Performance Management

Achieving Breakthrough Performance with Performance Management 3.0

© 2009 Strategy Focused Business Solutions Inc.

© Copyright IGLOO Inc. 2009. All rights reserved.

About IGLOO…


IGLOO Software delivers full service online community and socialsoftware solutions to organizations, teams and groups of any size. Our solutions combine Web 2.0 technology with on-demand hosting, consulting, e-engagement and all of the community support services necessary for a sustainable and successful deployment.


Introductions…


About Sandy...Sandy Richardson has been a senior organizational development and business performance excellence professional for over 20 years. She has worked with organizations in a variety of business sectors and industries in both Canada and the United States* to build sustainable, strategy-focused organizations.

Sandy is a subject matter expert in the areas of strategic planning, strategy mapping, performance measurement and management, accountability and governance framework development, and organizational alignment and is recognized as a master balanced scorecard practitioner and trainer.


Webinar Overview• To be effective and successful, all business performance programs

must have the business strategy as their focus,

• Successful organizations focus on the tight integration of these critical elements, and

• Successful strategy management and execution, and value creation are the key benefits of leveraging performance management and social networks

• This needs to be easier to do, systems to date have not made the change management aspects easy.

• 2.0 technologies help enable change and create sustainability, increase probability of success.



Why is this important for you

Competing Goals

Lack of Direction

DisconnectedLeadership Wrong Goal

Transformation(enabled web 2.0 (IGLOO) technologies)

Agile and AlignedOrganization



Strategic Projects

Core Processes

Ad Hoc Work & Stakeholder Requests & Crisis Mgt

Tools & Technology

Many organizations work like this…

Any Organization

People

Budgeting

Business Management Processes – Tactical/Operational/Issues Management



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…and get these organizational performance results….

• Departments operate as islands (silos)• Disorganized work efforts frequently at cross-purposes • Calorie intensive change management• Duplication of effort• Inconsistency between work effort and the results achieved• High levels of crisis management and rewards for “heroic efforts” - Reduction in organizational capacity means a deterioration in the ability to handle the next demand/crisis• All stakeholder requests are acted upon without prioritization – some may be ignored• The required resources (financial & non-financial) are not reliably available• Over-focus on tactical management• Unfocused or lack of communication, info leakages• Escalating demands on the organization/people = High stress levels and burn outCompeting Goals



…translating into these business performance outcomes.

• Poor strategy execution

• Stakeholder dissatisfaction

• Underperformance – organization does not live up to its potential

• Deterioration in long term organizational value



Driving Force behind the Arrow

• The unaddressed soft skills and community building are the missing link to success

• The Viral PM community gets you over the bumps• They get you past the destabilizing events

and departures.



“Less than 10% of strategies effectively formulated are effectively executed.”

Fortune Magazine, 1982

Over 50% of major corporate initiatives fail!http://www.securityinfowatch.com/root+level/1284252


What the statistics say…


Looking more deeply into the problem…

Process

(within the strategy management continuum)

% adoption by Top

Performers

% adoption by Under- Performers

Manage a limited number of key strategic initiatives 76% 46% Clear articulation of the corporate strategy and measures 77% 43% Regular update of strategy to account for changing conditions 75% 43% Regular meetings to report on and to manage the strategy 75% 33% Communications about strategy 73% 28% Alignment of business & support units to strategy 63% 28% Knowledge management/ learnings & best practice sharing 48% 18%

Average Adoption Rate 70% 34%

Source: BSCol Research (Survey of 143 performance management professionals drawn from BSCol Online Community, March 2006)



2. Translate strategy into operational terms

3. Align the organization to the strategy

4. Make strategy everyone’s job

5. Make strategy a continual process

1. Mobilize change through effective

leadership


The Solution – The Strategy Focused Organization (SFO)


Strategic Projects

Core Processes

MISSIONMISSION

Strategy

People BudgetsTools &

Technology

TheBalancedScorecard

FINANCIAL/RESOURCES

CUSTOMER INTERNAL

ORGANIZATIONALCAPABILITIES

The Balanced Scorecard4.

Improve

3. Review/Learn

1. Plan 2. Do

Ad Hoc Work & Stakeholder

Requests + Crisis Mgt

Vertical & Cross-Organizational Alignment(cascading & collaboration)

Business Performance Management – Tactical/Operational + Strategy Management

“Real time”, Organic Two Way Communication & Networking, Collaborative Knowledge Generation & Sharing, Strategic Organizational Learning

Living in a Strategy Focused Organization…


SFO Benefits – Breakthrough Organizational Performance

YES NO Do you have a formal strategy management process in place?

54% 46%

Describe your organization’s current performance level

We have breakthrough results 12% 7% We are performing better than our peer group 58% 20%

Sub-Total – Top Performers 70% 27% Performing at the same level as our peer group 18% 30% Performing at a lower level than our peer group 9% 27% Not performing at a sustainable level 3% 16%

Sub-Total – Under-Performers 30% 73%




Supporting Breakthrough Performance


To be successful, strategy focused organizations must manage strategy & business performance using the integrated balanced scorecard online community.

• A strategy map

• A set of strategic indicators

• The aligned strategic processes and projects/initiatives

• The accountability and governance frameworks

• The connected strategy management community


Breakthrough Performance Tools

Elements of a SFO Formalized/ Institutionalized Tools

I nformal Activities, Approaches, And Frameworks

Mobilize Change Through Effective Leadership

● Succession Plans ● Leadership Training & Development

Programs

● Strategy Communications

Translate Strategy into Operational Terms

● Strategy Map ● Performance Management Framework/

Balanced Scorecard

● Core Process Alignment Activities ● Strategic Project Alignment Activities

Align the Organization to the Strategy

● Strategy-Focused Budgets ● Strategy-Focused Human Capital Plans

● Strategy-Focused Technology Plans

● Strategy Cascading & Alignment Validation Processes

Make Strategy Everyone’s J ob

● Employee Performance Management Program (including personal “scorecards”) ● Strategy-Focused Employee Reward and

Recognition Programs ● Suggestion Programs

● Accountability Frameworks ● Strategy Communications

● Company Performance Results Communications

Make Strategy a Continual Process

● Monthly Business Performance Management Meetings (balanced

scorecard results review meetings) ● Quarterly Strategy Review Sessions

● Strategy Management Governance Model ● Strategy Communications

● Company Performance Results Communications



In many cases, something critical is still missing…

Process

(within the strategy management continuum)

% adoption by Top

Performers

% adoption by Under- Performers

Manage a limited number of key strategic initiatives 76% 46% Clear articulation of the corporate strategy and measures 77% 43% Regular update of strategy to account for changing conditions 75% 43% Regular meetings to report on and to manage the strategy 75% 33% Communications about strategy 73% 28% Alignment of business & support units to strategy 63% 28% Knowledge management/ learnings & best practice sharing 48% 18%

Average Adoption Rate 70% 34%


“Real time”, Organic Two Way Communication & Networking, Collaborative Knowledge Generation & Sharing, Strategic Organizational Learning



Historically, few formal tools have existed to fill this gap …..

…and the informal solutions organizations have put in place are not integrated into the every day operations – they aren’t part of the “way we work” (key to building a successful strategy focused organization)

THAT IS, UNTIL NOW



Leveraging Social Software & Online Communities



Social Networking - Not a NEW concept however it has evolved…

Social Networking has been around for over 100 years

– “Face to Face” meetings, conference calls, water cooler conversations are all early forms of social networking

Today... Email is the #1 collaboration application– in world with over 90 billion messages sent daily

Email now takes on average over 20% of a knowledge workers day.

Gartner Group



Value PropositionSocial interactions drive business transactions, strategy execution, and enhanced organizational value creation.











Connections That Matter

Customer/Stakeholder Community

Indicator & Strategic Objective-based

Sub- Communities

Leadership Development Community

External TrendsSub-Community

Strategic Issue Resolution & Solution/Knowledge Generation

Community

Business Strategy& Performance Management



Formalized/ Institutionalized

Tools

Corporate Social Networking Tools

● Succession Plans ● Leadership Training & Development

Programs

● Content Management; Web Publishing; Multi-media; Wiki; Blogs; Event Calendar; Email Forums; Messaging; Feedback; Broadcast;

Personal Profiles; Member Directory; What’s New;

● Strategy Map ● Performance Management Framework/

Balanced Scorecard

● Content Management; Web Publishing; Multi-media; Broadcast; What’s New;

● Strategy-Focused Budgets ● Strategy-Focused Human Capital Plans

● Strategy-Focused Technology Plans

● Content Management; Web Publishing; Multi-media; Wiki; Email Forums; Messaging;

Feedback; Broadcast; What’s New;

● Employee Performance Management Program (including personal “scorecards”) ● Strategy-Focused Employee Reward and

Recognition Programs ● Suggestion Programs

● Web Publishing; Multi-media; Wiki; Blogs; Event Calendar; Email Forums; Messaging; Feedback; Broadcast; Personal Profiles; Member Directory;

What’s New;

● Monthly Business Performance Management Meetings (balanced

scorecard results review meetings) ● Quarterly Strategy Review Sessions

● Content Management; Web Publishing; Multi-media; Wiki; Blogs; Event Calendar; Email Forums; Messaging; Feedback; Broadcast;

Personal Profiles; Member Directory; What’s New;

Elements of a SFO

Mobilize Change Through Effective Leadership

Translate Strategy into Operational Terms

Align the Organization to the Strategy

Make Strategy Everyone’s J ob

Make Strategy a Continual Process


Scenarios


Performance Management and Web 2.0 Benefits

• Achieve alignment and focus on strategy and the achievement of your

organization’s mission

• Create organizational synergies in relation to strategy

• Build an efficient and highly productive organization and workforce

• Balance short-term, operational decisions with longer-term, strategic

decisions more effectively

• Create and deliver maximum stakeholder value

• Deliver fiscally-responsible, breakthrough stakeholder

performance/service delivery

Join that small group of organizations (10%) that are recognized for their strategy execution successes!



The capacity and focus of 1000’s of knowledge

workers to innovate, achieve your business

strategy, and create value is far greater

than that of a few top level executives.


Sandy has a bit of time to answer a few questions, so we’ll take questions via WebEx at this time.

Please introduce yourself and your organization.

Questions & Answers


Thank – You.

Thanks to everyone who participated in this webinar. To show our appreciation, we would like to offer each of you a FREE one hour session with an Online Community Architect for a review of your current website, community, Web 2.0 Social

Networking Strategy or Performance Management Strategy.

We will follow up with each of you with the specific offer and to provide a link to a recording of today’s webinar.

www.igloosoftware.com/solutions/companies
