M4A1 Capstone

Assignment 1: Discussion—Key Performance Measures and the Business Culture

Business culture is the context in which the measures exist. They are bound to each other in terms of context and environment. Understanding business metrics as key performance measures is an important part of business strategy and management. In this assignment, you will look at financial performance measures.

Financial performance measures are vitally important to assessing corporate performance. However, financial measures are primarily backward looking in that they measure the results of past actions, and do not always give a reliable indication of future direction.

Using the module readings, Argosy University online library resources, and the Internet, respond to the following for your own organization:

Give three examples of key performance measures that are forward looking and more predictive.
What aspect of the value chain are they measuring?
How do these measures tie to specific strategies in your business unit?
Does the business’ culture enable or block its business strategy and/or does it have an effect on financial performance in the value chain? Provide a rationale in support of your answer.
What are cultural norms that govern the organization, and what types of behaviors does the culture promote or punish?

Write your initial response in approximately 300 words. Apply APA standards to citation of sources.

By Saturday, September 21, 2013, post your response to the appropriateDiscussion Area. Through Wednesday, September 25, 2013, review and comment on at least two peers’ responses.

Consider the following when you respond to your peers’ posts:

Comment on which you found most helpful and the reasons you found them helpful. Provide a citation or resource to each response based on your learning or research.
Comment on one of the measures described in your peers’ posts about how their organizations are alike or different from your own organization.
Explain how your organization might benefit from considering the measures stated by your peers.

Assignment 1 Grading Criteria	Maximum Points
Initial response: Was insightful, original, accurate, and timely.Was substantive and demonstrated advanced understanding of concepts.Compiled/synthesized theories and concepts drawn from a variety of sources to support statements and conclusions.
Discussion response and participation: Responded to a minimum of two peers in a timely manner.Offered points of view supported by research.Asked challenging questions that promoted the discussion.Drew relationships between one or more points in the discussion.
Writing: Wrote in a clear, concise, formal, and organized manner.Responses were error free.Information from sources, where applicable, was paraphrased appropriately and accurately cited.
Total:

Required Readings

· Becher, J

D. (2005). Operational alignment: Bridging the gap between strategy and execution.Business Performance Management Magazine, 3(1), 11. (ProQuest Document ID: 218383095)

http://search.proquest.com.libproxy.edmc.edu/docview/218383095?accountid=34899

· Kaplan, R. S., & Norton, D. P. (2007). Using the balanced scorecard as a strategic management system.

Harvard Business Review, 85(7/8), 150–161. (ProQuest Document ID: 227841808)

http://search.proquest.com.libproxy.edmc.edu/docview/227841808?accountid=34899

· Roh, J. J., Hong, P., & Park, Y. (2008). Organizational culture and supply chain strategy: A framework for effective information flows. Journal of Enterprise Information Management, 21(4), 361–376. (ProQuest Document ID: 220044319)

http://search.proquest.com.libproxy.edmc.edu/docview/220044319?accountid=34899

· Smith, B. D. (2007). Strategy-making: What works is what fits. European Business Forum, 28,32–37. (ProQuest Document ID: 224670404)

http://search.proquest.com.libproxy.edmc.edu/docview/224670404?accountid=34899

· Zagotta, R., & Robinson, D. (2002). Keys to successful strategy execution. The Journal of Business Strategy, 23(1), 30–34. (ProQuest Document ID: 202724421)

http://search.proquest.com.libproxy.edmc.edu/docview/202724421?accountid=34899

· Zuckerman, A. (2002). Strong corporate cultures and firm performance: Are there tradeoffs?Academy of Management Executive, 16(4), 158–160. (EBSCO AN: 17534385)

http://libproxy.edmc.edu/login?url=http://search.ebscohost.com/
login.aspx?direct=true&db=bsh&AN=17534385&site=ehost-live

Unit 4: Module 4 – Module 4 Overview

Module 4 Overview

This module is designed to explore beyond hard scientific tactics and formulae to examine the human component and its influence on strategy. It will also help you triangulate both the qualitative and quantitative elements of developing and implementing an audit that can serve as the foundation for a strategic plan.

Economic factors, product and service demand, and application of proven models can provide a solid foundation for any strategy; however, understanding the human component of business and leadership is a critical aspect of organizational success. You will draw from prior MBA coursework on leadership concepts and synthesize with materials provided in this module to gain a better understanding of this aspect of strategy.

As we further explore developing and executing strategy, a story comes to mind about making sure you are doing the right work, at the right time and staying aligned with executing the strategy.

After a big snowstorm, a man went out to the street to dig out his car. He spent a good thirty minutes shoveling and started an initial scraping of snow and ice from the windows when a woman came outside and gave him a big smile. She walked up to the car saying, “I am not sure why you did this but I sincerely thank you and appreciate your hard work.” He looked at her puzzled and said, “I am not sure what you mean.” She clicked the keys in her hand and the car he had been shoveling out beeped. She said, “You just shoveled my car out; thank you.” The look on his face was priceless.

How often do we jump into work before we ask questions or make sure we fully understand the desired end result? The answer likely is, too often. In the anecdotal story, the man was doing “fake work.” He did not verify he was doing the right work; he just dove in and started. This happens not just in our personal lives but all too often in our professional and work lives.

Business, at its heart, is all about people—individuals and groups or personal taste and groupthink. There are proven tools to help assess and evaluate values, culture, and leadership in organizations. Those tools will be examined in this module.

· Analyze the complexity of ethical situations and corporate social responsibility and their impact on decision making in business.

Unit 4: Module 4 – Considering Cultural Norms

Considering Cultural Norms

In addition to reeling in individuals so they do not go down the wrong path or focus on items that may not be the priorities, consideration has to be given to the organization’s cultural norms. You need to ask the following questions:

· Is there a “hurry-up” culture with an over-zealous sense of urgency that is more about getting it done fast then getting it done well?

· Is there a culture of “review and refine, review and refine” before moving forward and making change happen?

· Is the approach methodical and deliberate with an appropriate sense of urgency?

This question is hard to answer because it requires talking to people who live and work within the organization as well as observing the environment over time. That said, most managers, leaders, and staff-level team members can give you their perspective, and it is usually an accurate representation. Though the perspective typically has a slight personal twist to it, that is to be expected.

“Fake Work”

When one of the authors of Fake Work and strategy and execution expert Brent Peterson was asked about issues with organizations implementing strategies, he offered the following:

My experience leads me to believe that developing a great strategy is not the big problem. The big problem is aligning each employee in the organization to understand the strategy and make it part of their daily work. If this does not occur, the strategy does not work and the organization does not effectively execute. (Peterson, 2012)

Consider the following steps to complete a current status review:

· Review all the strategy documents in the organization.

· Interview the entire executive team.

· Randomly have many employees throughout the organization complete the organizational strategy audit. All work being done in an organization that is not strategically related is considered “fake work” (Peterson, 2012).

Peterson, B. (2012, April). Driving business results through well planned strategy and execution. Presented at a workshop for the Argosy University College of Business Speaker Series, Argosy University, Washington, DC.

Using the navigation on the left, please proceed to the next page.

Unit 4: Module 4 – Implementing the Strategy

Implementing the Strategy

After the current strategy and performance review is complete, you must proceed through the following steps outlined in this course to help you develop the strategic plan:

· Environmental scanning/SWOT

· Five forces analysis

· Value chain analysis

· Performance analysis/benchmarking

· Strategic issues

A critical part of the process before finalizing and implementing any strategy is to ensure alignment within the organization with management and staff. Ultimately, it is the combination of the two that executes and delivers the desired results. Without understanding and aligning with the strategy, the ability to achieve success is reduced.

Generally, about 60% of the organizations I work with have a good strategy but only about 20% of all organizations are performing their best and achieving their strategic goals. (Peterson, 2012)

Why does this occur? Generally, it is a lack of understanding and alignment, which creates a focus on “fake work” and inhibits success.

http://internationalbusinesstips.net/how-to-audit-your-business-strategy/

Unit 4: Module 4 – Internal Assessment of Strategy

Internal Assessment of Strategy

The focus in this module is on internal assessment and how employee behaviors align with the mission, vision, and values as well as executing the strategy that drives the achievement of goals. It is important to research how an organization’s culture governs strategy and conduct an internal environmental scan and organizational assessment for the strategy audit. Access to an organization’s leadership is important in order to be able to complete the strategy audit. This is particularly true as it relates to interviewing leadership and observing behaviors in the organization that can help you better understand how the culture impacts the company (both positively and negatively).

Using the navigation on the left, please proceed to the next page.

AVP Strategy Audit—External Resources

Unit 4: Module 4 – Strategic Goals and Measures

Strategic Goals and Measures

Critical to the strategy audit process is understanding what to measure and how to measure it based on the mission and goals of the organization.
Key performance indicators (KPIs) are one such measure that refer to identified items in the business that are considered essential to the overall success of the business. KPIs can include new customer acquisition, customer retention, and new product development.

Another measure is benchmarking best practices, which you examined in Module 2. The purpose of benchmarking is to establish a reflective point to compare against. This is one tool often used to help organizations to concretely measure the results of initiatives.

The balanced scorecard is another way to look at KPIs. The balanced scorecard is based on a prescribed or planned set of performance objectives that will be measured and evaluated regularly. The scorecard outlines specific indicators and measurements that will indicate whether the company is successful or unsuccessful in progressing toward the prescribed vision through execution of strategy.

A balanced scorecard presents organizational performance on four primary groups of measures:

1. Financial

2. Customer (external stakeholder)

3. Learning and growth

4. Internal processl

Business Metrics and Performance

There are pros and cons to using KPIs and the balanced scorecard approach. In addition, the right metrics and management adoption or acceptance is critical. At the ABC eLearning Company, they had the right combination of metrics and management acceptance. In addition, they offered quarterly incentives for performance scores of nine or better.

Keep the example of ABC eLearning in mind when you explore the company you are auditing. It will be important to understand what business metrics are being used to assess performance and how management and leadership describe and focus on these in daily business. The key question you will need to ask is: Do the metrics tie directly back to the organization’s goals and specific strategies?

In the assignments for this module, you will discuss key performance measures and the business culture. Then, you will conduct a SWOT analysis and develop a balanced scorecard for your selected business unit.

http://www.huffingtonpost.com/phil-simon/technology-business-trends_b_1153832.html

Page 1 of 4
Capstone Experience in Integration & Strategy

Interview: Brent Peterson

Initial Steps

Interviewer: I’d like to welcome, Brent Peterson, co-founder and owner of The Work Itself Group and co-
author of the book Fake Work. Thank you for accepting our invitation for this interview Brent.

B. Peterson: Well, thank you for inviting me, I really enjoy talking about strategy and particularly how
people in organizations relate to the strategy.

Interviewer: Great, well we appreciate your professional perspective, specifically regarding the preparing
for and undertaking of a strategic audit to improve a company’s performance. One of the first
questions that come to mind is:

When an organization is preparing to undertake a strategic audit to enhance the company’s
performance, what do you recommend as the initial steps?

B. Peterson: I usually recommend that they do a review of current status of strategy and
performance. That is, what is the organization currently trying to achieve? Most
organizations I work with have a strategic plan in place before I ever meet with them. In the
plan, they attempt to state how to achieve enhanced performance. To begin without
understanding where the organization is, is a mistake many consultants make. It is crucial to
understand current strategy with its associated strategic goals.

What I generally find is one of the following:

 The organization has an acceptable strategy and is performing very well.

 The organization has an acceptable strategy but is not performing well in spite of the
strategy.

 The organization does not have an acceptable strategy and is performing well
anyway.

 The organization does not have an acceptable strategy and is not performing well.

Understanding how the organization is performing in relation to its strategy is where I begin.
All four of these general findings lead to a need for higher performance levels. Even the
organization that is performing well with a super strategy can always get better.

Generally, about sixty percent of the organizations I work with have a good strategy but only
about twenty percent of all organizations are performing their best and achieving their
strategic goals.

This leads to a big problem.

My experience leads me to believe that developing a great strategy is not the big problem.
The big problem is aligning each employee in the organization to understand the strategy and
make it part of their daily work. If this does not occur, the strategy does not work and the
organization does not effectively execute.

I use the following steps to complete the current status review:

 Review all the strategy documents in the organization.

 Interview the entire executive team.

Page 2 of 4
Capstone Experience in Integration & Strategy

2 Interview: Brent Peterson

 And I randomly have many employees throughout the organization complete my
organizational strategy audit (which is called the fake work audit). All work being done
in an organization that is not strategically related, we call “fake work.”

After the current strategy and performance review is complete, I generally go through the
steps outlined in your course to help develop the strategic plan.

Approach

Interviewer: And how have you approached this in your current or prior organizations?

B. Peterson: Following are two examples of how I approach this:

The first example is a large international high tech company based in Texas.

This company had paid millions of dollars to develop an excellent strategic plan. However,
their performance was very mediocre based on their strategic goals. They had a great
strategy that was not working. We helped them understand that their strategy was great, but
they needed to get their worldwide workforce aligned with the strategy. Over ninety percent of
the employees who completed our audit could not list a single strategic goal of the
organization. The goals were simply not translated to the employees as something important
for them to worry about. If you don’t know the strategic goals how could you perform them?
We spent most of our time with this company teaching the leaders how to get alignment and
execution. We spent much our time teaching communication skills and team alignment
processes to help get alignment and then execution. This organization made about a fifteen
percent improvement in their strategic goals by simply helping employees understand the
goals and then align their daily work to the strategic goals.

The gigantic problem here was aligning workers with the strategy.

Another example is an international division of a music television organization.

This organization had absolutely no strategic plan. They could not figure out why their
programming was so poor in the Far East. People were not watching their programs. Their
programs were US-based with people acting immorally based on the Far East culture. Body
piercings and tattoos were not acceptable in this culture. There was no strategy regarding
what the programming should be in the Far East. Not one employee knew what to do
regarding programming. Without strategy, all programming seemed to offend viewers. We
helped the company develop a strategic plan and then helped them implement their plan and
got all employees aligned with the strategy. With new, strategically based programming,
viewership increased by about fifty percent.

After the strategy was set, aligning the employees with the strategy was crucial.

Challenges

Interviewer: What do you find are the biggest challenges? And how have you overcome these?

B. Peterson: Helping organizational leadership understand that creating strategy is simple compared to
getting employees aligned and executing the strategy.

Leaders in organizations don’t know how to implement their strategic plan. They print the
organization’s strategic goals on the back of name badges, they place the strategic goals in
large atriums in the entrance to the workplace, and they e-mail all employees the strategic
goals. They even instruct all managers that they should review the strategic goals with their
work teams. However, for a variety of reasons, employees claim they have never seen the
strategic goals and they do not know what is really expected of them. They don’t know what

Page 3 of 4
Capstone Experience in Integration & Strategy

3 Interview: Brent Peterson

to do.

We overcome this challenge using a team process called The Work Itself. This process helps
each team member know the strategic goals, understand what they can do to execute the
goals, and how they can continually follow-up to keep themselves and their coworkers
focused on the strategic goals.

Work Itself

Interviewer: Brent, how do you guide the process to achieve the best possible results?

B. Peterson: We use a team process called The Work Itself. This process helps get all workers involved
with executing the strategic plan. We have discovered that managers can’t align employees
for execution. Managers must use a process that allows individuals working with their work
teams to align themselves with the work.

The Work Itself provides a straightforward and practical approach for accomplishing the most
ambitions strategic goals. This proven process has helped thousands of people align their
teams to execute organizational strategy. The Work Itself helps:

 All workers, all members of an organizational team, significantly increase the value of
their contribution by increasing real work and reducing fake work.

 The Work Itself helps by working with teams and aligning each team member with a
unified strategic focus. It helps each employee discover new ways to add value to the
organization and to be proud of and satisfied with what they do.

Advice

Interviewer: What advice would you have for companies when undertaking a strategic audit?

B. Peterson: Don’t give up on your organization’s strategy. Most audits will point out you are having
difficulty. Determine how best to get your workers aligned with and executing the current
strategy before trying to develop a completely new strategy.

Remember how the SAE model works: Strategy then alignment then execution.

To Create Strategic Focus or Strategy:

Strategy is the art of defining tactics the organization is going to use to complete,
differentiate, create values, and drive growth. Strategy is the foundation for which business
value is built.

Align: Align teams to drive strategy

Alignment starts with leadership, but must be owned by individuals at the work level. People
must align their individual tasks through the lens of their team. Alignment is the challenging
task of identifying the ways which hundreds of employees will come together through projects
and tasks to execute strategies.

And finally, Execute: Execute work that links to strategy

Execution is the culmination of strategy being translated to the expected business outcomes.
This is the ultimate goal for strategy in the first place. Simply it means carrying out desired
and critical work.

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Capstone Experience in Integration & Strategy

4 Interview: Brent Peterson

4E Model

Interviewer: How have you ensured that the strategic audit leads to a plan that is executable and will
achieve the results?

B. Peterson: Our research indicates that the only way to make certain strategy is executed is to continually
follow-up with employees. From our research, we have developed a model called the 4E
learning and change model.

This model illustrates how organizational change is the result of understanding how people
learn. Think of it in four stages:

 The Excite Stage which contributes twenty-five percent to the total learning
impact

 The Experience Stage which also contributes twenty-five percent to the total
learning impact

 The Execute Stage which contributes fifty percent to the total learning impact

 And The Evaluation Stage which contributes in all of the other stages.

This model illustrates that the first two Es, excite and experience, help teach the strategy and
its goals. However, of equal importance is the third E, execute. The E of execute is about
follow-up. Don’t expect to get execution on any strategy without a strong follow-up strategy.

Interviewer: These are all excellent points about strategic audits, Brent. Thank you again for your time
today.

B. Peterson: Well, thank you for inviting me, I enjoy doing these types of interviews and I enjoyed being
with you.

Interviewer: Thank you!

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