+ CE Redesign Initiative BOARD Competency Framework Advisory Group CE TKT Staff

+ Transfer Knowledge Team n Kickoff – April 6. n Deliverable review – April. n Planning – April to May. n BOD input – June. n BOD approval of the plan – October.

+ Key Recommendations for TKT Consideration n Finalize and release tools for members, Sections and staff. n Communicate, promote, market. n Implement design and development methodology. n Design a curriculum. n Partner with other organizations.

+ What questions do you have? Remember April 13 Webinar!