Strategic program management

Edwin A Provencal

Student of Life

0202232664

[email protected]

Knowing me, knowing you

STRATEGIC PROGRAM MANAGEMENT

With your permission

Content

1. Intro: Vision, Mission, Values, Strategy

2. Definitions: Strategy, Portfolio, Program, PMO

3. Strategy Execution - core competence

4. Program Management & Role in Strategy Execution

Content

• Intro: Vision, Mission, Values, Strategy

• Definitions: Strategy, Portfolio, Program, PMO

• Strategy Execution - core competence

• Program Management & role in Strategy Execution

Vision, Mission, Values, Strategy

Why do we exist?

Who we are?

What do we want?

How will we get there?

Values – Who are we?

• Amazon: – Customer Obsession

– Innovation

– Bias for Action

– Ownership

– High Hiring Bar

– Frugality

• Vodafone – Speed

– Simplicity

– Trust

• MTN – Integrity

– Leadership

– Innovation

– Can-Do

– Relationships

Mission – why do we exist?

• Wal-Mart Stores:

– To help people save money so they can live better.

• Metro:

– To bring together people and products in all corners of the globe.

• Tesco:

– To create value for our customers to earn their lifetime loyalty.

• Honda:

– To seek technology that helps realize true peace and happiness on earth.

• Google:

– To organize the world's information and make it universally accessible and useful.

Try it yourself!

1. short 2. catchy, easy to remember 3. inspiring 4. ambitious 5. realistic and measurable 6. differentiating from competition

Vision – What do we want?

• Wal-Mart Stores:

– To become the worldwide leader in retailing.

• Sony:

– To have the world look to Sony for comprehensive entertainment.

• Samsung:

– To lead the digital convergence movement.

Try It yourself!

1. specific 2. achievable 3. motivating 4. guideline for daily decisions 5. shapes organisation culture 6. BHAG

Strategy

Hierarchy of Needs

Strategic Planning Process

Assumptions Forecasts

STRATEGY

•PEST •Porter’s 5 Forces •Stakeholder Analysis

External Analysis

•Resource Based View •Value Chain •SWOT •Functional, etc

Internal Analysis

OPPORTUNITIES &

THREATS

STRENGTHS &

WEAKNESSES

KEY ISSUES/WORRY LIST

ENVIRONMENTAL SCANNING

STRATEGY EXECUTION

Monitoring & Control Monitoring & Control Monitoring & Control Monitoring & Control

Content





Strategy Definition

Project, Program, Portfolio, PMO

• is the planning, organizing, directing, and controlling of company resources... for a relatively short-term objective

Project Management

•a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually

Program Management

•A portfolio is a collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives.

Portfolio Management

•An organizational body or entity assigned various responsibilities related to the centralized and coordinated management of those programs under its domain.

•The responsibilities of a PMO can range from providing PM support functions to actually being responsible for the direct management of a project.

PMO

Projects, Programs, Portfolio Rlnship

Content



• Strategy Execution, a core competence


FACT! Most Organizations Have a STRATEGY

The Challenge

Management Barriers

85% of executive teams spend less than one hour

per month discussing strategy

Resource Barrier

60% of organizations don’t link budgets

People Barrier

Only 25% of the managers have

incentives linked to strategy

Vision Barrier

Only 5% of the workforce

understands the strategy

Barriers to Strategy Execution

Only 10% of organizations execute their

strategy

Culled from Harvard Business Review

ABC Bank Strategy Map

Financial Perspective

Customer Perspective

Internal Perspective

Learning Perspective

The Revenue Growth Strategy The Productivity Strategy

Improve

Returns

Improve

Operating

Efficiency

Broaden

Revenue Mix

Increase Employee

Productivity

Access to

Strategic Info

Develop

Strategic Skills

Align Personal

Goals

Increase Customer

Confidence in Our

Financial Advice

Increase Customer

Satisfaction Through

Superior Execution

Cross-Sell

the Product

Line

Shift to

Appropriate

Channel

Provide

Rapid

Response

Develop New

Products

Minimize

Problems

Innovation Customer Management Operational Excellence

Understand

Customer

Segments

Employee Satisfaction Revenue per Employee

Strategic Job

Coverage Ratio

Strategic Info

Availability

Personal Goals

Alignment (%)

Strategy Execution - Balanced Scorecard

BSC

Strategy

Specific initiatives to support the implementation of the company's strategies

Action/

Operations

Strategic guidance will be communicated and implemented on all relevant levels

Balanced Scorecard should be understood as the LINK between

strategy and action

BSC

Enable an agenda for the requiered changes and define a coherent strategy that is aligned with the Mision, Vison and values of the organization

Translate the strategy in operational terms using the Balanced Scorecard so everyone can understand it

Align the organization around its strategy so it becomes everyone’s job

Monitor the strategy momentum and adapt the strategy based on the results achieved

6 steps to achieve it

Link the stratetgy with the organizations budget and the adequate process to assure its execution

Turn the strategy in a continuos process, establishing a formal follow-up process based on the strategy performance

2 Translate

the Strategy

1 Develop

the Strategy

6 Test

and Adapt

5 Monitor

and Learn

4 Plan

Operations

3 Align the

Organization

Operating/Financial Plan

Strategic Plan

Process

Execution

Business

Intelligence

Palladium’s Methodological approach

Leadin

g Laggin

g

Soft

Hard

Vision &

Strategy

CUSTOMER “To achieve

our vision,

how should

we appear to

our

customers?”

Objectives Measures Targets Initiatives

FINANCIAL “To succeed

financially, how

should we appear

to our

shareholders?”


INTERNAL BUSINESS PROCESSES

“To satisfy our

shareholders

and customers,

what business

processes must

we excel at?”


INNOVATION LEARNING & GROWTH “To achieve our

vision, how will

we sustain our

ability to

change and

improve?”


BSC - 4 Quadrants & Causal Links

Typical Corporate Scorecard Strategic Theme

Strategic Objective Strategic Measures Initiatives Budget Owner

Fin

anci

al GROW F1: Increase shareholder value

F2: Profitable Growth across all commercial areas

EBITDA Revenue Market Share ROCE OFCF, FCF Growth Rate vs Competition Full Cost vs Competition

Initiative A Initiative B

GHC XXX GHC YYY

Director, Finance

Cu

sto

mer

CUSTOMER ADMIRATION TRUSTED BRAND WIN-WIN DEALER RELATIONS

C1: Delight targeted segment C2: Improve Dealer profitability

Market Share per segments CDI, NPS per segment ARPU Brand KPIs Gross/Net adds Dealer Gross profit Growth Dealer Survey

Programs B Project C Project D

GHC ZZZ GHC RRR GHC PPP

Director, Marketing Director, Sales

Inte

rnal

NEW PRODUCTS COST EFFICIENCY OPERATIONAL EXCELLENCE

I1: Innovative Products and services I2: Technology Excellence I3: Inventory Management I4: On spec – On Time I5: Cost Saving Initiatives I6: Improve H&S

New Product ROI New product Acceptance Rate Perfect Orders SLA adherence (Delivery, MTTR) Cost Initiatives ROI Incidents per month vs Group

Program E

GHC FFF CTO Director, HR

Lear

nin

g &

G

row

th

INVIGORATE UNDERSTAND THE BUSINESS

L1: Employee engagement L2: Key Business systems (CRM, DR, BIs) L3: Core competencies and skills L3: Business rating (Ghana Club 100)

Employee engagement scores Employee surveys per region Strategic competency Availability % successors identified Strategic Information availability

Project F Program G

GHC KKK CEO Director , HR

Cascading the corporate scorecard

© 2007 Palladium Group, Inc.

Bu

sin

es

s

Lin

ka

ge

M1. Create Shareholder Value M2. M3. M4.

Stock Price Multiple

Strategic Objectives Strategic Measures Targets Strategic Initiatives

Competitive norms

Budget

Fin

an

cia

l

F1. Improve HR Efficiency Budget Cost vs Actual

HR Cost / Employee

100%

90% of norm

Objectives on Enterprise Scorecard

Impacted by HR

Cu

sto

me

r C1. Create a Positive Work Environment C2. Build Strategic Partnership C2. Insure Human Capital Readiness

Employee Satisfaction Survey

Service Agreement Feedback

Human Capital Readiness

80% rating

85% Rating

75%

Employee Survey

Account Review Program

Human Capital Readiness Report

$ CCC $ BBB $ AAA

I1. Achieve HR Operational Excellence I2. Develop Business Unit Partnerships I3. Provide Strategic Support to

Business a) Build Strategic Staff

Competencies b) Develop Leaders &

Supportive Culture c) Create a High Performance

Organization

Cost per Transaction Cycle Time Error Rate / Complaints Service Agreements in Place (%) HR Strategic Plans in Place (%) Time with Customer


Leadership Alignment Cultural Alignment

Staff Alignment

5% Reduction 21 Days 50% reduction

90% 90% 10 hrs / week

100%

100% 100%

100%

Activity Based Costing Process reengineering TQM for HR Processes

Service Agreements Program HR Strategic Planning Process Relationship Management Program

Strategic Job Family Identification Competency Profiles Training & Development

Leadership Development Mission, Vision, Values

Strategic Communications Performance Management Program

$ NNN $ OOO $ PPP $ KKK $ LLL $ MMM $ DDD $ EEE $ FFF $ GGG $ HHH $ III $ JJJ

Le

arn

ing

&

Gro

wth

L1. Provide Strategic HR Info L2. Develop Strategic HR Competencies L3. Fill HR Leadership Pipeline L4. Increase Best Practice Sharing L5. Insure Strategic Alignment L6. Create Shared Vision / Culture

HR Application System Readiness

HR Competencies: Readiness

Key Position Depth Chart

Best Practices Transferred (#)

Personal Goals Linked to BSC (%)

Strategic Awareness (%)

100% (vs. plan)

100% (vs. plan)

80%

50%

80%

80%

HR Systems Plan

HR Competency Plan

HR Leadership Development Program

Knowledge Management Program

BSC Cascade

Strategic Education / Communication

$ QQQ $ RRR $ SSS $ TTT

$ UUU $ VVV $XYZ TOTAL:

Measures on Enterprise Scorecard

Impacted by HR

Inte

rna

l Example: HR Organization Scorecard

Content





Recap: Projects, Programs, Portfolio Rlnship

Bu

sin

es

s

Lin

ka

ge

M1. Create Shareholder Value M2. M3. M4.

Stock Price Multiple

Strategic Objectives Strategic Measures Targets Strategic Initiatives

Competitive norms

Budget

Fin

an

cia

l

F1. Improve HR Efficiency Budget Cost vs Actual

HR Cost / Employee

100%

90% of norm

Objectives on Enterprise Scorecard

Impacted by HR

Cu

sto

me

r C1. Create a Positive Work Environment C2. Build Strategic Partnership C2. Insure Human Capital Readiness

Employee Satisfaction Survey

Service Agreement Feedback


80% rating

85% Rating

75%

Employee Survey

Account Review Program

Human Capital Readiness Report

$ CCC $ BBB $ AAA

I1. Achieve HR Operational Excellence I2. Develop Business Unit Partnerships I3. Provide Strategic Support to

Business a) Build Strategic Staff

Competencies b) Develop Leaders &

Supportive Culture c) Create a High Performance

Organization

Cost per Transaction Cycle Time Error Rate / Complaints Service Agreements in Place (%) HR Strategic Plans in Place (%) Time with Customer


Leadership Alignment Cultural Alignment

Staff Alignment

5% Reduction 21 Days 50% reduction

90% 90% 10 hrs / week

100%

100% 100%

100%

Activity Based Costing Process reengineering TQM for HR Processes

Service Agreements Program HR Strategic Planning Process Relationship Management Program

Strategic Job Family Identification Competency Profiles Training & Development

Leadership Development Mission, Vision, Values

Strategic Communications Performance Management Program

$ NNN $ OOO $ PPP $ KKK $ LLL $ MMM $ DDD $ EEE $ FFF $ GGG $ HHH $ III $ JJJ

Le

arn

ing

&

Gro

wth

L1. Provide Strategic HR Info L2. Develop Strategic HR Competencies L3. Fill HR Leadership Pipeline L4. Increase Best Practice Sharing L5. Insure Strategic Alignment L6. Create Shared Vision / Culture

HR Application System Readiness

HR Competencies: Readiness

Key Position Depth Chart

Best Practices Transferred (#)

Personal Goals Linked to BSC (%)

Strategic Awareness (%)

100% (vs. plan)

100% (vs. plan)

80%

50%

80%

80%

HR Systems Plan

HR Competency Plan

HR Leadership Development Program

Knowledge Management Program

BSC Cascade

Strategic Education / Communication

$ QQQ $ RRR $ SSS $ TTT

$ UUU $ VVV $XYZ TOTAL:

Measures on Enterprise Scorecard

Impacted by HR

Inte

rna

l

Recap: HR Balanced Scorecard

• Strategic Objective:

– Achieve Operational Excellence owned by Dick

• Initiatives Required to Achieve Objective

– Project 1: Activity Based Costing @ $NNN, PM: DY

– Project 2: Process Re-engineering @ $OOO, PM: PN

– Program 1: TQM for HR Processes @ $PPP, PM: JM

• Program Manager

– Edwin Provencal

Project/Program Requirement Matrix

Balanced Scorecard Project

Plot Impact of Programs against

all Strategic Objectives

x x x

Strategic ObjectivePerspective Pro

gra

m N

am

e

Pro

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Activ

ity b

ased C

oatin

g

Pro

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Pro

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Pro

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Pro

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Pro

cess r

eengin

eering

Pro

gra

m N

am

e

TQ

M for

HR

Pro

cesses

Pro

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m N

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e

CustomerAchieve Operational excellence

Financial

Internal Processes

Learning & Growth

Pro

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m N

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P

rog

ram

Pro

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Pro

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Pro

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Pro

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Pro

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Pro

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Pro

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Benefits of Program Management Area of Impact Benefit

Delivery of Change More effective delivery of changes because the changes can be planned and implemented in an integrated way ensuring that current business operations are not adversely affected

Alignment between strategy and project levels

Effective response to strategic initiatives by filling the gap between strategies and projects

Management support Keeping activities focused on the business change objectives by providing a framework for senior management to direct and manage the change process

Resource management More efficient management of resources by providing a mechanism for project prioritization and project integration

Risk management Better management of risk because the wider context is understood and explicitly acknowledged

Benefit realization Help to achieve real business benefits through a formal process of benefit identification, management, realization and measurement

Management control Improved control through a framework within which the costs of introducing new infrastructure, standards and quality regimes can be justified, measured and assessed

Business operations Clarification of how new business operations will deliver improved performance by defining the desired benefits and linking these to the achievement of new working practices

Management of Business Case

More effective management of the Business Case by building and maintaining a Business Case that clearly compares current business operations with the more beneficial future business operations

Co-ordination and control More efficient co-ordination and control of the often complex range of activities by clearly defining roles and responsibilities for managing the Project Portfolio and realizing the benefits delivered by the program

Transition management Smooth transition from current to future business operations through the clear recognition and responsibility for preparing the organization for migration to new ways of working

Consistency Achieving a consistent system of new or amended policies, standards, and work practices through the integrated definition, planning, delivery and assurance of the required changes

Key Skills

Leadership Benefit Focus Motivation Communication

Influencing Decision-making

Political Awareness

Cultural Awareness

Negotiation Risk

Management Mindset

Creativity Project

Management Principles

Flexibility Comfortable in

an uncertain environment

Time Management

Conflict Management

In summary

• Most organizations have a strategy

• 90% of organizations fail to execute

• Strategy Execution can be a core competence

• Program Management plays a key role in effective Strategy Execution