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ANIMate™ YOUR STRATEGY


            Linda Otto
APRIL 2012




            90% of organisations fail to execute their strategies

  85% of executive teams spend less than one hour per month discussing
                                   strategy

95% of the typical workforce do not understand their organisations strategy

          70% of organisations do not link strategy to budgeting

70% of organisations do not link middle management incentives to strategy

                      Harvard Business School Publishing




                                                                              2
Overview                                 APRIL 2012




•   The Role of Strategy in business
     – Strategy in a nutshell

•   The Power of Strategy
     – Why do so many strategies fail?

•   The Solution
     – ANIMate™ you strategy




                                                      3
APRIL 2012




ANIMate™ your Strategy

THE ROLE OF STRATEGY IN
BUSINESS

                                       4
The Purpose behind                                             APRIL 2012

Strategy
•   Defines scope and direction of an organisation
•   The blueprint that provides direction and specific outcomes to support
    the realisation of the organisations Vision and Mission
•   Details the way in which the various business operations work together
    to achieve particular goals
•   Delineates a territory in which a company seeks to be unique
•   How we respond to customer needs, legislation, competitors and other
    environmental factors




                                                                             5
In a nutshell   APRIL 2012




                             6
Understanding Purpose                                           APRIL 2012




•   Vision is that which we aspiring to – our purpose
•   The legacy that the business seeks to create
•   Vision must be a vivid descriptor that create employee buy-in
•   Vision should excite us, gets us out of bed in the morning and make us
    proud of the company we work for
•   Reason why we are here


•   The Mission statement is how are we going to get there
•   It provides clear steps required to achieve Vision
The Values Link                                                 APRIL 2012




•   Define behaviours required by ALL employees to drive the Vision
•   Need to be understood by all and embedded in the culture of the
    business
•   What gets measured gets done
•   Values should be developed based on behaviours that are needed to
    achieve success
•   Do we recruit people in terms of how their values align with those of the
    company



                                                                                8
The Strategic Plan                                                APRIL 2012




                                                                               Z

                                                                      This is where we
 Strategic Goals




                                                                             want to be
                                 This is HOW we will get there!




                    A
                   This is where we              Time
                   are now
The Strategic Plan                                                  APRIL 2012




•   Defines inputs and activities required to achieve Vision – Away from and
    Towards
•   Critical link - the plan that drives actualisation of Vision and Mission
•   Organisational strategy provides the blue print for Divisional,
    Departmental, Team and Individual strategies
•   Strategy guides and directs Structure, Roles and Responsibilities
•   Budgets are developed factoring in strategic initiatives
The Strategic Plan                                 APRIL 2012




Organisations put more emphasis on rational factors than
  on employees’ psychological engagement. Only 2.5% of
  companies successfully complete 100% of their projects

           (source: the Gallup Journal Feb 2012)
The Strategic Plan                                           APRIL 2012




• Systems and tools available to drive cascading, implementation and
   management of strategy
The Strategic Plan                     APRIL 2012




   “However beautiful the strategy, you
   should occasionally look at the results”
           Sir Winston Churchill
Measurement of                                                  APRIL 2012

Performance
•   Strategy dictates key performance related measures across all levels
•   Performance management is done in order to assess performance against
    strategic objectives
•   Performance management is the tool we use to drive and measure
    strategy
     – How are we progressing?

     – STOP, LOOK, CORRECT and TAKE ACTION

     – Define measurement cycles
Measurement of                                                APRIL 2012

Performance
•   A dynamic tool
•   Stakeholders need to be flexible wrt being able to make changes based on
    performance feedback
•   Measures may be in place but are they driving the desired performance?


       “There is always a better strategy than the one you have;
                    you just haven't thought of it yet.”

                 Sir Brian Pitman, former CEO of Lloyds TSB
APRIL 2012




ANIMate ™ your Strategy

THE POWER OF STRATEGY


                                       16
What are the drivers of                                         APRIL 2012

failed Strategy?
Lack of alignment
•   Not developed or aligned to organisational Vision
•   Strategies developed in isolation – key stakeholders not involved
•   Those leading the change either under communicate, give mixed
    messages or do not model the behaviours the change / strategy requires




                                                                             17
What are the drivers of                                                      APRIL 2012

failed Strategy?
Leadership
•   Leadership team are focused on building personal empires
     – organisational vision not the true focus
     – there is no united front from Leadership team resulting in confusion across teams
        and departments

•   Leaders are too operationally involved
     – difficult to be a visionary when one is caught up in the daily nitty gritty

•   Leaders are not empowered
     – do not understand strategy
     – Insufficient knowledge transfer regarding strategy



                                                                                          18
What are the drivers of                                        APRIL 2012

failed Strategy?
Implementation and measurement
•   Strategy does not align with KPI’s
•   Performance metrics that are aligned to recognition are often vague
•   Measures are subjective and/or lacking evidence
•   No operational roll out plan
•   Progress is not measured

•   Lack of recognition
•   Time constraints



                                                                            19
What are the drivers of                                          APRIL 2012

failed Strategy?
Engagement
•   A compelling vision that excites people about the future has not been
    developed or communicated
•   Leaders believe that announcing strategy is the same as implementing it
•   Leadership team do not engage with all levels of business regarding
    strategy
•   Limited understanding at a team and individual level of how roles fit into
    achievement of strategy
•   Employees end up being disengaged


                                                                                 20
What are the drivers of                               APRIL 2012

failed Strategy?
Drive and momentum
•   Strategy, once developed soon gets pushed aside




                            Shew! That’s over!




                                                                   21
Impact of economic                                              APRIL 2012

downturn on strategy
•   Study conducted in 2009 and again in last quarter of 2010 by FTI
    Consulting – Forbes Insights (180 completed interviews by CEOs, senior
    strategists, and senior communications officers.)
     – 76% of companies have changed their approach to strategic initiatives
       in the past year.
     – When strategies fail most often it is because companies misinterpret
       the market opportunity (23%), launch initiatives that don’t align with
       core competencies (20%), or because key stakeholders don’t
       understand the strategy and don’t commit or follow-through (19%)


                                                                                22
Impact of economic                                            APRIL 2012

downturn on strategy
  – Vast majority of CEOs (92%), communicators (92%) and strategists
    (88%) say communications is critical to the success of their strategic
    initiatives and nearly half of respondents (46%) report that
    communications is an integral and active component of the strategic
    planning and execution process.
  – Increased communications (41%) tops the list of key changes
    companies are making to improve the success rate of their strategic
    initiatives.



                                                                             23
APRIL 2012




ANIMate ™ your Strategy

THE SOLUTION


                                       24
ANIMate™ your Strategy                                      APRIL 2012




                   ANIMate ™ YOUR STRATEGY:
                       To animate means to…
                      …give life to your strategy
                 …give movement to your strategy
    … align leaders, teams and individuals to the strategic goals




                                                                         25
ANIMate™ your Strategy   APRIL 2012




                                      26
Activate Strategy within                                          APRIL 2012

the business
•   Create awareness around organisational strategy
•   Link strategy to the business, the team and the individual.
•   Employees are aware of and able to recite organisational strategic
    initiatives down to how these link in with their department, team and
    own role.
•   Employees can identify own personal contribution towards strategy
•   Recognition becomes a reality - aligned to performance that drives
    successful implementation and realisation of strategy



                                                                               27
Navigate the Journey                                            APRIL 2012




•   Leaders are equipped with the tools required to direct their peoples
    efforts towards
•   Ensure that people align what they do and how they do it to the strategy
    and values
•   Being clear on the journey and what success looks like




                                                                               28
Integrate Strategy into                                         APRIL 2012

daily operations
•   Ensure integration of strategic actions across existing communication
    channels (recruitment process, performance management system,
    development plans)
•   Employees display behaviours that align to values and culture
•   Ongoing communication and engagement
•   Alignment of the KPIs to the strategic goals
•   Performance that aligns to the strategy
•   Development plans that align to the strategy



                                                                             29
Motivate our People                                             APRIL 2012




•   Recognise and reward employees who align behaviours and efforts
    towards the strategy
•   Fit for purpose reward and recognition initiative focused on alignment
    towards desired activity and behaviours.




                                                                             30
Outcomes                                                       APRIL 2012




• Accountability for strategic actions

• Alignment of employees to the strategic objectives

• Improved planning for changes being introduced into the business

• Improved adoption of changes in the business

• Defined actions for short term, medium term and long term improvements

• Improved probability of achieving the strategic objectives

• Building the desired culture

• Alignment of behaviours



                                                                            31
Measure of Success                                                               APRIL 2012




•   Hospitality Industry
     – % increase in CSI and 5% increase of NPS (Net Promoter Score) over 6 months
     – 99% rating on Brand Strategy campaign
     – 96 % rating on Brand strategy comms and engagement

•   Contact Centre Industry
     – Call Centre build (On Budget On Time)
     – 300% achievement of performance targets in month 1

     • Aviation industry
     – Retention strategy – shifted potential retention from 20% to 80% in 3 months
Move to action                                              APRIL 2012




•   Complete ANIMate™ survey
•   Have you created Awareness , Acceptance and Adoption of the strategy
    in your business?
•   Where are your gaps?
•   What are your opportunities?




                                                                           33
Conclusion                                APRIL 2012




      “In real life, strategy is actually very
   straightforward. You pick a general direction
             and implement like hell” -

                   Jack Welch


                                                       34

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Animate your strategy!

  • 2. APRIL 2012 90% of organisations fail to execute their strategies 85% of executive teams spend less than one hour per month discussing strategy 95% of the typical workforce do not understand their organisations strategy 70% of organisations do not link strategy to budgeting 70% of organisations do not link middle management incentives to strategy Harvard Business School Publishing 2
  • 3. Overview APRIL 2012 • The Role of Strategy in business – Strategy in a nutshell • The Power of Strategy – Why do so many strategies fail? • The Solution – ANIMate™ you strategy 3
  • 4. APRIL 2012 ANIMate™ your Strategy THE ROLE OF STRATEGY IN BUSINESS 4
  • 5. The Purpose behind APRIL 2012 Strategy • Defines scope and direction of an organisation • The blueprint that provides direction and specific outcomes to support the realisation of the organisations Vision and Mission • Details the way in which the various business operations work together to achieve particular goals • Delineates a territory in which a company seeks to be unique • How we respond to customer needs, legislation, competitors and other environmental factors 5
  • 6. In a nutshell APRIL 2012 6
  • 7. Understanding Purpose APRIL 2012 • Vision is that which we aspiring to – our purpose • The legacy that the business seeks to create • Vision must be a vivid descriptor that create employee buy-in • Vision should excite us, gets us out of bed in the morning and make us proud of the company we work for • Reason why we are here • The Mission statement is how are we going to get there • It provides clear steps required to achieve Vision
  • 8. The Values Link APRIL 2012 • Define behaviours required by ALL employees to drive the Vision • Need to be understood by all and embedded in the culture of the business • What gets measured gets done • Values should be developed based on behaviours that are needed to achieve success • Do we recruit people in terms of how their values align with those of the company 8
  • 9. The Strategic Plan APRIL 2012 Z This is where we Strategic Goals want to be This is HOW we will get there! A This is where we Time are now
  • 10. The Strategic Plan APRIL 2012 • Defines inputs and activities required to achieve Vision – Away from and Towards • Critical link - the plan that drives actualisation of Vision and Mission • Organisational strategy provides the blue print for Divisional, Departmental, Team and Individual strategies • Strategy guides and directs Structure, Roles and Responsibilities • Budgets are developed factoring in strategic initiatives
  • 11. The Strategic Plan APRIL 2012 Organisations put more emphasis on rational factors than on employees’ psychological engagement. Only 2.5% of companies successfully complete 100% of their projects (source: the Gallup Journal Feb 2012)
  • 12. The Strategic Plan APRIL 2012 • Systems and tools available to drive cascading, implementation and management of strategy
  • 13. The Strategic Plan APRIL 2012 “However beautiful the strategy, you should occasionally look at the results” Sir Winston Churchill
  • 14. Measurement of APRIL 2012 Performance • Strategy dictates key performance related measures across all levels • Performance management is done in order to assess performance against strategic objectives • Performance management is the tool we use to drive and measure strategy – How are we progressing? – STOP, LOOK, CORRECT and TAKE ACTION – Define measurement cycles
  • 15. Measurement of APRIL 2012 Performance • A dynamic tool • Stakeholders need to be flexible wrt being able to make changes based on performance feedback • Measures may be in place but are they driving the desired performance? “There is always a better strategy than the one you have; you just haven't thought of it yet.” Sir Brian Pitman, former CEO of Lloyds TSB
  • 16. APRIL 2012 ANIMate ™ your Strategy THE POWER OF STRATEGY 16
  • 17. What are the drivers of APRIL 2012 failed Strategy? Lack of alignment • Not developed or aligned to organisational Vision • Strategies developed in isolation – key stakeholders not involved • Those leading the change either under communicate, give mixed messages or do not model the behaviours the change / strategy requires 17
  • 18. What are the drivers of APRIL 2012 failed Strategy? Leadership • Leadership team are focused on building personal empires – organisational vision not the true focus – there is no united front from Leadership team resulting in confusion across teams and departments • Leaders are too operationally involved – difficult to be a visionary when one is caught up in the daily nitty gritty • Leaders are not empowered – do not understand strategy – Insufficient knowledge transfer regarding strategy 18
  • 19. What are the drivers of APRIL 2012 failed Strategy? Implementation and measurement • Strategy does not align with KPI’s • Performance metrics that are aligned to recognition are often vague • Measures are subjective and/or lacking evidence • No operational roll out plan • Progress is not measured • Lack of recognition • Time constraints 19
  • 20. What are the drivers of APRIL 2012 failed Strategy? Engagement • A compelling vision that excites people about the future has not been developed or communicated • Leaders believe that announcing strategy is the same as implementing it • Leadership team do not engage with all levels of business regarding strategy • Limited understanding at a team and individual level of how roles fit into achievement of strategy • Employees end up being disengaged 20
  • 21. What are the drivers of APRIL 2012 failed Strategy? Drive and momentum • Strategy, once developed soon gets pushed aside Shew! That’s over! 21
  • 22. Impact of economic APRIL 2012 downturn on strategy • Study conducted in 2009 and again in last quarter of 2010 by FTI Consulting – Forbes Insights (180 completed interviews by CEOs, senior strategists, and senior communications officers.) – 76% of companies have changed their approach to strategic initiatives in the past year. – When strategies fail most often it is because companies misinterpret the market opportunity (23%), launch initiatives that don’t align with core competencies (20%), or because key stakeholders don’t understand the strategy and don’t commit or follow-through (19%) 22
  • 23. Impact of economic APRIL 2012 downturn on strategy – Vast majority of CEOs (92%), communicators (92%) and strategists (88%) say communications is critical to the success of their strategic initiatives and nearly half of respondents (46%) report that communications is an integral and active component of the strategic planning and execution process. – Increased communications (41%) tops the list of key changes companies are making to improve the success rate of their strategic initiatives. 23
  • 24. APRIL 2012 ANIMate ™ your Strategy THE SOLUTION 24
  • 25. ANIMate™ your Strategy APRIL 2012 ANIMate ™ YOUR STRATEGY: To animate means to… …give life to your strategy …give movement to your strategy … align leaders, teams and individuals to the strategic goals 25
  • 26. ANIMate™ your Strategy APRIL 2012 26
  • 27. Activate Strategy within APRIL 2012 the business • Create awareness around organisational strategy • Link strategy to the business, the team and the individual. • Employees are aware of and able to recite organisational strategic initiatives down to how these link in with their department, team and own role. • Employees can identify own personal contribution towards strategy • Recognition becomes a reality - aligned to performance that drives successful implementation and realisation of strategy 27
  • 28. Navigate the Journey APRIL 2012 • Leaders are equipped with the tools required to direct their peoples efforts towards • Ensure that people align what they do and how they do it to the strategy and values • Being clear on the journey and what success looks like 28
  • 29. Integrate Strategy into APRIL 2012 daily operations • Ensure integration of strategic actions across existing communication channels (recruitment process, performance management system, development plans) • Employees display behaviours that align to values and culture • Ongoing communication and engagement • Alignment of the KPIs to the strategic goals • Performance that aligns to the strategy • Development plans that align to the strategy 29
  • 30. Motivate our People APRIL 2012 • Recognise and reward employees who align behaviours and efforts towards the strategy • Fit for purpose reward and recognition initiative focused on alignment towards desired activity and behaviours. 30
  • 31. Outcomes APRIL 2012 • Accountability for strategic actions • Alignment of employees to the strategic objectives • Improved planning for changes being introduced into the business • Improved adoption of changes in the business • Defined actions for short term, medium term and long term improvements • Improved probability of achieving the strategic objectives • Building the desired culture • Alignment of behaviours 31
  • 32. Measure of Success APRIL 2012 • Hospitality Industry – % increase in CSI and 5% increase of NPS (Net Promoter Score) over 6 months – 99% rating on Brand Strategy campaign – 96 % rating on Brand strategy comms and engagement • Contact Centre Industry – Call Centre build (On Budget On Time) – 300% achievement of performance targets in month 1 • Aviation industry – Retention strategy – shifted potential retention from 20% to 80% in 3 months
  • 33. Move to action APRIL 2012 • Complete ANIMate™ survey • Have you created Awareness , Acceptance and Adoption of the strategy in your business? • Where are your gaps? • What are your opportunities? 33
  • 34. Conclusion APRIL 2012 “In real life, strategy is actually very straightforward. You pick a general direction and implement like hell” - Jack Welch 34

Notes de l'éditeur

  1. As much as these percentages may have changed with time, it has been our experience that these common themes continue to hinder organisations in performance and delivery
  2. Now while I can appreciate that I have some senior stakeholders here in the audience today, I would like to spend a little bit of time exploring the process of strategy in relation to the organisational Vision and Mission. I know that many of us have grown immune to terms like Vision and Mission and I would like to propose that may be as a result of us never having had the chance to experience the power of these concepts as for the most part they remain on paper alone and never have the opportunity to be animated within many of our work environments. So please hear me out and give me a chance to illustrate the power that these really have in igniting and engaing your workforce relating to stretegy and performance.
  3. #
  4. These should all be aligned to and governed by an overarching organisational strategy Division, Departmental, Team and Individual strategies should cascade from and roll up to organisational strategy Cascade – premis of using systems and tools to enable the cascading of strategy Now that we know what I want to achieve –what roles are required to enable execution of strategy? systems and tools to enable the cascading of strategy
  5. Innovation – looking for innovative ways to progress based on core offering but also factoring in current climate – seeing shift in a lot of companies who are now gearing themselves for growth.
  6. HR to provide accurate data
  7. HR to provide accurate data
  8. Airline company looking at ways of improving TAT on getting bags from off aircraft and onto carousal – measure was that it would take 15 mins from time of landing to first bag being placed on carousal –first bag was on in time but not the rest
  9. Airline company looking at ways of improving TAT on getting bags from off aircraft and onto carousal – measure was that it would take 15 mins from time of landing to first bag being placed on carousal –first bag was on in time but not the rest
  10. PWC - *
  11. HR to provide accurate data
  12. Link PWC
  13. HR to provide accurate data
  14. HR to provide accurate data
  15. HR to provide accurate data
  16. Ability to execute solely dependent on your level of engagement with your people – you need to have the right people on the bus.