1. Strategic Management System A Case Study
Gloria Trope, PMP- Sr. Management Advisor
Mazhar Mansoor, PMP- Sr. Management Advisor

2. Introduction
This is a case-study of how a water utility revised its strategic management process utilizing key project and portfolio management principles. The new system integrates planning, budgeting, performance management and project management.
Project management is becoming the norm for doing business in many organizations. Every project should contribute to an organization’s strategic plan. However, not every organization has effectively linked projects with its strategic plan. It is this failure to integrate the strategic plan with project management that is a major reason desired outcomes are not achieved and strategic plans are relegated to gathering dust on office shelves.
Effective project management starts with selecting and prioritizing projects that focus on achieving the organization’s vision. But how can we ensure this linkage? We need to make sure that we integrate projects within the strategic plan. This presentation provides a case-study of how the Washington Suburban Sanitary Commission revised its strategic management process to integrate strategy with project management 2

3. Washington Suburban Sanitary Commission (WSSC)
Established in 1918, WSSC is the eighth largest water and wastewater utility in the United States. WSSC serves about 1.8 million people in an approximately 1,000-square-mile (2,600 km2) area in Montgomery and Prince George’s counties. It owns and manages about 10,000 miles of water and sewer mains

4. Focus on planning
Basic performance management system
Centralized strategic system
Limited upfront planning
No alignment with budget process
Limited alignment between “Action Items” and strategic priorities
No Project Charter

5. Develop and implement a strategic management system
Focus on execution utilizing project management practices
Time for upfront planning
Alignment with budget process
Portfolio-based planning
Project Charter for each strategic project
Focus on benefits /program evaluation

6. New Strategy Pyramid Vision What we want to be Mission Why we exist
Formulation
Core Values
What we believe in
Strategic Priorities
What our game plan will be
This this approach our hope is to bring simplicity, efficiency and execution focus to the strategy management process at WSSC.
Individual and teams must understand how their work impacts metrics and strategies being pursued by the organization.
This model creates a clear line of sight between individual goals and organizational strategies
This model helps in translating higher level business strategies to individual goals
Our goal is to Keep it simple and not make it more difficult than it needs to be. It will work only if it is easy to conceptualize and implement.
Its a beginning of the implementation of The Balanced Scorecard (by Kaplan & Norton "The Strategy Focused Organization", "Strategy Maps")
Strategy
Evaluation
Objectives and Measures (Performance Management)
What must we achieve and how do we know if we are achieving it
Strategic Initiatives (Planning, Budgeting & Implementation)
What we need to do (and how we fund it)
Implementation
Strategy
Personal Goals (Performance Management Program – PMP)
What I need to do as an individual

7. WSSC Strategic Management System
Strategy Formulation
Vision
Mission
Core Values
Strategic Priorities
Strategy Implementation
Project Initiation
Project Planning
Project Execution
Project Closing
Strategy Evaluation
Objectives
Measures
Monitoring & Reporting
Decisions & Actions
Results
Customer Outcomes

8. Key Outcomes of New System
An effective corporate governance model
A portfolio-based planning process
Projects and programs that support strategic priorities
Focused, quantifiable outcomes
Aligned individual and organizational goals
Tools for managing programs and projects
Strategy Formulation (Creation of Vision, Mission, Core Values and Strategic Priorities)
An effective corporate governance model has been enabled with the transfer of strategy formulation function (creation of vision, mission, core values and strategic priorities) to commissioners.
Strategy Evaluation (Selection of performance objectives and monitoring & reporting of progress)
A fully automated Performance Management System is being developed to enable performance monitoring and reporting.
A Portfolio-Based Planning Process (to ensure right programs and projects are selected to achieve desired performance targets.)
Planning process is fully aligned with budgeting and annual individual performance goal-setting process.
There is ample time available for planning to increase “shovel readiness” of projects when the fiscal year starts.
Successful completion of the key projects to increase accountability - on time/on budget/with quality delivery.
Project evaluation to determine if a project achieved its objectives - post-implementation. (achieving the desired outcomes)

9. New System - Process View
Vision
Mission
Core Values
Strategic Priorities
Strategy Formulation
Performance Management
(KSMS)
Strategy Evaluation
Portfolio Decision Criteria
Budget Decision Criteria
Requested and Suggested Projects
Recommended Projects
Funded Projects
This will assure the integration of planning and budgeting activities
The new framwork will our performance in some key areas such as;
Strategic Planning
Performance Measurement
Intregrated business planning
Management reporting
Organizational Culture and Reward System.
Strategy Implementation
Closing
Execution
Planning

10. Strategic Management System - Old Process
GMO
Budget Summary/ Final New and Reinstated Forms
Final Greensheets and Pinksheet
Portfolio Recommendations Memo
Budget Office
SSMO
SSMO
New and Reinstated Forms
Greensheets
Portfolio
Recommendations
Team and Offices
Team and Offices
Portfolio Teams

11. Strategic Management System – New Process
GMO
Budget Package
(Annual Workplan)
Budget Office
Annual Workplan
SSMO
(GMO Initial Review)
Annual Workplan
Team and Offices
Portfolio Teams
Ideas and Suggestions
Portfolio Recommendations

12. Initiation Budget/ Workplan Meetings with the GM Fiscal Year Kickoff
Jan
Feb
March
April
May
June
July
Aug
Sep
Oct
Budget/ Workplan Meetings with the GM
Fiscal Year Kickoff
Portfolio Meetings
Budget Planning
Annual Workplans (Draft)
Objective (s)
Create a draft Annual Workplan for each Team/Office for FY 2014
Key Considerations/Benefits
Early start Annual Workplan will help provide inputs to the portfolio teams
Multi-year initiatives, carryover items from previous year could be used as inputs to the Annual Workplan
Key Activities
Send Templates and Instructions to Teams/Offices – SSMO
Complete and submit Annual Workplan drafts to SSMO – Teams/ Offices
Enter Annual Workplan data into PPM Center – SSMO
Sort Annual Workplan by Portfolio – SSMO
Provides sorted list to Portfolio Teams – SSMO
Deliverables
Annual Workplan Draft
Portfolio Lists Draft
Portfolio Meetings
Objectives
Set performance targets and recommend strategic initiatives (programs, projects and activities) to the GMO for each Strategic Priority Portfolio
Setting strategic direction and putting organizational focus on leadership priorities
Defining focused, quantifiable performance outcomes measures of success
Selecting projects and programs that support strategic priorities
Review strategic priority objectives and measures
Review past performance and set new goals for the next fiscal year
Select initiatives and make recommendations
Portfolio Recommendations
Portfolio CLT Presentation
Updated performance objectives and measures (KSMs)
Budget Planning
Prepare budget packages (Annual Workplan, Budget Request Form) for the budget meetings
Ensure strategic planning process is aligned with the budgeting process
Justification is provided for all budget request using Budget Request Form/Project Charter
Projects are ranked based on strategic priorities
Update Annual Workplans based on the portfolio recommendations - Teams
Rank projects - Teams
Complete Budget forms / Project Charter - Teams
Submit budget (Annual Workplan, Budget forms) - Teams
Updated Annual Workplans (with Budget)
Budget forms (New and Reinstated Programs Request Form)
Annual Workplan/Budget Meetings
Review and approve proposed Annual Workplan for next fiscal year
Due Date – Oct 15th
Information needs to be collected and presented in a consistent manner to ensure efficient decision making
Decisions are to be captured and communicated in consistent format
Hold Annual Workplan / Budget Meetings – Finance
Finalize Workplans – Teams / SSMO
Approved Budget (by the GM/CEO)
Updated Annual Workplans
Approved Portfolio Recommendations List
The initiating processes determine the nature and scope of the project.[25] If this stage is not performed well, it is unlikely that the project will be successful in meeting the business’ needs. The key project controls needed here are an understanding of the business environment and making sure that all necessary controls are incorporated into the project. Any deficiencies should be reported and a recommendation should be made to fix them.
The initiating stage should include a plan that encompasses the following areas:
analyzing the business needs/requirements in measurable goals
reviewing of the current operations
financial analysis of the costs and benefits including a budget
stakeholder analysis, including users, and support personnel for the project
project charter including costs, tasks, deliverables, and schedule
Annual Workplans (Draft)
Budget Submission
Finalize Workplans
Update KSMs
Prepare Budget Requests
Update Workplans
Portfolio Debrief

13. Planning Goal-setting for employees Debrief Update plans as needed
Nov
Dec
Jan
Feb
March
April
May
Jun
Goal-setting for employees
Debrief
Update plans as needed
Submit budget reallocation requests as needed
Objective (s)
The Planning Phase takes the initial scope and definition of the project and adds greater detail. The Project Management Plan is the overarching document used to plan, execute, monitor and control, and close a project. The Project Management Plan has such detail as the project schedule, resources, and budget as well as subsidiary quality and risk plans.
Key Considerations/Benefits
If you fail to plan, you plan to fail
Key Activities (Activity – Responsibility – Date)
AMM Debrief
Refine scope and create project schedule/ POAM
Complete workforce planning
Conduct resource planning session (match making) - April
Complete risk planning
Complete Performance Management Goal Setting with Employees
Submit budget reallocation requests as needed
Update plans as needed
Deliverables
Project Management Plan (Resources, Project Schedule, Budget, Quality Plan, Risk Plan)
Completed employee performance appraisal forms (Performance Management Program - PMP Forms)
After the initiation stage, the project is planned to an appropriate level of detail The main purpose is to plan time, cost and resources adequately to estimate the work needed and to effectively manage risk during project execution. As with the Initiation process group, a failure to adequately plan greatly reduces the project's chances of successfully accomplishing its goals.
generally consists of[
determining how to plan (e.g. by level of detail or rolling wave);
developing the scope statement;
selecting the planning team;
identifying deliverables and creating the work breakdown structure;
identifying the activities needed to complete those deliverables and networking the activities in their logical sequence;
estimating the resource requirements for the activities;
estimating time and cost for activities;
developing the schedule;
developing the budget;
risk planning;
gaining formal approval to begin work
Refine scope and create project schedule
Complete workforce planning
Conduct resource planning session
Complete risk planning 13

14. Execution Support and monitor key projects as needed (SSMO)
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
March
April
May
Jun
Support and monitor key projects as needed (SSMO)
Direct and manage project execution (project teams)
Develop new system, process or product (project teams)
Monitor and report performance
Objective (s)
This is the phase when the work occurs. Execution begins once plans are in place and the fiscal year starts. During execution, the project manager will also monitor stakeholders to ensure that stakeholder’s needs are met.
Key Considerations/Benefits
By completing planning before July, maximum time could be devoted to the execution phase of the projects
Key Activities (Activity – Responsibility – Date)
Support and monitor key projects as needed (SSMO)
Direct and manage project execution
Develop new system, process or product
Monitor and report performance
Deliverables
End product or result
Status and Progress Reports
Change Requests
Executing consists of the processes used to complete the work defined in the project plan to accomplish the project's requirements. Execution process involves coordinating people and resources, as well as integrating and performing the activities of the project in accordance with the project management plan. The deliverables are produced as outputs from the processes performed as defined in the project management plan and other frameworks that might be applicable to the type of project at hand

15. Monitoring & Controlling
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
March
April
May
Jun
July
Support and monitor key projects as needed (SSMO)
Direct and manage project execution (project teams)
Develop new system, process or product (project teams)
Monitor and report performance
Develop project closing report
Archive project documentation
Submit final Workplans
The Monitoring and Controlling Process Group measures and monitors progress to identify variances from the project management plan so that corrective action can be taken when necessary to place the project back on schedule. This process group consists of those processes performed to observe project execution so that potential problems can be identified in a timely manner and the appropriate corrective actions can be executed
Measuring the ongoing project activities
Monitoring the project variables (budget, issues, risks)
Progress reports

16. Closing Direct and manage project execution (project teams)
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
March
April
May
Jun
July
Support and monitor key projects as needed (SSMO)
Direct and manage project execution (project teams)
Develop new system, process or product (project teams)
Monitor and report performance
Objective (s)
Closing phase formally closes the individual projects, after the objectives are met and accepted.
Due Date – July 30th
Key Considerations/Benefits
A formal project closure allow us to firstly, recognize its success and secondly, to capture lessons that will benefit future projects
Key Activities (Activity – Responsibility – Date)
Develop project closing report
Archive project documentation
Submit final Workplans
Deliverables
Closing Report
Closed out Workplans
Closing includes the formal acceptance of the project and the ending thereof. Administrative activities include the archiving of the files and documenting lessons learned.
This phase consists of:[6]
Project close: Finalize all activities across all of the process groups to formally close the project or a project phase
Contract closure: Complete and settle each contract (including the resolution of any open items) and close each contract applicable to the project or project phase
Develop project closing report
Archive project documentation
Submit final Workplans

17. Tools and Templates Annual Workplan Project Charter
Project Status Report
Project Management Plan

18. Lessons Learned Keep it simple – phase-in
Seek leadership support early
Obtain cross-functional involvement
Seek participation from various levels in the organization
Show the …WIFM
Build on what exists
Communicate often

19. ? Questions? Gloria Trope, PMP
Sr. Management Advisor
Mazhar Mansoor, PMP
Sr. Management Advisor