Developing Your Strategy Map Prepared for
Healthcare Services
Prepared By
Learning and Quality Perpetual results. EASI adoption.
November 2013 1
Work Instruction WI-ABM-1002 Developing a Strategy Map http://www.abmlq.com/wiabm1002
Examples of ABM Strategy Maps http://www.abmlq.com/abmstrategymaps
Step 1 – Strategic Theme http://www.abmlq.com/sfobscstrategictheme
Step 2 – Mission and Vision Statements http://www.abmlq.com/sfobscmissionvision
Step 3 – Strategic Objectives http://www.abmlq.com/sfobscobjectives
2
Contents
CONTROLLED DOCUMENT: WI-ABM-1002
QMS STANDARDS
BUSINESS UNIT:
ABM 551 Fifth Avenue, Suite 300, New York, NY 10176
STANDARD TYPE:
Work Instruction
PROCEDURE TITLE: Developing a Strategy Map
AREA: Quality TYPE OF PROCEDURE:
Management System
DOCUMENT NUMBER: WI-ABM-1002 REVISION: 1.0
PROCEDURE STATUS IMPLEMENTED DATE REVISION DATE
Released 11/18/13 11/18/13
UNLOCK DOCUMENT TO EDIT BEYOND THIS POINT 1.0 PURPOSE/SCOPE
“Less than 10% of strategies effectively formulated are effectively executed. Most organizations don’t know how to execute strategy.” -- Fortune Magazine An organization’s ability to describe, manage and execute Strategy is achievable through Balanced Scorecards (BSC), a concept developed by Drs. Kaplan and Norton of the Harvard School of Business. When successfully implemented, BSC can result in a Strategy Focused Organization (SFO). The first step in the implementation of BSC is the development of a Strategy Map. This Work Instruction (WI) provides steps and tools in the development of a Strategy Map. Ideally, a Strategy Map should be cascaded from corporate to its business units, divisions, locations, shared services groups and finally each employee through personal scorecards. However, it can also be implemented without the use of the Corporate Strategy Map. The tools provided in this WI allow for both scenarios. 2.0 RESPONSIBILITIES 2.1 TASK RESPONSIBILITIES
It is the responsibility of all participants of a Strategy Mapping exercise to read and understand the provisions of this WI. It is the responsibility of the leaders of a team embarking in the implementation of BSC to communicate the purpose and importance of the process to their team members prior to commencing with the process. It is the responsibility of the ABM Learning and Quality (ABMLQ) team to ensure that the contents of this WI are current and accessible
Procedure Title: Developing a Strategy Map
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CONTROLLED DOCUMENT: WI-ABM-1002
QMS STANDARDS
2.2 APPROVAL / ESCALATION RESPONSIBILITIES The Senior Vice President of ABM Learning and Quality (ABMLQ) is the point of escalation for matters contested or inquired upon in this WI. 3.0 PROCEDURE (SOP OR WI STEPS) 3.1 WHAT IS STRATEGY? An organization’s strategy describes how it intends to create VALUE for its shareholders, customers and employees. Managing strategy is managing change. Therefore, to execute strategy is to execute change at all levels of an organization. 3.2 WHY IS STRATEGY IMPORTANT? Many factors make it difficult to implement strategy today. The pace of change continues to accelerate, technology changes frequently and the workforce is more diverse and mobile than ever before. But the underlying reason it is difficult to implement strategy today is because business and business strategy are fundamentally different today than they were even fifteen years ago. The industrial age has been replaced by the knowledge age, with transformational effects on the economy and the workplace. The differences that have come from the knowledge age, make Strategy more important but more difficult to execute. Through Balanced Scorecards, organizations can overcome the hurdles common to most and more recently, exemplified by a select few. Balanced Scorecards allow an organization to do the following: Describe strategy Manage strategy Execute strategy The first step in the implementation of BSC is the development of a Strategy Map. 3.3 STRATEGY MAP A Strategy Map is comprised of: Strategic Theme Mission Statement Vision Statement Strategic Objectives in each Perspective A Strategy Map has Four Balanced Perspectives: Financial or Stakeholder (private or public) Customer Internal Process Organizational Learning and Growth
Procedure Title: Developing a Strategy Map
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CONTROLLED DOCUMENT: WI-ABM-1002
QMS STANDARDS
3.4 STEPS TO DEVELOPING A STRATEGY MAP A Strategy Mapping session is typically an intensive face-to-face exercise facilitated by a Moderator. In most cases, the leaders or managerial staff of the team is in attendance. However, in other cases, representation from a cross-section of the team can also be advantageous; it can give the team a varied outcome. All the tools listed below can be found via abmlq.com: http://www.abmlq.com/sfobsccollateral STEP
1. 1Review the concept . of SFO through BSC with the participants
Prior to session
COMPETENCY (WHO) Leaders
2.
Review examples of ABM Strategy Maps
During session
Moderator
3.
Create Strategic Theme Create Mission and Vision Statements Create Strategic Objectives for each perspective Publish final Strategy Map
During session
Participants
During session
Participants
During session
Participants
Post session
ABMLQ
7.
Release to your employees to create awareness
Post session
Leaders
8.
Develop strategic initiatives and measures and targets
Post session
Team
4. 5.
6.
WHAT
Procedure Title: Developing a Strategy Map
WHEN
HOW (TOOLS) This Work Instruction
Examples of ABM Strategy Maps: http://www.abmlq.com/strate gymaps http://www.abmlq.com/sfobs cstrategictheme http://www.abmlq.com/sfobs cmissionvision http://www.abmlq.com/sfobs cobjectives Strategy Map Template: http://www.abmlq.com/sfobs ccollateral Suggested formats of release: a. Through abmlq.com: http://wwwabmlq.com/sfobsc group b. Print map and post in common areas c. Discuss in regularly scheduled meetings d. Refer to an objective when conducting a meeting to validate its purpose WI-ABM-1003 Strategic Initiatives WI-ABM-1004 Measures and Targets of Strategic Initiatives
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CONTROLLED DOCUMENT: WI-ABM-1002
QMS STANDARDS
4.0 SPECIAL DEFINITIONS THE FOLLOWING TERMS ARE REFERRED TO IN THIS STANDARD; TO VIEW THE DEFINITION OF EACH TERM PLEASE CLICK ON THE ABM LEXICON LIBRARY LINK: LEXICON LIBRARY TERM ABM LQ, Learning and Quality BSC, Balanced Scorecards Dr. Kaplan Dr. Norton Mission Statement SFO, Strategy Focused Organization Strategic Objectives Strategic Theme Vision Statement
5.0 ASSOCIATED REFERENCE DOCUMENTS THE FOLLOWING DOCUMENTS PROVIDE ADDITIONAL INFORMATION: DOCUMENT NAME ABM Strategy Maps WI-ABM-1003 Strategic Initiatives WI-ABM-1004 Measures and Targets of Strategic Initiatives
LOCATION http://www.abmlq.com/strategymaps http://www.abmlq.com/wiabm1003 http://www.abmlq.com/wiabm1004
6.0 ASSOCIATED KNOWLEDGE DATABASE THE FOLLOWING KNOWLEDGE DATABASES PROVIDE ADDITIONAL INFORMATION: KNOWLEDGE DATABASE
Procedure Title: Developing a Strategy Map
LOCATION
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CONTROLLED DOCUMENT: WI-ABM-1002
QMS STANDARDS
7.0 ASSOCIATED TOOLS THE FOLLOWING TOOLS MAY BE REQUIRED FOR COMPLIANCE TO THIS STANDARD: ASSOCIATED TOOLS R-WI-ABM-1002-1 Developing a Strategic Theme R-WI-ABM-1003-2 Developing Mission and Vision Statements R-WI-ABM-1003-3 Developing Strategic Objectives SFO BSC Collateral/Implementation Tools
LOCATION http://www.abmlq.com/sfobscstrategictheme http://www.abmlq.com/sfobscmissionvision http://www.abmlq.com/sfobscobjectives http://www.abmlq.com/sfobsccollateral
8.0 REVISION HISTORY REVISION (X.X) DATE OF LAST REVISION (MM/DD/YY) LAST APPROVAL DATE (MM/DD/YY)
1.0 11/18/13 11/18/13
DOCUMENT AUTHOR: Greg Lush; Melissa Cipriani
DOCUMENT MANAGER: Melissa Cipriani
REASON FOR CHANGE:
Revision 1.0
SECTION / PARAGRAPH CHANGED All
CHANGE MADE
Initial Entry
DATE OF REVISION MM/DD/YY 11/18/13
9.0 ELECTRONIC NOTIFICATION LIST: ELECTRONIC NOTIFICATIONS PLEASE CLICK HERE TO VIEW THE NAMES OF PERSONNEL CURRENTLY HOLDING THESE POSITIONS. ABM Learning and Quality, Senior Vice President ABM Learning and Quality Team
Procedure Title: Developing a Strategy Map
Page 5 of 6
CONTROLLED DOCUMENT: WI-ABM-1002
10.0
QMS STANDARDS
APPROVALS
PLEASE GO TO THE LINK BELOW FOR THE ELECTRONIC RECORD OF THE REVIEW AND APPROVAL OF THIS POLICY. DOCUMENT REVIEW FIRST APPROVER NAME: GREG LUSH BUSINESS UNIT: ABM
TITLE: SENIOR VP, LEARNING AND QUALITY SIGNATURE: ELECTRONIC APPROVAL
SECOND APPROVER NAME: BUSINESS UNIT: TITLE: SIGNATURE:
THIRD APPROVER NAME: BUSINESS UNIT: TITLE: SIGNATURE:
DOCUMENT HISTORY SECTION: Document Created on 11/18/13 by Melissa Cipriani
Procedure Title: Developing a Strategy Map
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Examples Of ABM Strategy Maps
3
SFO BSC
S T R A T E G Y
M A P
S T R A T E G I C
O B J E C T I V E S
ABM Learning and Quality | July 2013
Stakeholder Perspective
Drive organic growth
Maximize operating efficiency and service offerings
Customer Perspective
Enhance customer value through differentiated service
Improve communication effectiveness
Cultivate customer partnerships
Internal Process Perspective
Maximize new and existing solutions
Promote a culture of trust in innovation
Generate new or enhance EASI partnerships
Learning and Growth Perspective
Leverage EASI to facilitate knowledge transfer
Provide a foundation for viral and spontaneous learning
Enhance collaboration Stimulate learner community
Strategic theme: Harness collective strengths and inspire spontaneous innovation Mission
Vision
Provide a dynamic unified platform which erases boundaries and galvanizes a trusting community focused on translating challenges into opportunities
Pioneer methods to drive productivity and compel inclusive collaboration
S T R A T E G Y
M A P
S T R A T E G I C
O B J E C T I V E S
ABM Janitorial Services – West Region
Stakeholder Perspective
Promote integrated/ vertical sales
Maximize labor and supply management
Reduce DSO
Customer Perspective
Retain customers
Communicate effectively
Enhance customer value through differentiated services
Internal Process Perspective
Ensure compliance and best practices
Communicate effectively
Learning and Growth Perspective
Build talent through training and mentoring
Create specialty services expertise
Support accountability and ownership
Share best practices and leverage available tools
Strategic theme: Excellence through pride, teamwork and innovation Mission
Vision
To be recognized as the trusted leader delivering innovative facility solutions. We build strong relationships and enable our clients to focus on their core business.
Bold, unparalleled, global facility solutions
Strategy Mapping Exercises Steps 1 - 3
4
SFO BSC
SFO BSC – Strategy Mapping Step 1: Developing a Strategic Theme R-WI-ABM-1002-1
HELPFUL LINKS: x To join EASI and learn more about ABMLQ visit: http://www.abmlq.com x For assistance, please visit: http://www.abmlq.com/assist ance x To learn more about SFO BSC, please visit this link: http://www.abmlq.com/sfobsc collateral x Need help with any of the links? Call the Help Desk 800-470-4357 or contact abmlq@abm.com
Objective of Step 1: Create a Strategic Theme that will provide the focus and direction of your strategy map. Method: The process of creating a Strategic Theme involves both an individual and team exercise. The questionnaire in the next pages will guide you individually to arrive at a possible Theme for your team’s strategy map, after which will be reviewed with everyone else’s suggestions. Through a team exercise, guided by the Moderator, the team will vote on a final Theme. Moderator: The role of the moderator in Step 1 is to do the following: x Facilitate an open discussion that encourages creative thinking x Guide the team members in their individual and team exercises x Facilitate a democratic process of reaching a consensus as a final Theme is voted on x Promote an atmosphere of non-judgmental participation to give everyone the freedom to express their opinions
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SFO BSC – Strategy Mapping Step 1: Developing a Strategic Theme
1. Guidelines What is a Strategy Map and a Strategic Theme? Strategy Maps are used to describe an organization’s strategy using the four Balanced Scorecards perspectives: Financial, Customer, Internal Process and Organizational Learning and Growth. Strategy Maps utilize Strategic Themes to allow organizations to focus actions and to provide a structure for performance management. Strategic themes are the building blocks around which the execution of strategy occurs. A Strategy Focused Organization utilizes Balanced Scorecards (BSC) to accomplish the following: x Communication Tool: Describe our strategy x Performance Measurement System: Manage our strategy x Strategy Execution System: Execute our strategy Balanced Scorecards have three basic components: x Strategy Map with a Strategic Theme x Strategic and Operational Scorecards x Action Plan (Initiatives) Characteristics of a Strategic Theme: 1. Rallying Cry Members of any group can benefit from a common focus or direction that will bind the team together. This simple statement of what the group wants to accomplish must provide the motivation or inspiration to effectively rally the group towards their objectives. The Strategic Theme must provide the group with the fervor and intensity that will drive them to work cohesively as one. 2. Broad It must be broad or high level in nature but specific to the group’s purpose. It should not be detailed or too specific to a member’s individual objectives but rather, should translate across all disciplines. 3. Long-Term Strategic Themes can have varied life spans, depending on the direction of the organization. A 3 to 5 year strategic theme is preferred in order to have alignment with corporate goals.
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SFO BSC – Strategy Mapping Step 1: Developing a Strategic Theme
4. Unanimity The group must agree on their strategic theme in order to dedicate their efforts toward a common end and efficiently identify their contributions toward that end. 5. Simple and Attainable It must be simple enough to be understood by anyone in order to gain the momentum it requires to rally the team. If it has to be explained or clarified, it loses its effectiveness as a motivational tool. It must also be a realistic goal or the team will not be able to provide attainable objectives to help execute the theme.
2. Individual Exercise A. Consistency of Theme: Choose one answer in each of the following multiple choice questions. These questions are designed to give you a high level understanding of what is important to your organization and the direction you plan to take in the next 3 to 5 years. Is there a consistency or pattern to your answers? 1. Which of the following is of utmost importance to your team in helping reach your goals? a. b. c. d.
Our customers (internal or external) Our profitability Our processes Our employees
Enter answer here: 2. Which of the following do you feel is of utmost importance to your team’s leadership in helping reach your business unit goals? a. b. c. d.
Providing the best overall solution to your customers Providing the best value to your customers (lower costs – higher margins) Providing the best products and services to your customers Attracting and retaining exemplary employees
Enter answer here:
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SFO BSC – Strategy Mapping Step 1: Developing a Strategic Theme
3. Which of the following is your team’s key growth and productivity priority over the next 3 to 5 years? a. Organic growth through customer acquisitions, contract renewals, pull-through work, and upsells b. Financial growth through higher profit margin goals c. Expansion of products and services d. Continuous organizational learning Enter answer here:
B. Interpretation: Is there a pattern to your answers? B1: A Pattern to your Answers: If a pattern emerged from your answers or in other words, you were consistently choosing the same letters, then consider these as starting points for the development of your strategic theme. Typically, if the organization’s direction is effectively communicated to all employees, a pattern should emerge from the respondents’ answers. If you consistently answered: A - Your strategic theme should be customer or stakeholder focused Example: Customers for Life B - Your strategic theme should be financially focused Example: Grow Earnings and RONA (return on net assets) C - Your strategic theme should be process driven or focused Example: Product and Service Innovation D - Your strategic theme should be focused on organizational learning and growth Example: Employees Come First It is important to note that focusing one of the choices above does not preclude the others when it comes time to execute your strategy. That is the nature of the Balanced Scorecards – a balanced approach to strategy execution based on the four perspectives: customer, stakeholder/financial, internal process and learning and growth.
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SFO BSC – Strategy Mapping Step 1: Developing a Strategic Theme
B1. Your Strategic Theme (with a pattern to your answers): __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
B2. No Pattern to your Answers: If no pattern emerged from your answers or in other words, you chose a combination of different letters, then try these ideas for the development of your strategic theme. x
What goal would you like to achieve in the next 3 to 5 years?
Example Response: Double our revenue Your Response:_______________________________________________________________ x
How do you plan on achieving this?
Example: By expanding our service offerings Your Response:_______________________________________________________________ x
What processes need to be in place or improved in order to meet this goal?
Example Response: Operations and Sales processes Your Response:_______________________________________________________________ x
How will you prepare your workforce for the achievement of this goal?
Example Response: Provide sales training; link incentives with performance Your Response:_______________________________________________________________
Take a look at all your responses; what is the most important step in achieving your goal? Paraphrase or reword it to try and come up with your strategic theme. Strategic Theme based on example responses above: Deliver innovative services for revenue growth
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SFO BSC – Strategy Mapping Step 1: Developing a Strategic Theme
B2. Your Strategic Theme (no pattern to your answers): __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
3. Team Exercise x The Moderator will ask each participant for his/her Strategic Theme, either from B1 or B2 of the individual exercise x Team will review the list of responses from all participants x Team will consolidate any redundant entries x Moderator will guide team in “word-smithing� the entries x Team will vote on the final Theme after several iterations, guided by the Moderator and the 5 Characteristics listed in Section 1 (rallying cry, broad, long-term, unanimity, simple and attainable) x If the final Theme needs modification to make it more inspiring, the team can do so at their discretion
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SFO BSC – Strategy Mapping Step 2: Mission and Vision Statements R-WI-ABM-1002-2
HELPFUL LINKS: To join EASI and learn more about ABMLQ visit: http://www.abmlq.com For assistance, please visit: http://www.abmlq.com/assist ance To learn more about SFO BSC, please visit this link: http://www.abmlq.com/sfobsc collateral Need help with any of the links? Call the Help Desk 800-470-4357 or contact abmlq@abm.com
Objective of Step 2: Create the Mission and Vision Statements based on the Strategic Theme. Method: This will be a combination of individual and team exercises designed to help the team creatively discuss and build the statements that will drive your strategy. Moderator: The role of the moderator in Step 2 is to do the following: Facilitate an open discussion that encourages creative thinking Create focus on a mission and vision statement that effectively communicates the team’s direction Facilitate a democratic process of reaching a consensus as discussions and voting are held Promote an atmosphere of non-judgmental participation to give everyone the freedom to express their opinions
The SFO (Strategy Focused Organization) Continuum How do the Mission and Vision Statements fit into the SFO transformation and Balanced Scorecards? Strategy is not a stand-alone management process; it is one step in a logical continuum that moves an organization from a high-level mission statement to the work performed by frontline and back-office employees. The overarching Mission of an organization provides the starting point by defining why the organization exists or how a business unit fits within a broader corporate architecture. The organization’s Vision helps individuals understand why and how they should support the organization. In addition, the Vision sets the organization in motion, from the stability of the Mission and core values to the dynamics of strategy, the next step in the continuum. Mission and Vision statements set the general goals and direction for the organization. They help shareholders, customers, and employees understand what the company is about and what it intends to achieve. But these statements are far too vague to guide day-to-day actions and resource allocation decisions. Companies make their mission and vision statements operational whey they define a strategy for how the mission and vision will be achieved.
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SFO BSC – Strategy Mapping Step 2: Mission and Vision Statements The figure below illustrates the SFO Continuum starting with the organization’s Mission Statement.
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SFO BSC – Strategy Mapping Step 2: Mission and Vision Statements A. Mission Statement A mission statement represents the core purpose of an organization. If it is well constructed, it can be a powerful force for creating focus and alignment throughout the organization. Furthermore, it can endow employees and other stakeholders with an uplifting purpose that connects to their inner desire to contribute to something good, great, and lasting.
It should capture who we are and what we do For a mission statement to be relevant, it must address the organization's reason for existence and be harmonious with the values of those who work on its behalf Mission statements serve primarily as internal credos and should not be confused with market positioning statements and other external messaging strategies An organization's mission statement has to be clear and inspirational. It must get people excited and inspire them to stretch. It should cause them to believe that, through their actions and focus, something larger than life is possible A mission statement should be your touchstone--the star on your horizon. When you look at the possibilities, when you look at the allocation of resources, that mission should guide you. A mission statement should not be simply a pretty bit of language. It must guide your thinking about how you orient staff. The decisions you make, the plans you put in place, should be mission driven.
1. Individual Exercise – This fun exercise in the next page will help you get acquainted with the concept of a Mission Statement.
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SFO BSC – Strategy Mapping Step 2: Mission and Vision Statements Please match these organizations with the Mission Statement that you think is the best fit for their identity. Organization
Matching Mission Statement (#)
A
Mrs. Thompson’s First Grade Class, Willow Primary School, Pekin, Illinois
B
Blue Ridge Electric Cooperative, South Carolina
C
Massachusetts Institute of Technology (MIT)
D
Consumers Union
E
Kontron
F
Dow Chemical Company
G
The Milken Institute
#
Mission Statement
1
To constantly improve what is essential to human progress by mastering science and technology
2
[Company Name] is an expert, independent nonprofit organization whose mission is to work for a fair, just, and safe marketplace for all consumers and to empower consumers to protect themselves
3
[Company Name’s] mission is to contribute to society through excellence in education, research, and public service, drawing on core strengths in science, engineering, architecture, humanities and social sciences, and management.
4
Through a set of core values, (company name) employees strive to meet the needs of all our customers and partners. Our mission is guided by a set of objectives that help define the fundamental spirit and philosophy that underscore the integrity and enthusiasm with which we regard our relationships
5
[Company Name] will be a competitive, quality provider of energy and other services, maintaining its history of integrity and adapting to the challenges of a changing world. While exercising leadership in the community, the organization's Ideas will be on exceeding customer expectations.
6
Our mission is to improve the lives and economic conditions of diverse populations in the U.S. and around the world by helping business and public policy leaders identify and implement innovative ideas for creating broad-based prosperity
7
Our mission statement is "... we will learn lots of things. We will get smart, have fun, make friends, and do our best.
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SFO BSC – Strategy Mapping Step 2: Mission and Vision Statements Exercise Answers: Organization
Matching Mission Statement (#)
A
Mrs. Thompson’s First Grade Class, Willow Primary School, Pekin, Illinois
7
B
Blue Ridge Electric Cooperative, South Carolina
5
C
Massachusetts Institute of Technology (MIT)
3
D
Consumers Union
2
E
Kontron
4
F
Dow Chemical Company
1
G
The Milken Institute
6
If you did not correctly match each mission statement to the organization, don't feel bad. The reason is that the mission statement should be so self-evident that no one who reads it should be confused about what the organization does. If you read a mission statement and do not know immediately what the organization does, then it is self-evident that its mission statement needs improvement. Did you find that any of the mission statements were a bit vague? Vagueness is a special problem when the organization is a business conglomerate or an institution involved in a wide variety of activities. One way that large organizations get around this problem is to have mission statements for each company or division. Lately, some companies have adopted mission statements for each constituency that it serves. For example, there will be a separate mission statement for employees, customers, suppliers, etc.
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SFO BSC – Strategy Mapping Step 2: Mission and Vision Statements 2. Individual Exercise: Now it’s your turn. Answer the questions below to start formulating your team’s Mission Statement.
Who are we? (Your function in the organization)
What do we do? (The services you provide)
What do we want to accomplish? (Your goals)
What is important to us? (Your values)
3. Team Exercise:
The Moderator will ask each participant to give his/her answer to each question. Each answer will be reviewed for redundancy, relevancy, and applicability Through open discussion, the team will start to formulate its Mission Statement At this point, the team may have more than one version of a Mission Statement The team will vote on the final version
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SFO BSC – Strategy Mapping Step 2: Mission and Vision Statements
B. VISION STATEMENT A vision statement is a concise statement that defines the mid-to-long-term goals of the organization or team. The vision should be external and market-oriented and should express, often in colorful or “visionary” terms, how the organization wants to be perceived by the world. 1. Team Exercise: To begin formulating a vision statement for your team, answer the following questions as a means of guiding your creative process. This section will be an open discussion format guided by your Moderator.
a. If you achieved your Mission Statement (as completed in Section A), how would your team be perceived? _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ b. What is the primary purpose of your team? From the SFO continuum, remember that a vision statement explains “Why We Exist”. ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ c. What words come to mind when describing your team’s direction? ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________
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SFO BSC – Strategy Mapping Step 2: Mission and Vision Statements
d.
How would you like your team to be perceived by your customers and/or those in the industry? ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________
e. Review your responses to questions a through d and try to formulate a vision statement based on those responses. Remember that this is an external statement of how your team should be perceived and the direction you want to take. ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________
f.
Next Steps:
Vote on the final vision statement; this will be an iterative process at the Moderator’s discretion. Modify the statement until it has a compelling and simple message Review the Strategic Theme, Mission and Vision Statements as a whole to ensure the message is consistent.
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SFO BSC – Strategy Mapping Step 3: Developing Strategic Objectives R-WI-ABM-1002-3
HELPFUL LINKS: To join EASI and learn more about ABMLQ visit: http://www.abmlq.com
For assistance, please visit: http://www.abmlq.com/assist ance To learn more about SFO BSC, please visit this link: http://www.abmlq.com/sfobsc collateral Need help with any of the links? Call the Help Desk 800-470-4357 or contact abmlq@abm.com
Objective of Step 3: Identify the strategic objectives in each balanced perspective. The four perspectives of a strategy map are: Stakeholder or Financial (public or private) Customer Internal Process Organizational Learning and Growth Method: There are two ways to identify the objectives in a strategy map. The chosen method depends on where the organization is in its path towards a Strategy Focused Organization. Method A: If a corporate strategy map has already been developed, released, and socialized – use the corporate map as your guide in developing your objectives. Review the corporate map and brainstorm with your team members, answering the following questions: How will my team (department, location, or division), given our role and purview, support and enable the corporate objectives? How do I need to prepare my workforce in order to help carry out corporate objectives? What processes do I need to put in place or improve upon in order to help carry out corporate objectives? What do we need to do in order to meet the goals expected of our team? Method B: If a corporate map has not been provided, follow the process described below. Moderator: The role of the moderator in Step 4 is to do the following: Facilitate an open discussion that encourages creative thinking Create focus on each perspective of the map while keeping in mind that each roll up to help fulfill each group of objectives. Facilitate a democratic process of reaching a consensus as objectives are identified and voted on Promote an atmosphere of non-judgmental participation to give everyone the freedom to express their opinions
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SFO BSC – Strategy Mapping Step 3: Developing Strategic Objectives
The questions in the next section will help your team formulate a set of objectives in each of the perspectives of the strategy map. Keeping in mind the continuum of how the perspectives feed into each other, as illustrated below, you will be able to develop a set of objectives that align and support your theme, mission and vision statements.
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SFO BSC – Strategy Mapping Step 3: Developing Strategic Objectives
A. Individual Exercise: These questions are designed to help your team arrive at a set of objectives for your strategy map. The questions are listed in a sequence that resonates the continuum illustrated in the image above. Please read the questions carefully, provide your answers in the space provided. See last page for examples. CUSTOMER PERSPECTIVE 1. What are the expectations of your Customers? Think of their expectations using the categories listed below and any others as applicable to your division. If you’re in a shared or corporate services team, use the Internal Customers categories; your potential customers can be your peers or other ABM employees or industry relationships (consultants, vendors, regulatory agencies, etc.). External Customers Value of services Market differentiation Longevity of relationship
Operational excellence
Internal Customers Responsiveness Impact to business Compliance to regulations or policy Delivery of services Awareness of process
2. What are the goals of your team specific to meeting the expectations of your Customers as answered above?
3. Based on your responses to 1 and 2, create one or two objective statements in the Customer Perspective.
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SFO BSC – Strategy Mapping Step 3: Developing Strategic Objectives
STAKEHOLDER PERSPECTIVE 1. If you met your goals in the Customer Perspective, what results could it have for our stakeholders? Use these categories as your guide.
Categories Financial Company reputation Strategy execution Market share Accretive or organic growth
2. What expectations do our stakeholders have given past performance?
3. Based on your responses to 1 and 2, create one or two objective statements in the Customer Perspective.
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SFO BSC – Strategy Mapping Step 3: Developing Strategic Objectives
INTERNAL PROCESS PERSPECTIVE 1. Given the objectives you provided in the Stakeholder and Customer perspectives, what processes of the business do you need to develop or improve upon in order to meet those objectives? Use these categories (and any other applicable) as your guide.
Categories Infrastructure Innovation Management Systems Marketing Operations Products and Services Quality Safety Sales
2. Based on your responses to 1 and 2, create one or two objective statements in the Internal Process Perspective.
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SFO BSC – Strategy Mapping Step 3: Developing Strategic Objectives
ORGANIZATIONAL LEARNING AND GROWTH PERSPECTIVE 1. Given the objectives you provided in the Internal Process perspectives, what needs to be done in order to prepare the workforce to help meet said objectives? Use these categories (and any other applicable) as your guide.
Categories Awareness Career development Collaboration Compliance Cross-divisional relationships Educational or learning content Employee retention/attrition Social or organic learning Solutions and tools Subject matter experts Transfer of knowledge
2. Based on your responses to 1 and 2, create one or two objective statements in the Organizational Learning and Growth Perspective.
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SFO BSC – Strategy Mapping Step 3: Developing Strategic Objectives
B.
Team Exercise: Taking one perspective at a time, the Moderator will ask each participant for the strategic objective from the questionnaire Team will review the list of objectives Team will consolidate any redundant entries Moderator will guide team in “word-smithing” the entries Team will vote on top 2 to 4 objectives per perspective When all the perspectives have been filled in with the voted strategic objectives – your Strategy Map is now ready! The Learning and Quality team will publish the Strategy Map and send out the final format through LQ established communications.
C. Next Steps after Leaving Strategy Mapping Session: It is critical that the team absorbs their new Strategy Map, including those who were not present during the session. We recommend these steps to help create awareness of and excitement towards your newly published Strategy Map.
Discuss or socialize the Strategy Map and the process involved in its development with your staff Incorporate it in your regularly scheduled meetings Display it prominently in common areas where discussion will be encouraged Incorporate it in your New Hire Orientation or New Hire Packet Include your Theme, Mission or Vision statement in your Email Signature Use components of your Strategy Map in marketing or sales material
D. Next Steps Toward Balanced Scorecards: It is likely that after an intensive session like this, these next steps will be undertaken at a later date.
Identify measures and targets that will help execute your objectives Identify initiatives that will help you meet your measures and targets If the timing is not right (year-end budgeting has already occurred), a Strategic Cadence session can be initiated to keep objectives top of mind. The Moderator can explain this further. Initiative management and execution will occur At the completion of each initiative, measures and targets will be validated to ensure that the team is meeting its goals – this will be an iterative process Personal scorecards can also be introduced and implemented at any time
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SFO BSC – Strategy Mapping Step 3: Developing Strategic Objectives
Examples of Responses: This set of example takes the perspective of an ABM Building and Energy Services (ABES) operations or sales team. Questions A. CUSTOMER PERSPECTIVE 1. What are the expectations of your Customers? 2. What are the goals of your team specific to meeting the expectations of your Customers as answered above? 3. Strategic Objectives
B. STAKEHOLDER PERSPECTIVE 1. If you met your goals in the Customer Perspective, what results could it have for our stakeholders? 2. What expectations do our stakeholders have given past performance? 3. Strategic Objectives
C. INTERNAL PROCESS PERSPECTIVE 1. Given the objectives provided in A and B, what processes of the business need to be developed or improved upon in order to meet those objectives? 2. Strategic Objectives D. LEARNING AND GROWTH PERSPECTIVE 1. Given the objectives provided in B and C, what needs to be done in order to prepare the workforce to help meet said objectives? 2. Strategic Objectives
Responses
Awareness of their property’s condition and building health Lower repair costs due to timely and thorough maintenance work On time maintenance provided by qualified employees Deliver clear and concise report of completed maintenance services and any critical repairs identified. Provide timely completion of services Provide consistent and effective communications of completed services
Consistent contract retention
Increased annuitized sales through portfolio expansion (if customers are happy with our work, contracts can be added from other properties in their portfolio) Increase contract retention (retaining a contract or customer provides steady stream of revenue)
Work order management – visibility and access to activities Resource scheduling – ability to adjust workforce assignations based on current needs
Provide visibility to work activity management
Hire qualified personnel or those who exhibit the aptitude Improve accessibility to learning content from the field Provide a format for leveraging SME knowledge
Attract and retain the best in the business Deliver purposeful learning anytime, anywhere
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