Client An Approach to Strategic Planning

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ClientAn Approach to Strategic Planning

• Presented by
• Tom Ziemba
• Rob Hawkinson
• 847.413.6900

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Table of Contents
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RSM McGladreys Approach to Planning
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Strategic Planning Roles Responsibilities
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Balanced Scorecard Framework
Strategies are developed using a balanced
scorecard approach, which organizes goals into
four perspectives. The Customer, Infrastructure,
and Innovation perspectives drive the results of
the Financial perspective. Strategies populate
the scorecard after the planning team inventories
all facets of the business and evaluates
priorities. No perspective should be
strategy-heavy, but balanced.
Mission Vision
Values Inventory
Business Model Inventory
Core Competencies Inventory
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Schedule of Events Participants
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Innovation Perspective Mission, Values Vision
MissionThe mission statement specifies an
organizations purpose or reason for being. It
is the primary objective toward which the
organizations plans and programs should be
aimed. A mission is something to be
accomplished, while a vision is something to be
pursued.
ValuesValues are the collective principles and
ideals which guide the thoughts and actions of an
individual, or a group of individuals. Values
define the character of an organization, and they
describe what the organization stands for.
VisionThe vision of an organization is a concise
word picture of the organization at some future
time, which sets the overall direction of the
organization. It is what the organization
strives to be.
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Innovation Perspective Mission, Values Vision

• Business Model
• The business model describes how the organization
  operates. It is tested by responding to the
  following questions
• Which customers do we want to serve and what
  value will we offer them?
• How do we capture our fair share of the value we
  create for these customers?
• What activities must we do ourselves and which
  can we outsource?
• How do we protect our profits from customers and
  competitors?
• What organizational systems are required to
  ensure that we stick to our strategy?
• How can technology improve our value propositions
  and enhance our operations?

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Innovation Perspective Framework
Strategic Competencies
Strategic Technologies
Climate for Action
Skills
Motivation
Awareness
Readiness
Alignment
Infrastructure
Applications
Knowledge Sharing

• Strategic skills

• Best practice sharing

• Strategic technology employed

• Under-standing of strategy ()

• Goals aligned with Balanced Scorecard ()

• Average tenure (key positions)

• Morale (satisfaction)
• Suggestion program (empower-ment)

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Customer Perspective Market Analysis

• Deposits
• High balance time deposits
• Current Service Feature
• Traditional needs
• Personalized high-touch service

New Service Feature -Internet banking -Home
mortgages
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Infrastructure Perspective Framework
Formal Organization

• Structure
• Department,
• Employee Functions
• Authority
• Organization
• Structure
• Roles
• Responsibilities
• Centralization v.
• Decentralization

• Systems
• Business Processes
• Management Control
• Systems
• Compensation Systems
• Management Info
• Systems
• Mgmt Reporting
• Performance Mgmt
• Corporate Governance

Input
Strategy
Results

• Financial
• Customer
• Infrastructure
• Innovation

• Value Growth
• Profitability
• Cash Flow
• Organizational Effectiveness

• Value Driver Performance
• Company History
• Market Place

Informal Organization

• Staffing / Skills
• Abilities
• Recruiting/Selection
• Effectiveness
• Organizational
• Competencies
• Attitude

• Style / Shared Values
• Fundamental Values
• Leadership Style
• Operating Style
• Communication
• Relationships

Adapted from Strategic Organization Design, A.
Nadler, et al and The 7S Framework, McKinsey
Company
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Financial Perspective

• The Financial Perspective organizes the financial
  future of the organization. When crafting goals
  for this perspective, the planning team
  considers
• If we achieve our strategy, how will we look
  financially?
• What financial metrics should be used to measure
  long-term success?
• What are the targets for each measure over the
  next 3-5 years?
• What is the basis for our measurement?
• Absolute standard
• Peer group performance
• Prior year results
• How might the investment portfolio strategy
  change as the bank grows?

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Balanced Scorecard Goal Categories

• Financial Perspective
• Assets
• Profits
• Cost control
• Ratio performance
• Risk management
• Customer Perspective
• Markets
• Products services
• Customer segments

• Infrastructure Perspective
• Organization
• Culture
• Communication
• Core competency
• Compliance with regulations
• Innovation Perspective
• Customer education
• Process service design
• Time to market

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Implementation Example - Customer Perspective
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Appendix
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Practice Vision
Strategy Human Capital Practice

• From our point of view, high performing
  organizations understand the dynamics of their
  targeted markets and customer base, have
  effective strategies, well developed and aligned
  organizational functions, methods to manage
  change, and capable leadership and talent.
• Our practice will respond to these challenges
  with consultants who
• Have broad-based capabilities
• Leverage all aspects of McGladreys expertise
• Deliver integrated solutions
• Foster long-term relationships with clients
• We will build a reputation in the marketplace by
• Continuing positive interactions with our
  current clients
• Participating at professionally sponsored
  events and forums
• Sponsoring client centric surveys and sharing
  of best practices

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Strategy Human Capital Practice
Strategy
Human Capital
Organizational Development

• Strategic Planning
• Business Development

• Organizational Assessment
• Organizational Structure Design
• Organizational Change
• Governance

• Succession Planning
• Leadership Development
• Talent Planning Training
• Performance Management

Strategic Alignment

• MA Advisory
• Competitive Intelligence
• International Partners
• Financial Institution Growth Strategies

• Functional Audit
• Organizational Climate
• Job Design

• Compensation Rewards
• Executive Search
• Outsourcing
• HR Planning

Implementation
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Strategy Human Capital Practice

• Tom Ziemba, Ph.D.
• Director with RSM McGladrey
• Board effectiveness, strategy leadership
  development focus
• Ten years VP, large regional commercial bank
• Ten years KPMG Executive/leadership Board
  issues
• Five years Mercer, Fortune 500, OD, Board
  consulting
• Board member at CARC (Foundation)
• Doctorate in Organizational Psychology
• Board effectiveness consultant in prior firms

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Strategy Human Capital Practice

• Rob Hawkinson
• Manager with RSM McGladrey, Inc.
• Professional emphasis on strategy and
  international
• Five years with RSM McGladrey focused on
  manufacturers, financial institutions and
  not-for-profits
• Three years with Mayor of Indianapolis as
  business analyst and privatization
  process-manager