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GOAL SUMMIT 2015
Mind the Gap: Avoid the disconnect between strategy and execution
Rich ClaytonOracle Corporation April 16, 2016
7
Disruption Challenging Static Strategies
“The senior management team needs to have regular, probably monthly, meetings that focus only on strategy.”
7
8
Connecting Strategy with Planning & Execution
40%
13%
of organizations claim they are very successful in executing their strategy
link strategy with annual budgets
8
Five Myths in Connecting Strategy with Execution
1 Execution Equals Alignment
2 Execution Means Sticking to the
Plan
3 Communication Equals
Understanding
4 A Performance Culture Drives
Execution
5 Execution Should Be Driven
from the Top
11
13
Five Strategies for Success
1. Broaden strategic objectives beyond financial outcomes
2. Scrap spreadsheets for planning processes
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14
Five Strategies for Success
1. Broaden strategic objectives beyond financial outcomes
2. Scrap spreadsheets for planning processes
3. Invest in Goal Management Platform as connective tissue
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15
Five Strategies for Success
1. Broaden strategic objectives beyond financial outcomes
2. Scrap spreadsheets for planning processes
3. Invest in Goal Management Platform as connective tissue
4. Condense, crystalize and communicate KPI’s broadly
15
16
Five Strategies for Success
1. Broaden strategic objectives beyond financial outcomes
2. Scrap spreadsheets for planning processes
3. Invest in Goal Management Platform as connective tissue
4. Condense, crystalize and communicate KPI’s broadly
5. Develop dynamic enterprise guidance system
16
17
Broaden Strategic Objectives Beyond Financial Outcomes
VisionLagging indicators measuring tangible
outcomes
FINANCIALCreate value for
customers & stakeholders
PROCESS
Defines the source of value
CUSTOMER
Align resources to drive improvement in
processes
LEARNING & GROWTH
1
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20
Planning Provides the Bridge to Link Strategy with Execution…
Strategy OperationsThe planning
process is at the core of linking
strategy to operations
60% of organizations do
not link operational plans
to strategy
20
21
Limited Visibility into Revenue Forecast
Revenue forecast accuracy for the current quarter is +/- 5% by:
5%
26%
16%40%
14%
1-4 Weeks5-8 Weeks9-10 Weeks11-12 WeeksWeek 13
Source: Loras College, Center for Business Analytics
46% of companies don’t have
visibility into revenue until week 11 of the quarter
22
2
• Centralize financial assumptions
• Gather wisdom beyond finance
• Leverage cloud services
• Develop dynamic scenarios
• Focus on forecast accuracy
Scrap Spreadsheets for Planning Processes
spreadsheets contain mathematical errors 88%
22
26
3 Invest in Goal Management System
Connected Supported Progress-based Adaptable Aspirational
Vertical / horizontal
alignment and clarity
Working transparently with
social reinforcement and
recognition
Frequent, measurable
feedback and frequent wins
Flexibility to respond to
changing goals and business
needs
Greater achievement and
encourage excellence
26
27
All Metrics Aren’t Created Equal
Attributes
Type
Rate of Change
Quantity
Ownership
Comparative
Operational Metrics
Activity/Outcome
Rapidly
Scores
Single LOB
Prior Year
Financial Metrics
Outcome
Rarely
Dozens
CFO
Prior Year
KPI’s
Outcome
Rarely
<10
Cross LOB
Target
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Studies have shown that specific and
ambitious goals lead to a higher level of
performance than easy or general goals.
As long as the individual accepts the
goal, has the ability to attain it, and does
not have conflicting goals, there is a
positive linear relationship between goal
difficulty and task performance.”
“Edwin Locke and Gary Latham
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ENTERPRISE PERFORMANCE MANAGEMENT• Strategy Map & Long Range Planning• Financial Budgeting & Planning• Profitability Modeling
BUSINESS INTELLIGENCE• Dashboards & Self-Service Analysis• Predictive Analysis• Data Discovery & Visualization
GOAL MANAGEMENT• Organizational Alignment• Transparency of Work• Engaged Team Members
Develop a Dynamic Enterprise Guidance System5
KPI’s
PROGRESS
OBJECTIVES
PLAN
CONNECTMEASURE
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