Organizational Wellness through Sequestration and Beyond
Nov 2012
Proprietary Information Included
Facts on Sequestration
Cuts begin to take effect on
January 1st, 2013 since the
bipartisan supercommittee did not agree to
a $1.2 trillion deficit-reduction package back in
November of 2011.
• Cuts will be $1.2 trillion total.
• Will be evenly divided over a nine-year period.
• Cuts are evenly distributed between:• defense spending (except that on wars);• discretionary domestic spending (does not
include Social Security, Medicare, Medicaid, Veteran’s Benefits).
• Cuts are across the board(no discretion by legislators).
• Range from 7.6% to 9.6% of each budget.
• 2012 Budget $3.8 trillion.
• 2012 Social Security, Medicaid, Medicare, Vets benefits is $2.25 trillion.
• Cuts in 2013 have to come in what is left over (about $1.6 trillion).
• Can be avoided if Congress passes another budget deal that would achieve at least $1.2 trillion in deficit reduction.
• Republicans don’t want to raise taxes to generate the revenue.• Democrats are reluctant to
make dramatic changes to entitlement programs to achieve savings.
• There is talk of a stopgap plan during the lame-duck session to buy legislators more time to come up with a grand bargain.
Facts on Sequestration
NSBA fears that small businesses
will bear a disproportionate
and unfair burden under the
current sequestration
plan.
• Identify government cost overruns and ensure government is aware that they are their responsibility.
• Ensure all Firm-Fixed Price contracts are accurately assessed and that the government does not create mission creep at your expense.
• Ask for performance reviews on time to show value to the government.
• Market and Diversify your portfolio in terms of the following:
• Types of contract vehicles (IDIQ, FFP, T&M, etc…)• Agencies supported (both Prime and Subs)• Capabilities Offered• Commercial and Government clients (domestic/International)
• Conferences (such as VA Small Business Partnership)
• Offer to restructure your contract vs. termination.
What Can a Government Contracting Small Business Do ?
NSBA fears that small businesses
will bear a disproportionate
and unfair burden under the
current sequestration
plan.
• Cross train vs. hiring after attrition.
• Freeze wages and limit bonuses.
• Lower overhead costs.
• Only hire when there is a billableposition.
• Solidify relationships with in-person visits.
• Find efficiencies and be effective.
• Measure performance
• Develop and Maintain a Strategic Plan.
What Can a Government Contracting Small Business Do ?
Improve your overall
effectiveness through a mixture of marketing
diversity and strategic
planning.
Organization Wellness & Development Model Including Balanced Scorecard
Strategic Planning
As part of ensuring the
wellness of an organization the Balanced
Scorecard can be a key
component. Understanding
how each element within the BSC relates to one another
for the betterment of
the organization is
paramount.
Proprietary Information Included
Mission: Through solid leadership and creating a culture where all employees thrive equally, efficiently and effectively produce and sell XXXX in the US and abroad.
Vision: To be a world-class organization.
Core Values: Honor ~ Respect ~ Loyalty ~ Trust OperationalExcellence
Business Process ExcellenceEnhanced PartnershipsEffective
Communication
Cus
tom
erIn
tern
al
Proc
ess
Lear
ning
and
Gro
wth
Feed
back
Bas
ed R
esou
rce
Rea
lloca
tion
LG 3.0 Leverage Technology
LG 2.0 Improve Infrastructure
Usage
C 4.0 Build Relationships &
Enhance Partnerships
C 3.0 Improve Timeliness
IP 1.0 Improve Operational Business Practices
IP 2.0 Improve Adherence to
Regulatory Processes
IP 3.0 Improve Marketing &
Communications
C 2.0 Optimize Operations
C 1.0 Improve Quality
LG 1.0 Optimize Human Capital
F 1.0 Improve Productivity
Fina
nce
Strategic Themes:
F 2.0 Improve Shareholder
Value
F 3.0 Improve Revenue Growth
F 4.0 Increase Margins
Proprietary Information Included
Organizational Maturity Model
Organizational maturity occurs
when an organization not
only develops measures of
success, but puts goals to those measures and
then drives strategy through
measuring strategic
performance in addition to
project level performance.
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Organization Wellness & Development Model’s Transparency Model
This model shows how
Spider Software is integral to
ensuring a transparent
view of performance and strategic management
aspects of your organization.
This includes ROI of contract support which enables you to
reach your strategic
objectives and vision.
Three functions, one software
tool.
Organization Wellness & Development Model Including Balanced Scorecard
Strategic Planning
In this Phase we get a flavor for the cultural constraints and
enablers as well as
preferred practices and techniques of
the organization
which ultimately ensures a
smooth strategic
transition.
Proprietary Information Included
pricemeals
loungeshubconnectivity bags
seatingchoices
friendlyservice
frequentdepartures
Factors of Competition
low
high
Inve
stm
ent
OtherAirlines
Car
The strategic profile of Southwest Airlines differs dramatically from those of its competitors in the airline industry. Note how Southwest’s profile has more in common with the car than with the profile of other airlines.
Southwest
Adapted from Charting Your Company’s Future: “Harvard Business Review” Vol 80, No. 6
Southwest Airlines Strategic Profile
Organizational S.W.O.T.
Weaknesses:Strengths:
Adverse FactorsBeneficial Factors
Exte
rnal
Env
ironm
ent
Inte
rnal
Env
ironm
ent
Opportunities: Threats:
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OrganizationalCustomers & Stakeholders
Stakeholders:
Customers:
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Mission & Vision Statements
Core Values
Organization Wellness & Development Model Including Balanced Scorecard
Strategic Planning
In this Phase the backbone
of your Strategy is developed
including specific
definitions of the meaning
behind the strategic pieces to
ensure a long-term
understanding of the vision
and mission.
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Strategic Themes & Results: “Pillars of
Excellence”
“and exceed the needs of our customers’ (internal and external)….”
“and create the right day-to-day internal processes or operating procedures…."
“If we recruit the right people, with the right skills, and provide them the right tools and organizational culture….”
“we will be as profitable as we possibly can be.”
Res
ourc
e R
eallo
catio
n
Strategic Objectives - the building blocks of your strategy
Customer
Internal Processes
Finance
Operational Excellence
Cause and EffectStrategic Theme:
LG 2.0 Improve Infrastructure Usage
IP 1.0 Improve Operational
Business Practices
IP 2.0 Improve Adherence to
Regulatory Processes
C 2.0 Optimize Operations
C 1.0 Improve Quality
LG 1.0 Optimize Human Capital
F 3.0 Improve Revenue Growth
Learning and Growth
Proprietary Information Included
OperationalExcellence
Business Process ExcellenceEnhanced PartnershipsEffective
Communication
Cus
tom
erIn
tern
al
Proc
ess
Lear
ning
and
Gro
wth
LG 3.0 Leverage Technology
LG 2.0 Improve Infrastructure
Usage
C 4.0 Build Relationships &
Enhance Partnerships
C 3.0 Improve Timeliness
IP 1.0 Improve Operational Business Practices
IP 2.0 Improve Adherence to
Regulatory Processes
IP 3.0 Improve Marketing &
Communications
C 2.0 Optimize Operations
C 1.0 Improve Quality
LG 1.0 Optimize Human Capital
F 1.0 Improve Productivity
Fina
nce
Strategic Themes:
F 2.0 Improve Shareholder
Value
F 3.0 Improve Revenue Growth
F 4.0 Increase Margins
Mission: Through solid leadership and creating a culture where all employees thrive equally, efficiently and effectively produce and sell XXXX in the US and abroad.
Vision: To be a world-class organization.
Core Values: Honor ~ Respect ~ Loyalty ~ Trust
Proprietary Information Included
Feed
back
Bas
ed R
esou
rce
Rea
lloca
tion
Including Balanced Scorecard Strategic Planning Organization Wellness &
Development Model
In this Phase the Scorecard
is carefully developed.
Human capital, time and financial
resources are allocated to
specific projects, called
initiatives, thereby setting
your organizational
strategy into action.
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The Scorecard is…• developed from the strategy map.
• translates strategic objectives into a comprehensive set of performance measures, targets and initiatives.
Fictitious For-Profit Company Scorecard (Sample)
Company Objective and Accountable
Objective Statement Measure Target/Threshold Initiative
LG 1.0 OPTIMIZE HUMAN CAPITAL
Director of Human Resources
Maximize use of current billeted structure by resolving billet mismatch, filling open billets and accurately reporting the force structure to our accountables while ensuring position descriptions are updated and match current duties.
% of billets mismatched 3%/10%
Accurately report all mismatched billets.
Identify those in mismatched billets needing certification or training to be fully qualified.
Identify those that cannot match their billeted needs and downgrade the billet or transfer the person to a better fit billet.…turns Strategy into Action!
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Objective Statements
If during a strategic review
you find that the discussion
continues to evolve around changing the
measure for an objective, the
focus should not be on the
measures. Instead change
or clarify your objective
statement.
The objective statement (commentary), which defines what success looks like for an objective, when written well will make finding your measures and supporting initiatives easy to discover.
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A Strong Measure
Measures tell us if there is
a cause-effect
relationship between the
initiatives and
objectives in the desired
direction we want the
objective to move.
Validated – to ensure it measures the right thing
Verifiable – to ensure accuracy
Leading – process in nature
Lagging – outcome in nature
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Targets & Thresholds
• A negotiated process w/the leadership team. • Should not be arbitrary!• Should reflect best practices (benchmark)• Should not celebrate mediocrity, use BHAGs (from Built to Last)
• Should reflect needs of those who benefit from the objective.
Targets are the desired values of performance for the
objective to change from Amber to Green.
Thresholds are the desired values of performance for the objective to change from Red to Amber.
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The key discussions an organization should have at its strategic
review, after checking the status of an
objective, are around the initiatives.
All too often the topic of conversation in a strategic review are objectives and their measures, targets, and thresholds. Leadership has to ensure that the relationship between the objectives, measures (target/thresholds) and initiatives are fully understood.
Objectives (which
represent the highest
priorities of an organization)
are important, as this is your
end state; what you are
trying to achieve.
Strategic Review Discussions Should Focus Around Initiatives
Fictitious For-Profit Company Scorecard (Sample)
Company Objective and Accountable
Objective Statement Measure Target/Threshold Initiative
LG 1.0 OPTIMIZE HUMAN CAPITAL
Director of Human Resources
Maximize use of current billeted structure by resolving billet mismatch, filling open billets and accurately reporting the force structure to our accountables while ensuring position descriptions are updated and match current duties.
% of billets mismatched 3%/10%
Accurately report all mismatched billets.
Identify those in mismatched billets needing certification or training to be fully qualified.
Identify those that cannot match their billeted needs and downgrade the billet or transfer the person to a better fit billet.
Proprietary Information Included
Initiatives (Projects)
Initiatives (or projects) have a hypothetical relationship with the objectives they support. Once these initiatives (projects) are completed, the measures attached to the objective tell us if the objective is trending in the desired direction. If the completion of the initiative (project) pushed our objective in its desired direction, the measures will tell us so and our initial hypothesis of a cause and effect relationship will have been true.
Initiatives are where resources
are obligated.
Dollars are spent, time
is allocated,
and human capital is invested
over time.
Fictitious For-Profit Company Scorecard (Sample)
Company Objective and Accountable
Objective Statement Measure Target/Threshold Initiative
LG 1.0 OPTIMIZE HUMAN CAPITAL
Director of Human Resources
Maximize use of current billeted structure by resolving billet mismatch, filling open billets and accurately reporting the force structure to our accountables while ensuring position descriptions are updated and match current duties.
% of billets mismatched 3%/10%
Accurately report all mismatched billets.
Identify those in mismatched billets needing certification or training to be fully qualified.
Identify those that cannot match their billeted needs and downgrade the billet or transfer the person to a better fit billet.
Proprietary Information Included
Initiatives and Project Management
Initiatives may be small (write an SOP, buy some equipment) or they may be large (standardize an enterprise-wide process, purchase enterprise-wide software).
• If small, there is limited budget and human capital expended.
• If large, there may be large amounts of money and human capital expended.
Initiatives that are large
expend large amounts of
resources need to be managed
through the Project
Management Model to
ensure they are as
efficient and effective as
possible.
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Project Management and Quality Assurance
If large in nature they are expending budgeted strategic dollars, valuable organizational time and human capital resources.
• The project needs to be managed through an EVM tool, and…. • …be subjected to a QA program such as LSS, CMMI or ITIL.
Projects that
expend large
amounts of resources should be subjected
to a quality assurance
program to ensure they
are as efficient
and effective as
possible.
Proprietary Information Included
Organization Wellness & Development Model Including Balanced Scorecard
Strategic Planning
Phase Four is the key area
for automation and long-term sustainability.
This is the crucial point
where the hired
consulting staff leaves your
organization and you fly solo. Your
ability to understand
this phase will determine your
strategic survivability.
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Organizational Alignment Drives:• Common organizational vision• Common organizational strategic priorities• Subordinate performance contributes to, and is aligned with, the enterprise-wide target performance
The Power of Enterprise-wide Alignment!
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How Do Complex Organizations Assemble, Track, and Maintain their Scorecard
If you want to know how your
organization is performing...how
many different reports or systems
do you have to check? How many
people do you call or email?
Strategy Management requires the ability to know how your strategy is performing at every level of your organization at every moment.
Automating your
organization’s scorecard
provides you timely,
accurate information on
your current performance
from anywhere in the world.
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Automating your
organization’s scorecard
provides you timely,
accurate information on
your current performance
from anywhere in the world.
Proprietary Information Included
Dashboards and Strategy
Maps can help to identify
problem areas at a glance.
Through these gauges we can
drill down to the details of
each objective and make
sound decisions based on
current data.
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Organization Wellness & Development Model Including Balanced Scorecard
Strategic Planning
Phase Four is the key area
for automation and long-term sustainability.
This is the crucial point
where the hired
consulting staff leaves your
organization and you fly solo. Your
ability to understand
this phase will determine your
strategic survivability.
Proprietary Information Included
Avoid the 10 Pitfalls to Success
1. Measure Everything – too many measures ensures you are good at nothing.
2. Use PP to manage your Strategic Model – a good software tool is needed here.
3. Leadership fails to Tell the Story – leadership has to be committed to telling the organizational strategic
story.
4. Everyone has to know the BSC value added story – if not, no one will buy-in to the change.
5. There must be BSC Champion – this person meets with individuals and small groups to keep everyone
engaged in the BSC process.
6. Failure to flex the model to the organization – the model is imperfect in nature and must flex to the needs
of the organization, when appropriate.
7. Know when to flex the organization to the model – otherwise the model will fail the organization.
8. Don’t stop the organization from functioning while implementing this model – it must be allowed
to operate at-speed while making the transition.
9. Governance – failure to implement management and sustainment instructions are the most common reasons the
model is ineffective.
10. Failure to prioritize initiatives – failure to prioritize your initiatives against established criteria could lead to
overspending your budget and stalling your path to the organizational vision.
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Past Performance
We are proud of our past
performance in the
governmental, non-profit and
commercial Balanced
Scorecard arena.
We have past performance within The National Institutes of Health, U. S. Army Corps of Engineers, U. S.
Army Office of The Surgeon General, The Balanced Scorecard Institute, Department of the Navy…..
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Spider Strategies, Inc. Executive VP Bio.
Timothy J. Ciampaglio is the Executive Vice President of Operations for Spider Strategies, Inc, a small government contracting and consulting business focusing on Balanced Scorecard Strategic Planning consulting and automation. Mr. Ciampaglio currently holds a TS Clearance and is a 23 year veteran of the United States Coast Guard where he focused on Maritime Operations, Training and Education, and Balanced Scorecard Strategic Planning. As a consultant of The Balanced Scorecard he holds a Master Professional Certification and is the Senior Consultant for The Army’s Surgeon General in the automation, development and methodology of The Balanced Scorecard. He has developed and managed BSCs for US Army Corps of Engineers, USCG and other commercial entities. He is currently an adjunct professor at The George Washington University Graduate School of Arts and Sciences teaching Strategic Human Resources Planning and Management. He holds a B. S. in Psychology from Towson University and a Masters of Public Policy and Management, from Carnegie Mellon University.
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Spider Strategies Inc.COO’s Bio
Proprietary Information Included
Conor D. Crimmins is the Chief Operating Officer of Spider Strategies, Inc., and has nearly 10 years of experience in performance and strategy management, metric development and strategy automation. Mr. Crimmins’ primary focus is on performance management integration and cascading alignment in multi-tiered organizations. At present, Mr. Crimmins serves as the Software Project Manager for the US Army Strategic Management System (SMS), the Army’s Enterprise Performance Management Program Office. Mr. Crimmins holds a Bachelor of Arts in Political Science and International Relations from Carleton College and a Certificate in Political Economy from The Center for European Studies at Maastricht University. Mr. Crimmins is a visiting presenter on Balanced Scorecard Automation at the Balanced Scorecard Institute; a participating member of the Secretary of the Army’s Initiative Group; and the Software Project Manager for the US Army’s Strategic Management System Program Office. Mr. Crimmins holds a Top Secret Clearance from the Department of Defense.