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A Structured Framework for Improving Functional Performance

Catapult Your Business

What’s InsideIntroduction • 1What We Did Differently • 2How the Diagnostic Works • 3

Assessing Your Function’s Maturity • 4

Prioritizing Your Improvement Efforts • 5Establishing Your Action Plan • 6

Closing Thoughts • 7Appendix: Function- Specific Activity Maps • 8

Leading companies regularly assess functional performance against a structured framework.We clarify not only how far a function has progressed but also what steps to take next in order to drive impact faster. You don’t just get a score; you get a data-driven action plan and roadmap based on best practices from 6,000+ member organizations.

© 2015 CEB. All rights reserved. 1

Introduction What We Did Differently How the Diagnostic Works AppendixClosing ThoughtsHome

Today’s economic environment has changed in two major ways: change is

constant and data is everywhere.

As a result, making decisions about when, where, and how to adjust strategic

priorities is more challenging than ever.

Aiming for better effectiveness, functional leaders often choose one of two

options—to improve their strategic planning processes or to transform their

function for greater business impact. But even the best-designed strategic

plans don’t stay relevant for long. Here are some examples from across the

C-Suite:

ȕ More than 4 in 10 HR leaders rate their functions as ineffective at strategic

planning processes.

ȕ Two-thirds of marketing leaders have recently updated their strategies, but

just 13% have achieved anticipated results.

ȕ 93% of business partners view IT strategic planning as important, but only

23% believe IT is effective at it.

ȕ 77% of general counsel place importance on spending more time on

strategic planning, but they also struggle with it as day-to-day business

requests crowd out longer-term, high-value planning and support.

And although restructuring the function is a popular approach, it isn’t making

much of a difference. Again, here are some examples:

ȕ 81% of finance functions have recently undergone a redesign or are in the

process of one, but only 30% of transformation projects deliver forecasted

benefits or sustained cost savings.

ȕ Similarly, 81% of HR functions are undergoing or have recently undergone

a redesign, but only 60% of organizations achieved the anticipated

performance results even a year later.

Maturity models offer a successful solution here, because they can help

organizations assess functional performance and improve effectiveness. With

our approach to functional maturity, we’ve taken this type of tool a step further.

Inspired by the Capability Maturity Model developed at Carnegie Mellon

University, we built our solution from our own empirical research (grounded

in the best practices of our members) and designed it to evolve with those

practices.

We have isolated the key ingredients of each maturity level, designing an

approach that enables specific planning for short- and long-term actions.

Introduction

We integrated CEB’s [Functional Maturity] diagnostic into our function’s strategic planning process this year. The results drove consensus around next year’s plans by not only confirming our current priorities but also revealing new priorities that we had not yet fully recognized.”

Chief Human Resource OfficerFortune 500 Oil and Gas Company



Our maturity diagnostics have some key differences from other CMM-based

maturity models. Although those models identify reasons behind whether or

not a process is effective, they don’t provide any action-planning support. Our

diagnostics help organizations not only identify the activities that most need

improving but also how to prioritize their efforts accordingly.

To do this, we assess functional processes and activities along two dimensions:

ȕ Maturity—Measuring an organization’s level of development on a functional

activity, compared to CEB best practice research, on a scale of 1 (low)

to 5 (high)

ȕ Importance—Gauging each activity’s relative importance to meeting the

overall business objectives of a function, on a scale of 1 (unimportant)

to 5 (critical)

We then measure the gap between maturity and importance through the

Activity Priority Index (API), which is computed for each activity and then

weighted by its average importance. This index identifies the highest-priority

activities for improvement.

We don’t just deliver a maturity score. Thanks to our focus on activity-level

maturity and the API, our model provides a clear path to maturity and suggests

practical tools and resources (including a data-driven action plan and roadmap)

to get you there—without presuming you need to do or spend more in order

to advance.

In addition, our consultative approach to report delivery connects each

organization with an advisor to provide more help with prioritization and

action planning.

The following pages explain how our maturity diagnostics can help your

specific function realize its most important activities, improve them, and

become more effective as a result.

We are at the beginning of a huge transformation and need tools like this to help along the way.”

VP MarketingTelecommunications Company

What We Did Differently



We help leaders target the critical activities that deliver the largest returns.

1. Assessing Your Function’s Maturity

Assess the maturity of key management activities for the function based on objective, peer-based standards.

3. Establishing Your Action Plan

Establish action steps for advancing to the next maturity level for each activity.

2. Prioritizing Your Improvement Efforts

Identify the critical gaps in maturity, and determine where to prioritize improvement efforts.

How the Diagnostic Works



Please see the Appendix for the Activity Map specific to your function, showing the full scope of activities we assess.

1. Assessing Your Function’s Maturity

Our maturity diagnostics measure the function’s

performance across a broad set of management practices

using objective, peer-based standards. Whereas most

vendors focus on a single capability, we provide a

comprehensive assessment that offers a holistic view of

your world.

We gather information through targeted questions based

on our research regarding best practices, covering all of

the common critical objectives and activities.

Sample Activity Map

Functio

nal Activities

Functional Objectives

Engage with Customers

Manage Sales Talent

Manage Sales Operations

Partner with Marketing

Manage the Function

Conduct Account Planning

Build Sales Climate

Forecast Sales

Segment Customers

Manage Sales Budget

Select Global/Key Accounts

Source Sales Talent

Facilitate Sales Process

Partner on Lead Sourcing

Manage Internal Sales Communication

Manage Global/ Key Accounts

Screen and Hire Sales Talent

Organize Sales Collateral and Tools

Develop Value Proposition and Commercial

Messages

Develop Coverage Strategy

Support Channel Partners

Onboard New Talent

Manage CRM

Create Sales Collateral

Reduce Sales Channel Conflict

Qualify Sales Opportunities

Develop Training

Manage Compensation

Design

Manage Opportunity Pursuit Support Coaching Outcomes



Man

age

Em

plo

yee

Eng

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ent

Ana

lyze

L&

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Man

age

Tale

nt A

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tics

Dev

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egm

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Man

age

Div

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Man

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Car

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and

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20.0

10.0

0.0

(10.0)Lowest Priority

Highest Priority

Sample Gap Analysis

2. Prioritizing Your Improvement Efforts

Participants will learn the maturity level and importance

of all activities in their function. We’ll then combine both

scorings to create a single API measure, providing a view

of which activities the organization should prioritize.

To help pressure-test the results, we will conduct a

consultative advisory call with all participants for a

rich discussion on where their organization should be

focused—applying the context of organizational barriers,

current initiatives already in progress, and stakeholder

agreement about the priorities.



Run time-consuming process to produce highly detailed budget.

Align budget with firm strategy by forcing trade-offs.

Teach business about performance drivers during budget process.

Set aside budget dollars for growth funding.

Build scenario plans, and define triggers.

Remove nonessential variables from budget data collection.

At budget process outset, agree with business on assumptions.

Business partners review their budget before making operational decisions.

Follow standard annual budgeting process.

Tailor budget process and systems to serve core budget objectives.

Automate rules-based processes.

Level 2

Level 1

Level 3

Level 4

Level 5

Currently Practiced (Or No Longer Required)

Commence to Achieve Next Maturity Level

Discontinue to Achieve Next Maturity Level

Not Currently Practiced

Sample Pathway to Maturity: Building Operating Budget

3. Establishing Your Action Plan

Lastly, we produce a Pathway to Maturity for each activity

assessed. This stair-step visualization shows participants

their current position and the steps they need to take to

realize both short- and long-term success in each activity.

Each horizontal row of the graphic represents the

sub-activities that represent maturity for that level—

highlighting what our research suggests best differentiates

one maturity level from the next.

As the key indicates... ȕ Items shaded in blue were judged to be presently

practiced and effective.

ȕ Items in orange represent actions needed to fully

achieve the next maturity level. Organizations should

focus on either putting these in place or achieving

consistent effectiveness levels.

ȕ Items in green are practiced and effective but need to

be discontinued or replaced by another sub-activity to

reach the next level.



Most companies’ leaders struggle with clearly,

comprehensively understanding how to improve

functional effectiveness. This lack of clarity leads to ad

hoc, disparate, and often unsupported investments and

initiatives. Leaders need a reliable assessment from which

they can structure and communicate plans.

Companies often assess progress toward functional

effectiveness against a structured framework, the results

of which typically provide a roadmap for maturing the

function. Traditional maturity assessments, however, tend

toward a one-size-fits-all approach, focus on the short-

term, and lack concrete, forward-looking guidance.

Our maturity diagnostics measure performance in

critical functional objectives and activities to guide your

transformation program. The tool clarifies critical maturity

gaps and prioritizes areas for improvement, identifying

next steps for each critical area and a long-term path to

the desired maturity level.

Strategic planning and functional transformation are clearly strong use cases for our maturity diagnostics, but the tool can be adapted to get a comprehensive read on the health of any department or function.

Closing Thoughts

Using our diagnostic: ȕ A newly appointed head of Sales at a pharmaceutical

company identified the function’s current maturity across key sales activities and drove consensus around strategic priorities.

ȕ The HR team at a government agency drove strategic planning conversations with the agency president.

ȕ A decentralized company undergoing a finance transformation pinpointed where to invest limited resources to meet key business objectives.

ȕ The marketing function of a network equipment manufacturer combined the results of the Marketing Maturity Diagnostic and its Marketing Excellence Survey for a comprehensive picture of the function’s maturity and talent.

ȕ The CIO at a medical device company drove alignment in his leadership team for a multi-year global transformation journey, and they plan to participate yearly to measure their progress during and after the transformation.

ȕ A head of Recruiting built team consensus and compared his priorities to those of the CHRO.



Appendix

Function-Specific Activity Maps



Develop Service Organization

StrategyCreate Customer

Service ExperienceManage Frontline

Rep Talent

Measure and Manage Performance

Utilize Service Organization Information

Manage the Function

Create Service Model

Design Multichannel Service

Experience

Hire Talent

Design Dashboard

Build Knowledge Management

Design Organizational

Structure

Develop Talent Strategy

Design Live Channel Service

Experience

Onboard Talent

Evaluate Customer Service

Experience

Manage Customer Information

Communicate with Staff

Partner with Cross-Functional

Stakeholders

Develop Talent

Measure Frontline Performance

Metrics

Support Managers and Leaders

Develop Service Organization Value

Proposition

Engage Talent

Track and Improve Efficiency

Manage Technology

Build Service Organization

Climate

Manage Budget

Adhere to Industry Regulations

Manage Vendors

Collaborate with Outsource/Offshore

Partners

Our customer contact maturity diagnostic measures the contact center’s maturity across 25 key management activities.

Activity Map: Customer Contact



Conduct Financial Accounting and

ReportingManage

RiskSecure and

Manage Funding

Measure and Guide Financial

PerformanceAllocate

ResourcesManage the

Function

Process Transactions

Monitor Enterprise Risk

Set and Manage the Capital Structure

Manage Target Setting Process

Provide Financial Input and Funding

for Strategy

Design Finance Team Strategy

Govern Financial

Data

Design and Maintain Internal Controls

Secure and Cultivate Equity

Investors

Forecast Performance

Build Operating Budget

Set Finance Organizational

Structure

Close the Books

Mitigate Financial Risk

Return Cash to Shareholders

Draft Management Reports

Set and Manage the Capital

Budget

Manage Finance

Staff

Work with External Auditor

Create and Execute the Audit Plan

Secure and Cultivate Debt

Investors

Review Business Performance

Support M&A Activity

Allocate Functional Resources

Report Financial Performance

Forecast and Manage Cash

Flows

Advise on Critical Business Partner

Decisions

Plan Tax Structure

Manage Finance Technology

Comply with Tax Regulations

Guide Working Capital

Communicate Financial

Performance to the Board

Our finance maturity diagnostic measures the finance department’s maturity across 32 key management activities.

Activity Map: Finance

Other maturity diagnostics available for the finance function:

ȕ FP&A ȕ Accounting and Reporting

ȕ Tax

ȕ Shared Services ȕ Finance for Midsized Companies ȕ FP&A for Midsized Companies



Our HR maturity diagnostic measures the HR department’s maturity across 38 key management activities.

Activity Map: Human Resources

Other maturity diagnostics available for the HR function:

ȕ Talent Management ȕ Learning and Development ȕ Recruiting ȕ Total Rewards

ȕ Compensation ȕ Benefits ȕ HR for Midsized Companies

Manage Workforce Strategy

Recruit New Employees

Develop Employees

Manage Existing

Employees

Manage Employee

Rewards and Benefits

Enable Organizational Effectiveness

Manage the Function

Identify and Manage

Competencies

Source Talent

Analyze L&D Needs and

Investments

Manage Employee

Performance

Design Compensation

Manage Organization

Design

Build HR Strategic

Plans

Review Talent

Assess and Hire Talent

Design and Build L&D Solutions

Manage Employee

Engagement

Deliver Compensation

Manage Organizational Development

Manage HR Functional

Design

Develop a Workforce

Plan

Acquire Critical Talent Segments

Implement L&D

Solutions

Manage Mobility and Career Paths

Design Benefits

Manage Change

Manage HR Staff

Manage EVP

Recruit Executives

Develop Critical Talent Segments

Manage Succession

Deliver Benefits

Manage HR Technology

Manage Talent

Analytics

Develop Leaders

Manage High-Potential

Employees

Build Total Rewards Strategy

Manage the HR Budget

Partner with the Business

Manage Diversity and

Inclusion

Compensate Executives

Manage HR Vendors

Interact with the CEO and

Board

Manage Employee Relations



Our IT maturity diagnostic measures the IT department’s maturity across 40 key management activities.

Activity Map: Information Technology

Other maturity diagnostics available for the IT function:

ȕ Applications ȕ Enterprise Architecture ȕ Information Risk

ȕ Infrastructure ȕ PMO ȕ IT for Midsized Companies

Engage Business Partners

Define Strategy and Architecture

Manage the Project

Portfolio

Deliver Capabilities and Services

Manage Information

RiskDevelop and

Manage TalentManage the

Function

Structure Business

Engagement

Manage Business Architecture

Assess Project Proposals and Business Cases

Gather Business Requirements

Assess Information

Risk

Plan Workforce Strategy

Manage IT Functional

Design

Communicate Strategy and Performance

Plan Future State Architecture

Manage the Project Prioritization

Process

Build Applications

Manage Risk Policies

Assess and Manage Employee

Performance

Manage the IT Budget

Manage Employee Adoption

Drive Reuse and Standards

Adherence

Manage and Forecast Project

Resources

Integrate Applications

Manage User Awareness

Develop Critical Skills and

Competencies

Measure IT Performance

Support Business Partner

Technology Decision Making

Manage and Maintain

Information

Manage Projects

Manage and Refresh Systems and Technology

Manage Regulatory Compliance

Guide Employee Development and

Career Paths

Design Sourcing Strategy

Evaluate New Technologies

Monitor Portfolio Health

Manage Infrastructure

Operations

Manage Security

Operations

Develop Leaders

Manage IT Vendors

Manage Organizational

Change

Manage Infrastructure

Architecture and Engineering

Manage Sourcing

Relationships

Define IT Services

Design IT Strategic Plan

Govern Services



Our legal maturity diagnostic measures the legal department’s maturity across 36 key management activities.

Activity Map: Legal

Other maturity diagnostics available:

ȕ Data Privacy ȕ Risk Management ȕ Legal for Midsized Companies

Define Legal Work and Strategy

Promote Corporate

Compliance and Ethics

Support Business Goals

Ensure Regulatory Compliance

Protect Company

Information

Maintain Corporate

GovernanceManage the

Function

Assess Legal and Regulatory

Risks

Build a Compliance and Ethics Program

Manage Contract

Risks

Comply with Core

Regulations

Classify Information

Advise the Board

Select Outside Counsel

Determine Legal Risk Tolerance

Oversee Allegations and Investigations

Advise IP Strategy

Communicate Regulatory

Issues

Manage Company

Information

Support Board Processes and

Oversight

Manage Outside Counsel

Set Functional Strategy

Deploy Training and

Communications

Advise Product

Development

Manage Government

Relations

Ensure Appropriate

Retention

Monitor Governance

Practices

Manage Litigation

Set Legal Resourcing

Strategy

Monitor Program Performance

Advise Marketing and

Communications

Advise Labor and Employment

Issues

Manage Privacy Risk

Oversee Securities and

Filings

Manage Legal Talent

Partner with Business Clients

Manage Third-Party

Risk

Advise Sales and After-Sales

Support

Comply with Tax

Regulations

Manage Legal

Technology

Measure Department Performance

Advise M&A and Transactions

Manage Legal

Budget

14© 2015 CEB. All rights reserved.


Develop Brand and Market

StrategyAcquire New

ClientsSupport Cross-Sell and Up-Sell

Promote Customer

Retention and Advocacy

Partner with Sales

Foster Enterprise-

Wide Customer Focus

Manage the Function

Identify and Prioritize Market

Opportunities

Develop Demand-

Generation Plans

Identify Solution-Selling Opportunities

Engage Existing Client

Base

Understand Buying

Dynamics

Inform Company Innovation

Manage Marketing Functional

Design

Develop Strategic Marketing

Plan

Prioritize Prospect Segments

Prioritize Solution-Selling Opportunities

Mine Voice of the Customer

Data

Develop Sales Support and

Collateral

Steward Customer

Experience

Manage Marketing

Staff

Create and Manage Brand

Strategy

Source Leads

Develop Solutions

Monitor Customer Loyalty

Manage Lead

Pipeline

Guide Pricing and Profitability

Models

Manage Market Research and

Analytics

Develop Company Value

Propositions

Qualify Leads

Identify and Support

Customer Advocates

Support External Channel Partners

Enable Customer- Focused IT Strategies

Manage Marketing

Technology

Review Product and Service

Portfolio

Nurture Leads

Influence Distribution

Strategy

Manage the Marketing

Budget

Partner with P&L Owners

Launch New Products and

Services

Champion Market- Oriented Culture

Manage Marketing Vendors

Manage Marketing Content

Measure and Communicate Performance

Our B2B marketing maturity diagnostic measures the marketing department’s maturity across 37 key management activities.

Activity Map: B2B Marketing

Other maturity diagnostics available for the B2B marketing function:

ȕ Communications ȕ Market Insights ȕ B2B Marketing for Midsized Companies



Manage Market

Insights and Analytics

Manage Market and Brand Strategy

Acquire New Customers

Grow Share of Wallet

Drive Product/Brand

Availability

Foster Enterprise-

Wide Customer Focus

Manage the Function

Manage Data Asset

Prioritize Market Opportunities

Prioritize Consumer Segments

Engage Existing Customers

Partner with Trade Marketing/

Sales

Guide Innovation

Manage Marketing Functional

Design

Identify Market Opportunities

Develop Product and Brand Positioning

Build Market Awareness

Identify New Product Use

Opportunities

Manage Direct-to-Consumer Distribution

Steward Customer

Experience

Manage Marketing Staff

Generate Consumer

Insights

Develop Integrated

Marcomm Plans

Drive Consumer Consideration

Identify Up- and Cross-Sell Opportunities

Support External Channel Partners

Inform Pricing and Profitability

Models

Manage Marketing

Technology

Understand Shoppers

Partner with P&L Owners

Elicit Consumer Preference

Launch New Products or

Brand

Enable Consumer-Focused IT Strategies

Manage the Marketing Budget

Activate Insights

Drive Conversion

Champion Market-

Orientated Culture

Manage Agencies and Vendors

Identify and Support Brand

Advocates

Measure and Communicate Performance

Our B2C marketing maturity diagnostic measures the marketing department’s maturity across 34 key management activities.

Activity Map: B2C Marketing

Other maturity diagnostics available for the B2C marketing function:

ȕ Communications ȕ Market Insights ȕ B2C Marketing for Midsized Companies



Engage with Customers

Manage Sales Talent

Manage Sales Operations

Partner with Marketing

Manage the Function

Conduct Account Planning

Build Sales Climate

Forecast Sales

Segment Customers

Manage Sales Budget

Select Global/Key Accounts

Source Sales Talent

Facilitate Sales Process

Partner on Lead Sourcing

Manage Internal Sales Communication

Manage Global/ Key Accounts

Screen and Hire Sales Talent

Organize Sales Collateral and Tools

Develop Value Proposition and

Commercial Messages

Develop Coverage Strategy

Support Channel Partners

Onboard New Talent

Manage CRM

Create Sales Collateral

Reduce Sales Channel Conflict

Qualify Sales Opportunities

Develop Training

Manage Compensation

Design

Manage Opportunity Pursuit

Support Coaching Outcomes

Our sales maturity diagnostic measures the sales department’s maturity across 25 key management activities.

Activity Map: Sales

Other maturity diagnostics available for the sales function:

ȕ Sales for Midsized Companies

CEB, the leading member-based advisory company, equips more than 10,000 organizations

around the globe with insights, tools and actionable solutions to transform enterprise performance.

By combining advanced research and analytics with best practices from member companies,

CEB helps leaders realize outsized returns by more effectively managing talent, information,

customers and risk. Member companies include 90% of the Fortune 500, nearly 75% of the Dow

Jones Asian Titans, and more than 85% of the FTSE 100. More at cebglobal.com.

+1-866-913-2632 | [email protected] | www.cebglobal.com

© 2015 CEB. All rights reserved. CEB151549GD

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Catapult our usinessads.qz.com/sponsors/ceb/frameworkBulletinRefresh... · 1. Assessing Your Function’s Maturity Assess the maturity of key management activities for the function