Title - Arial 30 by 1wzKru

VIEWS: 820 PAGES: 19

									Business Alignment
 Linking Strategy to Operations       Strategy   Operations




The struggle to integrate corporate strategy to execution
Typical comments…
• “My organization lacks focus on critical activities
• “We spend too much time and effort fighting fires”
• “We have a lot of initiatives in our organization, but we are
  not sure what they improve – or what they are intended to
  improve”
• “My managers and workers don’t understand the strategy of
  our business”



                                2
Business Alignment Defined

Business alignment is an ongoing initiative:

That aligns corporate strategy

And tactical processes

Through integrated reporting & metrics




                                 3
A Business Problem

                CREDIT          CONTRACT     PRICING




                                     ADMIN




              FINANCING REQUEST


                         6 TO 14 DAYS LATER!

            Processing time was only 90 minutes!
                            4
Business Alignment


         90% Reduction in Cycle Time!
             Speed Improved by 100x

                                                  Credit

                                                 Contracts
                                                  Pricing

                                                  Admin
                        SUPPORTED GENERALIST



                 Start to Finish – In 4 hours!


                          5
Re-engineering defined




     Reengineering is the fundamental
      rethinking and radical redesign of
  business processes to achieve dramatic
   improvements in critical, contemporary
  measures of performance, such as cost,
          quality, service and speed



                         6
The Business System Diamond


                    Business
                    Processes



      Jobs &         Information   Values &
    Structures       Technology     Beliefs




                  Management &
                  Measurement
                    Systems
                         7
    Misalignment results in poor execution

There is no substitute for effective execution!

The reality of the challenge
•     Less than 10% of strategies effectively created are effectively implemented
•     70% of all strategic failures are the result of bad execution, not bad strategies


Key success factors that overcome these challenges
•     Leadership’s ability to clearly articulate the vision, the business goals, and the
      key indicators of success
•     A strong culture of change, open communications and individual leadership
      development
•     Strategic planning and alignment are executed as a process, not an event
•     A compelling vision that often has a higher purpose




                                            8
Strategy is useless without business alignment




                         Corporate
                          Vision &
                          Strategy

                      Strategy Alignment
                  Performance Measurement
                    Process Management

                       Operational
                        Activities




                              9
 Strategy Formulation Cycle

Analyze      Filter        Define         Align          Implement      Operate     Monitor




                                                  Strategic
                                                  Objectives
          Strategy Formulation
                                                                     Strategic
                                                                     Action Plans
                                                  Alignment
               A strategy for business
               objectives to support?                                  Operations
                                                                             &
                                     Project aligned to
                                     business objectives?                Projects

                                             10
Business alignment concepts

   “Everyone Has The Same Message”


                         “Measuring the Right Data”

   Alignment &                                   “Improving Your Processes”
 Communication
                        Performance
 • Alignment of        Measurement             Process and
   Strategy and
   Business                                     Operational
   Objectives        • Identification of       Improvement
 • Feedback on         Metrics
   Objectives        • Systematic
                                            • Process management
                       Measurement and
                       Reporting            • Controlled execution

                                 11
      Business alignment tools
               Strategy and Objectives          Strategy dictates the
                                              business imperatives and
                                                  critical corporate
                                                performance metrics


                                                     Business Intelligence            Corporate performance
                                                                                         metrics align the
                                                                                      operation with focus and
                                                                                              priorities



          Strategic                                                                         Process Management
      Performance View


                                            Performance
                                          Measurement View
   Goal/Target Setting


                                                                                     Operational
                                                                                  Performance View
Accurate feedback allows for
  strategy and operational               Measured Execution
  realignment as required

                                                  Corporate and process
                                               measures track execution of
                                             strategy at the operational level
                                                                                 Controlled Execution
                                                           12
    Benefits of Business Alignment

•     Develops and synchronizes the leadership team
•     Educates the organization
•     Accelerates behavioral and cultural change
•     Distributes ownership and accountability
•     Provides individual initiatives, performance indicators, and incentives


•     Effectively translates strategy into operational terms:
       –   Facilitates a common set of strategic objectives
       –   Aligns strategic programs and investments and daily operations


•     Provides operational feedback
•     Creates a flexible vehicle for implementing strategy


                                            13
From data to wisdom

•   Data consists of isolated facts
•   Data organized into meaningful groups is information
•   Information collected with dimensions (time, rate, level) is a
    measurement
•   Measurements compared to goals or standards are metrics
•   Information and metrics about strategies and processes become
    knowledge
•   Knowledge applied over time leads to wisdom




                                      14
Dashboards and Score Cards



                          Strategic Scorecard




                                                                  Divisional Core Process
                                                                          Level 1


                     Divisional Core Process Dashboards



                                                                      Macro Process
                                                                         Level 2

                                                Macro


                                                                      Micro Process
                                                                         Level 3


                                                          Micro




Key Process Measures provide cause and effect linkages and can be combined
    to develop dashboard information at various levels of the organization
                                                  15
    Operational Performance Measurement & Improvement

    DMAIC
    DMADV

                                                                                    Design
                                                                                                       Control
      Define                       Measure                  Analyze                   or
                                                                                                       & Verify
                                                                                   Improve

•   Map core processes       •   Identify & link    •   Identify root cause of    Six Sigma    •   Ongoing management
                                 critical process       variation & rework         Process         of process controls
•   Prioritize to customer       measures           •   Determine BPI or BPR     Improvement   •   Monitor ongoing
    requirements
                             •   Draft measures         needs                                      performance
                                                                                  Redesign
    Core Process
                                                            Root Cause
                                                             Analysis
                                                            Change in
                                                            Process or
                                                            Approach




                                                                16
    Lessons Learned

•   You’re not keeping score until you use your scorecard to set plans,
    drive incentive plans and prioritize initiatives
•   Process management and improvement will become important AFTER
    you start measuring
•   Define your measures broadly, at first – refine and set targets later
•   There can be only one version of the truth
•   Use manual scorecards first – then apply technology
•   Be prepared for increased anxiety




                                        17
    Key Success Factors

•     The boss has to lead from the front – otherwise it’s a fad
•     Involve everybody in the design – or prepare for war
•     Clean your data – and one point is not “a trend”
•     Tailor the scorecard to the business unit – something for them, not
      just for “those @#^&* in the central office”
•     Link a measure to a process
•     Handle routine things in a routine manner – you don’t need 600
      standard reports




                                       18
What questions or comments do you have?




                          19

								
To top