Success through strategy execution Execution lies in Business Processes

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1 Success through strategy execution Execution lies in Business Processes Saudi Chapter Eng. Suhail M. AlAlmaee (Certified Strategy Manager) Strategic Planning and Supporting Initiatives Director June 2012

2 Success through strategy execution Introduction to strategy planning Strategy execution describes the way to CREATE VALUE The journey to E-government second action plan CO-CREATING DEVOLEPMENT E-Government Strategy Map presentation and discussion. The key principles that were applied to the design and operation of the KSA e- government OSM The heart of execution lies in the three core processes

3 Introduction to strategy planning

4 Introduction to strategy planning What is Strategy? According to Michael Porter (Professor at Harvard, leader on competitive strategy), Strategy is: A Way to reach Vision and Mission Organization Competitive Unique Positioning Options and Alternatives to face competitors Strategy specify what we should do and what we should NOT. How will our organization be in five years?

5 Introduction to strategy planning What is Strategy? Leaders harmony and commitment We all agree, right?

6 Introduction to strategy planning What is Strategic Planning? Process to establish priorities on what you will accomplish in the future Forces you to make choices on what you will do and what you will not do Pulls the entire organization together around a single game plan for execution Broad outline on where resources will get allocated

7 Introduction to strategy planning Why do Strategic Planning? If you fail to plan, then you plan to fail be proactive about the future Strategic planning improves performance Communicate to everyone what is most important

8 Introduction to strategy planning Fundamental Questions to Ask Where are we now? (The Situation) How did we get there? (Our Momentum) Where are we going? (The Direction) Where should we be going? (Desired Direction) How do we get there? (The Strategic Plan)

9 Strategy execution describes the way to CREATE VALUE

10 Strategy execution describes the way to CREATE VALUE The right Question to ask! Organizations should be asking Who do we want to be? In other words How should we be different to create value? The answer in strategy execution

11 Strategy execution describes the way to CREATE VALUE Strategy Execution If (Quality strategy) x (quality execution) = break through results Then execution can have a significant multiplier effect : You can exceed expectations with an excellent execution of an average strategy You can miss expectations with a below average execution of an excellent strategy No doubt, I prefer a brilliant execution and a good strategy, than a brilliant strategy but with a poor execution... " - Jamie Dimon JPMorgan Chairman, President & CEO

12 Strategy execution describes the way to CREATE VALUE Who is responsible for Strategy Execution Execution Is the Major Job of a Business Leader Many business leaders like to think that the top management is exempt from the details of actually running things, that setting strategy from the mountaintop is enough. In reality, only a leader can make execution happen, through deep personal involvement. Have the Right People In the Right Place

13 Strategy execution describes the way to CREATE VALUE Alignment is a pre-requisite to successfully execute strategy

14 Strategy execution describes the way to CREATE VALUE Alignment is a pre-requisite what comes first?

15 Strategy execution describes the way to CREATE VALUE managing Change The real difficulty in changing the course of any organization lies not in developing new ideas, but in escaping old ones.

16 Strategy execution describes the way to CREATE VALUE managing Change The implementation of a strategy often fails because leaders do not focus on the critical issue of aligning the people to the strategy and the processes. Every adjustment of strategy results in change And for many people, change creates a high degree of stress. In fact, people often take a lot of time to adapt to the changing strategy.

17 Strategy execution describes the way to CREATE VALUE managing Change Change management is not: Managing the technical side of change Or Just communication plans Effective change management MUST be focused on helping individuals change

18 Strategy execution describes the way to CREATE VALUE managing Change Employees need to be clear about what a change involves and how they are involved in it: What is involved? What are the proposed changes? What is the timescale? Why should we do it? What will the major effects be? Various techniques can be adopted which help ease a change process, including: Cross-functional teams Stronger internal communication Negotiation Action planning Appointing change agents or champions of change And a certain amount of force manipulation and pressure Incentives

19 The journey to E-government second action plan CO-CREATING DEVOLEPMENT

20 The journey to E-government second action plan CO-CREATING DEVOLEPMENT Co-Creation is a new paradigm of strategy development It s about how organization can innovate compelling value propositions by co-creating strategy with their stakeholders People Support What They Help Create. Anonymous

21 The journey to E-government second action plan CO-CREATING DEVOLEPMENT Co-creation is about joint creation of value by the organization and the stakeholders. It is not the organization trying to please the stakeholders Joint problem definition and problem solving Transformation of the Relationship Between organization and the stakeholders In many ways this practice of letting go to take control is what co-creation is all about. In other words, helping organizations to open up, collaborate and look outside itself for inspiration and expertise make things better and make better things.

22 The journey to E-government second action plan CO-CREATING DEVOLEPMENT Engagement Model Steering Committee Advisory Group All Government Agencies One to One meetings 6 workshops Feedback on Final Draft One to One meetings 3 Workshops Feedback on Final Draft 2 Workshops Gather input on possible initiatives Feedback on Final Draft (we received 65 replies with more than 420 comments) Public Citizen Satisfaction Survey Private (Service Providers) 1 Workshop

23 The journey to E-government second action plan CO-CREATING DEVOLEPMENT Engagement Model con. Executive Team One to One meetings 9 workshops Feedback on Final Draft Staff Survey 5 Workshops Feedback on Final Draft

24 E-Government Strategy Map presentation and discussion

25 E-Government Strategy Map presentation and discussion How to execute a strategy, if we can not describe it?

26 E-Government Strategy Map presentation and discussion Natural Cause-Effect Logic

27 E-Government Strategy Map presentation and discussion Saudi E-Gov Vision تمكين الجميع من استخدام خدمات حكومية فعالة بطريقة متكاملة وسهلة وآمنة عبر قنوات إلكترونية متعددة Enabling everyone to use effective government services that are integrated, easy, secure, and available through multiple electronic channels In order to successfully implement the Second National e-government Action Plan, this national Vision must be used by each government agency to develop an individual Vision and strategic action plan for agencies and sectors.

28 E-Government Strategy Map presentation and discussion Our Values These will be embedded through the work of the Human Capital, Communications and Change Management Workstream

29 E-Government Strategy Map presentation and discussion Strategic Themes

30 E-Government Strategy Map presentation and discussion Components of the Second Action Plan

31 E-Government Strategy Map presentation and discussion BSC focuses in doing the important things right DO THINGS BSC DO THINGS RIGHT DO THE RIGHT THINGS DO THE RIGHT THINGS RIGHT

32 E-Government Strategy Map presentation and discussion The Balanced Scorecard for Saudi E-Gov Value Creation Value Management Perspective Customer Service Perspective Business Process Perspective Learning and Growth perspective Value created for Stakeholders Asset Utilization Cost structure Product/Service Attributes Relationship Quality and Flexibility Effectiveness Operations Management processes Customer Management processes Innovation processes Regulatory and social processes Human Capital Information capital Organization Capital Culture, Leadership, Alignment, Teamwork That meet stakeholder expectations That provide a satisfying customer experience To deliver the strategic processes We will enable our people

33 E-Government Strategy Map presentation and discussion Strategic Objectives

34 E-Government Strategy Map presentation and discussion Strategy Map How to execute and communicate a strategy, if we can not describe it?

35 E-Government Strategy Map presentation and discussion KSA e-government High Level Strategy Map Our Vision e-government Second Action Plan ( ) Our Values

36 Actions Results E-Government Strategy Map presentation and discussion KSA e-government Mid Level Strategy Map To achieve our Vision Our Vision Satisfying our final stakeholders Satisfactory Experience to Our customers Add Value to Saudi Arabia Government & Society Satisfy KSA Government agencies, individuals and business with our customer value proposition Execute effective Processes Improve government efficiency Improve the experience of the public in their interactions with government Develop a culture of collaboration and innovation Develop our people Build a sustainable e-government workforce Respecting our Values Our Values

37 E-Government Strategy Map presentation and discussion KSA e-government detailed Level Strategy Map

38 E-Government Strategy Map presentation and discussion Critical Success Factors

39 The key principles that were applied to the design and operation of the KSA e-government OSM

40 The key principles that were applied to the design and operation of the KSA e-government OSM 3 Crucial questions every leader should ask Did you know that organizations loss between 40 to 60% of their strategy during execution?

41 The key principles that were applied to the design and operation of the KSA e-government OSM Where are we in the Execution Journey? YOU ARE HERE

42 The key principles that were applied to the design and operation of the KSA e-government OSM Facts Your Strategy Execution role is part of your overall leadership role. A good leader is a strategist as well as an Executer. It s not a question of either/or. Most managers find it easier to define a new strategy than it is to Execute the existing one. Execution is part of your management job. It may sound boring, but nevertheless it is your job. A strategy, even a great one, doesn t Execute itself Strategy Execution isn t something others are doing while you are working on something more important.

43 The key principles that were applied to the design and operation of the KSA e-government OSM More Facts Most know what it is few know how to get things done Three keys to keep in mind: Execution is a discipline, and vital to strategy. Execution is the major job of the business leader. Execution must be a core element of an organization s culture.

44 The key principles that were applied to the design and operation of the KSA e-government OSM Leaders / Senior management major Focus Communicate Leadership=Communication

45 The key principles that were applied to the design and operation of the KSA e-government OSM Follow-up This is not about micromanaging It is about assigning tasks Making sure that people understand priorities Staffing Asking sharp questions Then following up with measurement

46 The key principles that were applied to the design and operation of the KSA e-government OSM Success is measured by the quantity and quality of strategic decisions... LESS DESCRIPTION AND ANALYSIS OF HISTORICAL INFORMATION MORE IDENTIFICATION OF ALTERNATIVES AND DECISION MAKING

47 The key principles that were applied to the design and operation of the KSA e-government OSM How can you follow up execution, if we can not measure its results?

48 The key principles that were applied to the design and operation of the KSA e-government OSM Measurement Culture WYMIWYG WHAT YOU MEASURE IS WHAT YOU GET Are proposed measures and targets the appropriate ones to assess The performance of your strategy?

49 The key principles that were applied to the design and operation of the KSA e-government OSM The Office of Strategy Management (OSM) The OSM will emphasize the importance of working across organization, and sharing experiences The roles of the OSM include the following: Develop indicators for tracking progress against strategic objectives Maintain oversight of progress based on monthly reports by the project manager and aggregate the results into a dashboard report Maintain relationships with departments, and track their alignment Assess the alignment of other strategies prepared by agencies and Action Plans Develop risk mitigation approaches and maintain the risk register Prepare the organization report to the board of directors each quarter on progress against milestones, Strategic Objectives, and risk management

50 The key principles that were applied to the design and operation of the KSA e-government OSM OSM Role STRATEGY MANAGEMENT PROCESS OSM Role OSM Typical Core Roles 1 2 Scorecard Management Design and report on the BSC measures Organization Alignment Ensure all business and support units are aligned with the strategy KEY 3 Strategy Reviews Shape the agenda for management strategy review and learning meetings OSM must run the process OSM should run the process OSM Typical Desirable Roles Strategy Development Help the CEO and executive team formulate and adapt the strategy Strategy Communication Communicate and educate employees about the strategy Initiative Management Identify and oversee management of strategic initiatives OSM links strategy to a process X run by someone else (X) CFO: Chief Financial Officer HRO: Human Resource Officer CIO: Chief Information Officer CMO: Chief Marketing Officer CKO: Chief Knowledge Officer OSM Typical Integrative Roles Planning / Budgeting Link financial, human resources, information technology, and marketing to strategy Human Capital Alignment Ensure all employee s goals, incentives and development plans link to strategy Best Practice Sharing Facilitate a process to identify and share best practices CFO, HRO, CIO, CMO HRO CKO

51 The key principles that were applied to the design and operation of the KSA e-government OSM OSM/SMO vs. PMO OSM/SMO manage themes/objectives PMO manage projects PMO achieves results

52 The heart of execution lies in the three core processes

53 The heart of execution lies in the three core processes Three core processes of execution The strategy processes The people processes The operations processes

54 The heart of execution lies in the three core processes The Strategy Process Defines where an organization wants to go

55 The heart of execution lies in the three core processes The People Process Defines who s going to get it there A people process provides a powerful framework for determining the organization talent needs over time, and for planning action that will meet those needs. In-depth and accurate evaluations of people Identification and development of the leadership talent necessary to execute the organization strategy Development of the leadership pipeline that forms the basis for succession planning

56 The heart of execution lies in the three core processes The Operation Process Provides the path for those people A operation process focuses on an operating plan that links strategy and people to results

57 The heart of execution lies in the three core processes Creating an Execution Culture A Leader s Most Important Job An execution culture links the three core processes of any business The strategy processes The people processes The operations processes together to accomplish things on time

58 Conclusion

59 Success through strategy execution Execution lies in Business Processes Some Final Thoughts Strategy is a Process to establish priorities on what you will accomplish in the future If you fail to plan, then you plan to fail be proactive about the future Pulls the entire organization together around a single game plan for execution How should we be different to create value? Execution Is the Major Job of a Business Leader Effective change management MUST be focused on helping individuals change It s about how organization can innovate compelling value propositions by cocreating strategy with their stakeholders

60 Success through strategy execution Execution lies in Business Processes Go-out with A strategy, even a great one, doesn t Execute itself WHAT YOU MEASURE IS WHAT YOU GET Communicate

61

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