Case Studies and Best Practices
Theme 1: Leading the Organization: Clarifying the Strategy
Leading the Organization: Clarifying Strategy
Dr. David P. Norton, Palladium Group, Inc.
Developing strategy requires commitment, critical thinking, and an investment of resources. A good strategy development process greatly improves the likelihood of execution success. Dr. Norton will delve into the first two stages of the Kaplan-Norton Strategy Management Process and discuss the cause-effect models to establish targets, initiatives, and stratex as well as the power and logic of strategic themes.
Developing the Strategy at Canadian Blood Services: Mission, Vision, and Values
Sophie de Villers, Vice President of Strategy Management, Canadian Blood Services
In 2007, Canadian Blood Services won the Palladium Hall of Fame for Executing Strategy Award, for demonstrating breakthrough performance improvements in providing safe and plentiful blood and blood-related products across Canada. Since then, the organization has not rested on its laurels. Owing to its sound strategic management and commitment to performance, CBS was asked to assume a new and daunting task: create new national systems for organ and tissue donation and transplantation to ensure national equitable access to donated organs. If this were not enough, the organization also re-oriented how it faced customers—transitioning to a product-focused structure. The CBS leadership decided to use their existing strategy management tools to drive these changes.
Mobilizing for Strategy Execution
Osmair Garcia, Director, Corporate Controller and Strategy, Volkswagen do Brasil
Volkswagen do Brasil (VWB) is the largest Volkswagen operation in the Americas, with four plants, 22,000 employees and revenues of more than $9B—it enjoys one of the highest profitability rates in the VW group. It wasn’t always this way, however. In 2006, following years of currency devaluation, a sluggish economy, new sources of competition and market share loss, VWB undertook a major restructuring and adopted the BSC to mobilize the company. In two years, revenue grew from $6.7B to $9B, employee engagement doubled
and significant improvements in internal processes resulted. Last year VWB grew above the average for Brazil’s auto industry and was awarded the Palladium BSC Hall of Fame for Executing Strategy®. Hear the story behind this award-winning implementation.
Office of the Inspector General: “But, we are too busy for strategic planning”
Stephen Hardgrove, Chief of Staff, Office of Inspector General for the U.S. Department of the Interior
Scott Culver, Deputy Assistant Inspector, General for Investigations
The Office of Inspector General (OIG) for, the U.S. Department of the Interior (DOI) provides independent oversight to promote integrity, accountability, effectiveness, and efficiency within the programs, operations, and management of the DOI. Recently, the OIG took major responsibility for oversight and investigative activities on the Deepwater Horizon accident in the Gulf of Mexico. In the midst of leadership changes during the most significant human-caused ecological disaster to affect the United States, the OIG worked to identify a strategic management system to implement a change agenda. Within 6 months of initiating the Kaplan-Norton Strategy Management Process, the OIG developed a plan, held their first Strategy Review Meeting, and created a Strategy Management Office. Despite feedback that the organization was “too busy” to focus attention on strategic planning, leadership responded that the organization was too busy NOT to plan.
Theme 2: Driving Performance: Creating Alignment & Linking to Operations
(Invited) Strategy Implementation Following a Major Merger:
Achieving Alignment at Merck
Tom Hall, Senior Director, Strategy Realization, Merck & Co., Inc.
Patricia Jaar Watson, Manager, Strategy Realization, Merck & Co., Inc.
Today’s Merck is a global healthcare leader working to help the world be well. Merck, known as MSD outside the United States and Canada, operates in more than 140 countries. In November 2009, Merck and Schering-Plough merged to create a stronger, more diverse, and truly global company. Following the completion of the merger, Merck needed to engage colleagues globally to ensure the successful implementation of its strategy. Tom Hall and Patricia Watson will explore some of the ways in which Merck leveraged the Strategy Map and Scorecard to clarify strategic priorities and align activities around key objectives in the new company. This case study will emphasize mechanisms that Merck put in place in order to create alignment including: leveraging the strategy execution infrastructure to support large scale integration, leveraging executive communication to introduce the strategy map and scorecard, and aligning incentives with strategic priorities.
The FBI’s Strategy Management System: Linking Strategy to Operations
David Schlendorf, Assistant Director, Resource Planning Office
The FBI first implemented the Balanced Scorecard approach, or what it now calls the Strategy Management System (SMS), across the organization in 2006. Since then, the FBI has been consistently strengthening the linkages between SMS, its intelligence cycle and investigative operations, and its administrative management practices including financial planning and external performance reporting. David will discuss how the FBI uses the BSC framework to drive national security and law enforcement operations and assess the success of those operations. In addition, delegates will learn how the FBI integrates their financial management practices with the BSC and links performance metrics to externally required performance reporting.
Theme 3: Optimizing Data: Learning & Adapting for Better Decision-Making
Maturing Strategy Management: Aligning, Analyzing and Driving Enterprise Strategy at Northwestern Mutual
Bethany M. Rodenhuis, Vice President, Corporate Planning, Northwestern Mutual
Northwestern Mutual (NWM) is a 152-year-old mutual company with more than three million clients. It has paid life insurance dividends every year since 1872 and has paid more in total individual life insurance dividends to policy owners than any other company for the past 12 years. Ten years ago the market for sophisticated insurance products began to explode and, internally, the challenge of integrating multiple business lines emerged. NWM’s scorecard has been elevated to a new level of management focus and a renewal effort
was introduced to gain greater leverage from the strategy. This presentation will describe the stages along their ten-year scorecard journey, show how compensation alignment is used to make strategy everyone’s everyday job, and describe how analytics are used to test and adapt the strategy.
Roche Pharmaceuticals: Embedding the Strategy Execution Capacity in the Organization Through the “Execution Champs”
Manuel Pascual, Director of Strategic Planning, Roche Mexico
Roche is one of the world’s leading healthcare companies specializing in diagnostics and pharmaceuticals. Roche employs over 80,000 people worldwide and sells its products in over 150 countries. Sales for Roche Mexico represent 22% of the total sales in Latin America. The global organization underwent a consolidation of management and needed a united and well coordinated approach to execute its strategy. In this session, Manual Pascual will describe the process Roche Mexico followed to ensure the alignment of his organization to key strategic and operational objectives including the implementation of the “Strategy Execution Champions”, a new role designed to augment the Office of Strategy Management’s ability to implement, execute, and sustain Roche Mexico’s strategy.
The Elkay® Management System: Driving Performance through Alignment, Analytics, and Accountability
John Hrudicka, CFO, Elkay Manufacturing Co.
Eyal Altman, Director of Strategy Management, Elkay Manufacturing Co.
Elkay, a manufacturer of stainless steel sinks, water coolers, drinking fountains, and faucets, as well as cabinetry and counter tops, has more than 2,800 employees in facilities across the United States and select international markets. To align the thousands of Elkay employees operating in different locations and functions behind the common goal of business execution, Elkay implemented an innovative management system consisting of four primary components and related business practices which has provided greater transparency, knowledge, and enhanced, actionable analytics. Delegates will learn how Elkay’s management system drives the company towards its long-term strategic goals and has transformed organizational behavior and culture to one where employees take accountability, develop, and perform.