ملتقى التميز المؤسسي 2015 - اليوم الثاني - From Strategy to Results:...

From Strategy to Results: How

can you get it done?

Mathias Mangels

Partner Tantum Group

Riyadh , Saudi Arabia

April 2015

EXCELLENCE DAYZ / The Road to Management Excellence

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Is your strategy successful? Does it generate value for your organization?

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TABLE CO CONTENT

1. Do you have a good strategy? Slide

2. What is the content of Strategy? Slide

3. Strategy is about learning and adjusting. Correct? Slide

4. Strategy is about change. Are you leading your strategy? Slide

5. Quick Q&A Slide

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TABLE CO CONTENT





5. Quick Q&A Slide

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• PRIVATE SECTOR

GOOD STRATEGY?

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WHAT IS OUR WINNING ASPIRATION?

https://www.youtube.com/watch?v=D_wTSO4o_Cg

https://www.youtube.com/watch?v=D_wTSO4o_Cg

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WHERE WILL WE PLAY?

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HOW WILL WE WIN?

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WHAT CAPABILITIES MUST WE HAVE?

https://www.youtube.com/watch?v=Ky_8p3VWSDI

https://www.youtube.com/watch?v=Ky_8p3VWSDI

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• PUBLIC SECTOR

GOOD STRATEGY?

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• SUSTAINABLE DEVELOPMENT

WHAT IS OUR WINNING ASPIRATION?

KPI 2007 2010 2015

GNP Growth 5,5% a.a.

5,5% a.a.

7,0 % a.a.

Industrial GNP Growth

7,0% a.a.

7,0% a.a.

8,5% a.a.

Productivity Index - Industry Cresce

r 4% a.a.

Crescer 6% a.a.

Crescer 6% a.a.

Unemployment Rate

9,0% 7,0% 6,0%

Export / GNP

22% 25% 30%

Taxes 33% 30% 27%

SISTEMATIC LINKIGES TO THE ASPIRATIONB

ases o

fth

e D

evelo

pm

ent

Pro

cesses &

Activitie

sM

ark

et

Expansion of the

Industrial BaseInternational insertion

Sustainable development

Results F

or

the

Countr

y

Foster the Development

of Small and Medium

Enterprises

To stimulate

and fortify

Productive

Chains and

clusters

Enterprise

management and

Productivity

Innovation Social and Ambient

responsibility

Promote

competitive

Industrialization of

less developed

Regions

Enterprise leadership Education and Health

Institutional and Regulatory Environment

• Society

• Diligent

• Entrepreneurs

• Government

Economic

growth

Expansion of

the businesses

with Generation

of Value

More Job and

Income

Version. - 20-05-2005

Interested

people

Infrastructure

Availability of

ResourcesTo develop a New Standard of Financing

for the Productive Sector at Internationally

Competitive Costs

Reduce burocracy of the State,

assuring its transparency and

efficiency in the use of public

resources

Reduce tax burden,

simplifying and

optimizing the tax

system

Competitive a quality

products

To speed up the

Growth of the

Industrial Product

Positioning

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WHERE WILL WE PLAY?

27 state federations + 900 industry sectors.

DEVELOPING A BETTER ECONOMIC STANDING

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HOW WILL WE WIN?

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WHAT CAPABILITIES MUST WE HAVE?

Enterprise

Leadership

infrastructure Availability of Resources

Institutional and regulatory

Environment

Education and

Health

Developing on Top of our Capabilities

LEVARAGE

Bases d

o

Desen

volv

imen

toP

rocessos e

Ativi

dad

es

Merc

ad

o

Industrial Base ExpansionInserção Internacional

Sustainable Development

Resultad

os

Para

o P

aís

Fomentar Desenvolvimento da

Micro, Pequena e Média Indústria

Estimular e

Fortalecer Cadeias

Produtivas e APLs

Gestão Empresarial e

ProdutividadeInovação

Responsabilidade Social e Ambiental

Promover a

Industrialização

Competitiva das Regiões

Menos Desenvolvidas

Liderança Empresarial Educação e Saúde

Institutional and Regulatory Environment

• Sociedade

• Trabalhadores

• Empresários

• Governo

Economic

Development

Business

Development and

Value Generation

Employment and Pay

check

Versão . – 20-05-2005

Partes

Interessadas

Infra-Estrutura

Availability of

Resources

Desenvolver um Novo Padrão de Financiamento para o

Setor Produtivo a Custos Internacionalmente

Competitivos

Promover a Redução do Tamanho do Estado e a

Desburocratização, para Garantir a sua

Transparência e Eficiência na Utilização de

Recursos Públicos

Reduzir a Carga,

Simplificando e

Aperfeiçoando o Sistema

Tributário

Produtos Competitivos e de

Qualidade

Acelerar o Crescimento do

Produto Industrial

Positioning

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TABLE CO CONTENT





5. Quick Q&A Slide

STRATEGY ID DEFINED BY KPIS AND TARGETS

*estimativa

Innovation KPI

KPI Description

Private Investment in Innovation/

GNP

Presents the private investmenmt

in innovation and R%D as a

percentage of GNP

Source: MCT

Innovation Target

KPI 2007 2010 2015

Innovation

Investment /GNP

0,6% 0,8% 1,4%

Strategic Programs Supporting Innovation

58. Promotion of the Intellectual Property and its Protection in the

Country.

59. Development and strong support for new companies in

incubation phase – start ups.

60. New policies to support financing and tax rates for innovation

projects.

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TABLE CO CONTENT





5. Quick Q&A Slide

Process of Management of the Map of the Industry

Thematic Advisory

Group

Thematic units

To follow up programs,

measures and targets

Consolidate

informationMonitor the

Performance of

Each strategic

theme

Critical analysis

Consolidate

recommendations

Recommend

actions and

projects

To provide Internal and

External Communication

Recommend

objectives,

measures, targets

and

actions/projects

Management of the

Map

Digital

Cockpit

Management

System of the

Industry Map

FNI

Monitor the industry

strategic

performance and

validate objectives,

measures

targets, programas

Strategic Analysis

Digital Cockpit

Assure energy availability at

competitive prices

System of

Management of the

Map of the Industry

Installed capacity of generation of electrical energy

Subject Infrastructure

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TABLE CO CONTENT





5. Quick Q&A Slide

5%

25%

60%

85% 9 of 10 organizations fail to

execute strategy

Clive Keyte, Oct 2012, business2community.com

Only 5% of the work force

understands the strategy

The Vision Barrier

Only 25% of managers have

incentives linked to strategy

The People Barrier

60% of organizations don’t link

budgets to strategy

The Resource Barrier

85% of executive teams spend

less than one hour per month

discussing strategy

The Management Barrier

STRATEGY EXECUTION

Leadership issues are the dominant barrier to effective strategy execution

“What are the factors that make it difficult to

execute s t ra tegy us ing the s ix s tage

Kaplan/Norton strategy management process?”

MAJOR FACTORS *

#1. Politics

Organization politics get in the

way

#2. Platform

It is too difficult to modify,

eliminate or replace the current

management approach

#3. Sponsorship

Leadership team does not

provide enough sponsorship to

get the job done

#4. Incentives

We are reluctant or unwilling to

align incentives with performance

objectives

89%

69%

60%

58%

Based on survey of 55 BSC users conducted by Randall H. Russell of Palladium Research, April 2010

* Percentage of BSC users describing this as difficult or very difficult.

MINOR FACTORS *

47%

31%

29%

22%

#5. Competencies

We don’t have the necessary human capital

and competencies to implement the system

#6. Philosophy

Our organization is not willing to embrace a

philosophy of strategy management

#7. Technology

We lack the right technology to effectively

implement this approach

#8. Kaplan/Norton Methodology

The K/N methodology is too complex

Source: BSCol Research (Survey of 143 performance management

professionals, drawn from BSCol Online Community,

Process Matters! Organizations with a formal strategy execution process in place are dramatically outperforming organizations without formal processes.

Do you have a formal strategy

execution process in place?

Describe your organization’s

current performance.

Yes No

(54%) (46%)

• …. We have breakthrough results

• …. We are performing better than our peer group

Sub-Total

12%

58%

70%

7%

20%

27%

Do you use a formal performance management methodology?

Rated “most competitive” in

their industry

Rated “least competitive” in

their industry

Source: IDC Research (Improving Organization Decision-Making

through Pervasive Business Intelligence,

75% 43%

Strategy Management Framework

results

performance measures

Process

Initiative

EXECUTION


results

1

3

5

6Strategic Plan

• Strategy Map

• Balanced Scorecard

• Stratex

Operating Plan

• Sales Forecast

• Resource Requirements

• Dashboards

• Budgets

2

• Key process improvement

• Sales planning

• Resource capacity plan

• Budgeting

PLAN OPERATIONS4

• Business Units

• Support Units

• Employees

ALIGN THE ORGANIZATION

• Strategy Reviews

• Operating Reviews

MONITOR & LEARN

• Profitability Analysis

• Strategy Correlations

• Emerging Strategies

TEST & ADAPT

• Strategy Map / Themes

• Measures / Targets

• Initiative Portfolios

• Funding / Stratex

TRANSLATE THE STRATEGY

• Mission, Values, Vision

• Strategic Analysis

• Strategy Formulation

DEVELOP THE STRATEGY

Strategy Management – State of the Art

Do you have a formal management process in place?

Translate: Clear articulation of the corporate

strategy and measures

Initiatives: Manage a limited number of key

strategic initiatives

Update: Regular update of strategy to account

for changing conditions

Reviews: Regular meetings to report on and to

manage the strategy

Communicate: Communications about the

strategy

Align: Alignment of business units/support units

to strategy

ProcessPercentage of companies with a formal process

10 20 30 40 50 60 70 80 90 100

WinnersLosers

43

46

43

33

26

76

75

75

73

64

77

36 64

41 60

28

28 63

HR: Organization Development

Finance: Link strategic initiatives to the budget

IT: Service Level Agreements

(Survey of 143 performance management professionals, BSC Research, Palladium

The

Execution

Gap

DIFFICULTY IN IMPLEMENTING THE

MANAGEMENT PROCESS

Which part of the Strategy Management process is most difficult to implement?

The Alignment Process is clearly

the most difficult stage of the

strategy management system

Survey of 55 BSC users conducted by Palladium Research, April 2010.


Align The Organization

Test & Adapt

Develop The Strategy

Monitor & Learn

Translate The Strategy

Plan Operations

75%*

58%

47%

45%

41%

40%

results


Process

Initiative

EXECUTION


results

1

3

5

6Strategic Plan

• Strategy Map


• Stratex

Operating Plan

• Sales Forecast


• Dashboards

• Budgets

2


• Sales planning


• Budgeting

PLAN OPERATIONS4

• Business Units

• Support Units

• Employees




MONITOR & LEARN




TEST & ADAPT










results


Process

Initiative

EXECUTION


results

1

3

5

6Strategic Plan

• Strategy Map


• Stratex

Operating Plan

• Sales Forecast


• Dashboards

• Budgets

2


• Sales planning


• Budgeting

PLAN OPERATIONS4

• Business Units

• Support Units

• Employees




MONITOR & LEARN



MONITOR & LEARN




TEST & ADAPT




TEST & ADAPT



















Vision & Strategy Alignment

14 Directorates / units (over 150 objective owners)

Levels of Cascading and alignment of strategic

objectives from the National Bahrain 2030 Vision

The five themes of the “President’s Management Agenda” (US Government) provide a common focus for all federal agencies.

President’s Management Agenda

Strategic

Management of

Human Capital

Competitive

Sourcing

Improved Financial

Performance

Budget and

Performance

Integration

Expanded

E-Government

DIFFICULTY IN IMPLEMENTING THE

MANAGEMENT PROCESS

Which part of the Strategy Management process is most difficult to implement?

Testing and Adapting in Order to

Drive Results

Survey of 55 BSC users conducted by Palladium Research, April 2010.


Align The Organization

Test & Adapt

Develop The Strategy

Monitor & Learn

Translate The Strategy

Plan Operations

75%*

58%

47%

45%

41%

40%

results


Process

Initiative

EXECUTION


results

1

3

5

6Strategic Plan

• Strategy Map


• Stratex

Operating Plan

• Sales Forecast


• Dashboards

• Budgets

2


• Sales planning


• Budgeting

PLAN OPERATIONS4

• Business Units

• Support Units

• Employees




MONITOR & LEARN




TEST & ADAPT










results


Process

Initiative

EXECUTION


results

1

3

5

6Strategic Plan

• Strategy Map


• Stratex

Operating Plan

• Sales Forecast


• Dashboards

• Budgets

2


• Sales planning


• Budgeting

PLAN OPERATIONS4

• Business Units

• Support Units

• Employees




MONITOR & LEARN



MONITOR & LEARN




TEST & ADAPT




TEST & ADAPT



















Good performance management makes a difference. It creates an “execution premium.”

Employee Recognition of KCS

strategy increased by 31% (2 yrs)

Employee satisfaction increased

from 73% to 91%

Detection rate of illegal

cargo increased by 92%

(six sigma process)

Import cargo release time ↓

Customer satisfaction increased

from 12% to 87%

Crackdown on illegal drugs from

$34b to $77b (3 yrs)

Tax Collection Revenue from $32b

to $51b (3 yrs)

Execution Premium

Constituents

Stakeholders

Brand

Value

Customer

Satisfaction

Technology

Support

“Best

Employer”

Key Process

Effectiveness

Mission

Perspective

Customer

Perspective

Internal

Perspective

Learning & Growth

Perspective

“I, myself, will give full support to the successful operation

of KCS performance management”

KCS Commissioner Sung Yum-gap

Korea Customs Service

Knowledge Management System log-ins

increased from 9,000 to 375,000 (1 yr)

Received “Best Government Innovator”

Award

Reduced civil petition processing time

from 9 days to 1 day

Customer satisfaction increased

by 12 points (1 yr)

Quality of Life:

— # of Hospitals increased from

323 to 427 (6 yrs)

— Income levels and property tax

grew

“We will make the utmost effort for continuous and long-term development of our organization.

I am confident that the BSC will support us in this endeavor.”MOGAHA Minister Park

* MOGAHA: S. Korea Ministry of Government Administration and Home Affairs


Execution Premium

Constituents

Stakeholders

Brand

Value

Customer

Satisfaction

Technology

Support

“Best

Employer”

Key Process

Effectiveness

Mission

Perspective

Customer

Perspective

Internal

Perspective

Learning & Growth

Perspective

95% Product Portfolio Change in 4 years

Best Performing Prices : > 200/year

Re work reduction by 24%

1st in Automotive Market from

2nd position.

Market Share 22% to 25%

Domestic Sales 300K to 600K a

year

Growth

— 30K units to 60K units

— From Break Even to Positive ***

EBITDA

— Sales from 5 to 7 BI Euros

“VW is again a top performer in the Latin American automotive industry. The strong

engagement of our teams and the transformation of our processes were key success drivers.

Our consistent strategy implementation drove our success .” CEO Volkswagen do Brasil


Execution PremiumSustainable

Financial

ResultMrarket

Share

Company

Image

Customer

Satisfaction

Innovative

Product

Portfolio High

Performan

ce Culture

Key Process

Effectiveness

Financial

Perspective

Customer

Perspective

Internal

Perspective

Learning & Growth

Perspective

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TABLE CO CONTENT





5. Quick Q&A Slide

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Q&A

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SMC Strategy Management Certification Program RIYADH MAY 2015

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For information exchange, feel free to contact me at: [email protected]

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CVs OF MATHIAS MANGELS

Background

Mathias Mangels was the founder in 1989 of Symnetics, a leading Latin American management consultingcompany focused on strategy execution. Symnetics have been cooperating with Robert Kaplan and DavidNorton from the year 2000.In November 2004, Mathias was appointed Vice President of Palladium/BSCol responsible for thePalladium Global Network out of the London Office. Mathias has strongly supported the development ofthe Palladium Middle East business

From January 2008 he returned to Symnetics / Tantum Group as its chairman after the acquisition of the Palladium’s BSCol CEE shareholdings by Symnetics. Mathias’s past experience is focused on strategy design and execution for private, public and non-profit organisations in the Middle East, Americas and Europe. He has been researching both, the theoretical and practical aspects of the Strategy Focused Organization Framework for the Public Sector and the BSC as well as its link to the Blue Ocean and Stakeholder / Citizen Experience Co Creation Methodology. He has is also part of the Services and High Tech Industries of Tantum Group Competency Centre and has been active in the Retail Banking, Insurance , Telecommunication and Fund Management and Thrust Industries. Mathias has been presenting these topics at conferences and summits in Europe, the Americas and Middle East. Prior to his role as a consultant at Tantum Group Mathias was a Senior Researcher for Private and Public Strategy at the Battelle Research Institute in Geneva, Switzerland.

Education/ Professional ExperienceMathias holds a Bachelor Degree in Mechanical Engineering (Mackenzie University) and a Masters Degree in Business Administration (INSEAD – Paris, France). Mathias’ mother tongue is Portuguese and German and is fluent in English and Spanish.

Mathias Mangles

ملتقى التميز المؤسسي 2015 - اليوم الثاني - From Strategy to Results:...

Leadership & Management

Transcript of ملتقى التميز المؤسسي 2015 - اليوم الثاني - From Strategy to Results:...