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Transcript of Managing What You Measure - TechAdvantage · Henry Cano – NRECA Natl Consulting Group ....
Managing What You Measure
Lessons from the Balanced Performance Scorecard
Feb. 24, 2015 1
Tim Sullivan – Touchstone Energy Tony Thomas – NRECA Business and Technology Solutions
Henry Cano – NRECA Natl Consulting Group
Touchstone Energy Strategy Execution System
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The Balanced Scorecard and Strategy Execution
February, 2015
Today’s Topic
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Are we achieving our mission?
The Balanced Scorecard
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How do we achieve improved
performance?
Strategy Management System
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Organization of the Touchstone Energy Strategy Execution System for Distribution Cooperatives
Overall Strategy Execution System
Customized Best Processes
Process Summary
Key Activities for the Process
Templates or Best Practices
Final Deliverable Examples
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2. TRANSLATE THE STRATEGY 2.1 Design Strategy Map with
Linked Strategic Objectives 2.2 Define Strategic Measures
and Stretch Targets 2.3 Prioritize Strategic Initiatives
and Funding 2.4 Build the Balanced Scorecard 2.5 Assign Accountabilities for
Strategy Execution
1. DEVELOP THE STRATEGY 1.1 Drive the Strategy Execution
Agenda 1.2 Sustain Strategy Execution 1.3 Affirm Purpose, Mission ,
Values, and Vision 1.4 Perform Strategic Analysis 1.5 Formulate Strategy 1.6 Define Value Gap and
Enhance the Vision
3. ALIGN THE ORGANIZATION 3.1 Strategy Communications &
Alignment 3.2 Align Individual Goals 3.3 Align Compensation
4. LINK TO OPERATIONS 4.1 Use Models to Set Priorities &
Operationalize the Strategy 4.2 Integrate Financial Planning
with the Strategy 4.3 Create Operational Dashboards 4.4 Information Strategy and Plan
5. MONITOR AND LEARN 5.1 Conduct Strategy Review
Meetings 5.2 Manage Initiatives
6. TEST AND ADAPT 6.1 Annual Leadership Retreat
Strategy Execution System for
Touchstone Energy Cooperatives
Initiatives
Processes
Execute
* Palladium’s Complete Strategy Execution System is depicted in the Appendix
For each stage, best practices are customized and detailed for Touchstone Energy distribution cooperatives
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Stage: 2.0 Translate the Strategy
1. Translate the strategy into specifics to make it actionable and plausible to achieve expected results.
2. Identify the 3-4 strategic themes that bring focus to strategic actions.
3. Identify strategic objectives associated with each strategic theme and identify the cause-effect relationship key to driving and achieving results.
4. Develop a shared view among the Executive Staff on strategic themes and objectives, increase understanding, alignment and commitment to executing the strategy.
1. The strategy is translated into specifics that bring focus to decisions and actions that will drive strategic results.
2. Strategic themes and objectives bring clarity to the actions that must be taken to achieve the vision and realize strategic outcomes.
3. The executive team is aligned and committed to executing the strategy.
The Strategy Map provides the architecture for integrating all of the output from the strategy formulation processes completed in Stage 1. The Strategy Map describes the process of value creation through a series of cause-and-effect links among objectives across the four Balanced Scorecard (BSC) perspectives: Financial, Member, Internal Process, People & Culture. The person(s) responsible for strategy management/Strategic Management Role works with the Executive Staff and Board of Directors to identify the key strategic themes and objectives that must be accomplished to realize the value described in the vision statement. Each strategic theme should be associated with a resulting financial impact or mission outcome that contributes to closing the overall value gap.
Description:
Process Owner:
Key Stakeholder(s):
The primary owner is the person(s) responsible for the Strategy Management function
Executive staff and Board of Directors participate with full support from the CEO
Process: 2.1 Design Strategy Map with Linked Strategic Objectives
Objectives: Outcomes:
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Honesty Integrity Community Involvement Commitment to Safety & Environment Stewardship
Innovation Exceptional Member Service Respect & Appreciation for Employees Commitment to Community & Cooperative Principles
P2. Be the Preferred Employer
Culture/Talent/Performance
P1. Establish a “Member-Focused” Culture
P4. Communicate expectations, hold ourselves accountable and
celebrate achievements
P3. Innovate Technologies Fact-Base/Functional/Efficient
M1. Keep Member’s Bills Low
M2. Provide Great Service through Efficiency
M4. Participate and have an active commitment to our
community
M3. Provide Great Service through Extraordinary Care
R3. Increase my value proposition R2. Manage Wholesale Power R1. Reduce Operating Costs
We will enable our Employees
Ensuring stewardship of financial
strength
That provide a uniquely satisfying member
experience
To successfully deliver the Strategic
Processes
Fina
ncia
l M
embe
rs
Inte
rnal
Pro
cess
es
Peop
le &
C
ultu
re
Val
ues
COMMUNITY COMMITMENT
E12. Generate Member
Engagement Opportunities
E14. Provide effective member
legislative involvement
E13. Create positive
community and social impacts
E15. Complete community
projects on time and on budget
E1. Explore products and services that
enhance member convenience
E5. Provide Communication and
Education programs to the membership
MEMBER ENGAGEMENT
E3. Enhance the quality of life with member services
E4. Be a highly accessible, long-
term trusted partner
E10. Respond quickly and
efficient y to outages
E7. Reduce Outage Time
E6. Establish best-in-class
safety process and culture
E9. Optimize processes and the
use of assets
OPERATIONAL EXCELLENCE
E8. Identify and disseminate best
practices
E11. Effectively manage internal
costs
Mission: The cooperative’s mission is to provide safe, reliable and affordable electricity to its members Vision: To benefit our member-owners by providing reliable electric and energy services—delivered efficiently and with extraordinary member care within 3 years
Purpose: To be a top performing cooperative in our state and region
E2. Achieve high member
satisfaction scores
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Strategy Execution Plans for 2015
• Hold Four Master Classes (one each quarter)
• Hold Four 90-minute Webex Coaching Sessions with Palladium Consultants
• Update and completely customize the Master Class curriculum to include all co-op examples and TSE-owned material
• Hold one Strategy Execution Refresher Course for Alumni