1 THE EXECUTIVE’S PROGRAM SPECIAL SESSION PLANNING PART 2:TACTICAL PLANNING,THE ANNUAL MANAGEMENT PLAN AND CASCADING
Purpose:
Learn how top performing executives cascade plans, develop annual plans, and use their plans Learning Objectives: To learn… • How to cascade • Why the annual management plan (AMP) is important • What a good AMP looks like • How to build an AMP • How to use your AMP - the OKR system 2
PURPOSE AND LEARNING OBJECTIVES
AGENDA 1. Recap 2. Report-out: Habits 3. Cascading 4. Why have an Annual Management Plan (AMP) 5. What a Good AMP Looks Like 6. How to Build an AMP 7. How to Use Your AMP - The OKR System 8. Summary 9. Reflection and Assignment 3
RECAP: SESSION 1 THE 5 HABITS 4 Mindset Your morning routine Mindset Your morning routine Practice Learn do teach Practice Learn do teach Feedback Coaching Feedback Coaching Focus Your plan. Focus Your plan. Time Management Your calendar Time Management Your calendar
RECAP SESSION 2: OUR BIASES 5 In-groupConfirmatoryBias bias Implicit stereotype Affinity GroupthinkBenevolencebiasbias “The mom is the CEO”
20 StatementGuidingyears energizedgetmorningtostrategicinputonboarding,UsedmodelOperatingmodel,BusinessValues,Strategy,Mission,Vision,duringtotheplan,readinthetoyou 5 years Annual Quarterly Monthly Weekly Daily RECAP SESSION 2:THE PLANNING & EXECUTION SYSTEM 6 Team Meetings Strategic Plan PlanManagementAnnual&Budget BoardQuarterlyReport,OKRs MonthlyReportsMgt. TheLegendWeekly Daily Calendar AnnualMeetingPlanning AllMeetingHands BoardQuarterlyMeetings MonthlyMeetingsMgt. The LegendMonday&FridayWIR Communications&Reporting
RECAP: SESSION 2 THE PLAN TOOL FRAMEWORK 7 Touchstone Consulting Group How to be “strategic” when planning. 1 2 3 4 5
SESSION #2:ASSIGNMENT 1. Use your calendar: Set your three I Musts for the week and map all your time to your calendar. Set one of the I Musts to work ON the business. 2. The ON the Business I Musts: Set aside 3 hours to review your guiding statements and reread these slides. Build a strategic plan (however you see fit). 3. For the next session: Be prepared to share what you learned when you looked at your guiding statements and your strategic plan. 8Proprietary and Confidential to Renew LLC
QUESTION WHY HAVE AN ANNUAL PLAN? 9
The Executive needs a systematic approach to translate a lofty vision statement down to what must we do today and tomorrow. 10 Your Planning and Execution System
TOPIC WHAT IS THE ANNUAL MANAGEMENT PLAN (AMP)? 11
20 StatementGuidingyears energizedgetmorningtostrategicinputonboarding,UsedmodelOperatingmodel,BusinessValues,Strategy,Mission,Vision,duringtotheplan,readinthetoyou 5 years Annual Quarterly Monthly Weekly Daily THE PLANNING & EXECUTION SYSTEM 12 Team Meetings Strategic Plan PlanManagementAnnual&Budget BoardQuarterlyReport,OKRs MonthlyReportsMgt. TheLegendWeekly Daily Calendar AnnualMeetingPlanning AllMeetingHands BoardQuarterlyMeetings MonthlyMeetingsMgt. The LegendMonday&FridayWIR Communications&Reporting
• Uses: For developing the budget; guiding work for the quarter, month, week and day; keeping management focused; for board to evaluate management.
• Who owns: The CEO and management team.
• Time period: 1 year • Input: Last years plan/results and budget, 5-year strategic plan, team input, customer input and market data (SWOT and Porter’s).
• Development time: ~2 to 5 days by senior management team.
• Who builds: The CEO and management team, with input from your team.
• Length: 5-7 pages.
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• Who approves: The board.
• Elements: 1) Current State; 2) 12-month Future State; 3) SMART objectives; 4) Case for Change; 5) Barriers; 6) High-level projects (Q1 OKRs) for each unit and manager.
THE ANNUAL MANAGEMENT PLAN
TOPIC HOW TO BUILD YOUR AMP 14
RECAP: SESSION 2 THE PLANNING TOOL 15 Touchstone Consulting Group How to be “strategic” when planning. 1 23 4 5
INPUTS: DATA INFORMS THE AMP 16 StrategicBudgetPlanStatementsLastYearsFinancial&BudgetLastYear’sAnnualManagementPlan Quarterly review. Monthly Fin Stat Review. 13-week CF. Daily QuarterlycontrolsOKRs.Monthly Review.Weekly Legend. Daily Work Hit goalsbudgetHitgoalsAMPTeam managementandinput Execution Battle Rhythms Execution Battle Rhythms TheTheAMPAMP Market
•
Franscesca
“Many
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We find that men and women see risk and opportunity in different ways, and that they act differently as a result. Recognise, celebrate and seize upon these differences, and companies stand a better chance of seeing the world as it really is and as it could become. Fail to create diverse teams, and companies become susceptible to ‘groupthink’ – the phenomenon where by engaging only with those who share a similar view of the world, we muffle other perspectives and do not see change coming. of today’s companies are still run by male-only teams and they are in danger of myopia when it comes to risk.’’ Lagerberg Global leader for tax services and sponsor of women in leadership GrantThornton US
A DIVERSE TEAM BUILDS THE SMARTEST PLANS BY… 17
•
…reducing business risk
Pamela Harless Chief people and culture officer at Grant Thornton US
…reducing business risk but the qualities that a diverse team brings are nuanced
“I’ve witnessed a growing number of men embracing a more collaborative approach. The traditional paradigm of what a male leader looks like is shifting, along with the definition of what it means to be a man.’’
A DIVERSE TEAM BUILDS THE SMARTEST PLANS BY… 18
Women: • are described as risk aware, diligent, detaildriven • tend to operate more in the grey than their male counterparts • do extra preparation for a decision, including asking for others’ input, whereas men often just rely on themselves to figure it out • require more analysis compared to their male counterparts because they have a greater need for a balanced and complete view before taking action
Teams are 158% more likely to understand their market when team members represent the end user (CTI). 57% of companies found that diversity and inclusion programs strongly impact customer satisfaction, and 69% found they improved brand image (European Commission).
A DIVERSE TEAM BUILDS THE SMARTEST PLANS BY… 19
…better understanding customers, markets and opportunities
3. Check for the Case for Change: Case for change.“Is this advancing us forward? Does this get us excited? Are we a little nervous?”
4. Plan for Barriers: What might get in our way? What contingency plans do you need to develop?
5. Build your Plan: Assign SMART objectives to specific units/managers in the org structure (Division/Unit). Start with you Q1 OKRs for each Division/Unit (roadmap). Work your plans.
STEPS TO BUILDING A PLAN
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1. Evaluate your current state (CS): SWOT, Porter’s-5, Review last year TvA.
2. Build your future state (FS): Review the 5-Year Strategic Plan. Develop FS statements. Organize into 5-7 SMART objectives.
DEEP DIVE INTO STEP 2 Future State Description:12 months from now, we will… • Increase engagement with the customers • Setup an office in a new another city • Have built the largest investment portfolio in NewYork • Begin exiting investment to drive sustainability • Be on track to being the fastest growing investment firm on the East Coast Annual SMART Objectives: • Grow the network to more than 500 members • Increase engagement by rolling out a new program for members and companies • Secure a partners in Chicago • Close 8 investments • Exit 2 investment 21 Description SMART Objectives (Goals)
• Give time to write it well and put it in your own words.
• Don’t let perfect be the enemy of great.
•
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The CEO and management have to own the AMP.This means you should build it with your team. • If management doesn’t take it seriously, your team will not take it (or you) seriously.
• It must be used! (next section). Print it and put it on your desk. Read it every morning until you memorize it.
• Get that gender-balanced perspective (you’ll thank me!)
AMP TIPS
• It needs to get the company (and you) excited for action – out of bed at 5am.
TOPIC HOW TO USE YOUR AMP THE QUARTERLY OKR SYSTEM STEPS 5 23
THE MASTERS OF EXECUTION
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COMPANIES THE USE OKR SYSTEM
20 StatementGuidingyears energizedgetmorningtostrategicinputonboarding,UsedmodelOperatingmodel,BusinessValues,Strategy,Mission,Vision,duringtotheplan,readinthetoyou 5 years Annual Quarterly Monthly Weekly Daily THE PLANNING & EXECUTION SYSTEM 27 Team Meetings Strategic Plan PlanManagementAnnual&Budget BoardQuarterlyReport,OKRs MonthlyReportsMgt. TheLegendWeekly Daily Calendar AnnualMeetingPlanning AllMeetingHands BoardQuarterlyMeetings MonthlyMeetingsMgt. The LegendMonday&FridayWIR Communications&Reporting
KR1
How
• What are they? Objectives convey the “what” and the “why.” Key Results (KRs) fall under the Objective and explain the “how”. KRs are binary:We did or did not accomplish. Objectives can be partially accomplished.
Q2
– If
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+ Q3
• it works: you accomplish all Quarterly KRs your accomplishment of the Quarterly Objective. you accomplish all Quarterly OKRs, your accomplishment of the Annual Objectives. + KR2 OKRs + OKRs OKRs + Q4 OKRs = Objectives – Generally, you should have 3-5 KRs per Objective. unit or division has their own OKRs.
• What is it? A systematic approach to breakdown AMP into executable quarterly Objectives (O) and Key Results (KRs) that teams and individuals execute.
QUARTERLY OKRS: HOW IT WORKS
Annual
+ KR3 = Objective 1 Q1
Each
If
QUARTERLY BATTLE RHYTHM 29 Source: https://www.tanics.io/tanics-blog/okrs-101-the-basics When you do it • The OKR planning cycle is done on a quarterly basis (4 times a year). • January 1 management submits their team’s Q1 OKRs. • End of March Q1 OKRs are reviewed (TvA) Q2 OKRs set.
20 StatementGuidingyears energizedgetmorningtostrategicinputonboarding,UsedmodelOperatingmodel,BusinessValues,Strategy,Mission,Vision,duringtotheplan,readinthetoyou 5 years Annual Quarterly Monthly Weekly Daily THE PLANNING & EXECUTION SYSTEM 30 Team Meetings Strategic Plan PlanManagementAnnual&Budget BoardQuarterlyReport,OKRs MonthlyReportsMgt. TheLegendWeekly Daily Calendar AnnualMeetingPlanning AllMeetingHands BoardQuarterlyMeetings MonthlyMeetingsMgt. The LegendMonday&FridayWIR Communications&Reporting
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an
MONTHLY BATTLE RHYTHM
the
Each manager
3. shares any issues or risks of not accomplishing their KRs.
or CEO
Team
2. Each manager reports on the status of their quarterly KRs –TvA and update with a percentage (i.e., KR1: 50%).
“Managers’
4. decides where and how to shift resources to support.
1. Hold end-of-month meeting”, chaired by COO
20 StatementGuidingyears energizedgetmorningtostrategicinputonboarding,UsedmodelOperatingmodel,BusinessValues,Strategy,Mission,Vision,duringtotheplan,readinthetoyou 5 years Annual Quarterly Monthly Weekly Daily THE PLANNING & EXECUTION SYSTEM 32 Team Meetings Strategic Plan PlanManagementAnnual&Budget BoardQuarterlyReport,OKRs MonthlyReportsMgt. TheLegendWeekly Daily Calendar AnnualMeetingPlanning AllMeetingHands BoardQuarterlyMeetings MonthlyMeetingsMgt. The LegendMonday&FridayWIR Communications&Reporting
How it’s Organized: Company wide goals at the top, Manager’s I Musts, Unit project plans that are being executed to accomplish the KRs
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How it’s used:
1. On Friday, all managers meet with their teams to review their progress for the week, and set their goals for the coming week
3. On Monday morning, each team member/manager sets their weekly 3 “I Musts” before 9am, and then shares those during the 9am Legend call
The company’s weekly project management tool.Activities are designed and executed each week that are aligned to the quarterly/monthly KRs
4. Wednesday mid-week check in at 9am. Status update – standup meeting
5. Friday, end of day Week In Review meeting.TvA on all company-wide goals, I Musts and project (go back to #1)
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What is it:
2. On Sunday, the CEO or COO review the managers’ plans and outlines the company-wide goals, and puts those at the top of the Legend
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WEEKLY BATTLE RHYTHM:THE WEEKLY LEGEND
34 LEGEND Guiding Statements (20+ Years) Annual Objectives for YEAR Success for the Week Strategy:Mission:Vision:Values: Objective 1:AAAA 1.Department 1: 2.Department 2: 3.---I 1.MustsCEO: 1) 2. COO: 1) 3. CFO: 1) Department 1 Q1 Objective: 1. KR 1 Activity 1 2. KR 2 Activity 2:
Q1 Investor Management Key Result:Test new IR format with video walk-throughs of companies.
Week of Feb 4 Investor Management Activities: Send our IRs for all companies including new video walk-through format with 3 and measure open-rate.
Week of Feb 4 Laura I Musts: 1) Work with Matt to prepare walk-through video, 2) Help Erin send our IRs and measure open rate. Send report to IC for feedback - check if we have baseline metric to see whether engagement improved. Weekly Legend
Daily Calendar Check
Quarterly Team OKR Aligned
Annual Key Result (1 of 3): Increase IAN engagement in RENEW’s key activities as measured by participation on calls, trips, the International gathering and deals.
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EXAMPLE
Week of Feb 4:Work on videos with Matt. 4-5pm on Monday. Purpose, outcomes and agenda in invite.
Q1 Investor Management Objective: Designing and implementing a new engagement strategy that creates connection between IAN members and their companies.
Annual Company-wide
Annual Objective: Grow the IAN and strengthen the IAN’s brand as the largest network of investors that are engaged and passionate about empowering entrepreneurs in Africa.
20 StatementGuidingyears energizedgetmorningtostrategicinputonboarding,UsedmodelOperatingmodel,BusinessValues,Strategy,Mission,Vision,duringtotheplan,readinthetoyou 5 years Annual Quarterly Monthly Weekly Daily THE PLANNING & EXECUTION SYSTEM 36 Team Meetings Strategic Plan PlanManagementAnnual&Budget BoardQuarterlyReport,OKRs MonthlyReportsMgt. TheLegendWeekly Daily Calendar AnnualMeetingPlanning AllMeetingHands BoardQuarterlyMeetings MonthlyMeetingsMgt. The LegendMonday&FridayWIR Communications&Reporting
EXAMPLE CALENDAR
37Proprietary and Confidential to Renew LLC
38 Secret Calendars are not just for meetings. Map all of your “I Musts” and to dos to your calendar every Sunday or Monday. Stick to your calendar
TOPIC SUMMARY PULLING IT ALL TOGETHER,AND INTO TO EXECUTION 39
THE STRATEGIC PLAN ALIGNS TO THE GUIDING STATEMENTS 40 GuidingStrategyMissionVisionStatementValues 5-year StrategicPlan 5-year StrategicPlan 5-year StrategicPlan2024 5-year StrategicPlan 5-year StrategicPlan 5 Strategic Plans = Vision Today
THE AMP ALIGNS TO THE STRATEGIC PLAN 41 2023AMP2022AMPAMP2019 2020AMP 2021AMP 5 AMPsToday strategic5-yeargoals
QUARTERLY OKRS ALIGNS TO THE AMP 42 Q4 OKRsQ3 OKRs 4 Quarters Q1 Q2 Q3 Q4 AnnualGoals Annual Plan
MONTHLY WORK ALIGNS WITH QUARTERLY OKRS 43 KRs KRs KRs 3 Months M1 M2 M3 QuarterlyOKRs
I Musts WEEKLY LEGEND/I MUSTS ALIGN TO MONTHLY KRS 44 I Musts I Musts I Musts 4 Weeks W1 W2 W3 MonthlyKRs W4
DAILY ACTIVITIES/MEETINGS ALIGNS WITH WEEKLY I MUSTS 45 MeetingActivity/M WeeklyIMusts MeetingActivity/T MeetingActivity/W MeetingActivity/Th MeetingActivity/F 5 Days Map your I Musts to your Calendar!
improve? • Question 2:What is one
this
immediately implement? How? When? Where? 46
BREAKOUT GROUP ACTIVITY :When you look at the way the program teaches you to cascade your plans, which step(s) are you doing well? Which do you need to thing out of session you will
• Question 1
Write down your answer to question 2, and share it with someone (your team, a friend) and ask them to hold you accountable.
The
SUMMARY AMP is the “plan for the year.” Use it to build more detailed quarterly OKRs. Used to set Quarterly OKRs. Team OKRs align to the company OKRs. Personal OKRs align to team OKRs. OKRs must be reviewed monthly. Use OKRs to set weekly work (The Legend, I Musts). Map I Musts to Calendar. Calendar is the “plan for the day.” REMEMBER: Calendars are not just for meetings. Include women in planning
The
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3. For the next session: Be prepared to share at the next session.
2. The ON the business I Musts: Set aside 3 hours to prepare or update your AMP.
ASSIGNMENT
1. Use your calendar: Set your three I Musts for the week and map all your time to your calendar. Set one of the I Musts to work ON the business.
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REFLECTION TIME Take 5 minutes – What did you learn? – What will you immediately apply to your company? 49
50 Thank you! www.renewstrategies.com