Strategy Lesson From the Trenches - S2E Case Study

Strategy to Execution Case Study Webinar

April 17, 2015

4/17/2015 © 2015 Accelare. Proprietary and confidential. All rights reserved.

Agenda

1. Brief Introduction– Introduction to Accelare

– Why The Strategy to Execution Process?

2. Lesson’s From the Trenches– 3 Common Traits of Success

3. Q&A

4/17/2015 2© 2015 Accelare. Proprietary and confidential. All rights reserved.

Who is Accelare

• 2001 Founded in Boston, MA.

• Key contributors to the Business Process Management Movement and worked on the best-selling books of Michael Hammer and James Champy including ; Reengineering the Corporation and X-Engineering the Corporation

• 2008, Accelare acquired the Capable Company, whose leaders authored The Capable Company and Measure Up!

• 2009 Accelare’s work was featured in the June 2009 Harvard Business Review article, The Next Revolution in Productivity co-authored with Microsoft.

• 2011 Accelare trademarked S2E “Strategy to Execution” Process -methods for Business Architecture, Technical Architecture, Business Intelligence and Operational Transformation.

• 2010 Accelare launched WorkFit™ — the first Management Collaboration tool built on SharePoint.


The Six-Steps Behind Strategy-to-Execution (S2E)

1. Articulate and clarify strategy

2. Identify needed capabilities

3. Assess current performance

4. Identify people, process,and technology gaps

5. Construct a project portfolioto fill key gaps

6. Establish the management process to monitor business performance


Foundational Concept:The Enterprise is a Network of Capabilities


The Core Capability Model


Most Fail the Fundamentals of Strategy


Respondents felt their organization was average or poor at strategy execution

Cannot accurately describe the organization’s strategy

SOURCE: HBR 2010 Strategy Execution Survey, Gartner, Standish Group

Projects fail on ALL dimensions of success (ROI, Cost, and Schedule)

Projects fail on at least one dimension of success

What to Do?

Getting it Done

Lessons from the Trenches

1. Get senior leadership engagement early!Or attract their engagement along the way!

2. Connect investments to capabilities

3. Building the 2X Project Manager


1. Senior Leadership Engagement


1. Senior Leadership Engagement

• With Committed Leader as a Champion (Easy)– New processes that leverage capability planning and management

– Setting operational strategy priorities

– Dominant input to the project investment decisions

• Without Committed Leader (Harder)– Content

– Unique Views



NewManagement

Process

Nordstrom’s

Wal-Mart

Building Deeper Leadership Commitment(Courtesy of Michael Porter)


…Committed Leaders Set Operating Model Priorities

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“Breakthrough”

Highest Differentiation

Some Differentiation

Lower Cost

Lowest Cost

Parity

Value Frontier: Efficiently delivering the intended value proposition

No

n-P

rice

Val

ue

del

iver

ed

Relative cost position

High(World Class)

low

high low

6

5

4

3

2

1

LegendCircles = Current stateChevron = Ambition

1

2

3

4

56

© 2015 Accelare. Proprietary and confidential. All rights reserved.

What Content Attracts Leadership?

• Performance-Value assessments

• Capability operational spending Pareto charts

• Project to Capability Gantt

• Capability Financials


Performance and Value Assessment


Level 1 Capability Costs


26%

47%

61%

73%

83%

92%

100%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

17%

25%

30%

36%42%

47%51%

55%58%

61%63%

66%68% 70% 72%

0%

10%

20%

30%

40%

50%

60%

70%

80%

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

Budget

Cumulative

Top 15 Level 2 Capabilities by Cost


Attracting Leaders: Does Our Spending Match our Priorities?


$10,656,692 , 6%

$66,916,806 , 36%

$59,365,122 , 31%

$51,280,885 , 27%

Budget by Classification View

Advantage

Business Necessity

Essential

Strategic Support

How Does Our Spend Align with Performance?

4/17/2015 19

$98,378,839 , 52%

$42,859,394 , 23%

$46,981,271 , 25%

CxO Capability Cost by Heat

High Low Medium


What Capability Will that Project Improve or Create?


2. Connecting Investments to Capabilities


How Good Is Your S2E Process?The Project Spend to Capability Heat Test


A Project Canvas Links Investments to Capabilities (Template)


Project Canvas with Relevant Sections Completed(2 pieces of data)

4/17/2015 24

Capability Family

Estimate Project Cost


3. Building the 2X Project Manager


Principles of the 2X Project Manager

2X more productive = (context; working on the right things) x (speed; working much faster)

1. Context; working on the right things

– With the right (x-functional) perspective

– Make project execution a “process”

2. Speed; working much faster

– CLM and simplifying the SDLC, picking the right path, getting beyond the methodology silo’s

– Build in transparency to avoid surprises

– Assign an Accountable Executive to every initiative


CLM – a stage gate for programs


1. The Process of Project Execution


2. Build in Transparency to Avoid Surprises(Broad access to every project)


3. Assign Executives to Every Initiative(and publish the scorecard!)


4. Find Your 2X Project Managers

What is a 2X Business Architect, Analyst, Project Manager? A 2X architect, analyst, project manager is a person who is 2X more productive than a typical player.

• The 2X player has two qualities that make them unique:

1. Strategy to Execution Process Master – they understand and help project sponsors and teams apply strategy, business model redesign and change leadership techniques (at a local project level)

2. Agile/Scrum Master – they can apply agile/scrum techniques to both the business and technical elements of the project to increase velocity and quality


The combination of strategic orientation (S2E) and agility and speed (SCRUM) are needed to increase velocity

• “Scrum teams that work well are able to achieve hyper-productivity. We regularly see 330-400 percent improvement in productivity… the best teams can achieve 800 percent gains and they also end up more than doubling the quality of their work”

— Jeff Sutherland


CONFIDENTIALITY AND INTELLECTUAL PROPERTY

These materials contain valuable confidential and proprietary information belonging to Accelare. All information contained herein

is protected by law, including but not limited to, copyright law. None of such information may be copied or otherwise reproduced,

repackaged, further transmitted, transferred, disseminated, redistributed or stored for subsequent use for any such purpose, in

whole or in part, in any means whatsoever, by any person without Accelare’s prior written consent.

4/17/2015 33

Question & Answers
