Case Studies and Best Practices 

Theme 1: Mobilizing the Organization:
Clarifying the Strategy

Implementing an Integrated Strategy Management Process at PSE&G 

Ralph LaRossa, President and COO, PSE&G

Sociedad Hipotecaria Federal: Translating the Strategy in Turbulent Times

Javier Gavito Mohar, CEO, Sociedad Hipotecaria Federal

Sociedad Hipotecaria Federal (SHF) was created in 2002 by the Mexico’s Ministry of Finance and Public Credit, to attend the low and medium income sector of the population through the offer of mortgage credits and guarantees in market conditions. It acts as a Second Tier Bank, and works directly with SOFOLES (Non-bank banks) and with INFONAVIT, FOVISSSTE, and Banks. As one of the home financing government organizations in Mexico facing a turbulent global housing market and economy, SHF found that successfully defining and translating their strategy into operational terms was a critical step in ensuring continuity of the organization’s vision and achieving its mission to “lead the development of financing solutions for housing in Mexico.”

Moving from Translating to Aligning Strategy: Using Measures in the Pharmaceutical Industry

Eileen Morrissey, Vice President, Business Excellence, Pfizer, Inc.

How do you identify leading indicators of successful medicines in the market place 10 years prior
to launch? How do you get very functionally focused organizations to align around a common
set of shared goals? How do you shift from an externally focused set of metrics which drive
activities, to meaningful key performance indicators that drive behaviors and outcomes? How
do you use metrics to prioritize and measure the process improvement opportunities critical
to the businesses success? These are just a few of the challenges of building scorecards in the
pharmaceutical industry—as well as in many other industries. Eileen Morrissey, who has over
a decade of experience in the pharmaceutical industry, will share her insights and examples
including building scorecards at the top of a highly decentralized company and the specific
challenges identifying KPI’s for bringing medicines to market.

Theme 2: Driving Performance: Creating Alignment & Linking to Operations

HSBC Bank Brasil: Aligning People and Organizations to the Strategy

Lars Rejding, Head of Strategy and Planning, HSBC Latin America

HSBC has recently experienced strong and broad organic and inorganic growth in Latin America

in a fairly short period of time. As a result, the bank needed to consolidate the business by

aligning the countries around a common regional strategy. In early 2008, a regional CEO was

appointed for Latin America with the key objective of consolidating the operations into a

regional bank with a common strategy and coordination of countries. The region replicated this

structure and established a matrix organization with local business heads reporting to a country

CEO and a regional business head. The office of regional strategy and planning was responsible

for implementing and communicating a unified strategy across the organization. Despite the

challenges of a complex environment, strategy maps and balanced scorecards were developed

for all senior managers in the region, ensuring alignment throughout the region and with their

respective group functions within three months. Furthermore, the basis for fully cascading BSCs

to individual goals and objectives was established and monitored. At the end of the project,

the region went from a silos based country by country perspective to a regional strategy with a

widespread adoption of the BSC methodology based on common regional objectives.

Championing Change: Making Strategy Everyone’s Job at SMDC

Dr. Peter Person, CEO Saint Mary’s Duluth Clinic

Barbara Possin, Vice President, Saint Mary’s Duluth Clinic

Successful strategy creation and implementation during transitions and organizational change

requires strong leadership and consistent implementation. St Mary’s Duluth Clinic (SMDC), a

regional health care system based in Minnesota has successfully used the Balanced Scorecard

since 2000. As the CEO, Dr. Person will describe how he has lead this complex organization during

times of major external and internal change and the effective use of the Balanced Scorecard as

a tool to drive and sustain effective strategy implementation. As VP of Strategy Management,

Barbara Possin will share her experience and insights in operationalizing the BSC including

successes, failures and lessons learned over the last 10 years.

Strategy Management: A Continuous Learning Process

Victoria Eugenia Bejarano de la Torre, President,  MAPFRE Insurance, Colombia

With a solid growing global reputation and over 30,000 employees, MAPFRE is the leading insurance

company in Spain and Latin America. In this session, President Victoria Eugenia Bejarano de la Torre will discuss how MAPFRE has managed its strategy in the challenging and ever-evolving environment of

Columbia to become one of the most successful global insurance companies. Delegates will gain valuable insight to the critical stages MAPFRE went through during the creation and implementation of an effective Strategy Management System.

Organizational Transformation at Army Air Force Exchange Service (AAFES): Linking Strategy and Operations

Rhonda Bradford, Chief Business Transformation, AAFES

Mark Neely, Business Transformation Manager, AAFES

AAFES is a $10 Billion retailer serving military service members consisting of 43,000 employees,

and over 12 million customers at more than 3,000 stores in some 30 countries. Operating retail

facilities worldwide from Thule, Greenland to Afghanistan generates unique retail supply

chain challenges. To effectively serve the best customers in the world and remain competitive

in the tough retail industry, AAFES underwent a strategic transformation by implementing

the Balanced Scorecard strategy management framework and a corresponding Enterprise

Performance Management solution to help improve the strategy execution process by creating

linkages between strategy and operations, and driving accountability throughout the entire

organization. To date, these initiatives have led to outstanding Execution Premium results

including reduced inventories, increased customer traffic, a rise in employee satisfaction and

a 10% revenue growth. Learn about the challenges AAFES faced during this transformative

process and the best practices it adopted to achieve breakthrough performance.

Increasing Performance Management with Driver-Based Budgeting and

Research Based Analytics

Larry Yuspeh, Director of Research, Development and Strategy Management,

Louisiana Workers’ Compensation Corporation

Louisiana Workers’ Compensation Corporation (LWCC) was created by the Louisiana legislature

with a $5 million loan and a credit guarantee from the state. Today LWCC is a fully independent

private mutual insurance company that is the largest writer of workers’ compensation insurance

in Louisiana with over $500 million in surplus and over $1 billion in invested assets and that has

returned over $121million in dividends to its policyholders in the past 6 years. As a way to focus

the enterprise and connect the strategy outlined in the Balanced Scorecard to our budget, LWCC

adopted the use of driver based budgeting in conjunction with its traditional budgeting process.

In 2008 all business units were required to submit key activity drivers and driver models with their

budgets. These models were used to focus the annual budget review meetings with the CEO and

CFO, thereby framing those conversations around the activities that drive expenses as opposed

to the silo based discussions that did not explain what was behind the numbers. Through difficult

times including the post Hurricane Katrina period, LWCC’s integration of driver based budgeting,

strategy management, research based analytics, and the operating budget cycle has resulted in

double digit rate reductions, record income and dividends, and low combined ratios that have

driven down workers’ compensation rates in Louisiana.

THEME 3: Optimizing Data: Learning & Adapting for Better Decision-Making

Creating a Closed-Loop Marketing Dashboard at sanofi-aventis

Leadership Lessons in Testing and Adapting the Strategy for
Breakthrough Performance

Creating an Innovation Engine through Analytics at Quintiles

Strategy Review Meetings as a Change Factor