Bridging the Gap between

Business Strategy and Project Execution

Tom Witty PMP, SMP

Professional Development Days – September 19, 2016
 Take Aways

Any good presenter wants you to leave a session with…

3 Things to Remember

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 Take Aways
So today, we’ll provide you these three takeaways:

Strategy Projects

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 ASP BOK and Certification

• Association for Strategic Planning

• ASP Book of Knowledge (BOK)
• Certifications
• Strategic Planning Associate (SPA)
• Strategic Planning Professional (SPP)
• Strategic Management Professional (SMP)

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 My Manager Told Me
to Change this Sign
So I Did

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 Strategy Management and Project Management
STRATEGY MANAGEMENT
The organization’s process of continuous planning, monitoring,
analysis and assessment of all that is necessary for an organization to
meet it’s goals and objectives.
From Association for Strategic Planning Book of Knowledge

PROJECT MANAGEMENT
The application of knowledge, skills, tools, and techniques to project
activities to meet the project requirements.
From PMI Lexicon of Project Management Terms
www.pmi.org

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 Why They Fail STRATEGY MANAGEMENT
• Ineffective Pre-Planning
• Passive Top Management Commitment
• Too few planning and change resources
• Mission, Vision and Value statements that lack substance
• Conducting business as usual after developing the plan
• Seeing the Document as an end in itself
• Not having a Scorecard
• Failure to integrate planning at all levels
• Keeping Planning separate from Day to Day management
• No yearly (quarterly) review and update

“How to Avoid the Top Strategic Management Failures” Stephen Haines

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 Why They Fail PROJECT MANAGEMENT
• Senior Management Meddling
• Unrealistic Schedules
• Failure to Understand the Impact of Changes
• Miscommunication of Scope of Work
• No Risk Management
• No Historical Data
• No Project Manager
• No Change Control
• Lack of Involvement
• Ineffective Communication

“Top Reasons Projects Fail”

Rita Mulcahy – PMI Conference Paper 1999

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 Why They Fail

• •
•
• REASONS WHY •
• REASONS WHY
• STRATEGIES • PROJECTS
FAIL FAILS
• •
• •
• •

The Common
Denominators

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 Strategy and Project Failure

Lack of Awareness
of Change;
Lack of The Environment
Ineffective
Involvement or
Planning and
Integration of the
Scheduling
People Impacted

The Common
Lack of Lack of Data,
Management Scorecard or

Denominators
Participation or Progress
Involvement Monitoring

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 Strategy and Culture

“Culture Eats
Strategy for
Breakfast”

― Peter Drucker

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 Examples where Culture Eats Strategy for Breakfast…

(here are 4 of them)

Nordstrom Rules: #1 Use best

judgment in all situations.
There will be no other rules.

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 Since Culture Eats Strategy for Breakfast… Lunch and Dinner Too!

Ref: Torbin Rick

www.torbinrick.eu

You better have your Strategy aligned with your Culture.

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 Take Away Question #1:

How well is your organization’s culture

aligned with your strategic initiatives ?

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 Strategy Management – It’s a System

Lead - How do we start?

Think – Where are we now?

Plan – Where do we want to be?

Act – How do we get there?

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 Strategy Management – It’s a System

Process: a series of actions or steps taken in order to achieve a particular end.

System: a set of connected things or parts forming a complex whole.

How do we Where are Where do we How do we get

start? we? want to be? there?

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 “The best way to
predict the future is
to create it.”

― Abraham Lincoln

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 LEAD Process
• Perpetual Leadership

• Assessing the Situation

• Organizing the Strategic Planning and Management Initiatives

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 LEAD Models and Tools
• Strategy, Project and Portfolio Management Capabilities
• Gaps in Capabilities
• Key Roles and Responsibilities
• Strategic Management Model Selection
• Documentation of the Process
• Communications and Change Management Leadership
• Readiness Assessment Results and Implications

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 Not
Effectively Not
Effectively
in Place in Place
Attributes and Criteria Necessary to Achieve Strategic Initiatives Used
Executive / Management Levels

LEAD Example:
President with clear vision & commitment
V.P. /Management level commitment to carry out the vision
V.P. /Management level ability to carry out the vision

Readiness Assessment Results & Implications

Succession plan in place
Performance Management Culture – Expected, reinforced and rewarded

Associates
Associate level commitment to carry out the vision
Associate level ability to carry out the vision

Some Sample Assessment Areas:

Communication
Established pipeline to deliver info from V.P.’s to the front line associates

• Executive Management
Established system for gathering ideas/feedback at all levels
Established communication system between all business units
Adequate platforms for electronic communication are in place

• Associates and Organization

Management recognizes the company intranet as a key vehicle for
communicating company and department information

Hiring/Retention

• Communication
Reward and Recognition: Appropriate Associate Reward and recognition
programs are in place

• Hiring / Retention
Turnover is at or under the established acceptable level
Actively pursues top college graduates for employment
Reward and Recognition: Management Reward and recognition programs

• Education
are targeted and used effectively to achieve business initiatives
Hiring: Processes are efficient to handle the demand
Hiring: Internal candidate hiring is strongly encouraged as a means of

• Project Management
retaining good people

Education

• Technology
Programs in place to recognize and develop future leaders
Training is used as a means of changing behavior and producing results
Sufficiently staffed and qualified trainers

• Performance Measurement
Department trainers are well trained and make training a priority
Adequate Training equipment and facilities
Management and Leadership training is available that meets the strategic

• Process Management
needs of the organization

Project Management

• Previous Strategy Efforts

System of managing projects is well communicated
Project progress is communicated effectively and in a timely manner
Process for Post project assessment, and communication of lessons
learned

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 LEAD Example:
Readiness Assessment Results & Implications
Not
Effectively Not
Effectively
in Place in Place
Attributes and Criteria Necessary to Achieve Strategic Initiatives Used
Executive / Management Levels
President with clear vision & commitment
V.P. /Management level commitment to carry out the vision
V.P. /Management level ability to carry out the vision
Succession plan in place
Performance Management Culture – Expected, reinforced and rewarded

Associates
Associate level commitment to carry out the vision
Associate level ability to carry out the vision

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 Take Away Question #2:

Is your organization and leadership ready to take

your strategy to the next level ?

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 “The essence of
strategy is
choosing what
not to do.”

― Michael Porter

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 THINK Process
• Metacognition – Thinking about Thinking: How we Think
• External Future Assessment
• Internal Assessment

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 THINK Models and Tools
• Thinking Facilitation; Brainstorming, Delphi Method, Role Playing
• Assessing Customers and Stakeholders; Needs, Segments, Expectations
• Business Modeling
• Environmental Scanning; PESTEL, SWOT Analysis
• Scenario Planning
• Internal Scan to Understand Current State, Trends and Core Competencies

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 THINK Example Customer / Stakeholder Infrastructure
IMO's / Agents
Environmental Scanning Leadership
BCP / HA / DR
BD Tools
Strategy Marketing Cloud Computing
Competitive Intelligence Perceptions of Organization Data
Goals & Objectives Product Development Mobile Computing
Markets Regulatory OCR
Prioritization Sales Security
Shared Services Social Media
Strategy People Legacy Systems
Associate Development Oracle Insurance
Process Collaboration Policy Admin Systems
Automation Hiring & On-Boarding Software - Applications
BPM Mobile Workforce Software – Maintenance
Customer Service Roles Software - Services
Software Development Skills and Knowledge
Reporting, Metrics, Estimating SME's
Requirements Training
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 THINK Example
Environmental Scanning – Business Process Management (BPM)

 Measurement
 Implementation Technologies
Strategic
Implications
 Customer Process (and BPM)
 Innovation
 Digitizing Process Management

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 THINK Example
Environmental Scanning – Business Process Management (BPM)

Strategic Implications
• We’ve talked about BPM for years.
• Our Process Improvement Initiatives are marginal at best.
• We don’t have good process metrics, so we’re not pricing our products
and services adequately.
• Our business areas operate as silo’s.
WE MUST RECOGNIZE BPM AS CRITICAL
TO THE SUCCESSFUL EXECUTION OF OUR DAY TO DAY OPERATIONS!

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 Take Away Question #3:

Does your organization jump to solutions without

evaluating the “environment”, options and scenarios ?

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 “In preparing for battle
I have always found
that plans are useless,
but planning is
indispensable.”

― Dwight D. Eisenhower

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 PLAN Elements
• Strategic Elements
• Key Organizational Drivers of Success
• Operational Planning

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 PLAN Models and Tools
• Mission, Vision, Core Values, Policies, Goals, Objectives
• Key Organizational Drivers of Success
• Scenarios and Strategies
• Program Selection
• High Level Strategic Budgets
• Annual Operating Plans and Resource Requirements
• Visual Representation (e.g. Strategy Maps)

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 PLAN Example
Strategy Map Financial
Lagging Indicators
• Financial Customers / Stakeholders
• Customer Perspectives
Process
Leading Indicators
• Process Infrastructure
• Infrastructure
• People People

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 PLAN Example Maximize Value of Minimize Risk Related

Financial
Strategy Map
Grow Top Line Revenue Effectively Reduce Expenses
New Business Consequences

Owners Customers Sales Force

Lagging Indicators

Stakeholders
Customers /
Achieve Long Term Growth Provide Value Deliver Service

• Financial
Maintain Reputation Be Responsive Pay Quality Commissions
Increase Company Value Offer Convenience Provide Competitive Products

• Customer Process

Increase Sales & New Implement Effective

Increase Scalability Improve Logistics
Business Process Efficiency

Leading Indicators
Service Model

• Process
Infrastructure

Implement Business Retire/Replace Aging Improve Data and Increase Self-Service

Continuity 7/24/365 Equipment and Software Information Security Capabilities

• Infrastructure
• People Institute Key Employee Improve Employee Achieve Strategically Aligned Improve Performance
People

Succession Planning On-Boarding Workforce Management

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 PLAN Example
Strategy Map
Maximize Value of Minimize Risk Related

Financial
Grow Top Line Revenue Effectively Reduce Expenses
New Business Consequences

Owners Customers Sales Force

Lagging Indicator

Stakeholders
Customers /
Achieve Long Term Growth Provide Value Deliver Service
Maintain Reputation Be Responsive Pay Quality Commissions
Increase Company Value Offer Convenience Provide Competitive Products

• Financial

Process
Increase Sales & New Implement Effective
Increase Scalability Improve Logistics
Business Process Efficiency Service Model

Infrastructure
Implement Business Retire/Replace Aging Improve Data and Increase Self-Service
Continuity 7/24/365 Equipment and Software Information Security Capabilities

Institute Key Employee Improve Employee Achieve Strategically Aligned Improve Performance

People
Succession Planning On-Boarding Workforce Management

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 PLAN Example
Strategy Map
Maximize Value of Minimize Risk Related

Financial
Grow Top Line Revenue Effectively Reduce Expenses
New Business Consequences

Owners Customers Sales Force

Lagging Indicator

Stakeholders
Customers /
Achieve Long Term Growth Provide Value Deliver Service
Maintain Reputation Be Responsive Pay Quality Commissions
Increase Company Value Offer Convenience Provide Competitive Products

• Customer / Stakeholder

Process
Increase Sales & New Implement Effective
Increase Scalability Improve Logistics
Business Process Efficiency Service Model

Infrastructure
Implement Business Retire/Replace Aging Improve Data and Increase Self-Service
Continuity 7/24/365 Equipment and Software Information Security Capabilities

Institute Key Employee Improve Employee Achieve Strategically Aligned Improve Performance

People
Succession Planning On-Boarding Workforce Management

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 PLAN Example
Strategy Map
Maximize Value of Minimize Risk Related

Financial
Grow Top Line Revenue Effectively Reduce Expenses
New Business Consequences

Owners Customers Sales Force

Leading Indicator

Stakeholders
Customers /
Achieve Long Term Growth Provide Value Deliver Service
Maintain Reputation Be Responsive Pay Quality Commissions
Increase Company Value Offer Convenience Provide Competitive Products

• Process

Process
Increase Sales & New Implement Effective
Increase Scalability Improve Logistics
Business Process Efficiency Service Model

Infrastructure
Implement Business Retire/Replace Aging Improve Data and Increase Self-Service
Continuity 7/24/365 Equipment and Software Information Security Capabilities

Institute Key Employee Improve Employee Achieve Strategically Aligned Improve Performance

People
Succession Planning On-Boarding Workforce Management

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 PLAN Example
Strategy Map
Maximize Value of Minimize Risk Related

Financial
Grow Top Line Revenue Effectively Reduce Expenses
New Business Consequences

Owners Customers Sales Force

Leading Indicator

Stakeholders
Customers /
Achieve Long Term Growth Provide Value Deliver Service
Maintain Reputation Be Responsive Pay Quality Commissions
Increase Company Value Offer Convenience Provide Competitive Products

• Process

Process
Increase Sales & New Implement Effective
Increase Scalability Improve Logistics
Business Process Efficiency Service Model

Infrastructure
Implement Business Retire/Replace Aging Improve Data and Increase Self-Service
Continuity 7/24/365 Equipment and Software Information Security Capabilities

Institute Key Employee Improve Employee Achieve Strategically Aligned Improve Performance

People
Succession Planning On-Boarding Workforce Management

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 PLAN Example
Strategy Map
Maximize Value of Minimize Risk Related

Financial
Grow Top Line Revenue Effectively Reduce Expenses
New Business Consequences

Owners Customers Sales Force

Leading Indicator

Stakeholders
Customers /
Achieve Long Term Growth Provide Value Deliver Service
Maintain Reputation Be Responsive Pay Quality Commissions
Increase Company Value Offer Convenience Provide Competitive Products

• Infrastructure

Process
Increase Sales & New Implement Effective
Increase Scalability Improve Logistics
Business Process Efficiency Service Model

Infrastructure
Implement Business Retire/Replace Aging Improve Data and Increase Self-Service
Continuity 7/24/365 Equipment and Software Information Security Capabilities

Institute Key Employee Improve Employee Achieve Strategically Aligned Improve Performance

People
Succession Planning On-Boarding Workforce Management

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 PLAN Example
Strategy Map
Maximize Value of Minimize Risk Related

Financial
Grow Top Line Revenue Effectively Reduce Expenses
New Business Consequences

Owners Customers Sales Force

Leading Indicator

Stakeholders
Customers /
Achieve Long Term Growth Provide Value Deliver Service
Maintain Reputation Be Responsive Pay Quality Commissions
Increase Company Value Offer Convenience Provide Competitive Products

• People

Process
Increase Sales & New Implement Effective
Increase Scalability Improve Logistics
Business Process Efficiency Service Model

Infrastructure
Implement Business Retire/Replace Aging Improve Data and Increase Self-Service
Continuity 7/24/365 Equipment and Software Information Security Capabilities

Institute Key Employee Improve Employee Achieve Strategically Aligned Improve Performance

People
Succession Planning On-Boarding Workforce Management

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 Take Away Question #4:

Does your organization distinguish between lagging

and leading indicators (cause and effect) ?

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 “Organizations don’t
execute unless the right
people, individually and
collectively, focus on the
right details at the right
time.”

― Ram Charan

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 ACT Elements
• Strategy Execution

• Performance Analysis and Management

• Evaluation

• Alignment and Accountability

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 ACT Models and Tools
• Strategy Communication
• Risk Management
• Change Management
• Portfolio and Project Management
• Process Improvement and Learning
• Cascading the Strategy and Metrics throughout the Organization
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 ACT Example
Cascading Strategy

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 ACT Example
Cascading Strategy

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 ACT Example
Cascading Metrics

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 The Organization’s
Business Strategy

ACT Example
Strategic Results

Cascading Metrics
Customer Service

• Organizational Strategic Target Results

Roadmap

Roadmap Targets

• Department / Area Roadmap Targets

• Program / Project Goals Strategic

• Strategic Portfolio Cumulative Goals

Program/
Project

Project Goals

Strategic Results tied to Project Goals Strategic Project

Portfolio

Strategic Results tied to

Project Goals

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 Take Away Question #5:

Does your organization have cascading objectives

and metrics from the top the bottom ?

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 Strategy and Project Failures:
So What Were the Common Denominators again?

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 Strategy Management

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 Strategy Management – So What Does It Look Like?

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 The Project Management Corollary

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 Closing the Gap

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 A Strategic
Minimally
Viable
Strategies

Project
Engaged Strategy
Leadership Management
Organization

Management
System
Strategy Strategic
Management Processes and
Culture Strategic Models

Project
Project
Management Project
Management Management
Culture Processes and
Models

Engaged Project
Sponsorship & Management
Stakeholders Organization
Agile, Iterative
Projects

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 To Summarize
The Gap between Business Strategy and Project Management can be closed
when these things are in place for both practices…

• The Right Culture

• The Right Engagement
• The Right Agility and Focus
• The Right Organization
• And the Right Processes and Models

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 My Manager Told Me to
Change this Sign…
and I Know Why She Did

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 Thank You.
Tom Witty, PMP, SMP
tom.witty@americo.com

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 References

• “Association for Strategic Planning Book of Knowledge, ASPBOK 2.0, 2nd edition”
• “PMI Lexicon of Project Management Terms”, www.pmi.org
• “How to Avoid the Top Strategic Management Failures” Stephen Haines
• “Top Reasons Projects Fail”, Rita Mulcahy – PMI Conference Paper 1999
• “12 Reasons Culture Eats Strategy for Lunch”, Joe Tye
• “Execution – The Discipline of Getting Things Done” by Larry Bossidy and Ram Charan

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