2.2 Strategy Implementation

Case Study

OE21 Guideline: 

2.2 Strategy Implementation

Prerequisites to this Case Study:

 

  • OE21 B.1 Organization Results Assessment

  • OE21 P.1 Organizational Profile

  • OE21 P.2 Organizational Situation

  • OE21 1.1 Senior Leadership

  • OE21 1.2 Governance and Social Responsibilities

  • OE21 2.1 Strategy Development 

Note: This Case Study refers to specific OE21 surveys and tools (spreadsheets or docs). Please use the blue link(s) below to learn more about these surveys and tools:

 

 

 

 

 

 

Assumption: The (Elafino Sports Center) organization has implemented the OE21 Guideline 2.2 Strategy Implementation process steps. The outcomes are results are presented below.

2.2 STRATEGY IMPLEMENTATION - OUTCOMES AND RESULTS:

The Elafino Sports Center Strategic Plan is based upon the implementation of the following OE21 Guidelines:

  • P.1 - Organizational Profile

  • P.2 - Organization Situation

  • 2.1 Strategy Development

  • 2.2 Strategy Implementation (see Figure 2.2-3 Strategy Implementation Model)

2.2 Strategy Implementation Model

Figure 2.2-3 Strategy Implementation Model

 The Strategic Plan for the Elafino Sports Center contains several Sections.

 

Section 1: Content including Mission Statement, Vision, and Major Functions and Operations. The content for this section came from the implementation of OE2 P.1 Organizational Description.  

 

  • Mission: The Elafino Sports Center provides community multi-sports activities for youth, teens, young adult, adult, and senior citizens within our service area.

 

  • Vision: To be the top hockey, figure skating and fitness center in the community we serve

 

  • Major Functions and Operations: The outputs of OE21 Guideline P.1 Organizational Description include descriptions of Elafino hockey, ice skating and fitness center services, core competencies, facilities, equipment, assets, workforce (people count by department and work unit), regulatory environment, organization structure, market segments, customer groups, suppliers and partners and key stakeholders.

 

Section 2: This section of the Strategic Plan is about Key Intended Outcomes (KIOs) and their supporting Strategic Objectives. (See Figure 2.2-3 above). 

 

Key Intended Outcomes (KIOs): The first five KIOs are "strategic themes" for each of the Focus teams.

  • KIO-1 Leadership Excellence

  • KIO-2 Customer Excellence

  • KIO-3 Operations Excellence

  • KIO-4 Workforce Excellence

  • KIO-5 Community Excellence

KIOs with Strategic Objectives (Examples for Elafino Sports Center)

  • KIO-2 (Customer Excellence) Strategic Objective (Add New Service). A major new initiative (DanceSport) was created and designed to attract a large new group of customers. This new strategic objective was associated with KIO-2 Customer Excellence because the DanceSport services are designed to attract a large new customer group and utilize Rink 3 which was currently unused. The DanceSport initiative became a new set of project tasks to be added to the Customer Excellence Action Plan.

  • KIO-3 (Operations Excellence) Strategic Objective (Boost Sales and Profits). The Elafino organization decided to improve the profitability, marketing and sales processes for the hockey, skating, and fitness centers. The result was additional tasks added to the Leadership Excellence Action Plan as shown in Figure 2.2-4. 

Section 3: This section of the Strategic Plan is about Strategy Action Plans: Strategy Action Plans are projects aimed at achieving one or more Strategic Objectives. (See Figures 2.2-3 and 2.2-4). Strategy Action Plans contain sequential tasks (steps to be accomplished), task responsibilities, task planned start and completion dates, and estimates of task cost. Costs are calculated as labor hours x labor rates or as estimated material or other non-labor costs. The total estimated cost for each Strategy Action Plan becomes the Project Target Cost for the Plan. In Figure 2.2-4 the Project Target Cost is $102,800.  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 2.2-4 Example Strategy Action Plan for Elafino Sports Center 

 

To track the progress of Strategy Action Plans, the cumulative percent (%) of completion is compared to the planned percent (%) of completion. These values come from the Strategy Action Plan and are input to the Performance Measurement System (PMS) which contains trend charts, called Key Performance Indicators (KPIs).  Figure 2.2-5 is an example of one of the Elafino KPIs for the Leadership Excellence Action Plan. This KPI example shows the target (black line) rising from zero percent to 100 percent over a one year period. The measure (blue line) shows current percentage of completion (

 

 

 

Figure 2.2-5 Example Key Performance Indicator (KPI) for Strategy Action Plan Trend

This KPI example shows the target (black line) rising from zero percent to 100 percent over a one year period. The measure (blue line) shows the current percentage of completion (22%) which is compared to the planned completion at this date (35%). This means the Elafino plan is behind schedule at this point. The Elafino Analysis Narrative in Figure 2.2-5 is aimed at getting the plan back on track. 

  • Note to Managers: If your project tracking is only about comparing percent complete to percent planned, regardless of costs, then you may not be able to project future final costs at final completion. For example if you tracked the percent of the total cost that has been spent on the same date as your percentage of completion (22%) you will learn a lot more about where the project is going. Suppose that the percent spent is 55% compared to the 22% completion. What does that mean? You will learn the answer in OE21 OFT 6.1b Project Management, starting with Task 6.1b-2. (Hint: it's about a technique called Earned Value (EV).      

Section 4: This section of the Strategic Plan is about Key Factors: These are factors external to the organization (and beyond its control), that could significantly affect the implementation and achievement of the KIOs, KPIs, and Strategy Action Plans. The Elafino Focus teams identified the following key factors:

 

  • The growing obesity trends of target youth and adult customers (less interest in exercise sports) impacts the popularity of Hockey and Figure Skating.

 

  • The annual threat of hurricanes is likely to increase in frequency and severity. A direct hit could demolish the Elafino Sports Center and threaten its workforce

 

  • The threat of local government using Eminent Domain law allows seizing private property for public use. The location of the Elafino Sports Center is across the street from an ocean harbor, and the city government is studying plans to build the harbor facilities and annex nearby parking areas.

 

Strategic Plan Deployment: The final approved Strategic Plan document was published on the Elafino INTRANET and then deployed to all departments and work units in the Elafino organization.

QUESTIONS AND IDEAS FOR MANAGERS AND LEADERS

  • If you were the CEO of the Elafino Sports Center, which of these two approaches to strategic planning would you adopt?

  • Alternative A - Conduct strategic planning once a year in December 

  • Alternative B - Conduct strategic planning when unplanned events, threats or serious issues arise

  • Do you think managers should brief their workers on the contents of the Strategic Plan?

  • How would you track the progress of the Strategic Plan?

    • Hint 1: Strategy Action Plans are projects

    • Hint 2: Trends of percent complete versus percent planned (see OE21 2.2 - Task 2.2.6) 

  • What did you learn from your studies of this OE21 Standard 2.2?

  • What do you think you should do to be a better manager?

Where do we go from here?

 

Members of the Leadership Focus Team (LFT) should go to OE21 4.1 Measurement, Analysis, and Improvement of Organizational Performance and Case Study 4.1.

 

The OE21 4.1 and 4.2 standards are the responsibility of the Leadership Focus Team IT member(s) abbreviated LFT-IT. 

FYI, the OE21 3.1, 3.2, and 3.2a are the responsibility of the Customer Focus Team (CFT).