Strategic Operating System Carver County
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1 Strategic Operating System Carver County Group 5 Katherine Zimmerman Jeremy Berghoff D Stephen Dro5 Sean Preston Trent Haun Joel Lundstrom What is a strategic operating system? The integrated set of processes and tools that a company uses to develop its strategy, translate it into operational actions, and monitor and improve the effectiveness of both. -Robert Kaplan & David Norton What is a strategic operating system? (Kaplan & Norton s Closed-loop System ) 1
2 Why is it important? Without consistent systematic reinforcement, your strategy is easily overshadowed by day-to-day operational issues. A closed-loop system not only provides this reinforcement, but also provides a framework to test and measure progress against your strategic goals throughout the year, and can guide you in how to adjust your strategy for the future. Carver County s Current State Wins: Currently developing a strategy with a strong mission, vision, and values Strategy is being relooked at on a biannual basis. Opportunities: Key parts of stages 2-4 are missing from the current operating system. What it could look like in the future 2
3 Extended horizon framework (Goal Tree) Strategy Map Example KPIs/Balanced Scorecard 3
4 KPIs/Balanced Scorecard Creating the Balanced Scorecard How Carver County can get there 4
5 Operational Metrics The Engine Property & Financial Services Core Process Metrics Ex: Mean appraisal Ime current, trend for last 5 years Finance Metrics Ex: Budget Update (Plan vs. Actuals), trend for last 5 years Customer SaIsfacIon Metrics Ex: Mean process Ime for licenses, trend for last 5 years Ex: Are Carver County ciizens saisfied with the amount of Ime it takes from applying to receiving various licenses? Improvement/InnovaIon Metrics (Group 4) AcIon items Strategic/Operational Review Calendar Periodic Review (Frequency) Team Meetings (5-15 mins Daily/Weekly) Team closest to the operation and immediate supervisors (usu. At start of shift) Department Meetings (30 mins Weekly/ Biweekly) Supervisors and department leadership Applicable support functions Division Meetings (1 hour monthly) Division and Department leaders Applicable support functions Focus on strategic initiatives 5
6 Periodic Review (Frequency Cont.) All Employee Meetings (1 hour Quarterly/ Semiannual) Involve all employees in the Division Good opportunity to transfer feedback from team to division leadership (e.g. idea cards, question cards) Leadership focus on positives Periodic Review (Agenda) 1) Review "Top 5" KPIs/metrics (Presented by the metric owners) - Positive Feedback - Opportunities - What's being done to mitigate any challenges? Root cause? 2) Review Ongoing Tasks/Projects (Department/ Division) 3) Announcements/Recognition Strategy Review vs. Ops Review 6
7 Test And Adapt The Strategy Where/When: Executive Leadership Offsite Who: Executive Leadership/Directors/Managers Frequency: Annually Purpose: Reexamine original strategy and adapt it to the continuously changing economic factors. This closes the loop to the operating system. How is this different than current strategy offsite? Measured progress across KPI s and the balanced scorecard should be used to drive updates in future strategy. Key Recommendations Strategic Operating System Recommendations: Translate the Strategy: Create Strategy Map Plan Operations Develop KPI s and Balanced Scorecard Monitor and Learn: Hold Strategy Reviews Hold Operational Reviews Test and Adapt the Strategy: Conduct Annual Review Start again Final Takeaway Bridging together the Carver County mission with the long-term vision 7
8 References HBR Jan 2008 Mastering the Management System, R. Kaplan & D Norton. HBR July 2007 Best of HBR: Using the Balanced Scorecard as a Strategic Management System, R. Kaplan & D. Norton
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