Presentation from the 2014 Strategic Execution Conference in Santa Clara, CA, USA. Covers: the changing nature of strategy; how successful strategic execution is; reasons for 22% of businesses losing $28M on $100m of spend on stategic execution projects, eight essential items to get right and how success in strategic executiob can be gamechanging.

1. © 2014 Cognizant
© 2014 Cognizant
October 2014
Ensuring Tangible Business Outcomes through Effective Engagement
Jon Hughes
Head of Program Management Consulting Americas
Vice President, Cognizant Business Consulting

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In the next 45 minutes, we will cover FIVE key topics…
Why is StratExImportant?
How Successful is Stratex?
Why is StratExDifficult?
How Can You Succeed?
What Results Can be Achieved?
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The conversion of strategic intent into
reality through the successful
delivery of integrated initiatives
focused on common objectives
“STRATEGIC EXECUTION”
Jon Hughes 2001
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The world is flattening at an incredible pace
Why is StratExImportant?

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Strategic Execution Capability will become increasingly
more important than Strategic Thinking!
Why is StratExImportant?
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In the next decade Competitive
Advantage will not be achieved
through simply having a winning
strategy
It will be by ensuring the organization
can Deliver Strategy more Effectively
than the competition
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Organizations are continuing to invest in increasingly
larger and complex programs of change
The Royal Bank of Scotland is to invest £700 million over the next three years upgrading its branches
In 2012 Europe Invested $2.35 billion in Smart Grid Projects
Global 2013 H1 acquisitions total $896Bn
Mondelezis investing in a $3.5B program to reduce $1.5B per annum in operating cost
Why is StratExImportant?
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Visible failure is painful, costly and potentially
catastrophic for the enterprise
Originally scheduled for delivery in 2006, the AIRBUS 380 entry into service was delayed by almost 2 years and was several billiondollars over budget
The NHS IT system is one of the 'worst fiascos ever', say MPs. Latest estimates are £9.8bn (and rising)
$840 million has been spent onHealthCare.gov, including more than $150 million just in cost overruns for the version that failed so badly when it launched last year
How Successful is Stratex?
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For every $1B of PROJECT investment, poor performers risk
wasting 14 TIMES more than high performers
How Successful is Stratex?
Source: 2013 PMI Pulse of the Profession
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22% of organisations
risk losing $28m for
every $100m invested in
projects
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Complex Change is inherently COMPLEX!
Why is StratExDifficult?

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(Some of) The Reasons Why Strategic Execution Fails Include the Following:
•
Effort is applied to unimportant areas
•
Staff Rotation
•
Being overtaken by another priority
•
It’s Too Complex
•
Breaking down the problem into silos
•
Fear of telling the truth (no matter how bad it is)
•
Not going ugly enough early enough
•
Unable to balance details with big picture
•
The wrong people
•
The right people in the wrong roles
•
Poor preparation
•
Poor execution
•
Poor control
•
Insufficient attention to quality
•
Point Scoring
•
Lack of common nomenclature
•
Different perspectives
•
Differing priorities
•
Inadequate Sponsorship
•
Lack of Focus on Results
•
“Drip Feed” or Soft Launch
•
Lack of Urgency
•
Poor Communications
•
Conflicting Agendas
•
Inadequate Capability to Deliver
•
Poor Organizational Culture
•
Lack of Delegation
•
Inappropriate Method
•
We always do it this way
•
Fear of Failure
•
History of Failure
•
Taking too long
•
Poor expectation management
•
Lack of buy in
•
Afraid to make difficult decisions
•
Time wasting
Why is StratExDifficult?

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Forward planning is typically weak
Why is StratExDifficult?

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Strategic Execution Delivery even at the lowest
PROJECT level remains poor
1Source: : Project Management Institute
2013 Pulse of the Profession.
Why is StratExDifficult?
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Strategic Execution Success is not about methods (or tools) !
Plus all the proprietary methods from over 100s of firms globally…
•
PMI
•PMBOK
•Critical Chain
•Agile
•Extreme
•Event Chain
•Deliverable based
•Risk Based
•CMMI
•SPICE
•APM
•PRINCE
•
PRINCE II
•
GAPS
•
PRINCESS
•
PROMPT
•
HERMES
•
WATERFALL
•
ISO 9000
•
ISO10006
•
V-Modell
•
Team Software Process
•
Total Cost Management
Why is StratExDifficult?
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Based upon running and reviewing MANY
strategic execution initiatives over the
past two decades…
I believe that over 75% of critical flaws are
created right at the beginning of a major
initiative…
and are essentially INDEPENDENT of the
method or tools used
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Little thought has been given to
creating ENGAGED, high
performance strategic execution
teams in a focused, structured
and repeatable way at the start
of major transformational
initiatives
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Effective Engagement resolves the EIGHT critical areas essential for any successful Strategic Execution
1.
Ensuring Clarity of Purpose
2.
Simplify Complexity AND Maintain Alignment
3.
Effective Sponsorship
4.
Measure and Manage the Right Things
5.
Understand your Capability and Environment REALLY well
6.
Building an integrated plan that is thoroughly understood and bought into by the team
7.
Embedding a consistent approach, with a supporting toolset and ENSURING the team use them!
8.
Creating an Esprit rapidly that surmounts the “SOFT” issues experienced by all new teams
How Can You Succeed?

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The best vision statements reduce complexity to
something manageable and unite the organisation
“Selling the highest quality natural and organic products available.”
Wikipedia
“Imagine a world in which every single person is given free access to the sum of all human knowledge.”
Salesforce.com
“The end of software”
“Give customers the freshest, highest quality foods you can buy and provide them with friendly service in a sparkling clean environment.
Illiteracy Program
“In two decades our services will no longer be needed.
Google
“To provide access to the world’s information in one click.”
“To be the world’s most customer-centric company
How Can You Succeed?
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It is VERY Tempting to SILO complexity – but it doesn’t work!
How Can You Succeed?
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A One Page Strategy helps to divide, conquer AND
retain integrity!
Key Business ProcessesWhat are the core operational and supporting processes?
Process VisionWhat will the organization look like in 3-5 years?
VisionWhat will our business look like in the future?
MissionWhat are we here to do?
Goals for ExcellenceWhat are the Intermediate signposts from now to the vision?
Management ActionsWhat are the key capability and short-term performance gaps that need to be addressed?
Strategic Transformation InitiativesWhat projects and workstreamsare required to change direction and/or transform ways of working?
Stakeholder GoalsWhat for are the goals for group? How will we know when we get there?
Strategic AlignmentHow well do the opportunities align with goals? Do we have enough of the right ideas?
How Can You Succeed?
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Design Principles and Goals are essential integrating
themes to keep the focus on the kind of business you
want to be…
Proposition
(Vision)
VALUES
Beliefs, attitudes that
Underpin the way
we behave
CSF’s
What we must
do well
Design
Principles
Guidelines for what we want
To be
GOALS
Processes
Technology
People
Organisation
Design Principles and Goals are best practice guidelines for reviewing current operations, and setting the future direction of the business
They affect Process, Systems, Structure, Roles and Responsibilities, Reward Mechanisms, Culture and the future success of the business
They impact all the Workstreamsof the transformation and will be used to determine valid design decisions They will particularly affect the way we design processes
How Can You Succeed?
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The impact of Different “DPs and G’s” is enormous...
Vision
Get to work in city from home in suburbs by 8am
Design Principle BDesign Goal B
•
MinimiseCost <$1/day
•
Comfort not an issue No restrictions
Design Principle ADesign Goal A
•
Cost is no issue$100/day
•
MaximiseComfortNo increase Heartrate
How Can You Succeed?

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An Elastic Digital Architecture provides a flexible and
simple “Chassis” to support complex change
How Can You Succeed?
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EFFECTIVE Sponsorship is required to drive alignment
Power: The power to drive change within the business
Pain: A sufficient degree of dissatisfaction with the current state to want to change it
Clarity of Purpose: An unambiguous, communicable “Vision” of the desired end state
A Plan: A thorough understanding of the roadmap and milestones on the journey that needs to be undertaken to deliver the Vision
Commitment: Deep knowledge of the organizational resources needed for success together with the ability and willingness to commit what is necessary for the project to succeed
Empathy: An in-depth understanding of the effect the change will have on: the organization; customers; staff
Pragmatism: The ability to determine the best or “least wrong” course of action at key points in the transformation journey
Public Support: The ability and willingness to convey strong and unwavering public support of and commitment to the change
Private Support: The ability and willingness to meet privately with key individuals or groups in order to convey strong personal support for the change
Consequence Management: Promptly reward those who assist with the change or express displeasure with those who inhibit acceptance of the change
Follow Through: The determination to ensure that monitoring procedures are established to track progress, highlight problems that may occur during the transformation process and resolve them swiftly
Sacrifice: The commitment to pursue the task knowing that a personal, political, or organizational price may be paid for implementing the change
Persistence: The capacity to demonstrate consistent sustained support for the change and reject any course of action with short-term benefits if it is inconsistent with the strategic goals
Desirable Sponsorship Attributes for Change Programs Jon Hughes, Change Management Conference 2009
How Can You Succeed?
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Measuring the Wrong Things is A Surprisingly Common Error
Do You….
Manage what you measure? Measure what you manage
(because that’s easy!)(because it is important!)
How Can You Succeed?
What is
Important?
I’ll manage what is important
I need to measure what I need to manage
Result: Achieve the Vision
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Effectiveness vs Efficiency – What would you choose?
Efficiency
Effectiveness
Doctor
Minimum waiting line
Cure every patient in one visit
Airport security
Process the maximum number of travellersin the shortest time
Ensureno-one who represents a threat to safety is allowed through
Transformational Initiative
Minimisetime and Cost to deliver
Maximisetangible output
How Can You Succeed?
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When the wrong Metrics are used….Catastrophies DO
Occur
NHS waiting list scandal revealed
by JENNY HOPE, Daily Mail
A shocking official report yesterday exposed how NHS waiting lists were massaged to meet Government targets.
It said patients with life-threatening illnesses had their treatment delayed because priority was given to those with minor ailments who had waited longer.
The National Audit Office found a majority of consultants - who have themselves complained of heavy pressure from hospital managers -admitted distorting clinical priorities.
Operations to reverse vasectomies were performed at the expense of patients waiting for bladder tumoursurgery.
Minor ear, nose and throat disorders went ahead of serious breathing troubles.
Patients for hip and knee replacement were treated before those needing urgent surgery to repair artificial joints.
Doctors say it is impossible to know whether this led to avoidable deaths, but it certainly increased the suffering of some patients.
How Can You Succeed?
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“To achieve our vision, what must we excel at?”
“If we succeed, how will we look to our shareholders?”
“To achieve our vision, how must we look to our customers?”
“To achieve our vision, how must we learn & improve?”
External
Internal
Softer measures -harder measures
Financial Perspective
Customer Perspective
Learning & Growth Perspective
Operational Perspective
Overarching
Question
The Balanced Business Scorecard*
6
Increasing Operational Efficiency
Developing Capability for the Future
Increasing Corporate Agility/Flexibility
Saving the Planet
Improving Strategic Execution Capability
Improving Customer Satisfaction
Increasing Profitability
Improving Leadership Alignment
Staying Legal
Increasing Shareholder Value
Increasing Innovation Capability
Increasing Revenue
Increasing Competitive Differentiation
Increasing Operational Effectiveness
Reducing Operational Risk
Increasing Employee Morale
How Can You Succeed?
*DrRobert Kaplan and DrDavid Norton
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Some famous thoughts suggest that understanding your
environment and nature is important…
True wisdom comes to each of us when we realize how little we understand about life, ourselves, and the world around us
Socrates
Look deep into nature, and then you will understand everything better
Albert Einstein
How Can You Succeed?
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Understanding your UNIQUE organizational ability to
Execute Strategy is Key
How Can You Succeed? Drive program deliveryManage transition to operationsProvide effective governanceManage benefits realizationManage change & stakeholdersManage projectsManage scope & changeAssure solution integrityDefine program strategy & visionManage releasesManage procurementEstablish an effective program organizationSet up program operations012345Provide effectivegovernanceDefine program strategy& visionSet up programoperationsEstablish an effectiveprogram organizationManage benefitsrealizationManage scope & changeAssure solution integrityManage procurementManage releasesDrive program deliveryManage change & stakeholdersManage transition tooperations
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Without an Integrated, Resource Loaded Master
Schedule you don’t have a viable STRATEGIC
EXECUTION PLAN
Distribution - Shared SvcsMAC Analyst - TechnicalMAC Analyst - Technical788000143982342407100Distribution Web ServicesMAC Analyst - TechnicalMAC Analyst - Technical8290000396749713810219415891135Distribution Web ServicesDoug VickeryMAC Analyst - Technical2561900000000Distribution Web ServicesMAC Analyst - TechnicalMAC Analyst - Technical1600000000136240ENT - FinanceMAC Analyst - TechnicalMAC Analyst - Technical29800000791378200OPERATIONS - Trade SettlementsMAC Analyst - TechnicalMAC Analyst - Technical60001000500OPERATIONS - Transfer AgentMAC Analyst - TechnicalMAC Analyst - Technical370008575830FO - EquityMAC Analyst - TechnicalMAC Analyst - Technical197500017622626850032239490FO - SMAMAC Analyst - TechnicalMAC Analyst - Technical13280003103962602101221813Distribution Web ServicesMAC Analyst - TechnicalMAC Analyst - Technical8290000396749713810219415891135Distribution Web ServicesDoug VickeryMAC Analyst - Technical2561900000000Distribution Web ServicesMAC Analyst - TechnicalMAC Analyst - Technical1600000000136240FO - Fixed and ComplianceMAC Analyst - TechnicalMAC Analyst - Technical251200013610320528546313200OPERATIONS - Investment ActMAC Analyst - TechnicalMAC Analyst - Technical110003001520FO - Market DataMAC Analyst - TechnicalMAC Analyst - Technical220800025639839140840528170
Beware falling behind on the resource onboarding curve
0
50
100
150
200
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Resources needed
Resources onboarded
Look for overcommitted critical resource at the PROGRAM or PORTFOLIO level
How Can You Succeed?
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Even with these elements in place it’s important to
engage the “clutch” without stalling or burning it out
How Can You Succeed?
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Look for Look for Three types of Behavior to overcome
organizational inertia
MP Bumsted
BioculturalScience & Management
How Can You Succeed?
Lubricants:
People who are deft with other people and can smooth out inter- personal or inter-group issues
Catalysts:
People who drive to make change happen and inspire other people to join in
Irritants: People who are initially negative but if they can be converted become advocates of the change –like a grain of sand in an oyster which could kill the oyster or become a pearl
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You need to work harder than you think to rapidly drive
performance of the teams up “Cogg’s Ladder

Information
Gathering
Ritual sniffing
Uncertainty, anxiety
Pairing/cliques
Stereotyping
Dependence/ shunting
Conflict (overt, covert)
Infighting
Confusing re ends/means individual needs
Competitive, points scoring
Scapegoating (external)
‘I’ behaviour
Hidden Agendas
Lost Ideas
Question ground rules and assumptions
Make invisible visible
Confront conflicts & search for solution
Acknowledge weakness
Experimentation
Clarity of ‘what’
Disclosure
Cohesion/Identity
Listening
Compromise/build
Rewarding/supporting
‘How to’ problem solving
Effectiveness
‘We’ behaviour
Including
Raising Standards
How to do better
Flexible contributions roles, leadership structure
Rigid on goal, flexible on how to reach if
Interdependence
Maturity/ excellence
Inclusion
Control
Supportiveness
SKILLS TO RESOLVE EACH STAGE
GIVE UP TO GROW
FORMING
STORMING
NORMING
REFORMING
PERFORMING
POLITE
WHY ARE
WE HERE
BID FOR
POWER
CONSTRUCTIVE
ESPRIT
Articulates/Summarises Differences
Comfort
Risk conflict/disagreement
Non commitment
Link/build
Search for commonality
Risk possibility of being wrong or not having all the answers
Defence of own views
Disclosure
Draw out
How to/what if?
Risk of depending on others to deliver trusting them
Control
How Can You Succeed?
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The Results of Effective Engagement: Sponsor Quotes
“we had supreme confidence in where we were going and what we needed to do”
“the ONLY way to start a major strategic initiative!”
“an estimated 6 weeks of time was saved through effective mobilization and engagement”
“we accelerated delivery by around 4 weeks by getting our house in order at the beginning through effective engagement”
How Can You Succeed?
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SUCCESSFUL Strategic Executions are Gamechanging
A financial services business wanted to design a new target operating model to transform its financial performance. An effectively engaged team designed and delivered the program to plan that outsourced commodity business processes, sold non-core business units, and transformed people, process and technology to support core operations and created new capabilities
A utility company underwent a high-risk and extremely complex transformation of process, systems and people to radically change their operating model to meet competitive pressures. Acceleration of over 4 weeks in the first 6 months of the program through effective engagement of the joint team of vendors, client staff and consultants resulted in operating cost reductions of over $100M
A global oil company merger resulting in a $100B combined entity and significantly enhancing shareholder value over 12 months
The merger of two European Investment Banks created the largest Investment Firm in the world and an effective integration of all aspects of the business ranging from marketing collateral to supporting systems, processes and organization resulting in accelerated delivery of the merged entity ahead of analyst expectations
How Can You Succeed?
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Strategic Execution Success
is not achieved by an “ology”
In the world of Strategic
Execution, there is no “one
size fits all” model
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There IS more than one way to skin a cat!
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For further information on this presentation, to use one of the diagnostics or to discuss Successful Strategic Execution and mobilization techniques please contact
Jon Hughesjon.hughes@cognizant.com