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Organizational Alignment

Alignment Model & Process. Organizational Alignment. What is the Alignment Model?. A tool for achieving superior results through purposeful organizational alignment A means of understanding basic elements of strategic alignment and operational alignment

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Organizational Alignment

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  1. Alignment Model & Process Organizational Alignment

  2. What is the Alignment Model? A tool for achieving superior results through purposeful organizational alignment A means of understanding basic elements of strategic alignment and operational alignment A tool for developing meaningful strategy A tool for organizing operations in a way that makes sense A tool for diagnosing organizational issues to identify root causes and propose corrective actions

  3. Common Applications w/ Client Examples Establish common organizational identity • African American Affinity Network (JCI) • Corporate Diversity & Public Affairs Department (JCI) • Corporate Communications Department (JCI) • The Billion Dollar Roundtable • Interiors Business Unit (JCI) • Johnson Controls – Saft JV Drive strategic planning • Holland, MI Chamber of Commerce • Lakeshore Habitat for Humanity • Corporate Product Safety Department (JCI) • Michigan Minority Business Development Council • Indiana Minority Supplier Development Council • World Medical Relief (Detroit) • United Performing Arts Fund (Milwaukee) Develop business processes and metrics dashboards • Central South Texas Minority Business Council • Medical University of Charleston, SC • City of Charleston, SC Develop people systems • Corporate Law Department (JCI) • (virtually all functional groups within JCI Automotive Experience BU) Does this apply to a PMO?

  4. Strategic Objectives Stake- holders Future Value StrategicAlignment • Strategies/Initiatives • Tactical Plans • Measures/Targets Hedgehog Concept refresh Business Processes Current Value Customer OperationalAlignment • Organization Structure • Information Systems • Metrics • People Systems The Alignment Model Vision Mission

  5. Hedgehog Concept Starting Point The hedgehog knows only one big idea, but he executes it perfectly time and time again.

  6. What you are deeply passionate about What drives your economic engine What you can be the best in the world at Your Hedgehog Concept

  7. Strategic Objectives How We’re Going to Get There Stake- holders Future Value • Strategies/Initiatives • Tactical Plans • Measures/Targets Who We Are Hedgehog Concept refresh Business Processes How We Do It Current Value Customer • Organization Structure • Information Systems • Metrics • People Systems Building the Alignment Model Where We’re Going Vision Mission What We Do

  8. Levels of Alignment • Internal alignment at each level • Vertical alignment from Enterprise level to Business Unit level to Department level, etc. • Horizontal alignment between functions (i.e. complementary missions, visions…)

  9. Strategic Planning Session Typical Approach Define your Hedgehog Concept Clarify and crystallize your Mission Articulate a clear Vision Define Strategic Objectives (goals) that align to the Vision, along with Measures & Targets Develop Strategies and Tactical Plans to achieve the Strategic Objectives • Define and document the Business Processes by which you execute your Mission • Create an Organization Structure that makes sense for leading and managing the Business Processes • Implement Information Systems and Tools that enable the Business Processes • Develop a Metrics Dashboard that tells you how effectively and efficiently your Business Processes are operating • Staff and Develop the Right People with the Right Skills in the Right Places doing the Right Things to ensure successful Business Process outcomes.

  10. Elements of the Alignment Model

  11. Hedgehog Concept

  12. What you are deeply passionate about What drives your economic engine What you can be the best in the world at Your Hedgehog Concept

  13. Purpose of the Hedgehog Concept informsyour mission, vision, strategic plan, business processes, and all the other elements of the business provides clarity about who you are with a deep understanding of how you will achieve success

  14. Hedgehog Examples Product Safety Department “One is Too Many” (injury, investigation, lawsuit, recall) Law Department Game-changing events; High value-add focus; Close to the business; Efficient Billion Dollar Roundtable Diverse Supplier Development best practices, thought leadership, and business case

  15. Mission

  16. Definition of “Mission” Mission is purposeor “reason for being” Mission is enduring…dayin and day out …doesn’t change often Core is often a verband a noun Essentially defines value delivered to customers

  17. Expressing Mission – Engineering Example MISSION of an engineering department, in its simplest expression, is something like: Develop Product MISSION STATEMENT can be embellished: Develop world-class automotive interior products that surprise and delight customers and consumers. Embellishments should serve to create excitement or communicate uniqueness, but should not detract from the Mission Statement being a sound bite.

  18. Mission Examples Central South Texas Minority Business Council “We do 3 things: certify, connect, develop” Johnson Controls – Saft JV Create stakeholder value by providing advanced battery solutions for vehicle applications. Information Technology Department (JCI) Connect people-to-people, people-to-information, and people-to-process

  19. Strategic Planning Elements

  20. vision Strategic Planning Elements Objective: goal statements that reflect aspects of the vision Vision: clearly defined, decisive, attainable future rooted in customer needs; a preferred future state objective tactics • strategies Strategies: courses of action laid out to reach the objectives objective tactics • strategies Tactics: strings of planned actions (projects) that make up a strategy tactics objective • strategies

  21. Vision

  22. "Vision without action is a daydream. Action without vision is a nightmare."  – Japanese proverb

  23. Definition of “Vision” A short, succinct, and inspiring statementof what the organization intends to become and to achieve at some point in the future, often stated in competitive terms. Intentions that are broad, all-inclusive and forward-thinking.  The imagea business must have of its goals before it pursues them. Describes aspirations for the future, without specifying the means that will be used to achieve those desired ends. Simple – Bold – Organic

  24. Success & Vision “Corporate success depends on the vision articulated by the chief executive or the top management.” “For a vision to have any impact on the employees of an organization it has to be conveyed in a dramatic and enduring way.” “The most effective visions are those that inspire, usually asking employees for the best, the most or the greatest.” “Keep stretch in your vision, communicate it constantly, and keep linking the events of today to your vision, underscoring the relationship between the two.”

  25. Visioning Approaches Externally-Focused “What will be the impact of what we will become” Internally-Focused “What we will become” Superlative of Mission “Become the best at what we do”

  26. Vision Examples Become the world’s leading consumer company for automotive products and services Enable people and businesses throughout the world to realize their full potential A more comfortable, safe and sustainable world Put a man on the moon by the end of the decade and bring him home safely again Beat Coke!

  27. Strategic Objectives

  28. Make the vision a reality. 1 Strategic Objectives Future Value Strengths and Weaknesses in the operating environment. Hedgehog Concept refresh Business Processes Current Value Customer 2 • Organization Structure • Information Systems • Metrics • People Systems 3 Opportunities and Threats in the business environment. Sources of Strategic Objectives Stake- holders Vision • Strategies/Initiatives • Tactical Plans • Measures/Targets Mission External Environment

  29. Opportunities / Threats in the Business Environment Sources of Strategic Objectives What drives our economic engine 3 Strengths / Weaknesses in the Operating Environment What we can be best at 2 Issues / Opportunities for achieving the Vision or delivering on the Mission What we are passionate about 1

  30. Product Safety Example Mission: Ensure safe products and services. We do this by… • Preventing safety issues • Solving safety issues • Driving safety knowledge and awareness into the organization • Ensuring compliance to regulations Vision:We are committed to, and recognized for, product and service safety - every action, every time. “A journey from reaction to audits to accountability.” Strategic Objectives: Culture: Foster a culture where product and service safety is a normal behavior lived out by the organization. Leadership: Make Johnson Controls a recognized leader in industrial, governmental, and research discussions on product and service safety and innovation. Process: Standardize and globalize product and service safety business processes. Organization: Execute product and service safety vision and mission with a lean organization where accountabilities are where they belong. Technology: Define and implement integrated and collaborative safety tools worldwide (information systems solution).

  31. Enterprise Maturity Model

  32. Spokes are key strategic objectives Position on spokes measure progress toward vision Progress against the Vision

  33. Business Process

  34. Core Processes Enterprise or Business Unit level: • The steps of value creation which produce a product or service the customer is willing to pay for. Functional or Department level: • The steps of value creation which produce a deliverable that an internal customer needs or wants. Suppliers Customers Inputs Outputs Process Steps • What is critical to the • Customers’ satisfaction? • CTQ (quality) • CTC (cost) • CTD (delivery)

  35. Sub-Processes & Enabling Processes Sub-Processes: • Process segments within a Core Process. Enabling Processes: • Processes that support Core Processes and Sub-Processes. Core Process Suppliers Customers Inputs Outputs Process Steps Sub-Processes Enabling Processes

  36. Process Mapping Suppliers Customers Process Create the SIPOC diagram • Identify customers and their care-abouts • Identify process outputs (deliverables – tangible output of the process) • Identify process inputs and suppliers • Establish process boundaries Inputs Outputs A Process Map is a first step toward standardization and continuous improvement. • Establish process boundaries • Identify the triggers that start the process • Identify the deliverable or event that ends the process Process Start End Suppliers Customers • Identify major milestones within the process Inputs Outputs Process Steps • Map the process steps • Identify inputs and outputs for each step • Define who performs and tasks involved • Identify information required or produced and the source or destination • Define cycle time and elapsed time

  37. Metrics

  38. Metrics Dashboards – Characterizing Business Performance Efficiency Metrics Resources consumed to do the work Achieved by improving what happens inside the process Effectiveness Metrics Quality of outputs per customer requirements Achieved by improving what comes out of the process Suppliers Customers Inputs Outputs Process Steps

  39. Cascading Dashboards System Effectiveness BusinessResults Key MeasurementsOverview Top Level Business Metrics Customer Shareholder Employee Process/ Business Unit / FunctionalMetrics Customer Innovation People Increasing Detail Level in Organization Prod.Bus.Develop. Bus.AwardProg.Mgmt. Sourcing &Supply Mgmt. OperationsMgmt. Process/Dept./Plant Metrics Customer Financial Efficiency Safety People Purpose of dashboard: See health of the business at a glance.

  40. Defining Metrics Good Metrics…. Are objective (vs. subjective) Relate to project/business goals Are clearly understood Actionable Include a clear goal/target Can be applied consistently

  41. People Development

  42. People Process Framework • Business Process has implications for Org Structure & Staffing Model. • Business Process and Staffing Model defines roles (Job Matrix, Job Descriptions). • Skills are derived from Job Descriptions and inform development program definition. • Assessment criteria derive from Skills definition. • Assessment Results inform Development Planning. • Development Plans drive development activities via training curricula and other development options. Org Structure / Staffing Model Business Processes Role Definition (Titles, Job Descriptions) Training Curriculum / Development Programs / Other Development Options Competencies (Knowledge & Skills) Talent Acquisition Development Plans (Individual & Group) Development Activities Assessment (Competency Gaps)

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