Creating and Executing

Winning Strategies -
A 9-Step Framework for Success
June 2023

The PMI Authorized Training Partner seal is a mark of the Project Management Institute, Inc.
 A Few Notes...

• Recording
– We are recording this webinar and will email you the link to view the replay within 48 hours.

• Handout of the Webinar

– We will provide a PDF copy of this webinar when we email the link for the replay.

• Questions during the webinar

– Please use the Q&A box that is located on the bottom menu and type your question in the pop-
up box. Do not use the Chat box for questions.
– We will answer as many questions as time permits at the end of the webinar.

©1997-2023 Balanced Scorecard Institute.


Howard Rohm, SMP, BSMP, KPI-P
Co-founder & President
Balanced Scorecard Institute
• 2022 Hall of Fame winner, International Association
of Strategy Professionals (IASP)
• Former Board member, Association of Strategic
Planning (ASP)
• ASP Pioneer and Co-author, ASP Body of Knowledge
• Executive Director, U.S. Foundation for Performance
Measurement
• Consultant, Booz Allen & Hamilton
• Executive Director, Advanced Nuclear R&D Program,
U.S. Department of Energy
• Co-author, The Institute Way
• Creator, Nine Steps to Success™ Balanced Scorecard
framework
• Founder and President, the Strategy Management
Group, Inc.
Your Presenters
Dwaine Forbes, BSMP, KPI-P
Founder & CEO
Return on Investment
Consulting (ROIC) Limited
• Professional Experience working across
multiple industries such as tourism, real
waste, bauxite and mining, and petroleum
• CEO of ROIC Institute Limited
• Serve as Consultant to firms such as FHI
360, Tetra Tech DPK, Jamaica Stock
Exchange, National Housing Trust, and
University of the West Indies, Mona
• Founder & CEO, Return on Investment
Consulting
Claudette Gordon-McFarlane
HR and Strategy Consultant
Return on Investment
Consulting (ROIC) Limited
• Solid management experience with more than
twenty (20) years at an executive level
• Experienced working in Jamaica, Belize, Guyana
and Dominica
• Over decade working with Balanced Scorecard
System
• BS in Management studies and a Masters in
Counselling & Consulting Psychology
• HR & Strategy Consultant, Return on
Investment Consulting
©1997-2023 Balanced Scorecard Institute.
 Select Clients

Russia

Brazil
Marshalls Energy
Company

©1997-2023 Balanced Scorecard Institute.

 Topics

Traditional Balanced Nine Steps to Tips, Tools, Q&A

Strategic Strategic Success™ Techniques
and
Planning Planning Examples

©1997-2023 Balanced Scorecard Institute.

Traditional Strategic Planning

The PMI Authorized Training Partner seal is a mark of the Project Management Institute, Inc.
 Common Strategy Models and Tools
Threat
of
New
Entry

Red Ocean Blue Ocean Objective

Supplier Competitive Buyer

Power Rivalry Power
Key Result - %

Key Result - %
Threat of
Substitution
Key Result - %

Blue Ocean OKR’s Strategy Profile

Kim and Mauborgne Porter’s Five Forces Kim and Mauborgne
Michael Porter Andrew Grove

Organization objectives
reviewed

MBO for the next Employee objectives set

operating period begins

Achievers rewarded Progress monitored

Balanced Scorecard Performance evaluated

Kaplan & Norton
Hoshin Kanri Traditional
Balanced Scorecard Institute
MBO’s Yoji Akao Strategic
Peter Drucker
allaboutlean.com Planning
Sources: Blue Ocean Strategy, W. Chan Kim and Renée Mauborgne, Michael Porter, OKRs, the Balanced Scorecard Institute, MBOs, allaboutlean.com ©1997-2023 Balanced Scorecard Institute.
 Traditional Strategic Planning Process

Strategic
Altitude
30,000 ft.
Write Vision and Mission statements

Typical Issues:
Select Strategic Goals
• Inconsistent use of words
• Plan lacks a value creation story
25,000 ft. • Strategy elements don’t connect
• Focus on outputs and activities, not outcomes
• Measure what’s easy…not what matters
• A “rush to judgement” to get to measures and projects

15,000 ft.

• Choose Performance Measures and Targets

Choose Projects and • Define Activities
Ground Programs • Set Budgets
Level
©1997-2023 Balanced Scorecard Institute.
 The Essence of Strategy


Many organizations get this wrong—they define their “strategy” as the
collection of projects (initiatives) currently under way. While what we are
working on today is part of a strategy, it is not the strategy.

Strategy should tell a story… organization strategy is a path and a plan based on
selected choices to move from its current state to some future desirable state. The
strategy ties organizational value creation to resources.

©1997-2023 Balanced Scorecard Institute.

Balanced Strategic Planning

The PMI Authorized Training Partner seal is a mark of the Project Management Institute, Inc.
 Strategic Planning, Alignment and Implementation Phases –
Balanced and Disciplined

Strategic Strategic Strategy

Strategic
Discovery
Story Telling Engaging Implementing
Thinking
Planning Alignment Execution
• Understand Environment • Strategy = the Path • Cascade • Leadership and Governance
• Scenarios and the Plan Organization-wide
Strategy to Align: • Operationalized Strategy
• Risks • Key Elements: Vision, • Project/Portfolio
• Customer/Stakeholder Mission, Values, ➢Business Units
Management
Needs Strategy, K PIs, ➢Resource
Prioritized Initiatives Allocation • Performance Analysis and
Data Driven Decision-Making
• Balanced Strategic ➢Workforce
Plan to Communicate • Continuous Improvement to
Strategy Excellence
• Change Management • Change Management
Plan
©1997-2023 Balanced Scorecard Institute.
 Balanced Strategy – Words Matter

Mission
Vision
Stakeholders Customer Value
Core Values
Strategic Goals ( Results)
Strategic Themes (Thrusts)
Scenarios
Strategic Objectives
Strategic Initiatives
KPIs and Targets

Strategy Development ©1997-2023 Balanced Scorecard Institute.

Important Elements of Balanced Strategic Planning

Influencing
Stakeholder/
Customer/
Change Employee
Management Input

Project Environmental
Prioritization Assessment
Communications
Planning
Balanced
Strategic Plan

Societal
Goals Enterprise
KPIs
Goals

Strategic
RISKS Themes

©1997-2023 Balanced Scorecard Institute.

Nine Steps to Success™

The PMI Authorized Training Partner seal is a mark of the Project Management Institute, Inc.
 Building & Implementing a Balanced Scorecard:
Nine Steps To Success™
PROGRAM LAUNCH

Plan and Scorecard

System Implementation
Strategic Plan and
Scorecard Development

BALANCED STRATEGIC PLAN

& ROLLOUT

©1997-2023 Balanced Scorecard Institute.

 What Issues Does a Balanced Scorecard Address?

• Strengthen existing strategy and establish a more strategy-

focused organization and management system

• Involve and align Senior Leadership team to strategic direction,

and communicate strategy throughout the organization

• Achieve business unit and employee alignment and buy-in to

strategy, and build accountability for results

• Measure what matters, and incorporate performance results

and information into decision making Focusing on Strategy Turns
Vision Into Action
• Prioritize projects and initiatives, connected to strategic objectives

• Build employee buy-in to vision, mission and strategic direction

©1997-2023 Balanced Scorecard Institute.

 Nine Steps To Success™
Strategic Planning & Management System Framework
Program Launch Assessment Strategy
Executive Conduct Create or re-validate Develop high-
organizational strategic elements level business
sponsorship,
resourcing and
program planning
1 assessment and
SWOT; gather
(Vision, Mission,
Goals, Core Values,
2 strategies from
Step 1 strategic
stakeholder input Customer Values) elements

Objectives Strategy Map Measures & Targets

Develop strategic Develop strategic
3 objectives for business
strategies developed in
Step 2
4 Create strategy map for
enterprise strategy 5 performance measures for
strategic objectives on the
enterprise strategy map

Strategic Initiatives Strategic Plan & System Rollout

Identify & prioritize Prepare initiative Communicate Inform budget
critical projects plans (Scope, plans and Begin Strategy
6 (initiatives) to meet
strategy goals
Schedule,
Resources, Risk)
the Balanced
Strategic Plan strategic
operating plans
Implementation

Performance Alignment Evaluation

Analysis
Align business and
7 Collect and report visual
performance
information to improve 8 support units to
organization-wide
Align
teams and
individuals
9 Revise strategy
based on actual
decision making strategy performance
to strategy
 ©1997-2023 Balanced Scorecard Institute.
 Practical Strategy Development Process – Balanced, Disciplined,
and Based on a Strategic Thinking and Discovery Process

• SWOT / Enablers &

Challenges • Customer/ • Customer
• Mission Stakeholder Value
• Environmental Proposition
• Vision Needs
Assessment
• Core Values • Foresight/Scenarios

Discovery

•Perspectives
•Strategic Themes &
Results (Goals)

Strategic Objectives Strategy Map

KPIs Strategic Initiatives

©1997-2023 Balanced Scorecard Institute.
 The Logic Of Integrated Strategic Planning and
Management

Strategic Customer/Stakeholder/Market Needs

Altitude
30,000 ft. Mission
Purpose: what we do

Vision
25,000 ft. Picture of the future

Perspectives
Different view of organizational performance

15,000 ft. Strategic Themes and Results

Main focus areas (pillars of excellence) driving key results

Strategic Objectives and Strategy Maps

Key strategy components connected to tell a cause-and-effect value creation story

Performance Measures and Targets

Captures whether an organization is performing at the desired level or not

Ground
Level Strategic Initiatives
Projects and action plans that drive results

 ©1997-2023 Balanced Scorecard Institute.

 Strategic KPIs and Initiatives are Derived From Strategic
Objectives

Performance Measures (KPIs): Mission

• Provide objective evidence of progress on
achieving Strategic Objective and other results Vision
• Measure what is intended to be measured to help
Strategy
inform better decision making
• Offer a comparison that gauges the degree of
performance change over time
Strategic Objective
Strategic Initiatives (SI): SI A
Intended KPI 1
Result 1 KPI 2…
• Strategic projects selected to close a performance Strategic
Objective
gap in a Strategic Objective Description
Intended KPI 1
• A portfolio of strategic projects supports the SI B Result 2 … KPI 2…
strategy, and the vision and mission

©1997-2023 Balanced Scorecard Institute.

Example: Translate Strategy Into Action

Desired End
Outcome

Objective Intended Performance FY 2023 Strategic

Description Results Measures Targets Initiatives
This objective • Our service • Average new- • Less than or • Customer facing
deals with excellence installs equal to 14 process bottleneck
improving reputation is installation time business days improvement
processes for characterized program
efficient energy by timely • Average repair • Less than or
generation, installations, time equal to 2 • Advanced repair
utility service prompt days training for field staff
• Average time to
reliability, and repairs,
customer-facing efficient respond to a • Less than or • Expanded Q&A
services. We can customer customer equal to 4 database for call
and should make service, and question hours center
improvements in utility service • Average outage
these areas. reliability in • Less than or
duration equal to 82
the top 5% of
our industry. minutes

©1997-2023 Balanced Scorecard Institute.

 Alignment Cascades Organization-wide Strategy to
Units and Employees

Strategy Map/ Objectives Measures Targets Initiatives

Customer/ Tier 2
Stakeholder Dept., Business Units, etc.:
Financial • Department Business Purpose
• Department Programs &
Process Products & Projects
Organizational
Capacity

Strategy Map/ Objectives Measures Targets Initiatives

Tier 1 Customer/
Organization-Wide: Stakeholder
• Mission, Vision, Core Values Financial
etc. Process
• Strategic Themes and Goals
Organizational
Tier 3
Capacity
Teams (Job Descriptions) and individuals:
• Objectives, Measures and Initiatives

Personal Objectives Measures Targets Initiatives

©1997-2023 Balanced Scorecard Institute.

Tips, Tools, Techniques and Examples

The PMI Authorized Training Partner seal is a mark of the Project Management Institute, Inc.
 Tip: Start With the End in Mind

Vision
Mission Frame the picture of the organization’s successful future
Values

Strategy = The high-level path and plan for achieving a

successful future (Strategic Themes and Results, or Goals)
STRATEGY

Objectives, and programs, projects and

Business/Support services to implement the strategy
Unit Operations (Strategic Operating Plans)

Individuals Personal goals show how I fit

and Teams in and how what I do matters

©1997-2023 Balanced Scorecard Institute.

 Example: Inventory Existing Strategic Components

Revision
System Component Reviewed Acceptable Suggested Comments
Mission    Mission statement is old; revisit
Vision    Developed & validated last year
Core Values    Finished; revalidated existing
Overarching Strategic Result tied to Vision    Not developed yet
Communications & Change Management Plan    Not developed yet
Enablers / Pains    Have SWOT from a few years ago
Customer Needs and Value Proposition    Started; more discussion req’d
Strategic Themes and Results    Not developed yet
Perspectives    Done
Strategic Objectives    Strategic altitude is wrong
Organization Strategy Map    Not developed yet
Performance Measures & Targets    First pass done; too operational
Strategic Initiatives    First pass done
Balanced Scorecard System Graphic    Not developed yet
Strategic Plan & Story    Partially done
Automation Plan    Not developed yet
Cascading Plan    Not developed yet
Evaluation Plan    Not developed yet
©1997-2023 Balanced Scorecard Institute.
 Tool: A Strategy Profile Helps Visualize Important
Strategic Elements

Use a Strategy Profile to:

• Develop your organization’s
competitive business strategy
• Evaluate how well you
implemented your strategy
compared to competitors
• Identify the most strategic areas
to focus on in the future

Source: Adapted from Charting Your Company’s Future, W. Chan Kim and Renée Mauborgne, HBR, June 2002. ©1997-2023 Balanced Scorecard Institute.
 Example: Goal Setting

Organizational goals serve four basic functions:*

• Provide guidance and direction • Motivate and inspire employees

• Facilitate planning • Evaluate and control performance

Strategic Goals Employee Goals Operational Goals Social Goals Project Goals
Deal with Deal with employee Deal with efficiency, Deal with equity, Deal with deliverables,
organization-wide satisfaction, growth, quality, timeliness of societal, resources, schedules,
desired results and and contribution product/service environmental, and scope, and risk
accomplishments creation and delivery sustainability

Source: “The Management of Organizations”, Barney and Ricky Griffin ©1997-2023 Balanced Scorecard Institute.
 Example: “Keep the Trains Running on Time”

Strategic Goals Employee Goals Operational Goals Social Goals Project Goals
The right trains, going to Satisfied employees Cost control, high- Social equity, Schedules and resources
the right locations to with the right utilization, safety community to buy new equipment,
satisfy customers and knowledge, abilities, record, on-time trains involvement, maintain tracks,
create profits. and skills, in the right environmental refurbish stations, install
positions footprint new software

©1997-2023 Balanced Scorecard Institute.

 Tool: “Fishbone” Diagram Identifies the Drivers of Results

Improve Improve Improve Improve Improve

Resourcing Production Customer Product Customer
Interaction Delivery Satisfaction
• Funding • Quality • Accurate • On-time • Recommendations
• Workforce • Efficiency information delivery • Loyalty
• Infrastructure • Timeliness • Customer • Correct order • Satisfaction
• Output experience

Desired Result:
High quality
Strategy: Operational Excellence products are
delivered on time

• Production • % waste or • % accurate • % delivered on • % new customers

costs reworked • % satisfied with time from
• # of FTE’s • # Produced / # service • % delivered recommendations
• Other units of input correctly • % repeat
production • % produced on customers
time • Net Promoter
• Production Score
quantities

©1997-2023 Balanced Scorecard Institute.

 Communications Planning: Approach Heirarchy

• Communicating strategic initiative information

is key to the success of the strategic plan
• Two-way communication is better than one
direction communication
• Communications must be crisp, clear, direct and
in a tone that is positive and encouraging
• Just as you would in any professional setting,
know your audience
• Know how they like to be communicated with
(visual, audible, graphically, and how often)
• Everyone learns differently, take this into
account when communicating

©1997-2023 Balanced Scorecard Institute.

 Example: Private Sector Balanced Strategic Plan
Vision: Be a world-revolutionizing provider of energy products
Mission: Efficiently deliver the highest standard of service providing energy products and expertise to our customers
Strategic
Themes: International Growth Operational Excellence Energy Leadership
Increase in size and shareholder value through Process and services are executed in a timely, Worldwide recognition for thought leadership and
Strategic
acquisitions, organic growth and asset accurate, value-added and cost-effective manner energy services expertise.
Results:
optimization. that exceeds stakeholder expectations.

Strategic Objectives and Strategy Map Measures Targets Initiatives

Financial Increase • Profit • 15% per year
Reduce Increase Revenue in • Implemented new financial
• Operating costs • 7% per year
Costs Profits Targeted system and benchmark
Markets • Revenue in targeted markets • 5% per year results

Customer Improve Increase • Customer experience score • 5% next period • Marketing campaign in new
Customized Awareness • % of customers with CK charter • 87% next period target markets
Customer as Industry
Experience Leader • Awareness and leadership score • 98% next period • Develop customer
• References in media • 15 new references knowledge (CK) charter

Internal • Efficiency index • 15% per year • Est. acquisition integration

Process • EBIT from aquisitions • $15M this year team
Improve Increase Improve
Increase Consulting Product/ • Est. Business Process
Internal • Time to post • 5 business days
Acquisitions Knowledge Service Reengineering (BPR) team
Efficiency Sharing Offerings • % of transactions in CRM • 65% next period • Formalize new product
development cycle
• New products/SVCs as % of sales • 14% this year • Formalize CRM qualification
process
Organizational • % empl. development plans in • CRM system training
• 70% this year
Capacity place • Redesign employee
Increase Optimize Optimize Improve certification process
Employee Human Thought • % ststems automated • 72% this year
Expertise Technology Capital Leadership • Est. thought leadership
• Operating cost/FTE • $3,350/person
committee
• Articles published • 125 this year • Formalize research expertise
strategy
CORE VALUES:  Integrity  Commitment to Excellence  Customer Focused  Diversity of Knowledge  Honesty  Teamwork/Collaboration  Entrepreneurial  Thirst for Knowledge ©1997-2023 Balanced Scorecard Institute.
 We Help Organizations:

Formulate,
communicate, and focus
Align day-to-day
work to vision, mission
on Strategy and strategy

Prioritize and Measure, analyze, and

manage improve
projects, services,
products and resources Performance

The PMI Authorized Training Partner seal is a mark of the Project Management Institute, Inc. ©1997-2023 Balanced Scorecard Institute.
 24

Upcoming Events

©1997-2023 Balanced Scorecard Institute.

balancedscorecard.org roicltd.com

Questions?

The PMI Authorized Training Partner seal is a mark of the Project Management Institute, Inc.