1. CONNECTING STRATEGY WITH EXECUTION Paul Docherty – Founder and Executive Director, i-nexus Building an Integrated Strategy Execution System

2. KEY TOPICS Is Poor Execution Inevitable? Why Do the Majority of Organizations Struggle With Execution? How Can Rapidly Build an ISE Business System? How Does an ISE System Ensure Consistently Great Execution? How Does the Right Infrastructure Accelerate the Journey? Why Do the Best Outperform the Rest? Copyright i-nexus 2013. All rights reserved. Summary/Key “Take-aways” 1 2 3 4 5 6 7

3. SYMPTOMS OF POOR EXECUTION…

4. IT’S NOT ALL BAD NEWS…

5. CONSISTENTLY GREAT EXECUTION IS POSSIBLE…

6. THE EVOLUTION OF THE “BUSINESS SYSTEM”…

7. IT’S REPLICABLE! John S Stroup Lawrence Kingsley

8. Grow Sales of New Product Customer Focus Invest in China Improve employee satisfaction The Off-site Strategy Day(s) Unclear Accountabilities Poorly Defined Goals.ppt deck The Ivory Tower Exercise Funding Constraints Give me your numbers... I need to include some contingency... Way too much! Cut by 25%! If I don’t include it I’ll lose it... The Budget Dance It’s close enough for Military work...      Divisional President Functional Heads Departmental Heads Middle Managers Employees Project The Ad Hoc Cascade STRATEGY EXECUTION 1.0?

9. THE EMERGENCE OF THE ISE BUSINESS SYSTEM… Process + Tools & Methods + Guiding Principles/ Behaviours + Supporting Infrastructure

10. CLOSED LOOP STRATEGY EXECUTION PROCESS… Connects the Goals to Programs that realise them to the KPIs that track their achievement Essential a “macro” PDCA cycle to ensure we adapt the plan (or strategy) as we execute Ensures focus on Impact not Just Progress – Look Forward not just Backward

11. A SET OF SUPPORTING TOOLS AND METHODOLOGIES… Integrates the “best” components of best practice methodologies: Balanced Scorecards Hoshin Planning Project, Program and Portfolio Management Systematic Innovation Operational Excellence/Lean Six Sigma into a coherent integrated framework that supports each stage of the strategy execution cycle.

12. A SET OF GUIDING EXECUTION PRINCIPLES…

13. A SUPPORTING INFRASTRUCTURE… A technology platform that enables a closed loop process by ensuring goals are connected to the programs that realise them and the KPIs that track their achievement. A platform designed to support the best practice tools and methods used to define, deploy, execute and track achievement of goals.

14. WHAT RESOURCES ARE AVAILABLE TO HELP YOU BUILD A WORLD CLASS EXECUTION SYSTEM? 1.The Strategy Execution Maturity Model 2.The Execution Readiness Assessment 3.The Stratex Hub 4.The i-nexus Integrated Strategy Execution Software Platform

15. THE STRATEGY EXECUTION MATURITY MODEL… Level 1 Traditional Largely financially driven using traditional (and often fragmented) approaches to defining strategy, budgeting, target setting, executing and following-up actions. Level 2 Disciplined A more structured approach to strategic planning and follow-up built on a foundation of strong project execution and improvement disciplines Basic Execution Disciplines & Performance Management Framework Level 3 Aligned Increasing focus on top-down/bottom-up alignment typically via a more systematic and collaborative goal cascade process and/or by establishing a cross-functional enterprise program office Increased Focus on Alignment & Making Hard Choices Creation of a “feedback loop” that enables earlier course correction and continual “testing” of strategic assumptions plus internalisation of “execution” culture Level 4 Integrated Closure of the “Loop” & Increasing Reflection

16. Level 1 Traditional WHERE ARE THE MAJORITY OF GLOBAL 5000 ORGANISATIONS? Level 2 Disciplined Basic Execution Disciplines & Performance Management Framework Level 3 Aligned Increased Focus on Alignment & Making Hard Choices Level 4 Integrated Closure of the “Loop” & Increasing Reflection 15 154 31 5 http://www.surveymonkey.com/s/Execution_Maturity_Assessment 7.3% 75% 15.1% 2.4%

17. THE EXECUTION READINESS ASSESSMENT COMBINES THE MATURITY MODEL WITH THE STANFORD SEF Stanford Strategy Execution Framework

18. THE FOCUS OF THE ERA IS ON THE PRE- REQUISITES OF SUCCESSFUL EXECUTION… Ideation Nature Inspiring Vision Clear Mission Unambiguous Breakthroughs Aligned Identity Servant Leaders Aligned Values Aligned Organisational Structure Effective Governance Structure” Vision Aligned Goals Credible Strategy Effective Communication Process Engement Effective ‘Catchball’ Effective Portfolio Management Effective Benefit/ Impact Tracking High Execution Review Cadence Synthesis Program & Project Management Discipline Effective Progress Reporting Clear Separation of working “on” and “in” Transition Daily Management Continuous Improvement Discipline Critical Few Leading Indicators Clear “True North” Supportive Execution Culture and Aligned Organisation Structure Aligned and Widely Understood Strategy Believable Plan and Capability to Course Correct (Quickly) Capability to Relentlessly ‘Plan the Work’ and ‘Work the Plan’ Capability to Sustain the Gains

19. THE STRATEX HUB… www.i-nexus.com/stratex-hub

20. A fully integrated platform The traditional approach to managing execution… A SINGLE INTEGRATED PLATFORM TO HELP PLAN AND DRIVE EXECUTION…

21. SUMMARY – KEY POINTS Consistently Great Execution is Possible! There is a “Blueprint” that Your Leverage and Adapt The Readiness Assessment Can Help You Build A Tailored Action Plan The Maturity Model Can Give You A Map for the Journey The Stratex Hub is Your Free Source of Strategy Execution Resources The Key is Building an Integrated Strategy Execution System Copyright i-nexus 2013. All rights reserved. i-nexus Software Can Help You Achieve the Results You Want Faster 1 2 3 4 5 6 7

22. ANY QUESTIONS? Paul Docherty paul.docherty@i-nexus.com Skype: pauldocherty +44 (0) 7985 117784 For demo and sales enquiries please contact: alan.mace@i-nexus.com