BUSM 3261 Implementing Strategy Framework PCI Circle

1. BUSM 3261Implementing Strategy FrameworkPCI Circle Herdianti Wisesaputri – 3100622 Lei Guo (Michael) – 3230972 Yanchen Man – 3221595 Yi Sun – 3228022

2. Framework Purpose To address the underlying organisational factors needed to implement a strategy as effectively and efficiently as possible. To enable effective diagnosis of organisational strengths and weaknesses in strategy implementation, thus facilitating a continuous performance improvement.

3. About Our Framework • PEOPLE-CENTRED IMPROVEMENT CIRCLE (PCI Circle) • It is a people centred framework for continuously improving organisational strategy implementation. • WHY PEOPLE AT THE CORE? • At the centre of every organisation are people doing implementation of organisational strategy.

4. PCI Circle Capabilities Leadership Involvement Process System

5. PCI Circle & Rewards & Empowerment Motivation Recognition Capabilities Leadership Feedback Aligned Communication & Training Role Clarity Strong Teamwork Involvement Process System

6. PCI Circle Shared Values Alignment Process System

7. PCI Circle Clear & Meaningful Cascading Strategy Shared Values Alignment Organizational Structure Productive Culture Process System

8. PCI Circle Continuously Improved Clear Process Process System Suitability

9. PCI Circle Logical Procedures Improvement System Continuously Improved Clear Process Mapped Process Process Benchmarking System Fit to Environment Fit to Requirements Suitability

10. PCI Circle Information Management Process Control System

11. PCI Circle Monitored & Documented Communication Channels Information Management Process Control System Comprehensive Database Detailed Measurements

12. Core: People • Definition • People of the organisation have adequate capabilities and are actively involved to do strategic tasks under effective leadership style. • Link with Other Three Areas • People in the organisation understands the vision of the strategy, proactively undertake organisational processes and are fully supported by organizational systems.

13. People-Leadership Leadership Capabilities Involvement • Leadership • Organisational leaders have capabilities to adequately empower, motivate and align workforce’s activities through excellent communication skills.

14. People-Leadership Empowerment & Motivation Leadership Aligned Communication Capabilities Involvement • Empowerment & Motivation • Leaders delegate appropriate authority to task complexity and encourage workers to take control of their task • Aligned Communication • Leaders are able to deliver clear messages regarding strategic tasks to employees enabling them to work effectively and efficiently.

15. People-Involvement • Involvement • Employees are clear about their task (role clarity) and responsibility in their role and are able to work effectively in teams (teamwork). Capabilities Leadership Involvement

16. People-Involvement • Role ClarityEach employee understands task and responsibility associated with his/her role and who are they responsible to, enabling individuals to work effective and efficiently. • Strong TeamworkTeams within the workforce have a strong sense of shared accountability and complimentary individual skills enabling teams to work effective and efficiently. Capabilities Leadership Involvement Role Clarity Strong Teamwork

17. People-Capabilities Capabilities Leadership Involvement • Capabilities • Employees are able to build skills needed to do strategic tasks through synergized feedback and training system and encouraged to improve using appropriate rewards and recognition system.

18. People-Capabilities Rewards & Recognition Feedback & Capabilities Training Leadership Involvement • Feedback System • Workers have a clear idea of their strengths and weaknesses in terms of capability from continuous feedback and are able to improve their capabilities, including soft and hard tools techniques, through suitable training. • Rewards & Recognition • Employees are given appropriate rewards and recognition for undergoing training and performing well motivating them to always improve their capabilities.

19. Poor Moderate Excellent People in the organization have a general idea of their level of capabilities from receiving occasional feedback and have the opportunity to increase their capabilities through available but not well targeted training. People at all levels of the organization clearly understand their weaknesses and strengths in terms of capabilities through regular and timely feedbacks received and are able to improve their weaknesses through well targeted training. People in the organization are not aware of their level of capabilities due to lack of feedback they can receive and doesn’t have the opportunity to increase their capabilities due to lack of training available in the organization. People-Capabilities-Synergized Feedback & TrainingMeasurement 0 1 2 3 4 5 6 7 8 9 10

20. Tier 1: Vision • Definition • Organization has clear shared values that aligned its member with strategic goals. • Link with People • Vision should be the base of every organisational activity, for a meaningful vision attracts commitment, energizes and motivate people. It is important that organizational members understand its vision to ensure strategic alignment.

21. Vision-Shared Values Shared Values Alignment • Shared Values • Organization has clear and meaningful values that can be shared through the entire organization creating a productive culture.

22. Vision-Shared Values Clear Meaningful Values Shared Values Productive Culture Alignment • Clear & Meaningful Values • The core values need to be comprehensible and well-defined, they can be the principles that provide a sense of meaning for everyone in the organization. Productive Culture • Organization has the culture where employees are motivated and energized to work effectively towards their goals, this culture can ensure the consistency with the organizational vision

23. Vision-Alignment Alignment Shared Values • Alignment • Organization has a sound organizational structure and cascading strategy which are in the same direction with its vision to gain synergy and attain goals.

24. Vision-Alignment Cascading Strategy Organizational Structure Alignment Shared Values • Cascading Strategy • Organization has an appropriate strategy to ensure that organizational goals are realized. Meanwhile, the strategy can be implemented throughout the entire organization by top management who is responsible to deliver the vision.Organizational Structure • Organization has a fitting structure to enable effective workforce synergy that support its vision and strategy.

25. Poor Moderate Excellent The vision and values of the organization are well communicated and understood by the organizational members. They are motivated to do their best because they are deeply connected to the vision and values. Organizational members does not understand vision and values statement, hence they only focus on doing their tasks without an understanding of what the organization wants to achieve. Most organizational members know the organizational vision and values, however they are not meaningful to them. They are not motivated by them and don’t take them into everyday practices. Vision–Shared Values–Clear & Meaningful Measurement 0 1 2 3 4 5 6 7 8 9 10

26. Tier 1: Process • Definition • Organization has clear processes that are continuously improved to ensure suitable to answer to challenges faced in strategy implementation. • Link with People • Everything that happens inside an organisation is a process. People need to be supported and understand these processes to efficiently and effectively implement strategies.

27. Process-Clear Process Clear Process Continuously Improved Suitability • Clear Process • Organizational processes are clearly defined and broken down (mapped) into simple logical procedures ensuring organizational members can easily understand and implement the processes.

28. Process-Clear Process Logical Procedures Clear Process Mapped Process Continuously Improved Suitability • Logical Procedures • Every process in the organization serve a strategic purpose and can be broken down into simple logical steps, easily understood by every organizational members. • Mapped Process • Organizational processes are documented using hard tools, such as flow chart or control chart, enabling effective and efficient implementation and obstacles diagnostic.

29. Process-Suitability • Suitability • Organization develops suitable processes according to environment, vision and people requirements. Continuously Improved Clear Process Suitability

30. Process-Suitability • Fit to Environment • Organizational processes are suitable to the environment that the business is operating in, for example the available human resource and technology resource in the business. • Fit to Requirement • Organizational processes are tailored to the needs of the strategy and the needs of the people. Continuously Improved Clear Process Suitability Fit to Environment Fit to Requirements

31. Process-Cont. Improved Continuously Improved Clear Process Suitability • Continuously Improved • Rigorous benchmarking and improvement systems are available, understood and being applied to improve processes continuously.

32. Process-Cont. Improved Benchmarking Continuously Improved Improvement System Clear Process Suitability • Benchmarking • Organization sets suitable and rigorous benchmark on crucial processes that can be a source of organizational learning in order to improve organizational processes. • Improvement System • Organization has suitable improvement tools that are applied to identify weaknesses in the process and generate ideas for process improvement.

33. Poor Moderate Not all processes are mapped and the ones that did are not sufficiently explained in terms of input, transformation, output and control points to be monitored, causing confusion and ineffective process implementation. All processes are mapped into sufficient details so employees can understand the input needed, transformation process, output sought and important control points to be monitored and perform effective and efficiently. Excellent No documentation of processes available, employees are doing the process without knowing what input needed, output sought and crucial control points resulting in strategic implementation failure. Process–Clear Process–Mapped Process Measurement 0 1 2 3 4 5 6 7 8 9 10

34. Tier 1: System • Definition • Organisation has a robust supportive system that could process and provide information efficiently and conduct effective controls in implementing strategy. • Link with People • Robust organizational supportive system provides people with adequate information and control tools necessary to maintain effective and efficient strategy implementation.

35. System–Control Control Information Management • Control • People in the organization are able to use detailed measurements systems to monitor and document performance of strategic implementation.

36. System–Control Monitored & Documented Control Detailed Measurements Information Management • Monitored & Documented • Managers or leaders control strategy implementation through supervising and documenting employees and tasks. • Detailed Measurements • Organization has a fitting measurement system that can mobilize employees towards working on strategic tasks.

37. System–Info. Management Information Management Control • Information Management • People in the organisation used sound communication channels to access comprehensive information in an organised database.

38. System–Info. Management Comprehensive Database Communication Channels Information Management Information Control • Comprehensive Database • Organization has a complete and robust database system enabling people from different organizational levels to record, access and evaluate information efficiently for various task needs. • Communication Channels • Each employee uses a targeted communication channels to share tailored information needed for effective strategy implementation.

39. Poor Moderate The organization has an adequate database system. However, the lack of effective information evaluation might influence the decision making process and decline the task efficiency. There is an organizational database system that is able to record, process and organize crucial information that all people from different levels could access and evaluate efficiently for various task needs. Excellent The organization doesn’t have a database system to record and organize information needed by employees to work effective and efficiently. System–Info. Management–Comprehensive Database Measurement 0 1 2 3 4 5 6 7 8 9 10

40. PCI-CIRCLE FRAMEWORK Implementation

41. PCI-CIRCLE FRAMEWORK Implementation

42. PCI-CIRCLE FRAMEWORK Conclusion • Generic People-Centered Improvement Framework • Realistic and easy to understand measures • Simple implementation • Effective diagnostic of weaknesses in strategy implementation

43. THANK YOU!Any questions?