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Aligning Strategy, Execution, and Organization TPE Management Framework®. Templates for each performance driver. Reputation. … Comprehensive, Complete, Consistent set of Frameworks …. Vision Mission Strategy. Marketing. Performance Excellence. Communication / Knowledge Mgmt.
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Aligning Strategy, Execution, and OrganizationTPE Management Framework® • Templates for each performance driver
Reputation … Comprehensive, Complete, Consistent set of Frameworks …. Vision Mission Strategy Marketing Performance Excellence Communication / Knowledge Mgmt Operational Organizational Portfolio Financial Audit/Control Adapt, Innovate, Improve Planning,Objectives KPI’s Integrity 6 Drivers of Excellence 9
Align your mission statement with the Group’s mission Please provide further explanation of strategic direction in Slide 4 whereby you can refer to the industry overview, SWOT and competitive analysis outlined in the attachments Mission and Strategic Direction Mission and Strategy Mission To be the customer’s preferred choice by setting the standard in………….. • Resulting In: • Gaining market share from ___% to ___% • Sales growth of ___% p.a. • Net profit growth of ___% p.a. • Cost/Income ratio <50% • Through: (Strategic Direction) • Organic growth (complete slide 3 & 4) • Inorganic growth (complete table in slide 6) • Additional partnerships • Fixing unprofitable business units
Mention existing and future product offerings Illustrative Draft: Please update this slide with Strategic Direction for your Business Unit Mention existing and future lines of business Describe which distribution channel to grow? Existing Core of our business Business Reach Customer More profitable new products Increase market presence Increase focus on ?? Products Selectively enter new segments Grow ?? Distribution Describe which new segments? Proposed Strategic Direction for 2012-2014 New Cities Women SME Business (Golf) Higher middle Business line (hockey) Businees line (soccer) Mass retail shops shoes Department stores Own shops Shirts Bags Direct Apparweil [Please highlight the new/modified items from the previous MTP in a different colour]
Further explanation of Strategic Direction Please elaborate on the planned strategic initiatives for your Business Unit highlighted in the previous slide REACH BUSINESS DISTRIBUTION CUSTOMER PRODUCTS
Expand organisational capabilities, including management development • Improve Performance Culture • Introduce profitable new product offerings • Increase profitable multi-channel sales • Develop strategy for youngsters and women • Strengthen Customer Satisfaction • Double digit organic growth • Active portfolio management (M&A), including better allocation of capital • More and stronger partnerships • Increase brand recognition • Strengthen compliance • Communicate clearly to internal/external stakeholders • Ensure Integrity, Ethical behavior in all areas • Increase efficiency and distributor/customer satisfaction • Improve operational risk management • Obtain / maintain satisfactory audit rating Strategic Priorities Portfolio Marketing Operational Reputation Organisational Financial • Raise $ capital +debt • Expand value-based management • Strengthen risk mgt • Improve MIS & Control [Please highlight the new/modified priorities from the previous MTP in a different colour]
Strategic Priorities • Double digit organic growth • Active portfolio management (M&A), including better allocation of capital (please complete table below) • More and stronger partnerships (please list names in slide 16) Towards Performance Excellence Illustrative: Please update this slide with strategic priorities for your Business Unit PORTFOLIO Fin Rep Mkt Org Ops Perf Port Inorganic Growth Portfolio Excellence
Strategic Priorities • Introduce profitable new product offerings • Increase profitable multi-channel sales • Develop strategy for youngsters and women segmentation • Strengthen Customer Satisfaction Towards Performance Excellence Please note that marketing is the sum of Customer segments, Products and Distribution channels, including their interdependencies. In this section, you should be consistent with the strategic direction as captured in the Spider slide (Page 3-4). If that is self explanatory, reference can be made to these slides and no further explanation is needed. Illustrative: Please update this slide with strategic priorities for your Business Unit MARKETING Fin Rep Mkt Org Ops Perf Port Marketing Excellence
Towards Performance Excellence Customer Segments Rep Fin Org Mkt Ops Perf Objectives & Measures Present Driver Port • Customer Segments • Lower Middle Income (%) • Middle Income (%) • Higher Income (%) • SME (%) • Other (%) ‘11E‘12F‘13F‘14F Number of Customers (‘000) Sales/Customer (€) Cross sell ratio Customer Satisfaction<Goals> • Service Improvements • ……….. • Any comments • ……….. Customer Excellence
Towards Performance Excellence Sales & Distribution Fin Rep Mkt Org Ops Perf Driver Objectives & Measures Present Port Product Mix ‘11E‘12F‘13F‘14F • Soccer product line: • Shoes • Socks • Shirts • Training clothes • ballls • Sub Total (a) • Hockey product line • Shoes • Shirts • Training clothes • Balls • Sub Total (b) • Other Products lines • Shoes • Other • Sub Total (c) Total Sales (a+b+c) Sales & Distribution Excellence
Towards Performance Excellence Sales & Distribution Fin Rep Mkt Org Ops Perf Driver Objectives & Measures Present Port Product mix by distribution channel ‘11E‘12F‘13F‘14F • Soccer products by retail shops • Shoes • Socks • Shirts • Training clothes • etc • Sub Total (a) • Hockey products by own shops • Shoes • Socks • Shirts • etc • Sub Total (b) • Other Products by own shops • Books • Balls • Other • Sub Total (c) Total APE (a+b+c) Sales & Distribution Excellence
Towards Performance Excellence Product Fin Rep Mkt Org Ops Perf Driver Objectives & Measures Present Port ‘11E‘12F‘13F‘14F • New Products to be launched • New Product [ 1 ] for [ x ] distribution channel • New Product [ 2 ] for [ y ] distribution channel • New Product [ 3 ] for [ z ] distribution channel • Products to be eliminated / lower sales • Product [ 1 ] for [ x ] distribution channel • Product [ 2 ] for [ y ] distribution channel • Product [ 3 ] for [ z ] distribution channel • Product Development Team • Product Development Process --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- Elaborate on current status and future plans Elaborate on current status and future plans Product Excellence
Towards Performance Excellence • Strategic Priorities • Expand organisational and personal capabilities • Improve/balance Performance and Ethical Culture • Key HR themes are: • Building organisational capabilities to outperform competition and gain market share • Management development has been identified as a key strategic priority • “Structure follows strategy” - Organisational structure should be well aligned with corporate strategy ORGANISATIONAL Fin Rep Mkt Org Ops Perf Port Organisational Excellence
Risk Management Marketing Operations HR Compliance & Legal Etc Finance & Control Please provide the organisationsal chart in matrix format with clear distinction between functions which are lines of business (i.e. having P&L responsibility) and departments which are functional support. CEO Towards Performance Excellence Line Management Functional Management Illustrative matrix org chart Organisational Setting Fin Rep Mkt Org Ops Organisational Chart (Matrix Format) Perf Port Organisational Excellence
Towards Performance Excellence Management Development Fin Rep Mkt Org Ops Perf Objectives & Measures Present Driver Port 11E‘12F‘13F‘14F • Talent Acquisition • Proactively recruit : • # of Interns • # of Graduates • # of Management trainees • # of High Value Specialists • Actuaries • Finance • Others • Roll out IAP and local induction program for recruits • Talent Development • Identify and accelerate development of high-potential talent (top 5%): • Development plans in place (%) • # of A Potentials (BU Head positions) • # of B Potentials (Functional Head Potentials) • # of C Potentials (GMP’s & FMP’s) • On-going development of talent pool (top 20%): • Development plans in place (%) • Senior Management (Key functions) • Complete development plan (%) • Middle management • Complete Development Plan (%) • Junior talents • Complete development plan (%) 100% 100% 75% 75% 75% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% MD Excellence
Towards Performance Excellence Management Development Fin Rep Mkt Org Ops Perf Objectives & Measures Present Driver Port • Talent Development (Cont’d) • Increase development opportunities for people in the talent pool through regional/global programmes: • # of regional/global rotations • Intra-region • Inter-region • # of talents trained in IAP-IBS • # of talents trained in IBS (Amsterdam) • Graduate trainees attending IIGP • Re-profile and increase E-learning usage • (# of active users) • Succession Planning • Conduct MT MTP process • Key positions (BU heads & key regional functional heads) • % with at least 1 “ready now” candidates • % with at least 1 “ready in 1 move” candidates • % with at least 1 “ready in 2 moves” candidates • Heads of functions • % with at least 1 “ready now” candidates • % with at least 1 “ready in 1 move” candidates • % with at least 1 “ready in 2 moves” candidates • Key position vacancies filled with internal candidates • Retention of high potential talent (top 5%) • Diversity Initiatives • % female representation in senior management • Localize the regional “lioness club” - an initiative for women at ING ‘11E‘12F‘13F‘14F • Complete by July • 25% • 50% • 50% • 50% • 75% • 100% • 25% • 100% • 25% • Complete by July • 50% • 50% • 75% • 75% • 100% • 100% • 50% • 100% • 25% • Complete by July • 75% • 100% • 100% • 100% • 100% • 100% • 75% • 100% • 25% MD Excellence
Towards Performance Excellence Performance Reward Fin Rep Mkt Org Ops Perf Driver Objectives & Measures Present Port • Performance Management • Pay for Performance • Base Salary (Fixed Remuneration) • Performance Bonus • LEO (Retention for Key Staff/Talents) ‘11E ‘12F‘13F‘14F Management by S.M.A.R.T. objectives and the TPE Framework Objective: All staff Base Salary should reach at least market P50 Measure: Base Salary % Diff from P50 Objective: A competitive broad-based bonus plan for all staff (Total Cash at market P50) Measure: Total Cash % Diff from P50 Objective: New leo allocation models (value as % of salary) to be in place in all BU’s Measure: All BU leo models are value-based Objective: Maintain market competitivenessP75 – Hi Po P50 – all staff Measure: Base Salary % Diff from P50/P75 Objective: Maintain Total Cash competitiveness P75/P90 – Hi PoP75 – all staff Measure: Total Cash % Diff from P75–P90 Objective: Maintain a competitive Total Direct Compensation (Salary+Bonus+leo) Measure: leo participants turnover rate Objective: Base Salary of high potentials/ performers should reach at least market P75 Measure: Base Salary % Diff from P75 Objective: Total Cash for high potentials/ performers should reach market P75–P90 Measure: Total Cash % Diff from P75–P90 Objective: Competitive & meaningful 2007 leo grants for key staff/ talents Measure: leo participants turnover rate Organisational Excellence
Towards Performance Excellence HR MIS & Value Add Fin Rep Mkt Org Ops Perf Objectives & Measures Driver Present Port ‘11E ‘12F‘13F‘14F • HR Dashboard • Implement HR scorecard reporting • Global MIS Reporting • Status of PeopleSoft (if live) • If PS not live, contribution to quarterly reporting • Compensation Surveys • Value Add • Audit / SOX Compliance • High level of customer satisfaction Objective: Monthly reporting Measure: Dashboards with 7-10 key HR drivers Objective: Quarterly reporting Measure: Dashboards with 5-7 key HR drivers Objective: Annual reporting Measure: Dashboards with 3-5 key HR drivers Once a year Satisfactory audit reports and SOX compliance WPC Scan results HR MIS Excellence
Towards Performance Excellence • Strategic Priorities • Increase efficiency and distributor/customer satisfaction • Improve operational risk management • Obtain / maintain satisfactory audit rating & AO scan results • Key Ops & IT themes for the region are: • Operations/IT and related functions to be well aligned with overall group’s strategy and strategic priorities • Increase efficiency and distributor/customer satisfaction through: • Straight-through-processing • Customer self-service • Implementing optimized customer service model • Growing Lean Six Sigma methodology, based on ISO.. standards Illustrative: Please update this slide with strategic priorities for your Business Unit OPERATIONAL Fin Rep Mkt Org Ops Perf Port Operational Excellence
Towards Performance Excellence Please fill in “+” or “–” based on 3Q Dashboard • Follow Objectives and measures as set out in the NB/UW initiative • Please put a “√” when STP will be implemented • Follow Objectives and measures as set out in the POS initiative • Follow Objectives and measures as set out in the Contact Center initiative • Follow Objectives and measures as set out in the claims initiative Please refer to slide notes Operations Fin Rep Org Mkt Ops Driver Perf Present Objectives & Measures Port ‘11E‘12F‘13F‘14F • NB/UW • Efficiency • Responsiveness: Average TAT • Quality and Satisfaction • STP for products x/direct channel • Point of sales Efficiency • Customer friendly shops • Contact Information Change • Contact Centre • Efficiency • Responsiveness • Quality and Satisfaction • Claims Management • Efficiency • Responsiveness • Quality and Satisfaction Operations Excellence
Towards Performance Excellence Operations Fin Rep Mkt Org Ops Driver Perf Present Objectives & Measures Port ‘010E‘11F ‘12F ‘13F • Production Optimization Initiatives • - Innovation, R&D • - Quality improvement • - ISO standards • - Efficiency Improvements • - material cost/unit • - labor hours/unit • POS/CC • Call Centre Interface* • Advanced Telephony* • Workflow/ BPM • SIX SIGMA • # Lean Six Sigma Workshops • # Orange Belts • # Black Belts • # Staff for "Train-the-trainers" Note: Black belt training @approx. €6,000 and Ops network / Work stream conference @ approx. €3,000 (3-4 conferences/year) Operations Excellence
Towards Performance Excellence Fin Rep Mkt Org Ops Perf Driver Objectives & Measures Present Port Information Technology ‘11E‘12F‘13F‘14F • Applications and Architecture • Implementation of IA3 • What projects and activities will further the roll out of IA3 in your Business Unit in 2007. • Describe your plans for the IA3 Infohub and Operational Data Store in 2007 • Reuse of Applications • Sell side: Applications you have installed or will develop that you believe will be reusable by other Business Units • Buy side: Applications you plan to obtain by reusing existing applications from other Business Units • Standardisation of Applications • Indicate when you plan to implement the following standardised applications: • PeopleSoft • Information Hub / Operational Data Store • BPM (TIBCO or FileNet) • Provide a brief description of your program of work in this areas. • Highlight any projects that will either Implement or extend the Infohub and ODS • Provide a brief description of the application subject area • Provide a brief description of the application subject area • Implemented / Year & Quarter / NA (why) • Implemented / Year & Quarter / NA (why) • Implemented / Year & Quarter / NA (why) • Implemented / Year & Quarter / NA (why) • Implemented / Year & Quarter / NA (why) IT Excellence
Towards Performance Excellence Fin Rep Mkt Org Ops Perf Driver Objectives & Measures Present Port Information Technology • Infrastructure • Lifecycle Management • Nominate any significant upgrades planned to your infrastructure during 2007. (Indicate likely quarter) • Co-existence • Indicate any plans for migrating to the new global co-existence environment (GDIL) once it is agreed. • Compliance to Policies Affecting Infrastructure • Implementation of email archiving (KVS) • Implementation of Laptop Encryption • Procurement • Products and Tools • List any planned significant investments in 3rd party tools planned for 2007. Name the product type and likely investment. ‘11E‘12F‘14F‘15F • Project 1 (Quarter) • Project 2 (Quarter) • Details • Year & Quarter • Year & Quarter • Product - (estimated investment) • Product - (estimated investment) • Product - (estimated investment) IT Excellence
Towards Performance Excellence Fin Rep Mkt Org Ops Perf Driver Objectives & Measures Present Port Information Technology • Information Risk Management • Level of GWAN Compliance • State your current level of GWAN compliance. • If not Level 2, set out the timeframe you plan to reach GWAN Level2 • Compliance to Policies • Current level of compliance to ING 34 Security Policies. • Ambition for your level of compliance by end 2007. (Recommend 90%) • Projects • Major Project in 2012 • List the three largest projects you are likely to undertake in 2007. Provide name, brief description and estimated cost. ‘11E’07F’08F’09F • Not Compliant/GWAN L1/GWAN L2 • Quarter and Year • XX% • XX% • Project 1. Description (Cost) • Project 2. Description (Cost) • Project 3. Description (Cost) IT Excellence
Towards Performance Excellence Operational Risk Management Fin Rep Mkt Org Ops Driver Perf Present Objectives & Measures Port Operational Excellence
Towards Performance Excellence Please refer to slide notes for definitions Fin Rep Mkt Org Ops Perf Present Driver Objectives & Measures Port Procurement ‘10E‘11F‘12F ‘13F € mn € mn € mn € mn • Total spend • "% of total spend done through global/regional contracts • Total controllable spend • % controllable spend where procurement is involved • Total contract spend • % of contracts co-signed by Procurement and budget owner • Strategic Sourcing • Added value in relation to spend • Savings • % of spend sourced following P&P Note: If the required systems to produce requested data are not available, please state "data not available" and mention when will the system be available to report these KPI’s Procurement Excellence
Towards Performance Excellence Fin Rep Mkt Org Ops Perf Present Driver Objectives & Measures Port Procurement • Fulfilment • % of spend ‘fulfilled’ following P&P • Total # invoices • % invoices paid in time • % Number of invoices which have pre-approved Purchase Order • Supplier (Relationship) Management • # of suppliers • % Suppliers accounting for 80% of spend • Technology • % of electronic invoices • People • Total # procurement FTEs • # Procurement FTEs per Euro1mn spend ‘11E‘12F‘13F ‘14F € mn € mn € mn € mn Procurement Excellence
Towards Performance Excellence • Strategic Priorities • Increase brand recognition • Strengthen compliance • Communicate clearly with internal/external stakeholders • Ensure integrity and ethical behavior in all areas Illustrative: Please update this slide with strategic priorities for your Business Unit REPUTATION Fin Rep Mkt Org Ops Perf Port
Current • Current • Current • Current • Key project 1 • Key project 2 • Key project 3 Towards Performance Excellence • Calculated from latest review • Calculated from latest review • In line with Group strategy? • Agreed to increase ad spend by at least 10% per annum • % in Rep Fin Ops Org Mkt Perf Objectives & Measures Present Branding Port • Detail local sponsorship projects Corporate Communications ‘11E ’07F’08F’09F • Customer Centricity • Customer Satisfaction • Brand Attributes • Treats me fairly • Easy to deal with • Delivers on promises • CCAP actions • (people, products, processes, communication) XX%XX%XX% XX%XX%XX%XX%XX%XX%XX%XX%XX% • Outcome of project in 2007 and means of measurement • Outcome of project in 2007 and means of measurement • Outcome of project in 2007 and means of measurement • Brand Strategy • Brand Awareness • Aided • Unaided • Country Brand Status • Introduce Brand Signature XX%XX%XX%XX%XX%XX% • List exceptions to use of ING <Lion> (only) brand • Timeline for brand signature implementation • Advertising Spend • Product Ad (€ ‘000s) • Corporate Ad (€ ‘000s) • Total as % of New Business XXXXXXXXXXXXXXXXXXX%X%X% XXXXXXXXX Sponsorship (€ ’000s) Communication Excellence
(€ ‘000s) • (€ ‘000s) • (€ ‘000s) Towards Performance Excellence • Not previously reported • Name / audience • Cost of total production (incl. headcount) • Agency used • Not previously reported • Not previously reported Mkt Rep Fin Ops Org Perf Present Objectives & Measures Communications Port Corporate Communications 11E ‘12F‘13F‘14F • Internal Communications • Internal publication • Production cost (€ ‘000s) • Changes to be implemented? • XXXXXXXXX • Media Relations • Media relations support • Communications planning • Crisis management plan • XXXXXXXXX • Initiatives in place? • Initiatives in place? • Marketing Material • Corporate spend • Product spend • Other XXXXXXXXXXXXXXXXXX XXXXXXXXX • Corporate Responsibility • Chances for Children Target • Environment • Ad-hoc Initiatives • XXXXXXXXX • Initiatives in place • Initiatives in place • Corporate Events • Customer focused • Sales force focused XXXXXXXXXXXXXXXXXX Communication Excellence
Regional Objectives. Please update status of your Business Unit Towards Performance Excellence • attend to new legislation and regulations and increase awareness thereof within the organization by utilization of intranet • improve regulatory management by early involvement in regulatory matters, appropriate incident handling and regular communication with regulators • ensure preferred structure for legal entities and joint ventures in compliance with local and ING standards with accurate registration on intranet/cosmos • promote good corporate governance practices and enforcement of the Regional Governance Manual • manage reputation risk by monitoring surveillance of the ING brands • ensure timely involvement of Legal (external/internal) in main legal matters, strategic initiatives and important transactions and improve the quality of legal services in a cost efficient way • secure filing and appropriate storage of documentation • promote early engagement of Legal to prevent litigation and assist in the resolution of disputes to protect the interests of the company Rep Fin Ops Org Mkt Perf Objectives & Measures Present Drivers Port Legal ‘11E ‘12F ‘13F ‘14F • Legal framework • Keep informed about legislation and regulatory environment • Corporate structure • Corporate legal structure in place • Governance in place • Brand protection in place • Légal risk management • Transaction management • Documentation management / Implementation of email filing policy with support of IT • Dispute resolution Legal Excellence
Towards Performance Excellence • Strategic Priorities • Raise x $ Capital and Debt • Expand value-based management • Strengthen risk management • Improve MIS & Control Illustrative: Please update this slide with strategic priorities for your Business Unit FINANCIAL Fin Rep Mkt Org Ops Perf Port
Towards Performance Excellence Control & Finance Please update status of your Business Unit Fin Rep Mkt Org Ops Perf Driver Objectives & Measures Present Port • Financial control • Implement SOX (for SOX units) • Documented financial control procedures • Financial Reporting and Analysis • Detailed source of earnings • Business analysis • Financial Systems and Database Mgt. • Financial database with detail information • Capital Management & Tax • Tax compliance • Expense Management • Implement project expense review • Finance Spearheads • HR • Communication • Continuous Improvement Projects ‘10E‘11F ‘12F ‘13F Control& Finance Excellence
Pass audit of cash flow generation and input into ECAPS in Q1/Q2 2007, including auditable MCEV and EC figures with a Satisfactory rating or higher. Maintain this level ongoing, to be audited annually. • Agree architecture for automated data feeds to ECAPS by Q2 2007. • Integration with MIS/decision making. • Removal all significant and notable SOX deficiencies • IRisk area needs to become an integral value added part of the Product Development process in 2007. New sales IRR minimum is WACC+3.5%. • Control/reduce the turn around time of product review. • MCEV documentation and methodology, and implement MCEV. • All products including revisions must have MCEV(0) calculated and documented by EOY 2007. MCEV(0) should be documented in the PARP for approval. • To include VNB and EVP in the KPIs of business unit. • Talent assessment of the insurance risk teams in early 2007. • Appropriate training and investment. • Turning actuaries into risk professionals. • Improve / increase bench strength across network & recognition of high performers. • Risk & actuarial reporting,. • Focus on value added analysis and decision • Improve interface with Investment area: ALCO, investment mandates. • 360 reviews for the CIRO and top level direct reports of the Insurance Risk team in 2007. Towards Performance Excellence Rep Fin Mkt Org Ops Perf Present Objectives & Measures Driver Port Risk Management ‘10E ‘11F ‘12F ‘13F • - Implement risk mgt framework • - Control risk categories • 1. Counter party risk • 2. Country risk • 3. Operational risk • Embed EC and Managing for Value • Prepare and train management for the new metrics (MCEV) • Application in pricing(MCEV(0)) • Balance value via returns / volumes • People • Recruit more specialists • Train for broader risk management • Enhance Performance Culture • Effective communication • Quality reporting to standards • 360-feedback mechanism Ensure IRM reporting processes are auditable Develop & Test Training & communication No deficiencies SoP compliance Add value Efficient product review process Completely switch to MCEV during 2007 MCEV(0) in PARP To include value in KPI Recruit 5 risk manager 2 analyst. Train 3 specialist externally Excellence in our daily jobs Value added analysis 360 reviews in place Insurance Risk Excellence
Towards Performance Excellence PERFORMANCE Fin Rep Mkt Org Ops Perf Port Performance Excellence
………..…. • …………… • ………….. • ……………. • ………. • …………. Towards Performance Excellence Key Risks to MTP Fin Rep Mkt Org Ops Perf Port