Strategic Planning in the Payroll Department - · PDF fileStrategic Planning in the Payroll...
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The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 9/9/2016
Strategic Planning in the
Payroll Department
Dennis Danilewicz, CPP Sr. Director-Disbursements Services
NYU Langone Medical Center
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Workshop Overview
• Objective: Give participants an overview of the planning
process, and basic tools needed to initiate planning in
their payroll environment
• Content
– Introduction to Strategic Business Planning
– Preparing a Strategic Business Plan
– Sample plan components
• Have fun
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Strategic Business Planning
• Strategic Business Planning is a process used to
ensure that an organization will achieve and
maintain competitive advantage. In the process,
the organization’s leaders first develop a vision
of how the organization should operate in the
future. They then formulate objectives and
strategies to move the organization to that future
state.
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The Strategic Planning Process
• Defines long term objectives, action plans and resources beyond next year
• Company-Position for future
• Business Unit- Sustain competitive advantage
• Department-Do your job better
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Time for Planning
Urgent
Important
Quadrant 1 Urgent and Important
Quadrant 2 Important but
Not Urgent
Quadrant 3 Urgent and
not Important
Quadrant 4 Not Urgent and Not Important
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Where does it fit?
Strategic Planning
Competitive Analysis
Bench- marking
Business Process
Reengineering
Future Actions
Outside Factors
Culture Quality Values
People
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More than the Status Quo
• Develop a competitor focus at all levels
• Develop employees
• Encourage individual and team contributions
• Identify resources needed
• Establish a vision and clear objectives
• Track progress
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Why Plan?
• Benefits of strategic planning
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• “If you don’t know where you are going,
any road will take you there.”
Through the Looking Glass
- Lewis Carroll
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“Dig a well before you are thirsty”
- Chinese proverb
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Additional Benefits of the planning process
• Allows leadership to simulate the future and examine
alternatives
• Provides a tool for communicating top leadership’s
vision, objectives, and strategies
• Provides a framework for decision-making for the entire
organization
• Provides a basis for measuring future performance
• Helps build a cohesive leadership team
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Preparing the Plan
• Fundamental view of process
• Organizing the planning process
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“A three sentence course in business: You read a book beginning to end. You run a business the opposite way. You start with the end, then do everything you must to reach it.”
- Harold Geneen
Former CEO, IT&T
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Fundamental view of process
• What do you do?
• Where do you want to be?
• Where are you now?
• How can you get to where you want to be?
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Organizing the planning
process
--Who do you involve?
--Appoint a facilitator
--Plan the planning process (where, when, how)
--Pre-interview
--Use technology
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Ground Rules
• Be open and honest
• Respect views of others
• One person speaks at a time
• Be aware that the train will be on time
• Complete assignments
• 100-mile rule
• Breaks - every hour
• Issues - handling short term
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Brainstorming
• All ideas allowed
• No discussion
• High energy
• Suspend judgment, evaluation, criticism
• Fast pace
• No censoring - self or others
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Steps in the Planning
Process (“Do it”)
Determine the Scope
Mission
Boundaries
Obtain a Vision of the Future
Vision statements
Key success factors
Investigate and Evaluate the Current Situation
Current assessment
Guiding Principles
Tailor a Bridge to the Future
Objectives/Goals
Initiatives/Tasks
Organizational structure
Business case
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Business is like war in one respect: If its grand strategy is
correct, any number of tactical errors can be made and
yet the enterprise proves successful”
- General Robert E. Wood
Former CEO,
Sears Roebuck & Company
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Mission Statements
• Explains who we are and what we do • Products or services
• Customer focus
• Quality Commitment
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Sample Mission Statements
“The office of Payroll is dedicated to providing the best and most
efficient service possible to XXXXX University employees. Our
tasks include processing twelve month, nine-month and bi-weekly
payroll. In total this involves producing approximately 10,000
payroll checks a month. It is our goal to produce these checks
and the associated electronic and paper reports in a timely and
accurate manner. We will strive to continually review our service
and make improvements to keep pace with the opportunities that
are made available through on-line entry of information. It is our
goal to be a Leader, not a follower, in this technological age.”
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Sample Mission Statements
• “The mission of Nathan Hale High School is to provide a
safe and nurturing learning environment which enables
students to reach their full potential and to achieve
success.”
• “The mission of the Department of Corrections is to hold
the offender accountable to the victim and community
and to prevent crime and reduce the likelihood of
juvenile and adult offenders re-offending.”
• “Provide quality products & services at reasonable
price.” - Manning’s Liquor Store
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Sample Mission Statements
“The mission of The Glaucoma Foundation is to
create a world without blindness.”
“To Make People Happy”-Disney
“Our goal is simply stated. We want to be the
best service organization in the world.” - IBM
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Sample Mission Statements
“We shall build good ships here
At a profit - if we can
At a loss - if we must
But always good ships”
- Newport News Shipyards and Dry Dock Company
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Planning Boundaries
• Business functions affected
• Business functions not affected
• Geographical boundaries
• Organizational boundaries
• Time
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Steps in the Planning
Process (“Do it”)
Determine the Scope
Mission
Boundaries
Obtain a Vision of the Future
Vision statements
Key success factors
Investigate and Evaluate the Current Situation
Current assessment
Guiding Principles
Tailor a Bridge to the Future
Objectives/Goals
Initiatives/Tasks
Organizational structure
Business case
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Vision Statement
• A brief description, often written in the
present tense, of the desired future state
of the organization.
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Importance of a Vision Statement in the
Planning Process
• Leads the organization forward
• Creates a compelling future
• Makes the strategy actionable
• Others share in it and understand their
role
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Sample Vision Statements
• “Put a man on the moon, and bring him back, by the end
of the decade.”
• “On June 19, 1994 there will be 81,000 screaming
soccer fans from all over the world enjoying a World Cup
soccer match, on grass, in the Pontiac Silverdome.”
• “Continuous improvement is a way of life for all our
employees.”
• “We are a state-of-the-art, cost-effective payroll
organization.”
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Key Success Factors
Circumstances that must go right in order
for the organization to achieve its vision.
May be external to the organization
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Sample Key Success Factors
• Success of our customers
• Solid understanding of our customer’s business
• Total quality management
• Constancy of purpose
• Empowered employees
• Agility, flexibility, and a willingness to change
• Strategic business partnerships
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Steps in the Planning
Process (“Do it”)
Determine the Scope
Mission
Boundaries
Obtain a Vision of the Future
Vision statements
Key success factors
Investigate and Evaluate the Current Situation
Current assessment
Guiding Principles
Tailor a Bridge to the Future
Objectives/Goals
Initiatives/Tasks
Organizational structure
Business case
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How effective are we?
• Did we exceed our expectation?
• Are the pieces missing critical to helping
us achieve our mission?
• What is the potential impact to our
customers and company if the activity
were performed to a world class standard?
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Investigate and Evaluate the Current
Situation
• Strengths - Traits of the organization which will
facilitate achieving the vision
• Weaknesses - Traits of the organization which
will hinder achieving the vision
• Opportunities/Threats - Outside factors which
may impact ability to achieve the vision
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Understanding the Current Strengths
• What is our current level of effectiveness?
• Is it where we want to be?
• What do we need to do to develop them
more fully?
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Factors to consider
• Financial
• Market Share
• Competition
• Product Line
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Understanding the current Weaknesses
• Do we need to change the culture?
• How critical is the impact?
• What help do we need to affect a change?
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Understanding the Outside Factors
• Maintaining a positive attitude
• Thinking outside the box
• Don’t listen to the “experts”
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Guiding Principles
What are the fundamental beliefs by which the
organization is directed?
Examples --
“We believe in the importance of people as
individuals”
“We believe in being the best”
“Treat employees as valued customers of the payroll
department”
“Have fun while doing a great job”
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Steps in the Planning
Process (“Do it”)
Determine the Scope
Mission
Boundaries
Obtain a Vision of the Future
Vision statements
Key success factors
Investigate and Evaluate the Current Situation
Current assessment
Guiding Principles
Tailor a Bridge to the Future
Objectives/Goals
Initiatives/Tasks
Organizational structure
Business case
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Tailor a Bridge to the
Future
Goals/ Objectives
Strategies
Initiatives Tasks
Organizational Structure
Business Case
Now Future
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“SMART” Objectives
• Specific
• Measurable
• Agreed upon
• Reachable
• Time specific
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Objectives, strategies, initiatives/tasks
• Objective - Reduce our costs by 10% this year
• Strategy - Utilize technology where paybacks
are one year or less
• Initiative/task - Install voice response unit to
handle requests for employment verification
letters
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Organizational Structure
• Define the organizational structure needed to
support the bridge to the future
• Example: Self-directed work teams composed of
cross-functional representative will be responsible for
initiatives 2, 4, 5 and 7.
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Business case
• Describe the business, economic, social
and regulatory motivations for pursuing the
initiatives.
• Develop a cost estimate, risk assessment,
and benefit analysis of each initiative.
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Integrate the Plan into your Business
• Introducing the Plan
• Living the Plan
• Revising the Plan
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“Plans are nothing.
Planning is everything.”
- Dwight D. Eisenhower
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“If we don’t change our direction, we might
end up where we are headed.”
- Chinese Proverb
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THANK YOU!
Dennis Danilewicz, CPP