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The KPI.org Blog

Tim Johnson Tim Johnson

Tim is a contributing author and Director at Jabian Consulting with over 32 years of experience in management and professional services management consulting. Areas of expertise include strategic planning, portfolio management, performance measurement/management, project management and business process improvement.

Why Strategic Planning Fails - Part 5

By: Tim Johnson

Jun 27, 2018 3647 Views 0 Comments FacebookTwitterLinkedInGoogle Plus

Integrating into how you do business

This is the fifth installment in a blog series that discusses potential pitfalls that could hold you back from being fully successful in your strategic planning efforts.  The first was ensuring that you have full leadership support before you begin the strategic planning initiative, the second was generating needed buy-in across the organization, the third was making sure you build that strategy in a way that it can be executed effectively and the fourth was prioritizing to narrow your focus and bite off what you can chew.  As I started the first blog of the series, most things that I have been successful at in my life have been because I did it the right way and using the right tools.  At the Balanced Scorecard Institute, we have the “Nine-Step Process” to building a strategic management system.  We believe in this approach and we have helped hundreds of clients develop comprehensive strategic plans with a management system that enables them to effectively execute strategy.  I myself have worked with over 80 organizations and have seen very successful strategic planning efforts and also those that were less so!  I wanted to share some observations as to where those that were not as successful went wrong along the way. 

The fifth pitfall is not integrating the strategy into how you do business.  I was once at an organization conducting interviews in preparation of facilitating strategic planning and made a startling observation.  My first day onsite I noticed one of those old metal filing cabinets, and on top was a plant that was kind of wilted and maybe overwatered.  There were leaves fallen all around and the plant was sitting on a thick document to keep it from rusting out that filing cabinet.  For some reason I went over and lifted the plant and found that the organization’s previous strategic plan was the filing cabinet protector!  I took a picture of this phenomenon and then made sure to open up the strategic planning session by displaying that picture.  I told them if this is what we are going to do with the strategy we are about to develop, then let’s just all go home now!  Of course, they got the message, but the point is that if you are going to go through the effort then really make the strategy you develop a part of how you do business.  Budgets should be aligned accordingly (not putting funding against the strategy is obviously a huge impediment!), rewards and incentives should be aligned, training should be built in to support future skill requirements, IT priorities should reflect desire future capability development to name just a few integration points.  To truly make strategy work, it must be integrated across the breadth of the entire organization.

If this pitfall sounds familiar, contact us. Organizations have leveraged BSI’s expertise for many years by bringing us onsite to facilitate strategic actions to improve performance, build strategic management systems, provide on-site technical support, and coach leaders and managers how to execute strategy and create high performance organization.

Over the next few blogs we will explore two additional potential pitfalls I have seen that hold organizations back from realizing the many benefits to developing a strategy and a supporting strategic management system.

Missed Part 4 of the blog series? You can read it here.  Read Part 6 here

David Wilsey David Wilsey

David Wilsey is the Chief Operating Officer with the Balanced Scorecard Institute and co-author of The Institute Way: Simplify Strategic Planning and Management with the Balanced Scorecard.

How to Keep Lettuce Crunchy and Other Strategy Execution Lessons

By: David Wilsey

Nov 22, 2016 8948 Views 0 Comments FacebookTwitterLinkedInGoogle Plus
I learned two lessons in college that I still think about – one in the kitchen and one as a strategy execution consultant. My professor claimed during a cell biology lesson that if you leave iceberg lettuce in water for about 20 minutes its cells expand as they soak up the water. He said that many chefs knew that soaking lettuce in cold water made it seem fresher and crunchier but few understood that it was because the cells were packed to the bursting point.

I went home for the holidays eager to share this new lesson with my mother. This is where I learned the consulting lesson. 

My mother had been taught that in order to keep salad crisp, you should throw a slice of bread into the salad as you are making it and then pull the bread out just before serving. The thinking was that the bread soaked up the excess moisture that would otherwise lead to wilting.

When I shared my professor’s theory with her, I assumed that we would immediately begin saving a nickel per month due to all that saved bread. Instead I was surprised to find that my mother was not about to change the way she made salad because of something her son’s biology professor said, not even after I showed her that the lettuce didn’t wilt.

Strategy execution is about transformation. It is about the systematic implementation of the changes needed to move an organization forward. Unfortunately, as you try to convince people to change the way they do things, many of them react exactly like my mother did.

The change management field is built around several general principles in how to manage people through change: thoroughly communicate how/why/what change is happening, look for the “what’s-in-it-for-me” for employees, communicate using two-way dialog, remove barriers to change, celebrate success, describe a “burning platform”, etc. Strategy execution specialists bring a few more key approaches to these basic doctrines. 

Engage Around the Big Picture. A simple business case (e.g. this initiative will help us improve process efficiency and lower operating costs) often isn’t enough. To embrace change it helps to understand how a particular initiative is aligned with the overall strategy of the organization (e.g. we want to bring low cost healthcare solutions to those suffering from an ailment. If we can improve this process, the solution could be better, more consistent, and cheaper than anyone else in the market). Employees will be far more motivated to change if they believe in the strategy. Strategy professionals typically have the skills needed to articulate and communicate that story.

Make Strategy Everyone’s Job. Strategy is a team sport. Too many strategy professionals think that because they are good at it they should do all of the work themselves. But good strategy execution relies on others to implement. I can tell my mother that this is a better way or (if she were an employee) order her to follow a new process, but as long as she can dismiss the idea as an outsider’s, change will be painful. Good strategy execution professionals understand that their job is to facilitate a consensus around a shared vision rather than simply dream up a vision in a vacuum.

Pick Your Battles. Strategy is about focus and strategic thinkers should be good at prioritizing. The worst thing you can do is overwhelm employees with dozens of major changes at the same time and then when things go badly decide that it’s not worth the trouble. Better is to pick the most important changes and implement them at a pace that the organization can handle. Then think through and communicate the timeline, action steps, and resource changes that will happen as the change is rolled out.

Facilitate a Sense of Inevitability. The weakest client outcomes in my career happened when there was uncertainty about whether or not the senior-most executives were on board. A well-meaning strategic planning director that isn’t visibly supported by the executive team will struggle to move an organization forward even if they do everything else right. On the other hand, if the executive team has thoroughly and repeatedly communicated that this change is going to happen with or without you, the inertia of inevitability will convince people to jump on the bandwagon even if other change management mistakes are made.

Gail Stout Perry Gail Stout Perry

Gail is co-author of The Institute Way. With a career spanning over 30 years of strategic planning and performance management consulting with corporate, nonprofit, and government organizations, she enjoys speaking, training, and writing, sharing her experience with others. She currently is the Chief Strategy Officer and VP Americas for Corporater.

Boots on the Ground: Making a Difference in Kuwait

By Gail Stout Perry

Nov 7, 2013 56066 Views 0 Comments FacebookTwitterLinkedInGoogle Plus

Dateline: CAMP ARIFJAN, Kuwait. First, let me acknowledge that for some inexplicable reason, my career has repeatedly veered into Department of Defense work and this little fact is extremely amusing to those who know that my idea of “roughing it” means staying in less than a four-star hotel and, even worse, having to eat with plastic utensils and use paper napkins.  Nonetheless, I and my high heels are frequently found traipsing across military bases.

I was recently on yet another military base and had the opportunity to visit with a former Institute student – a U.S. Army Colonel.  He had deployed to Kuwait just days after attending our Balanced Scorecard Boot Camp course in 2011.  Upon arrival he found that the Army Contracting Command for which he was to be responsible was faced with tremendous challenges – from dealing with perceptions of corruption in the local supply chain to managing the extreme complexities of contracting for all of the products and services needed by the Army in such a challenging location. 
 
This particular command needed a rapid transformation in order to achieve his vision of “being recognized by our customers as the best contracting office in the U.S. Army.”  -  a bold vision considering the challenges that he and his team were facing.

But before his tour of duty had ended, his contracting command had, indeed, received accolades and acknowledgement as being one of the best Army Contracting Commands anywhere in the world

How did he lead his Command to achieve this vision in such a short time period?  He applied his new knowledge and developed a strategic balanced scorecard.

A few “secrets” to the success of his scorecard implementation should sound familiar to students of The Institute Way:

  • Leadership Engagement: Command & staff meetings utilized statistics on a dashboard tool to provide a snapshot status of where the organization was in accomplishing the strategic plan objectives.
  • Incorporating the “Voice of the Customer”: The team regularly conducted customer satisfaction surveys to obtain feedback in order to sustain or improve the contracting processes within the command.
  • Alignment: The command’s managers embraced the strategic scorecard and used it for employee counseling and to track personnel contributions.

Army Public Affairs subsequently featured the command’s accomplishments – to learn more:  http://www.army.mil/article/71433

To learn more about how to achieve transformational results for your organization or to read more stories of break-through success, we invite you to explore The Institute Way:  Simplify Strategic Planning & Management with the Balanced Scorecard.


Gail Stout Perry Gail Stout Perry

Gail is co-author of The Institute Way. With a career spanning over 30 years of strategic planning and performance management consulting with corporate, nonprofit, and government organizations, she enjoys speaking, training, and writing, sharing her experience with others. She currently is the Chief Strategy Officer and VP Americas for Corporater.

PS: Our Balanced Scorecard Saved The U.S. Army $26 Million

By Gail Stout Perry

Sep 30, 2013 13484 Views 0 Comments FacebookTwitterLinkedInGoogle Plus

I was working with an Army command at Ft. Sam Houston this week and had invited a special guest - Scott Hencshel - to address the group regarding the organizational challenges of implementing a balanced scorecard system within Army.  (Scott’s command is also stationed at Ft. Sam Houston -  Army Medical Department Center & School (AMEDDC&S), an Institute “Award for Excellence” winner.)  

As Scott was wrapping up, someone asked a final question, “What was the biggest benefit that AMEDDC&S realized after implementing its strategic balanced scorecard?”  Scott talked about alignment, focus, and data-driven decision making.  Then as he was making his way to the door he turned back and said, “Oh yeah, we immediately saved the Army $26 million.” 

Say what?!?!

AMEDDC&S is where the U.S. Army educates and trains all of its medical personnel – over 27,000 soldiers. One of the strategic measures on AMEDD’s balanced scorecard is “attrition rates.”  Before the scorecard was implemented, it was commonly believed that discipline issues were the primary reason for soldiers not completing their training programs – because resolution of these discipline issues were what consumed everyone’s time.  Once the scorecard was implemented, attrition was measured more thoroughly and two discoveries were made:

  1. Attrition was MUCH higher than originally thought.  The traditional calculation was flawed and attrition was actually over 34%.  That means 1/3 of those entering the medical training programs would “drop-out” thereby wasting the Army’s investment in their training.
  2. Academic performance, not discipline, was discovered to be the primary reason for attrition.

So as the scorecard team delved further, they looked for root causes of poor academic performance resulting in attrition incidents.  They discovered that a major cause was a lack of communication between the Brigade leadership and the AMEDDC&S faculty.  Students in the medical training program were being assigned Brigade duties that prevented them from having proper opportunities to study and prepare for classes and exams.   A prime example was students falling asleep during final exams due to having served Brigade guard duty the night before. 

Once the communications issues were corrected, overall attrition rapidly dropped from 34% to below 20%...thereby saving the U.S. Army $26 million.

PS:  Did I mention that I have the best job in the world?!?  It is extremely rewarding to hear about results like this.

For more examples of break-through performance, we invite you to read “The Institute Way: Simply Strategic Planning & Management with the Balanced Scorecard.