Conclusion

1. Conclusion Best Practice Business Planning Methodologies: Use of the Strategy Map & Balanced Scorecard 25th April 2006

2. OSNI and the Balanced Scorecard (BSC) • What is this tool and why do we need it? • The need to strategically manage change at OSNI • The role of the Strategy Map and BSC • How they have been developed at OSNI • Organisational alignment • Linkage to individual performance planning • Implementation and Business Planning • Issues and lessons learnt • Q&A

3. Strategy Map & Balanced Scorecard • Internationally recognised; developed by Kaplan & Norton at Harvard • Used internationally in large and small private and public organisations • Tesco • UK MOD • Norwegian Air force • Royal Canadian Mounted Police • Key management tool used by OSNI to set objectives, measures and targets, and link organisational and personal performance to our Corporate Strategy. • Continuing to evolve our implementation of the BSC and to learn from best practice in its use • BSC links naturally to European Foundation for Quality Management (EFQM) and Investors in People (IiP).

4. Strategic Planning & Implementation Integrating Strategy & Tactics?

5. Most Organisations don’t know how to Execute Strategy “Less than 10% of strategieseffectively formulated areeffectively executed”-Fortune “In the majority of cases – weestimate 70% - the realproblem isn’t bad strategy …it’s bad execution”-Fortune WHY? They can’tDESCRIBE theirstrategy They don’tMANAGE theirstrategy They haven’tmade strategyexecution a CORECOMPETENCY

6. Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat. Sun Tzŭ c. 490 BC, Chinese military strategist Tactics is efficiency in climbing the ladder of success; strategy determines whether the ladder is leaning against the right wall. Adapted fromStephen Covey, American leadership consultant and writer

7. Strategy - what has that to do with me? An empowered organisation is one in which individuals have the knowledge, skill, desire, and opportunity to personally succeed in a way that leads to collective organisational success. Stephen R. Covey No institution can possibly survive if it needs geniuses or supermen to manage it. It must be organised in such a way as to be able to get along under a leadership composed of average human beings. Peter F. Drucker

8. Some Strategic questions for any organisation Who are we? What do we do? Why are we here? What kind of organisation are we and do we want to / must we become? What is the current strategy, implicit or explicit? What assumptions have to hold for the current strategy to be viable? What is happening in the larger, social, technological, political, competitive and educational environments? In which markets/areas will we be active? What are our financial and/or public good goals? What products and services will we offer to what customers at what price level? How will we deliver our products and services and what technologies will we employ? What skills, capabilities and capacities will we require and which ones are core?

9. Organisations fail because of poor choice and/or implementation of strategy • Examples: Ryanair Versus BA, Tesco Versus W.H.Smith

10. OSNI: The need to manage Strategic Change

11. OSNI’s Role • Supplier of mapping to: • National, regional and local government • Private industry • Value-added resellers • General public • OSNI mapping: • Underpins much of the Northern Ireland economy • Recent PA Consulting report estimates £7bn/yr • Acts as a base reference for all N.I. Spatial data

12. Mapping & Surveying historically …… • Surveying was based on triangulation • Measure base line by chains, rods, or tapes • Measure angles by theodolite • Very time consuming exercises • Needed people on the ground • Cartography was fine draftsmanship • Required extreme patience/attention to detail • Was based on wax etching, later Letraset • Took months for a single sheet

13. Mapping Today is firmly in the Digital Era • Surveying uses electronic theodolites, laser range finders, satellite positioning, pen computers,aerial photography, (ground radar and satellite imagery) • Cartography is derived from digital databases, some updated daily • Data is built up in layers • Data can be manipulated using special software known as GIS • External data easily linked through the map • Map is built on “intelligent” points, lines and polygons, which are “attributed” and can be “interrogated”

14. Market Context One certainty: Change will continue – in the GI industry and in NICS • Reform & efficiency • Citizen-centric government • Joined up government • EU Directives on GI, PSI, environment, etc. • Formation of new Land & Property Services Agency • New technologies • Falling barriers to competitor entry • New market opportunities • Rising customer expectations • New skills needed • OSNI wish to lead change, not react to it • Every OSNI staff member is affected by and must be involved in that change

15. OSNI’s organisation and culture? 2000: New Chief Executive Mick Cory asked the questions: What type of organisation was the OSNI of 2000? What values and behaviours did it expect and get? What type of organisation should the OSNI of 2005 be? What values and behaviours would it need to ensure? What strategic management models would it need to effect the change?

16. The OSNI culture pre 2000 was a mixture POWER CULTUREPower derives from top person with little or no empowerment of others Key behaviours: Discipline, wariness, risk-aversion, conformity, politicking, passivity, one man’s vision, strained external relationships BureaucracyControlled by procedures, role descriptions and authority Job position & grades are central Standardised product/output Key behaviours: Predictability, consistency, stability, structured, methodical, conservative, rigid, empire building, paper shuffling, impersonal, buck-passing, slow, unresponsive.

17. Culture needed in a fast-moving ICT environment TASK CULTUREThe network organisation Multidisciplined teams co-operating together to deliver projects. Emphasis on results and getting things done. Key behaviours: Empowerment, discretion, self-managing, flexibility, adaptability, talent, teamwork, problem-solving, innovation, challenging re-modelling.

18. How to drive the strategic change? • Effect change through Executive Leadership • Conceptualise the Strategy • Translate the Strategy to Operational terms • Align the Organisation to the Strategy • Make Strategy everyone’s job • Maintain the momentum • Review

19. Business Development Corporate Services Finance Operations Business Planning Large Scales Revision Sales & Customer Services Accounts Human Resources Small Scales Revision & Publishing Marketing & (Technical /Commercial) Training Finance Management Training Product Management /R&D Pointer Admin GIS Application Support Database enhancement ICT Geodesy Intellectual Property Rights Technical (Process) Development Premises New organisational structure put in place Chief Executive

20. Governance and Organisation • CE instigated two boards • Strategic Board (SB) & Operational Board (OB) • Separate terms of reference & separate meetings • SB members plus next management layer constitute OB • Balanced Scorecard chosen as the management tool for OSNI • Board members trained in BSC theory • Strategy Map (SM) developed • Methodology cascaded

21. OSNI Mission and Vision Mission is what we do: OSNI contributes to the public good by supplying the mapping information for Northern Ireland Vision is what we want to become: We intend to be a leading, financially self-sustainable, public service, maximising the commercial potential of our information to minimise cost to the taxpayer. In this way we will enhance our public good role further, providing expertise, support, consultancy and advice on geographic information and geographic information systems, supporting Government and the wider Public Services in delivering on their objectives.

22. From Strategy to Individual jobs Mission • To contribute to the public good by supplying the mapping information for Northern Ireland Vision • To enhance our Public Good Role Corporate Goal • To achieve financial self sustainability Strategy Map • Focuses OSNI on delivering Mission, Vision and Corporate Goal Balanced Scorecard • Uses mixture of lead and lag indicators/targets for every box • Detailed work done on selecting and defining PPA & PDP • Individuals’ work plans for all staff targeted specifically at relevant BSC • Personal Development Plan supports current and potential work

23. Strategy Map V Balanced Scorecard • Strategy Map often overlooked in Balanced Scorecard discussions and preparations, but is essential • Captures on one page the organisation’s strategy • Permits minds to see the entire strategy in one conceptual model • Stimulates debate while ensuring focus • Illustrates what success will look like for the organisation • Takes four different perspectives: • Financial (or other public good perspective) • Customer • Key Business Processes • Organisational Learning and Growth. • These are not hierarchical in importance but flow logically • Alignment of the four perspectives is key to focused, internally consistent development and implementation of strategy

24. Strategy Map & Balanced Scorecard • Vision, Mission and especially Corporate Goal are translated into these four quadrants • Each box in each quadrant demands specific measures and indicators of success captured on the balanced scorecard • Targets SMART if possible • Mixture of lead and lag indicators • Lag indicators only verifiable at end of process • Lead indicators useful for monthly monitoring • The BSC forms the basis for the Operation Board Report • Debate at the OB is focused on reds/ambers in RAG

25. Customer Perspective: “To achieve our vision,how must we look toour customers?” Financial or Public Good Perspective: “If we succeed, how will we look to ourtaxpayers/ratepayers/stakeholders?” Internal Perspective: “To satisfy our customers/stakeholderswhich business processesmust we excel at?” Learning & Growth Perspective: “To achieve our vision,how must our organisationlearn and improve?” The Mission, Vision and Goal

26. Mission: To contribute to the public good by supplying the mapping information for Northern Ireland Vision: To enhance our Public Good Role To achieve financial self sustainability Costs/Income Financial Perspective Productivity Growth Corporate Goal Manage Costs Asset Management Sustain Income New Income Customer Perspective Quality Function/Choice Service Relationship Key Business Processes SIAM Product Management Channel Management Data Update & Supply Managing our Customer Relations Organisational Learning and Growth Perspective Strategic Competencies Key Job Key Competences Strategic Information Technologies Information Needs ICT Systems, Infrastructure Climate for Action Leadership, Teamwork Alignment Structure Culture

27. Corporate Balanced Scorecard

28. Corporate BSC – Finance Quadrant

29. Mission: To contribute to the public good by supplying the mapping information for Northern Ireland Vision: To enhance our Public Good Role To achieve financial self sustainability Costs/Income Financial Perspective Productivity Growth Corporate Goal Manage Costs Asset Management Sustain Income New Income Customer Perspective Quality Function/Choice Service Relationship Key Business Processes SIAM Product Management Channel Management Data Update & Supply Managing our Customer Relations Organisational Learning and Growth Perspective Strategic Competencies Key Job Key Competences Strategic Information Technologies Information Needs ICT Systems, Infrastructure Climate for Action Leadership, Teamwork Alignment Structure Culture

30. 110 with partial NIMA 117 without NIMA Financial Perspective – 1.1

31. Financial Perspective – 1.2

32. Financial Perspective – 1.3

33. Financial Perspective – 1.4

34. Financial Perspective – 1.5

35. Customer Perspective – 2.1

36. Customer Perspective – 2.2

37. Customer Perspective – 2.3

38. Customer Perspective – 2.4

39. Business Perspective – 3.1

40. Business Perspective – 3.2

41. Business Perspective – 3.3

42. Business Perspective – 3.4

43. Business Perspective – 3.5

44. Organisational Learning and Growth Perspective – 4.1

45. Organisational Learning and Growth Perspective – 4.2

46. Organisational Learning and Growth Perspective – 4.3 STRATEGY MAP CONCLUSION

47. Implementation of the SM/BSC • Set up Strategy Map Implementation Team (SMIT) • ‘Best practice’ recommendation, following Strategy Map and Balanced Scorecard training. • Strategy Board selection of team – Cross Divisional representation (4 Members, 4 Divisions) • SMIT Role • To develop a process to effectively implement the 2005-06 Strategy Map through the Business Planning process and to embed it within the culture of the Agency

48. Business Planning (BP) Flowline incorporates BSC

49. Milestones identified & dates booked

50. Business Planning Hierarchy Link between - Strategy Map - Corporate BSC - Divisional BSC - Branch BSC - PPA & PDP