Executing the Strategy

EE2 - PLN
Learning Objective
• Understand obstacles and problems
when executing strategy
• Know stages to execute strategy
• Know myths in execution and
technics to resolve them
 Agenda
1. Opening Case

2. Strategic Execution Cycle

3. Exercise
 Why Strategic Execution is so difficult?
Strategy and Actions: How do you know where your organization will
be two years from know?
• Successful strategic execution requires tightly aligning the project portofolio
to the corporate strategy
The great executive blind spot: The strategic role of project portfolio
management
• Converse the strategic thought or direction from the boardroom to a
product that makes it to a customer in the marketplace
The hidden language barrier: Translating strategy-speak into project
parlance
• The language of the project portofolio covers the spesific of getting dones –
who, how, when, and which resources
 PLAN VS. EXECUTION
“what ever will be, will be” “fail to plan, plan to fail”

PLAN PLAN

EXECUTION EXECUTION

EVALUA
EVALUATION
TION

Goal Goal
 Strategic Execution Cycle

1. Determine Action
Prioryty

4. Evaluate and give 2. Create Action

Feedback Plan

3. Execute and
Monitor the
progress
 1. Determine Action Priority
Obtain strategic actions from:
• Strategic Plan
• Strategic Action Map
• Strategic Map Balance Scorecard
• Business Model Canvas

Priority Analysis
• Determine Criteria
• Weight
• Score

NUMBER OF GOALS 2-3 4-10 11-20

(In addition to the whirld wind)
GOALS ACHIEVED WITH EXELLENCE 2-3 1-2 0
 1a. Framework of Strategic Plan
Situational Analysis

Stakeholder Expectation Environmental Scanning Performance Evaluation

MISI

VISI Strategic Issues

SWOT Analysis

Strategic Direction

SBU Strategic Plan

 Growth Strategy LongtermShareholder Value Productivity Strategy

Strategic Objectives
Financial Aspect
New Revenue
Sources Improve cost Improve
Increase value to
customer structure Asset utilization

Customer Value Preposition

Customer
Aspect • Price •Timeliness •Service Brand
• Quality •Features •Relationship

Internal Increase customer Value Be a good corp Causal Relationship

Provide operational citizen
Build the Innovation Customer beetwen Strategic
Process Process Management process
Excellence Reg.&envir processes
Aspect Ops & logs processes Objectives

Learning &
Growth
Aspect Human capital Technology capital Organization capital
 Max Profitability
Perspektif Revenue Growth
Keuangan

Perspektif Improved
Pelanggan Customer
Satisfaction

Perspektif
Continuous Quality Enhanced
Proses Bisnis internal
Improvement Operational
Excellence

Perspektif
Pertumbuhan & Employee
Pembelajaran productivity
 1.c. Strategy Map & Balanced Scorecard
BALANCED SCORECARD
STRATEGY MAP
OBJECTIVES MEASURE TARGET
Total Sales % sales increase : Total sales 15%
Revenue Growth 2011/total sales 2010
KEUANGAN Total sales - for new business 10%
% sales of new business/total sales
Max Profitability Net Profit Growth (EAT 2011-EAT2010/EAT2010)x100% 15%

Increase Customer Customer Satisfaction Index Kenaikan Rata-rata nilai kepuasan

PELANGGAN 15%
Satisfaction (CSI) Improvement konsumen

% perbaikan atas temuan

Continuous Quality
PROSES INTERNAL Surveilance Audit FInding surveilance audit pada tahun 25%
Improvement
berjalan terhadap tahun sebelumnya

PEMBELAJARAN & Employee Rata-rata level kompetensi

Level of employee competence 60%
PERTUMBUHAN competence karyawan/standar kompetensi
 1d. Business Model Canvas
7. Key
Activities 2. Value
Propositions 4. Customer Relationship

8. Key Partners 1. Customer

Segments

3. Channels

9. Cost Structure 6. Key Resources 5. Revenue Streams

Diagram: Business Process Position
(Dari Operations Exellence)
 Determine Action Priority (HPS- Downstream)
Support Solve Implement Value for Impact to TOT
to main ability Main Unit Perfor
Stakeholder mance
VISION problem
(Customer)

No Action 30 20 15 20 15 100
1. Reduce Loses 15 10 15 5 5 50

2. Improve number of 30 20 10 10 15
customer
85
3. Pemilihan lokasi 25 10 5 20 10 70

4. Improve time of services 20 15 5 15 10 65

Petunjuk:
1. Isi bobot masing-masing kriteria, totalnya 100%
2. Alternatif action terbaik diberi nilai sesuai bobotnya, yang lain lebih rendah secara relatif terhadap nilai
tertinggi.
3. Jumlahkan ke kanan, nilai tertinggi adalah Action Priority terpilih
 2. Create Action Plan
Choose strategic action priority

Determine lag measure and its goal

Determine activity to achieve the target, lead

mesure and its target

Decide who Person In Charge of the activity

Design information system to know progress of

each activity
 Lag Measures and Lead Measures
LAG MEASURE LEAD MEASURE
MEASURE THE GOAL PREDICTIVE:
Measure something that leads to the goal
INFLUENCEABLE:
Something we can influence
Persen kebocoran per Predictive: Persen kebocoran per hari
bulan Influencable:
• Jumlah pemakaian tidak normal yang
dapat diklarifikasi
• Jumlah temuan kebocoran yang dapat
diselesaikan
• Jumlah inspeksi dadakan per bulan

PREDICTIVE
INFLUENCEABLE
ROCK
(LAG
MEASURE
 Whirldwind and Goals

GOALS
WHIRLWIND (The Day Job) (Activities on
Strategic Action Priority)

URGENT IMPORTANT
(IT ACTS ON YOU) (YOU ACT ON IT)
Max 40% Min 60%
Schedule it on your down time Schedule it on your Prime Time
 Action Plan (HUSK-Example)
Strategic Action Priority: Meningkatkan jumlah pelanggan
Lag Measure: Jumlah pelanggan dalam 45 hari pertama pemasangan
Goal: 300 connections atau minimal 1000 CFL

Activity Lead Measure Target PIC Information System

(Check Point)
Rekrut salesman Jumlah salesman 4 Cluster Daftar salesman
Mgr

Pembentukan DC efektif bekerja 2 bln sebelum Cluster SK dan Diagram

Development operasi Mgr Struktur organisasi
Committee (DC)
Program promosi Tingkat awareness 80 % Salesman Respon calon
pelanggan
Kunjungan ke rumah- Jumlah kunjungan per 5 rmh/hr/sales Salesman Laporan kunjungan
rumah hari per salesman
Pemasangan baru Jumlah pemasang baru 2 rmh/hr/sales Salesman Laporan pemasangan
perhari per salesman baru
 Action Plan (Example)
Strategic Action Priority: Menurunkan kebocoran distribusi listrik di Jabodetabek
Lag Measure: Persen kebocoran per bulan
Goal: Turun sampai tinggal 5% pada akhir tahun 2016

Activity Lead Measure Target PIC Information System

(Check Point)
Kunjungan rutin Jumlah kunjungan per 10 kali per bulan Adi Laporan hasil
acak bulan kunjungan
Rapat kordinasi Jumlah temuan 80% dapat Doni Notulen Rapat
penurunan diselesaikan diselesaikan
kebocoran
Periksa pemakaian Jumlah pemakaian tidak 90% Ida Laporan pemakaian
tidak normal normal terklarifikasi listrik tidak normal
Inspeksi dadakan Jumlah kunjungan ke 8 kali per bulan Adi Laporan hasil inspeksi
lokasi mencurigakan dadakan
 Latihan Kasus HPS
1. Tetapkan Strategic Action yang perlu dilakukan
HPS
a. Menggunakan BMC
b. Operation Excellence (Business Process Position)
2. Tetapkan satu Strategic Action Priority
3. Rancang Action Plan dari Strategic Action Priority
 3. Execute and Monitor the Progress
Design an impressive scoreboard

Focus on Strategic Action Priority, minimize focus on “Whirlwind”

Update and monitor the lead measure from the scoreboard

Rapid action to reduce gap and solve the problems

Evaluate and give Feedback
1
ACCOUNT
Report on last week commitments

2
Review scoreboard
Learn from successes and failures

3
PLAN
Clear the path and Make Commitments
 4DX: The 4 Disciplines of Execution
Focus on the Wildly
Important (Strategic
Action Priority)

Act on the Lead Measures

Keep a Compelling
Scoreboard

Create a Cadence of
Accountability
 Discipline 4: Create a Cadence of Accountability
Mengadakan WIGs session secara reguler (mingguan)
Diselenggarakan dalam rangka:

• melihat akuntabilitas kinerja

ACCOUNT pada komitmen individu dan
tim dari minggu sebelumnya

• memeriksa kembali catatan

REVIEW
perkembangan pada
SCOREBOARD scoreboard

• merencanakan bagaimana
PLAN memperbaiki score pada
minggu mendatang
 Make High-Impact Commitments
for The Coming Week
• Following through on a few high-impact commitments is far more important than
One or Two making a lot of commitments
• The more the commitments, the less likely-follow-through becomes

• Don’t waste time to peripheral activities

Most Important • Invest your finest attention and effort in those commitments that will make the
biggest difference.

• All commitments in a WIG session are personal responsibilities

I • You are not committing other people to do things, you’re committing to things you
will do

• Make only those commitments that can be completed withing the coming week
This week • If you commit to something four weeks in the future, then for three of those
weeks, you’re not really accountable

Performance on • Every commitment must be directed at moving the lead and lag measures on your
scoreboard
the Scoreboard • Without this focus, you’ll be tempted to make commitments to the whirlwind
 Good Commitments should be:
• The more specific the commitment, the higher the
Specific accountability for it
• Commit to exactly what you will do

Aligned to • Make sure the commitments move the scoreboard;

moving the otherwise, you’re just committing more energy to the
whirlwind
scoreboard
• High impact commitments must be completed within the
coming week
Timely • But they should also impact the team’s performance in
the near term
 WIG SESSION AGENDA TOOL
WIG SESSION AGENDA:
Distribusi Listrik
Where: Jabodetabek When: Minggu kedua Agustus 2016
WIG (s)
Menurunkan kebocoran distribusi listrik di Jabodetabek
Individual Team Member Commitment Status
Reports Berkunjung ke empat tempat Mengunjungi 3 tempat
Adi Berkunjung ke dua lokasi Mengunjungi 3 lokasi
mencurigakan mencurigakan
Jumlah temuan yang Menyelesaikan 90%
Doni
diselesaikan 80% temuan
Jumlah pemakaian tidak Jumlah pemakaian
Ida normal yang terklarifikasi 90% tidak normal yang
terklarifikasi 60%
Scoreboard Kunjungan Rutin= 74 kunjungan Target: 120 kunjungan
Update Kunjungan ke lokasi mencurigakan= 60 Target: 96 kunjungan
Jumlah temuan yang diselesaikan= 75% Target: 80%
Jumlah pemakaian tak normal yang terklarifikasi= 65% Target: 90%
 4. Evaluate and Give Feed Back
Did You Get It Right?
Check off each item to ensure the WIG session will drive high performance
Are you holding WIG session as scheduled?
Are you keeping the session brief, brisk, and energestic (20-30 minutes)?
Is the leader the model for reporting and making commitments?
Do you review an updating scoreboards?
Do you analyze why you’re winning or losing on each measure?
Do you celebrate successes?
Do you hold each other unconditionally accountable for your commitments?
Does each team member make specific commitments for the coming week?
Do you clear the path for each other, finding ways to help team members who
encounter obstacles to keeping their commitments?
Do you keep the whirlwind out of the WIG session
 Latihan Implementasi
1. Tetapkan Strategic Action yang perlu dilakukan Unit kerja
anda dengan:
a. Menggunakan BMC atau
b. Operation Excellence (Business Process Position)
2. Tetapkan satu Strategic Action Priority
3. Rancang Action Plan dari Strategic Action Priority
4. Buat rencana eksekusi dan monitor kemajuan
pelaksanaan
5. Lakukan evaluasi dan feed back
 1d. Business Model Canvas
7. Key
Activities 2. Value
Propositions 4. Customer Relationship

8. Key Partners 1. Customer

Segments

3. Channels

9. Cost Structure 6. Key Resources 5. Revenue Streams

Diagram: Business Process Position
(Dari Operations Exellence)
 Determine Action Priority (Example)
Support Solve Implement Value for Impact to TOT
to main ability Main Unit Perfor
Stakeholder mance
VISION problem

No Action 30 20 15 20 15 100

Petunjuk:
1. Isi bobot masing-masing kriteria, totalnya 100%
2. Alternatif action terbaik diberi nilai sesuai bobotnya, yang lain lebih rendah secara relatif terhadap nilai
tertinggi.
3. Jumlahkan ke kanan, nilai tertinggi adalah Action Priority terpilih
 2. Action Plan (Example)
Strategic Action Priority:
Lag Measure:
Goal:
Activity Lead Measure Target PIC Information System
(Check Point)
 3. WIG SESSION AGENDA TOOL
WIG SESSION AGENDA:

Where When
WIG (s)

Individual Team Member Commitment Status

Reports

Scoreboard
Update
 4. Evaluate and Give Feed Back
Did You Get It Right?
Check off each item to ensure the WIG session will drive high performance
Are you holding WIG session as scheduled?
Are you keeping the session brief, brisk, and energestic (20-30 minutes)?
Is the leader the model for reporting and making commitments?
Do you review an updating scoreboards?
Do you analyze why you’re winning or losing on each measure?
Do you celebrate successes?
Do you hold each other unconditionally accountable for your commitments?
Does each team member make specific commitments for the coming week?
Do you clear the path for each other, finding ways to help team members who
encounter obstacles to keeping their commitments?
Do you keep the whirlwind out of the WIG session
 PERAN MANAJEMEN
Menciptakan iklim untuk Memastikan karyawan memiliki
mendukung pemahaman yang memadai
strategic change terhadap strategi (kita tidak dapat
mengeksekusi sesuatu yang
tidak diketahui)

Menciptakan strategic awareness

Memastikan karyawan mengetahui
bahwa mereka dibutuhkan untuk
mencapai sasaran organisasi
Penyelarasan sasaran individu

Memotivasi dan mendorong

karyawan dengan memberikan
Penyelarasan Insentif dan kompensasi penghargaan terhadap kinerja
mereka

36
 Myths in Execution
1. Execution equals alignment

2. Execution means sticking to the plan

3. Communication Equals Understanding

4. A performance culture drives execution

5. Execution should be driven from the top

 Reference
• Mark Morgan, Raymond E. Levitt, William Malek,
Executing Your Strategy, Harvard Business School
Press, 2007.
• Chris McChesney, Sean Covey, Jim Huling, The 4th
Discipline of Execution, Free Press, 2012.
• Donald Sull, Rebecca Homkes, and Charles Sull,
Why Strategy Execution Unravels, And What To Do
About It. Harvard Business Review, March 2015
TERIMA KASIH