Professional Documents
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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.
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Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.
Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.
Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.
Moderator
Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.
Featured Presenter
Bob Paladino, CPA Managing Partner Bob Paladino & Associates, LLC
Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.
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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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.
The Five Key Principles of Corporate Performance Management Consists of Over 30 Best Practices
2. Refresh & Communicate 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.
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
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
3.7 Link Rewards & Recognition 3.8 Manage Using Measures 3.9 Automate Measures
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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Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.
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Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.
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.
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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Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.
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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Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.
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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Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.
45%
c) I dont know
22%
Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.
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Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.
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Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.
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Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.
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Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.
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.
The Five Key Principles of Corporate Performance Management Consists of Over 30 Best Practices
2. Refresh & Communicate 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.
Polling Question 3
How often do you conduct strategic planning?
a) Annually
d) As needed
e) Never
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Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.
Annually 49%
b)
c) d) e)
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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Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.
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
Strategic plan
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.
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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Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.
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
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Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.
Customers
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
Channel Markets
Maintenanc e Logistics Field Repairs Depot Mods Field Modifications Program Management
Products / Services
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.
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
Channel Markets
Quality Control
Program Management Configuration Management Maintenance Forecasting Sr. Program Mgmt
Depot Mods 1
Field Modifications Program Management
Products / Services
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.
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
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5b
High
1d 1e
Reward
Easy Wins 4c
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Low
8a
8b
Current Capability
Adjacency
Game Changer
Processes
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.
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
Expansion into Rotary Wing, ISR and UAV Likely enter these opportunities through JV tier 1 customer as JV partner
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.
Strategy Map
Financial Financial Stability F2 Drive Revenue Growth F4 Optimize WIP
Customers
Operational Excellence
I10 Produce Quality Products
I12 Deliver Products On Time
Internal Process
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.
Year 1
Q1 Q2 Q3 Q4 Q1
Year 2
Q2 Q3 Q4
Year 3
Q1 Q2
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.
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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Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.
b)
c) d) e)
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
129
136 145 148 157 165 170
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.
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.
Thank You!
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Inside Talk Webinar Series 2013 Institute of Management Accountants. All rights reserved.