Learn how goals can help close the often neglected loop between setting a strategic plan and getting real results from VP of Business Analytics Product Group Rich Clayton's presentation at Goal Summit 2015.

1. GOAL SUMMIT 2015
Mind the Gap: Avoid the disconnect
between strategy and execution
Rich Clayton
Oracle Corporation
April 16, 2016

2. The Next World Series
Champions Will Be….

3.   
On your smart phone, go to pollev.com

5. 5
Digital Disruption Driving Greater Competition and Innovation
5

6. 6
Company Lifespans Are Decreasing
6

7. 7
Disruption Challenging Static Strategies
“The senior management
team needs to have
regular, probably monthly,
meetings that focus only
on strategy.”
7

8. 8
Connecting Strategy with Planning & Execution
40%
13% of organizations claim they are very
successful in executing their strategy
link strategy with annual budgets
8

9. What are the top
obstacles for
connecting strategy
and execution in your
company?

11. Five Myths in Connecting Strategy with Execution
1 Execution Equals Alignment
2 Execution Means Sticking to the Plan
3 Communication Equals Understanding
4 A Performance Culture Drives Execution
5 Execution Should Be Driven from the Top
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Five Strategies for Success
1. Broaden strategic objectives beyond financial outcomes
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Five Strategies for Success
1. Broaden strategic objectives beyond financial outcomes
2. Scrap spreadsheets for planning processes
13

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Five Strategies for Success
1. Broaden strategic objectives beyond financial outcomes
2. Scrap spreadsheets for planning processes
3. Invest in Goal Management Platform as connective tissue
14

15. 15
Five Strategies for Success
1. Broaden strategic objectives beyond financial outcomes
2. Scrap spreadsheets for planning processes
3. Invest in Goal Management Platform as connective tissue
4. Condense, crystalize and communicate KPI’s broadly
15

16. 16
Five Strategies for Success
1. Broaden strategic objectives beyond financial outcomes
2. Scrap spreadsheets for planning processes
3. Invest in Goal Management Platform as connective tissue
4. Condense, crystalize and communicate KPI’s broadly
5. Develop dynamic enterprise guidance system
16

17. 17
Broaden Strategic Objectives Beyond Financial Outcomes
Vision
Lagging indicators
measuring tangible
outcomes
FINANCIAL
Create value for
customers & stakeholders
PROCESS
Defines the source
of value
CUSTOMER
Align resources to drive
improvement in processes
LEARNING & GROWTH
1
17

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Strategy Maps Illustrate Connectedness of Goals and Networks
18

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Lessons from Frontline in Public Sector
19

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Planning Provides the Bridge to Link Strategy with Execution…
Strategy Operations
The planning process
is at the core of linking
strategy to operations
60% of organizations
do not link
operational plans to
strategy
20

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Limited Visibility into Revenue Forecast
Revenue forecast accuracy for the current quarter is +/- 5% by:
5%
26%
16%
39%
14%
1-4 Weeks
5-8 Weeks
9-10 Weeks
11-12 Weeks
Week 13
Source: Loras College, Center for Business Analytics
46% of
companies don’t
have visibility
into revenue until
week 11 of the
quarter

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2
• Centralize financial assumptions
• Gather wisdom beyond finance
• Leverage cloud services
• Develop dynamic scenarios
• Focus on forecast accuracy
Scrap Spreadsheets for Planning Processes
spreadsheets contain
mathematical errors88%
22

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Don’t Do This with Goals
23

24. Ideally, how often
would you set or
calibrate goals?

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3 Invest in Goal Management System
Connected Supported Progress-based Adaptable Aspirational
Vertical / horizontal
alignment and
clarity
Working
transparently with
social
reinforcement and
recognition
Frequent,
measurable
feedback and
frequent wins
Flexibility to
respond to
changing goals
and business needs
Greater
achievement and
encourage
excellence
26

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All Metrics Aren’t Created Equal
Attributes
Type
Rate of Change
Quantity
Ownership
Comparative
Operational
Metrics
Activity/Outcome
Rapidly
Scores
Single LOB
Prior Year
Financial
Metrics
Outcome
Rarely
Dozens
CFO
Prior Year
KPI’s
Outcome
Rarely
<10
Cross LOB
Target
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Total Transparency of KPI’s4
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Studies have shown that specific and
ambitious goals lead to a higher level of
performance than easy or general goals.
As long as the individual accepts the goal,
has the ability to attain it, and does not
have conflicting goals, there is a positive
linear relationship between goal difficulty
and task performance.”
“
Edwin Locke and Gary Latham

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ENTERPRISE PERFORMANCE MANAGEMENT
• Strategy Map & Long Range Planning
• Financial Budgeting & Planning
• Profitability Modeling
BUSINESS INTELLIGENCE
• Dashboards & Self-Service Analysis
• Predictive Analysis
• Data Discovery & Visualization
GOAL MANAGEMENT
• Organizational Alignment
• Transparency of Work
• Engaged Team Members
Develop a Dynamic Enterprise Guidance System5
KPI’s
PROGRESS
OBJECTIVES
PLAN
CONNECTMEASURE
30

31. Vision without
EXECUTION is
hallucination

32. Questions?