©2010 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice

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Speaker Name – TitleSeptember 22, 2010

Strategy & Planning

Team Design and Functions

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Executive Summary

– Overview of Strategy and Planning Shared Service across Global Sales Ops • Improving co-ordination and communication• Helping to prioritize and focus• Provide key personnel and resources for:

− Strategy− Analytics− Planning− Project Execution

– Strategy and Planning linkages outside of Global Sales Ops• HPSS Business Planning• HPSS Sales Strategy / Planning• HPSS Business Unit Strategy / Planning• Regional Planning

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Organizational Alignment

WW Strategic Prog & Readiness

Strategy & PlanningStrategy creation & clarification - Global Ops-with BU and Sales- Prioritization-Hoshin Process?

Analytics- Customer- Field

Annual Planning- Planning Design-Planning Execution

PMO- Key project design-Key project execution-Process improvement

BU Strat & Plan Biz Planning VP Sales

Chief of Staff Executive AssistantShared Services- Infrastructure- Data base (s)- Tools- Development- Operations

Sales Comms Sales Readiness

Dev & Delivery

GTM / Sales Programs

Perform Mngmt

HPSS CoE

Region Planning

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Strategy and Planning to work across Global Ops to help create a common vision and list of priorities

– Impacts Include:• Better targeting of Programs to top customers and sales programs

• Align resources to improve Revenue growth

• Less wasted resource / slack in organization translates to higher productivity

• Employee morale improvement via clarity and consistency of roles throughout fiscal year

– Resources needed

• Improvements in Analytics data

• Based on priorities possibly more PMO resources to help guide faster project execution

• Personnel to drive cross-org Hoshin planning

– Implementation timeline

• Get agreement on high level outline – October

• Begin implementation Q1

Recommended Action

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– Get agreement on high level outline of Strategy & Planning Role in Global Ops

– Obtain cross-management team input on Strategy and Planning key value points (provide more detailed outline including)

• Hoshin tools and process

• Skills team can provide across org

• Synergies with Shared Services team

– “Flesh-out” detailed team roles and inter-connection points based on input across Global Ops and outside Global Ops

Next Steps

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Benefits and Potential Risks

Benefits Potential Risk

– Department resistant to planning

– Department “Turf” issues

– Change resistance

– Stretch Strategy and Planning too thinly

– Missing key talents on Strategy team

– Improve linkages between strategy, annual plans, execution

– Create clearer, cleaner process for business planning Use valuable Strategy personnel in more creative ways

– Increase Strategy team talents and satisfaction

– Help org focus on most important / most productive programs

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Strategy & Planning

– Problems include:• Unclear alignment between Business Unit / Sales Strategy and Global Ops

Plans and Execution

• Need prioritization of initiatives and programs combined with scarce resources

• Un-clear decision making process and roles / owners in flow of strategy, planning, and execution

– Opportunity for change:• Start Q4/1 allows alignment of strategy and plans with execution and

resources / personnel earlier in FY 2011

• 2011 - Second time through Sales Planning provides visibility to process now

– Why is change important?• Need to make sure money and people are devoted to the most important

HPSS strategies

• Little or no increase in money or people in 2011 so need to be highly productive

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Global Ops Hoshin Planning

Global Operations Business Plan

Mission

Breakthrough Projects

Deliverables

Results and Metrics

2 YearTimeframe

Annually

HPSS Business and Sales Plan 2+ YearTimeframe

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Hoshin Planning Steps– 1) identification of critical business issues that the

organization faces;

– 2) establishment of business objectives to address these issues;

– 3) definition of the HPSS over-all goals;

– 4) development of strategies that support the over-all goals;

– 5) definition of sub-goals or tactics that support each strategy;

– 6) establish metrics for measuring process performance;

– 7) establishment of business fundamental measures. 

– The first 3 steps of this process are handled by top management, with the defined over-all goals supported by the rest of the organization through steps 4-7.

HP

SS

definedG

lobal Ops

defined

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Rationale of Sales planning

• To have systematic, planned and methodical way to set HPSS biz and sales strategic priorities

• Clear implementation / action plan for FY11

• To get input from all HPSS stakeholders and to define strategic initiatives in much more planned way

• Strategic initiatives in line with EB

• To communicate a clear plan on 1st Nov.

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Stage

Input

Activities

Output

Milestone

Revisiting Strategic Plan – Establishing

process steps

Conducting external and internal analysis

Top level ASPIRE / Growth targets

Formulating

Strategic Plan

Coverage Model

Quota by account

Communicating

and Executi

ng Strateg

y

May June July August Sept Oct

•Previous years work planOverall and BU specific previous 2 years financial results; previous 2 years strategy•Industry market analysis input from ext. consultants

•Set of internal/external assumptions•End evaluation of performance against current strategy•Growth ideas; preliminary set of strategic alternatives

• Strategic planning tools /templates

• HPSS Planning Team defined targets and goals• Coverage model and HQ guidance•Planning guidance

•Final BU strategic and operational plan•Quota by account

• Final plan tie off with EB and HPSS WW teams• Finalise Strategic Initiatives for FY11

BU Strategy

•HPSS Planning team & management review previous year’s financial results; use as baseline for new strategy•BU reviews on previous years performance•Pre-planning dialogue•HPSS Planning Team establishes rules for the planning process•Conduct external market research on industry

• Customers, economic factors and competitors identify key changes, SWOT analysis, BUs to support analysis• HPSS Planning Team evaluates core competencies• HPSS Planning Team examines portfolio for growth opportunities• HPSS Planning Team identifies objectives/common assumptions• Planning Dialogues between corporate, Sub-regions and BUs

• Quarter end; less involvement of sub-regions/BUs• Preparation of templates and plans for August

•HPSS Planning evaluates alternatives and decides on strategy, with active participation from MD/VP•Centre works with individual BUs develop BU specific targets and goals •Provides coverage model guidance

•Finalise quota by accountsCoverage triangle by sub-regions and by BU

•Final changes and communication of strategic plans• Communication of Strategic Initiatives for FY11

• Work plan (process steps) for upcoming planning cycle• Preparation for the management meeting

• SWOT analysis• Assessment of Strategic Initiatives •Preliminary list of Strategic Initiatives• Preliminary Coverage Model

• Templates and Planning Guidelines ready

• Coverage Model communicated to Sub-regions/Bus

• Adjusted BU plans• Business plans for all sub-regions/BUs

• preparation of companywide communication

• Current years analysis – performance and pitfalls• Preplanning for the management meeting in June

• 2 days off site management workshop•Discussion and approval of preliminary Coverage Model and Strategic Initiatives

• Sub-regions / BUs submit plans for approval• Sub-regions / Bus submit their first draft of quota by account

• Final sub-region / Bus coverage model and Business Plan

• Pre-plan communication for FY11• Pre-plan issue of sales letters

HPSS SALES PLANNING – HIGH LEVEL PROCESS

©2010 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice

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Appendix

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Strategy Planning Flow – Global Ops

1 2 3 4Long term strategy FY 2011 Plans Prioritized Programs Resource needs

HPSS Overall strategy and Sales strategies

Global Ops Hoshin plans

Departmental prioritized programs / initiatives

Personnel, Money, Resource, and Training