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Inside Talk

Best Practices in Strategic PlanningLearn how to build your playbook to thrive in perilous times
Bob Paladino August 13, 2013
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Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.

Moderator

Steve Shannon Director Business Development IMA

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Featured Presenter

Bob Paladino, CPA Managing Partner Bob Paladino & Associates, LLC

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Bob Paladinos Biography


Bob Paladino is the Founder and Managing Partner of his firm, which focuses on advising executives and their teams on implementing and integrating CPM competencies including establishing a CPM function, Strategic Planning, Performance Management/Balanced Scorecard, Quality Improvement, and Knowledge Management competencies. He has authored the three of the top four best-selling books in the Corporate Performance Management (CPM) field: Five Key Principles of Corporate Performance Management, Innovative Corporate Performance Management and Corporate Performance Management Best Practices. As a former Chief Performance Officer of Crown Castle International in the Office of the CEO, Mr. Paladino directed the global CPM/Balanced Scorecard program to win both the coveted international Hall of Fame Balanced Scorecard Award and American Productivity & Quality Centers (APQC) Best Practice Partner award. Wall Street Journal ranked Crown Top 20 Most Improved in Shareholder Value. In his formative years, Bob was a global consultant for PricewaterhouseCoopers, the Balanced Scorecard Collaborative, and Towers Perrin; he is a Wharton dual MBA in Finance and Management, a CPA and a member of the AICPA. Mr. Paladino donates book royalties to the United Flight 93 Memorial near his home. He is published in leading journals and is among the highest rated speakers at corporate and industry events in over 60 cities globally.
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Learning Objectives
Upon completing this webinar, you will be able to:
1. Learn practical tools, methods and templates to create value 2. Acquire best practice models from successful companies 3. Gain insights into the changing frequency of strategic planning 4. Understand strategic planning integration with performance management
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How Can We Help You Achieve Results?


Years of Live Case Studies to Close the Strategy Gap
(Page 1 of 3)

Please email bobpaladino@paladinoassociates.com to secure your complimentary copies of top 5 articles


1. AICPA, (American Institute of Certified Public Accountants) How Can the CFO Contribute to the Top Line? at M7/Elbit Aerospace 2. APQC (American Productivity Quality Center), Crown Castle International's Corporate Performance Management (CPM) System 3. APQC Magazine, Integrating Balanced Scorecard, Six Sigma, and Knowledge Management to Drive Value at Crown Castle International 4. APQC Magazine, Integrating Balanced Scorecard, Sarbanes Oxley and Knowledge Management (Nadia Upley) 5. APQC Research Reports: Enterprise Risk Management Reports I & II Executive Summaries only (Best Practice Company Cases) 6. ASMI (American Strategic Management Institute), Realizing Strategies Through Balanced Scorecard Based Budgeting 7. ASMI, Innovative Corporate Performance Management, Boy Scout of Americas Journey to Excellence 8. Better Management, Integrating the Balanced Scorecard and Total Rewards to Drive Value 9. Business Finance Magazine, Fitting the Balanced Scorecard into BPM 10. Business Finance Magazine, Retaining Knowledge Capital (TVAs response to an Aging Technical Workforce) 11. Business Performance Magazine, A New Brand Value: Integrating Branding in Corporate Performance Management 12. Business Performance Magazine, Moving Strategy Forward: Merging the Balanced Scorecard and Business Intelligence To Drive Value 9
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How Can We Help You Achieve Results?


Years of Live Case Studies to Close the Strategy Gap
(Page 2 of 3)

Please email bobpaladino@paladinoassociates.com to secure your complimentary copies of top 5 articles


13. 14. 15. 16. Business Performance Magazine, Performance Promotion: Why CPM needs it Own Office, (with Gary Cokins) Business Week Research, The Payoff of Pervasive Performance Management, (Joe Mullich) Certified Management Accountant (CMA Institute), 5 Key Principles of CPM 3 Article set City of Coral Springs Coach (Russia), Excellence in Corporate Performance Management at Intercomp Global Solutions (HR Outsourcing Firm) 17. CFO Magazine Research, What CEOs want from Their CFOs Today 18. CIO Insights, Corporate Performance Management and Metrics that Matter
19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. CorVu, Crown Castle International Case Balanced Scorecard Hall of Fame case summary Executive Insight, Finance Strategies & CPM for the New Normal, Co-author with CFO, MidMichigan Health HBS, (Harvard Business School Publishing), Balanced Scorecard Hall of Fame Case Crown Castle International #1 HBS case HBS, How to Conduct a Balanced Scorecard Review to Create Alignment HBS, Survival Strategies for Unmerciful Markets: The Telecom Experience HBS, The Challenge of Global Alignment, Crown CEO Shares his Perspectives HBS, Global Alignment: A Telecoms Tale Crown Castle International xxx IIE (Institute of Industrial Engineering ), 5 Key Principles of CPM, Strategic Product Development at Bayer/Medrad JCAF (Journal of Corporate Accounting & Finance Wiley), What is Strategic-Operational Misalignment Costing your Firm Each Year? JCAF, Enterprise Risk Management, a Best Practice Approach, (with Sebastian Francis) JCAF, Missed Opportunities in Strategy and Enterprise Risk Management,(with DePaul Dr. Frigo & Federal Reserve Banks CIO) JCAF, Strategic Financials: What Does the CFO Need in the Rapidly Changing Utility Market?
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How Can We Help You Achieve Results?


Years of Live Case Studies to Close the Strategy Gap
(Page 3 of 3)

Please email bobpaladino@paladinoassociates.com to secure your complimentary copies of top 5 articles


31. 32. 33. 34. JCAF, Innovative Corporate Performance Management (Office) at Omaha Public Power District JCAF, Innovative Corporate Performance Management at Delta Dental of Kansas JCAF, Improve Earnings by Shifting Finance Dept. Resources to CPM Services at MidMichigan Health Knowledge Management Review, Taking its Knowledge Mgt Portal to the Next Level at Crown Castle International Strategic Finance (Institute Management Accountants), Balanced Forecasts Drive Value Strategic Finance, (IMA), Strategically Managing Risk in Todays Perilous Markets at United Illuminating Strategic Finance (IMA), 5 Key Principles of Corporate Performance Management- 3 Article set on Bronson Methodist Hospital Strategic Finance, (IMA), Innovative Corporate Performance Management 3 Article set on Sharp Healthcare System Strategy Magazine, The Role of the Chief Performance Officer During these Perilous Times

35. 36. 37.


38. 39.

Five Key Principles of CPM


Training, Consulting, Speaking contact bobpaladino@paladinoassociates.com
Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.

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Five Key Principles of CPM: 26 Award Winning Public, Private & Government Organizations

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Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.

2013 www.paladinoassociates.com Bob Paladino & Associates, LLC

The Five Key Principles of Corporate Performance Management Consists of Over 30 Best Practices
2. Refresh & Communicate Strategy

5. Leverage & Manage Knowledge

1. Establish CPM Office & Officer

3. Cascade & Manage Strategy

4. Improve Performance
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011

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Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.

2013 www.paladinoassociates.com Bob Paladino & Associates, LLC

The Five Key Principles of Corporate Performance Management: Best Practices Pentagon
5 Key Principles of CPM Core Best Practices
PRINCIPLE 1.
ESTABLISH CPM OFFICE & CPM OFFICER
1.1 Executive Sponsorship 1.2 Organization Reporting Level 1.3 CPM Office Staff 1.4 Leadership, Ability to Influence 1.5 CPM Process Ownership 1.6 CPM, Industry & Co Knowledge 1.7 Collaborative Maturity 1.8 Ability to Learn

PRINCIPLE 2.
REFRESH & COMMUNICATE STRATEGY
2.1 Strategic Planning 2.2 Core & Adjacent Products/Svcs 2.3 Strategic Plan

2.4 Map Strategy


2.5 Link Strategy & Budget 2.6 Communication Plan

CPM
PRINCIPLE 5.
MANAGE & LEVERAGE KNOWLEDGE
5.1 Develop KM Processes 5.2 Leverage Technology

AWARD WINNING

PRINCIPLE 3.
CASCADE & MANAGE STRATEGY
3.1 Partner with Business Owners 3.2 3.3 3.4 3.5 3.6 Level 1 Balanced Scorecard Leverage Scorecard Design Cascade to Lower Levels Align Support Services Align Teams & Individuals

BEST
PRACTICES
PRINCIPLE 4.
IMPROVE PERFORMANCE

5.3 Develop Expert Locator System


5.4 Link KM to Improve Performance 5.5 Link KM to Strategic Planning 5.6 Maintain Virtual KM Network

3.7 Link Rewards & Recognition 3.8 Manage Using Measures 3.9 Automate Measures

4.1 Prioritize Improvement Projects 4.2 Leverage Customer Processes

4.3 Leverage Process Improvement 4.4 Benefit from Benchmarking 4.5 Create a Performance Improvement Culture

Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011

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2013 www.paladinoassociates.com Bob Paladino & Associates, LLC

CFOs Provide Strategic Leadership

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2013 www.paladinoassociates.com Bob Paladino & Associates, LLC

Finances Strategic Leadership is Enabled by The Five Key Principles of


Corporate Performance Management

2. Refresh & Communicate Strategy

5. Leverage & Manage Knowledge

1. Establish CPM Office & Officer

3. Cascade & Manage Strategy

4. Improve Performance

Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011

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Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.

2013 www.paladinoassociates.com Bob Paladino & Associates, LLC

Polling Question 1
How would you characterize your enterprise performance (revenue) in the past two years?
a) Growing b) Holding steady c) Declining

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Polling Question 1 Results


How would you characterize your enterprise performance (revenue) in the past two years?
a) Growing 48% b) Holding steady 38% c) Declining 14%
Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.

M7 Aerospace: Strategic Growth


San Antonio Business Journal

M7 Aerospace LP has been bought out by Israeli defense electronics company Elbit Systems Ltd. for $85 million in cash. Haifa, Israel-based Elbit (NASDAQ: ESLT) specializes in developing aerospace, land and naval systems; communications; computers; intelligence surveillance and reconnaissance; unmanned aircraft systems and airborne warning systems
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011

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2013 www.paladinoassociates.com Bob Paladino & Associates, LLC

M7 Aerospace: Best Practice Case


Executive Views on Corporate Performance Management
CPM has literally transformed M7 from a start-up organization that was operating in business unit silos with limited communication among the management team into an integrated company with a full understanding of cause and effect across the entire organization. Aiding the management team in fully understanding and reviewing the key aspects of its business on a continual basis is essential for any high-performance organization.
Kevin Brown, (CFO Promoted to) President and Chief Executive Officer

The whole strategic evaluation process has been a great opportunity to get some of our new personnels ideas and strategies on the table as well as rekindle our legacy employees thoughts and perspectives. The BSC has given us a consistent perspective of how other departments are doing and how their capabilities could potentially assist upcoming ventures.
Steve Leland, Vice President, General Manager, Government Programs

The BSC has allowed us to do the analysis necessary to put the proper resources in place to improve our business.
Mark Provost, Director, Engineering

The Balanced Scorecard has been instrumental in driving M7 Aerospace toward best in class processes and procedures.
Brian Dannewitz, VP Supply Chain Management and Spares Sales
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011
Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved. 2013 www.paladinoassociates.com Bob Paladino & Associates, LLC

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Polling Question 2
Does your organization have a CPM function or at least a person who acts in this capacity?
a) Yes b) No c) I dont know

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Polling Question 2 Results


Does your organization have a CPM function or at least a person who acts in this capacity?
a) Yes
33% b) No

45%
c) I dont know

22%
Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.

M7 Aerospace: Best Practice Case


Awards & Honors
Northrop Grumman World Class Team Supplier For the third consecutive year M7 Aerospace was awarded a supplier award from Northrop Grumman Corporation. M7 Aerospace was selected to receive a World Class Team Supplier award for its consistently demonstrated outstanding achievements and support of Northrop Grumman programs. Institute of Supply Management (ISM) Excellence in Innovative Supply Management (EISM) Award For the third year in a row M7 was one of just six companies to win this award which is given annually to recognize and reward organizational excellence in the purchasing and supply management field. The Boeing Company Supplier Quality Award The Boeing Company honored M7 Aerospace for its manufacturing support of Boeings C-130 Avionics Modernization Program (AMP). Work performed by M7 includes fabricating sheet metal parts, building hydro form parts; painting and priming; building cable assemblies and bending tubes for precise applications.
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011

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Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.

2013 www.paladinoassociates.com Bob Paladino & Associates, LLC

M7 Aerospace: Best Practice Case


Highlights, Notable Performance Results
Financial (lagging indicators) M7 Aerospace has increased consolidated revenue by over 500% during the past five years M7 Aerospace has increased consolidated EBITDA by over 1,000% in the past two years C23 BU maximized cash flow by reducing accounts receivable over 60 days past due from $140,000 to zero Engineering Services BU maximized cash flow by reducing accounts receivable over 60 days past due from $160,000 to zero Customer (lagging indicators) Customer: C23 BU achieved customer provided Customer Performance Assessment Report (CPAR) Card ratings of very good for most of year Customer: Engineering Services BU achieved Boeing customer Best Rating for Quality for most of year Customer: Engineering Services BU achieved Boeing customer Best on Schedule Rating for Quality for most of year
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011

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Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.

2013 www.paladinoassociates.com Bob Paladino & Associates, LLC

M7 Aerospace: Best Practice Case


Highlights, Notable Performance Results
Process (leading indicators) Supply Chain: BU response time to provide parts to C23 BU program was green, under 30 minutes for the entire year. Process/Productivity: Government Business Development BU increased the number of new Programs Identified for Evaluation from four to 32 in one year, an increase of 800%. C26 Peru program inventory accuracy exceeded agreed target of 98%, a key customer requirement, for most of the year. Supply Chain Management BU response time to provide parts to C23 BU program was green, under 30 minutes for the entire year. MRO BU amount of backlog booked exceed target for six consecutive months. MRO BU on time delivery of services to internal customers or other M7 BUs was at or above target of 97% for the year. MRO BU on time delivery of services to external (outside M7 family of BUs) customers was at or above target of 97% for the year.
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011

25

Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.

2013 www.paladinoassociates.com Bob Paladino & Associates, LLC

M7 Aerospace: Best Practice Case


Highlights, Notable Performance Results
Process (leading indicators)
MRO BU amount of backlog booked exceed target for six consecutive months MRO BU on time delivery of services to internal customers or other M7 BUs was at or above target of 97% for the year MRO BU on time delivery of services to external (outside M7 family of BUs) customers was at or above target of 97% for the year Parts/Spares BU secured more new customers than target for most of the year Quality BU increased percentage of in-bound parts cleared in 24 hours from 78% to 90% Finance Support provided necessary business analytics within 12 days after month end consistently throughout the year Contracts SU maintained all contract terms as current over 90% of the time for the entire year Corporate Development SU provided timely quotes and modeling services over 95% of the time for the whole year Development SU provided delivered Consolidated Scorecards on time 100% of the time all year
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011

26

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2013 www.paladinoassociates.com Bob Paladino & Associates, LLC

M7 Aerospace: Best Practice Case


Highlights, Notable Performance Results
People (leading indicators)
People: HR SU improved selection and hiring process, the percentage of employees successfully completing hiring probationary period (30/60/90 day appraisals) increased to 90 percent. Information Technology: IT SU completed 100% of targeted training and certifications for the entire year. Representative Lean Six Sigma team results: Dock to Stock Span Time Reduction project team successfully reduced work-in-progress from 206.1 jobs to 38.3 jobs, an 81% decrease; and reduced process Lead Time from 30 hours to 5.2 hours, an 82% decrease!

Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011

27

Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.

2013 www.paladinoassociates.com Bob Paladino & Associates, LLC

The Five Key Principles of Corporate Performance Management Consists of Over 30 Best Practices
2. Refresh & Communicate Strategy

5. Leverage & Manage Knowledge

1. Establish CPM Office & Officer

3. Cascade & Manage Strategy

4. Improve Performance
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011

28

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2013 www.paladinoassociates.com Bob Paladino & Associates, LLC

Polling Question 3
How often do you conduct strategic planning?
a) Annually

b) Every six months


c) Quarterly

d) As needed
e) Never

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Polling Question 3 Results


How often do you conduct strategic planning?
a)

Annually 49%

b)
c) d) e)

Every six months


8% Quarterly 15% As needed 24% Never 4%
2013 Institute of Management Accountants. All rights reserved.

Strategic Planning Approach Used by BUs, Support Functions to Create a Strategic Plan
CPM Principle 2: Refresh and Communicate Strategy (Formulate)
Input
Strategic Input Documents Annual Report Industry Reports Market Research Industry Experts

Analyses
Core and Adjacency Analyses Risk Reward Matrices Business Cases Five Forces SWOT Pro Forma Statements

Strategies
Products, Services Geographies Customers Competencies Processes Technologies Others

Strategic Plan
Strategy Map Strategic Objectives Draft BSC Measures Draft BSC Targets Major Initiatives Budgets

Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011

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2013 www.paladinoassociates.com Bob Paladino & Associates, LLC

Principle 2: Refresh and Communicate Strategy


Process to Build a Strategic Plan
Process Stage
Input

Approach
Review company documents and prepare strategic input documents Workshop 1 Prepare Vector Maps, Identify Opportunities Workshop 2 Prepare Opportunities Risk / Reward matrices +

Deliverables
Strategic Input Documents Templates for completion by team Draft core and adjacency map Work shop 1 materials Core & Adjacency Maps Work shop 2 materials Risk reward matrices Five Forces SWOTs Business cases Facilitation Workshop 3 Customer, Financial, Process, Market, Product, Service, People, Technology, Engineering Strategies Strategy Maps Strategic Objectives Draft BSC Measures Draft BSC Targets Major Initiatives Capital and Operating Budgets Flow chart of strategic planning process Process steps defined Work instruction level Source documents/ templates used

By BU
X

Corp Rollup
X

Analyses

Strategies

Workshop 3 Formulate strategies

Strategic plan

Update Strategic Plan (ongoing)

Refine Strategic Planning Process

Refine Strategic Planning Process (ongoing)

Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011

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2013 www.paladinoassociates.com Bob Paladino & Associates, LLC

Strategic Input Documents


Strategic Plan Element
Executive Summary History Markets- Regulatory Markets- Competitors

Primary Leader Contact

Secondary Leader Contact

Markets - Customers
Products/Services Strategic Processes Suppliers / Providers Strategic Technologies

Facilitates
People & Competencies Financial Condition
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011

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Markets/Customers U.S. Military UAV/ISR Spending


UAV (Unmanned Aerial Vehicle) and ISR (Intelligence, Surveillance and Reconnaissance vehicle)

The Teal Group estimates that UAV spending will double in the next ten years. That amounts to a spend of $62 billion over the next decade. Over that same Timeframe, the United States will account for 72% of Research, Development, Testing and Evaluation (RDT&E) and 61% of all procurement expenses.
Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011

34

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2013 www.paladinoassociates.com Bob Paladino & Associates, LLC

Vector Map to Determine Current Business Profile


Technology
Program Management CDRL Submittals

Customers

Web Based Applications


State Dept. USAF

Processes

EVMS Module
Process Documents Database collection system BAE Systems Army Fixed Wing FAA 135 Structure

NAVAIR

Future Current

Geography
Space Operations OCONUS Operations CONUS Operations Strong Core

Regulators
Weapons DCAA System (CAS) DCMA Compliant

Fixed Wing LCCS

Rotor Wing LCCS

FAA 145 RS Army Regulatory Compliant Maintenance Quality Control

Channel Markets

ISR /UAV Installations 1

Maintenanc e Logistics Field Repairs Depot Mods Field Modifications Program Management

Program Management Configuration Management Maintenance Forecasting Sr. Program Mgmt

Weapons System CLS International Direct

ISR: Intelligence Surveillance and Reconnaissance UAV Unmanned Aerial Vehicles

Products / Services

People Skills, Capabilities


2013 www.paladinoassociates.com Bob Paladino & Associates, LLC

Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011

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Vector Map to Determine Future Growth:


#1 New Market for UAV and ISR
Technology
Program Management CDRL Submittals Web Based Applications State Dept. USAF

Customers
Current Capability

Processes

EVMS Module
Process Documents Database collection system BAE Systems Army Fixed Wing FAA 135 Structure

NAVAIR

Adjacency

Future Current

Geography
Space Operations OCONUS Operations CONUS Operations Strong Core

Regulators
Weapons DCAA System (CAS) DCMA Compliant

Game Changer

Fixed Wing LCCS Rotor Wing LCCS

FAA 145 RS Army Regulatory Compliant Maintenance

Channel Markets

ISR /UAV Installations

Maintenanc e Logistics Field Repairs

Quality Control
Program Management Configuration Management Maintenance Forecasting Sr. Program Mgmt

Weapons System CLS


International Direct

Depot Mods 1
Field Modifications Program Management

ISR: Intelligence Surveillance and Reconnaissance UAV Unmanned Aerial Vehicles

Products / Services

People Skills, Capabilities


2013 www.paladinoassociates.com Bob Paladino & Associates, LLC

Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011

36

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Opportunities Risk and Reward Matrix:


Opportunity #1 has five key sub opportunities
High
High Risk/ High Reward Game Changers?

Risk
9

Low
Plums

7b

1. ISR/UAV
a) Structural Engineering b) Systems Engineering c) Aircraft Systems Mods d) Structural Modification e) Installation
12a 4b

4 7c 4b 10 1a 5c 2c 2b Why do It? 11a 18 20 11b 5d 13 19 1c 4e 14 1b

16

5b

High
1d 1e

Reward
Easy Wins 4c

17

Low
8a

8b

Current Capability

Adjacency

Game Changer

Processes

Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011

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2013 www.paladinoassociates.com Bob Paladino & Associates, LLC

Review Strategy: Core & Adjacency Vector Definitions Implications for IT


Growth Vector Core Business
(current business)

Potential Adjacencies
(potential growth opportunities)

Implications for IT
(for IT Portion of Strategy Map) Core: Service maintenance of accounts Adjacencies: Expand engineering systems for design, new certifications, new drawings Update source transaction registers to accommodate new vendors, new customers, new part numbers, new bills of materials, and several other new requirements New JV partner and data security in sharing files, access, clearances, numerous IT implications

Comments

Expand Channel and Markets

Fixed Wing, maintain existing customer base and service backlog

Expansion into Rotary Wing, ISR and UAV Likely enter these opportunities through JV tier 1 customer as JV partner

Create new objectives on Strategy Map for the implications on IT

Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011

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2013 www.paladinoassociates.com Bob Paladino & Associates, LLC

Strategy Map
Financial Financial Stability F2 Drive Revenue Growth F4 Optimize WIP

F5 Continuously Improve Profitability

Customers

Government Services C0 ATP Ratings

Voice of the Customer

Grow the Business New and Sustainment


I6 Closing Sales (Bids into Awards) I15 Sell Integrated Services & Solutions

Operational Excellence
I10 Produce Quality Products
I12 Deliver Products On Time

Internal Process

I4 Maximize Existing Account

I14 Improve Processes and Procedures

I3 JV, Partner with Tier 1 Supplier on UAV/ ISR Program Pilot

I2 Win initial rotor wing BAE CMWS program

I1 Win Additional BAE CMWS Design / Installation Fixed Wing Program

Learning & Capabilities

P1 Meet Training Commitments

P2 Maintain Regulatory EPA Safety & Govt Security Requirements

P3 Develop High Performing Organization

P4 Establish Balanced Scorecard Accountability

Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011

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2013 www.paladinoassociates.com Bob Paladino & Associates, LLC

Chart Your Path Using the 5 Level Maturity Model


CPM Principles 1-5 Roadmap and Maturity
Key Supporting Processes Principle 1: Establish & Deploy CPM Office
1.1 Executive Sponsorship (example) 1.2 Org Level, Reporting Level 1.3 CPM Office Staff 1.4 Leadership, Ability to Influence 1.5 CPM Process Ownership 1.6 CPM, Industry, Co Knowledge
1 2 3 4 5

Year 1
Q1 Q2 Q3 Q4 Q1

Year 2
Q2 Q3 Q4

Year 3
Q1 Q2

1.7 Collaborative Maturity


1.8 Ability to Learn

Principle 2: Refresh & Communicate Strategy


2.1 Strategic Planning 2.2 Core, Adjacent Products 2.3 Strategic Plan 2.4 Map Strategy

2.5 Link Strategy to Budgeting


2.6 Communication Plan

Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011

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2013 www.paladinoassociates.com Bob Paladino & Associates, LLC

Polling Question 4
What primary strategic planning method does your enterprise rely on?
a) b) c) d) e) Vector map Risk reward matrix SWOT (Strengths, Weaknesses, Opportunities & Threats) Five Forces Other

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Polling Question 4 Results


What primary strategic planning method does your enterprise rely on?
a)

Vector map 58%

b)
c) d) e)

Risk reward matrix 2%


SWOT (Strengths, Weaknesses, Opportunities & Threats) 6% Five Forces 26% Other 8%
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Leverage Level 5 Best Practice Cases


Page

Organization
Chapter 5
Summary Cargill (104)

Key Point
Principle 2 Refresh and Communicate Strategy
Best Practice Table Leadership System, Strategy Formulation, ERM

91
92 94

104
112 120

City Coral Springs (111)


Delta Dental (120) Lockheed Martin (128) M7 Aerospace/Elbit (136) Mueller (144) NStar Omaha Public Power (156) Poudre Valley Health System (165) PSE&G (170)

Strategic Planning Process (SPP), KIOs, Customer Inputs


SPP year round, LR Plan, Budgeting, Strategy Map PESTEL, CCM CMU, Strategy Map/Themes diagram SPP, Core/Adjacency, Five Forces, SWOT, Strategy Map Culture Maturity Model, Strategy Map, Budgeting SPP, Budgeting, CPM SPP, Strategy Map, Communications Plan Path to Success, 7 Steps, Objectives Table SPP, Strategic Initiatives, Strategy Map diagram

129
136 145 148 157 165 170

Sharp Healthcare System (181)

SPP Diagram, Pillars table, Comms Plan table,

Source: Bob Paladino, Innovative Corporate Performance Management, Wiley Publishing, 2011

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bobpaladino@paladinoassociates.com Wiley Publishing Available on www.amazon.com


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Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.

Questions & Answers


Use the Q & A Panel to send your questions to our panelists

Bob Paladino Managing Partner Bob Paladino & Associates, LLC


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Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.

Steve Shannon Director Business Development IMA

Thank You to Our Featured Presenter!

Bob Paladino, CPA Managing Partner Bob Paladino & Associates, LLC
bobpaladino@paladinoassociates.com

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Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.

Final Reminders
Complete the Evaluation poll on your screen Access to your CPE Certificate 2 Options Click the CPE icon at the bottom of your screen or Click the link in your post-event email

Please print or save a copy of the CPE certificate Your CPE credit will be automatically recorded in your transcript.

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Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.

Notification of Future Webinar Schedules


Next Webinar: Elevate Your Financial Processes in the Cloud Wednesday, August 21, 2013 1 p.m. EDT
For Upcoming Events: Visit IMAs website at www.imanet.org/programs_events/webinars.aspx Log-in with your User Name & Password Remember to check IMAs Learning Spotlight for upcoming webinar events
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Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.

Thank You!

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Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.

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