Human Capital Development Forum In ICT – The Role of HR in Corporate Strategy Formulation & Implementation Presentation by Quinto Ojok MBA,FCCA,CPA,CBSCP Director Finance & IT Services - Uganda Communications Commission (UCC) [email protected] +256772431290 Strategy Programme overview • Introduction • Workshop objectives • Introduction to strategic planning & management • Overview of BSC • Strategic Plan Formulation using BSC Strategy Introduction • Strategic planning experience • Balanced scorecard experience Strategy Workshop Objectives • As HR professional : • Understand the concept of BSC and acquire skills in formulating a Strategic Plan using balanced score card • Understand how BSC can be used to improve organisational / employee performance • Understand how to develop meaningful performance measure • Revalidate Strategic Plan for your organisation using BSC Strategy Corporate Strategic Planning & Management 1. Traditional Methodology - Situational Analysis - SWOT/PEST Core values Vision Mission SMART objectives Strategies, Programmes/ Activities Monitoring & Evaluation Strategy Corporate Strategic Planning & Management 2. Balanced Scorecard Methodology - Links vision, strategy to actions/programs  Stakeholders Analysis- Customer Needs & Value Propositions-Attributes, Relationship, Image  Situational Analysis - Assessment of organisational internal & external enablers & pains/SWOT & PESTLE  Formulation or revalidation of high level strategic foundations – Mission, Vision (measurable), Core Values  Development of Strategic Themes and Results  Naming of Perspectives  Development of Strategic Objectives  Organisation Strategy Mapping Strategy Con’t • Determine measures & targets that drive performance • Strategic initiatives –Projects/activities • Strategic Budgeting • Metrics automation –Business Intelligence (Scorecard) • Cascading of objectives at departmental & individual levels • Monitoring & Evaluation Strategy Balanced Scorecard? • What is BSC? • An integrated strategic planning and performance management systems that :  Communicates with clarity the organisation’s Mission, Vision and Strategy to the employees & other stakeholders  Aligns day to day work with vision and strategy  Provides framework for prioritising programmes, projects and resources  Uses strategic performance measures and targets to measure progress Strategy Why BSC? • Leaders and managers need a tool to systematically drive:  Collective and individual accountability  Performance reporting compliance  Buy-in- through Participation Strategy History of BSC 1990- Dr. David Norton carried out a study on balanced organisation measures (financial and NonFinancial) 1996- BSC translating strategy into action 65% of fortune 1000 companies use BSC Financial measures Net profit – bottom line Market share Sales growth Actual Vs Budget Cost effectiveness Non-Financial measures •Stakeholder Satisfaction •Operational efficiency & effectives •Employee competence •Organisation capacity Strategy Performance Perspectives BSC Methodology Four dimensions called perspectivesview points • Financial perspective- how do shareholders/stakeholders look at us • Customers/ stakeholders perspective – how do customers look at us • Internal business process perspective- What must we excel at ? • Organisational capacity perspective- How have we developed our human, information & organisational capital Strategy Linking Actions to Mission ,Vision & Strategy (A2V) or Translating V&S2A Strategy BSC cont’  When implemented properly, each one of these perspectives contains four subparts consisting of:  Strategic objectives  Measures  Targets  Strategic initiatives Strategy Bsc Cont’ – Objectives – what you plan to achieve in that perspective – Measures - how progress for that particular objective will be measured – Targets - refer to the target value that the organization seeks to obtain for each measure – Initiatives - what will be done to facilitate the reaching of the target Strategy BSC Cont’ • The term “scorecard” signifies quantified performance measures and “balanced” signifies the system is balanced between: – Short-term and long term objectives – Financial and non-financial measures – Lagging and leading indicators – Internal and external performance perspectives Strategy Business case for BSC Strategy 9 Steps in Strategic Planning Formulation & Implementation STEP 1 Assessment -Stakeholders analysis - SWOT/PESTLE analysis - Revalidate mission, vision ,core values STEP 2 Strategy Formulation - High Level Business strategies from STEP 1 strategic elements STEP 3 Strategic objectives developed from STEP 2 strategies STEP 6 Strategic Initiatives -Identify critical projects to improve performance - Develop initiative performance measures - Strategic Budgeting STEP 5 Measures & Targets - Develop outcome & output performance of strategic objectives - STEP 4 Strategy Mapping - Create strategy maps for each strategy Strategy STEP7 Performance Analysis - collect, report & present visual performance information STEP 8 Cascading strategy to departmental & individual STEP 9 Evaluation -Make correction on strategy based on actual performance Step One: Assessment 1.1 Stakeholders Analysis Strategy Customer Value Proposition Strategy Customer Value proposition Strategy Examples of Customer Value Preposition Strategy Primary Customers •Artists •Education Institutions •Cultural Institutions •Public/Citizens Other Stakeholders •Employees •Board of Trustees •Tax Authority •Business Partners •Civil Society •Parliament •NGO’S •Media Houses •Government Depts./Agencies •Foreign Missions •Tourists Stakeholders Needs •Standards •Entertainment •Education •Artist development •Information •Recording equipment & facilities •Archiving/storage facilities •Skills development •Capacity building •Local artefacts •Performance Management •Partnerships •Policy advice •Quality services •Taxes •Job satisfaction Strategy Value Preposition Service Attributes •Value for Money •Reliable •Efficient on time delivery Relationship •Customer centric •Professional •Empathetic •Friendly •Consultative Image •Reliable •Knowledgeable •Customer centric •Hi-tech •Trustworthy Assessment cont’ 1.2 Situational Analysis- What are the facts • Competition & Market analysis • Survey and assessment results • PESTLE Analysis • SWOT Analysis • Strategic Pains/Challenges & Enablers Strategy SITUATIONAL ANALYSIS ENABLERS CHALLENGES/ Internal PAINS Strategic Issues Implication Strengths Land in Prime Location Ease of access and room for expansion X Skilled Human Resources Competence to implement the strategy X Management &Trustee Goodwill Leadership engagement X Unique Theatre Equipment & Facilities Competitive edge over others X Insufficient Funds for strategic Initiatives Unfunded initiatives X Poor Customer Care Negative Image X Less Usage of Information Technology Inefficient operation & Negative Image X Inadequate Partner Collaboration Lack of Funding Diversification X External Opportunities Weakness Threats Political Goodwill Priority Policy implementation X Committed Artists Less coordination efforts X Existence of Laws and Sector Policies Proper mandate and guidance provided X Vibrant Economy More disposable income X Lack of Regulations Less enforcement Changing Cultural Trends Positive & Negative changes X X Social Media Usage Positive & Negative trends X X Competing Cultural Institutions Positive & Negative trends X X Strategy X Revalidate Strategic Elements • – • - • • Mission Who we are ,our reason of existence. Our Mission is to provide……………… Vision Describes where our organisation should be in 3-10 yrs, it is the picture of the future or memory of the future Measurable and time bound Our Vision is to become ( achieve) …. In 2020 Strategic Destination Statement - In 2020, we are the leading ICT training provider in Africa Core values- What we stand for, our belief in the context of our mission (defines our code of conduct) Strategy Mission Statement How to develop a shared understanding of a Mission Statement Discussion questions Answers What service or product do we provide? Who do we serve? In what manner do we provide it What higher level benefits are gained? Example :“To provide quality training, consultancy and advisory services to the ICT Sector in Africa through development of appropriate programmes, strategic alliances and partnership” Strategy Vision Statement How to develop a shared understanding of a Vision Discussion questions Answers What is our picture of the future in five years from now? How will we know that we have achieved that? Will it be measurable? How will the change impact on our stakeholders? At what point in time will we achieve that? “To be a leading and self-sustaining Centre of Excellence for ICT capacity building in Africa by 2018”. Strategy Step Two: Strategy Formulation What is Strategy • A plan of action, an approach, a game plan for achieving a result or goal • It is an hypothesis of the best way forward for an organisation to: • - beat competition ( Private sector) • - Improve mission effectives (Public sector) • - Achieve its vision • - Satisfy customers, stakeholders including employees • - It is about making choices that have organisation wide impact Strategy Strategy Formulation Strategy Strategy Perspectives Strategy Strategy Strategy Mission To preserve, develop, and promote Uganda’s culture globally through setting standards, building capacity and implementing national policies. Vision A centre of excellence in nurturing culture as a primary driver of national development in Uganda by 2018 Core Values Integrity, Team work , Professional & Accountability Theme Strategic Result: Cost effective services are delivered timely every time Organizational Capacity ABC Company UNCC Pillars of Excellence Strategy CUSTOMER INTIMACY Processes OPERATIONAL EXCELLENCE Customer Theme Strategic Result: Knowledgeable, collaborative and Consultative relationship that exceeds customer and stakeholders expectations STRATEGIC PARTNERSHIPS Perspectives Financial Performance Theme Strategic Result: Value added, win-win partnership is enhanced Strategic Themes Xtics characteristics of a good strategic theme and result • Breakdown vision into more operational terms • Represent the main focus areas of organisational high level strategy • Are pillars of excellence • Cuts across business and support functions of the organisation • Each has a corresponding strategic result/desired outcome of the theme Strategy Strategic Themes Strategy Step Three: Strategic Objectives Strategy Strategic Objectives Strategy Strategic Altitude Strategy Strategic Altitude Strategy Strategic Objectives Cont’ Strategy Strategy Strategy Step Four: Strategy Mapping Strategy Strategy Theme Strategy Map Strategy Theme Strategy Map Strategy Combinding theme Objectives into Tier 1 (corporate )Objectives Strategy Corporate Strategy Map Strategy Example Strategy Map Strategy Strategy Strategy Strategy Objective Commentary: Improve IT utilisation Strategic objectives Objective commentary Performance Performa measure nce candidates target Strategic Initiatives Improve IT utilisation Deploy IT resources in all organisational processes to reduce service delivery and reporting turn around time. Increase data based decision making, knowledge sharing. % automated processes 1. Develop IT strategy align to Business Strategy 100% 1. Implement virtualisation of servers to accommodate increased operation and data Intended Results/ Outcomes: 1.Online service delivery 3.Online reporting 4. Online customer selfservice 2.Implement centralised ERP and CRM and Business Intelligence 3.Train employees and customers on the use of online service delivery Strategy Strategy Step 5: Performance Measure Strategy Strategy Strategic Impact Measures Strategy Strategy Strategy Strategy Strategy Step Six : Strategic Initiatives Strategy UNCC CORPORATE SCORECARD 2014-2018 Customer/Stakeholder Perspective Strategic Objective Objective Performance Objective Owner Commentary Measure Increase Gallery The Customer/ Manager customers should appeal to satisfaction /stakeholder Stakeholder the customers and fulfil their score survey tool & Value needs at a reasonable charge. 2) % of repeat Intended Result: customers services provided to 1) Customer Target Strategic Initiatives 80% 1. 60% Develop customer programme 2. 1.Satisfied Develop & implement customers/stakeholders production quality 2.Retained customers assurance programmes 3. Customer service training & coaching programmes 4. Develop webbased customer service Increase Productio UNCC is committed to Contribution to n 1. preserving, promoting and % of policy 60% 1. Develop policy initiatives initiatives for Culture Manager. developing Uganda’s culture contributing to preservation, Preservation, Gallery for the benefit of the current preservation , promotion and Promotion and Manager and future generations promotion & development of Strategy Strategic Budgeting STRATEGIC INITIATIVES BUDGET ( USD) 2,500 1 Develop Customer /stakeholder Survey Tool & Programme 2 Develop & Implement Quality Assurance Programmes 3 Develop and Implement Customer Service Training & Coaching 4 10,000 5 Develop Policy Initiatives for Preservation, Promotion and Development of Culture. Develop Frameworks for Documentation of Local films ,Drama & Dance 6 Develop Programmes for Collection of Artefacts; Sensitisation of Communities 90,000 7 Conduct Cost and Fees Analysis Programme 12,000 8 Develop Cost Control Programmes 9 Develop Finance and Operation Manuals 15,000 10 Develop & Implement Marketing & Advertising Strategy 50,000 11 Formulate Lobbying Strategy 25,000 12 Identify & Appraise Investment Projects 5,000 programmes 8,000 10,000 4,000 125,000 Strategy Strategy Strategy Strategy Strategy Strategy • • • • Thank You Merci Asante Sana Zikoma Strategy