Exec's Program #3: Planning Part II - Tactical Planning , the AMP; Cascading Plans

THE EXECUTIVE’S PROGRAM SPECIAL SESSION PLANNING PART 2: TACTICAL PLANNING, THE ANNUAL MANAGEMENT PLAN AND CASCADING

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PURPOSE AND LEARNING OBJECTIVES 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

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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 Mindset Mindset

Practice Practice

Your Your morning morning routine routine

Learn Learn   do do   teach teach

Feedback Feedback

Focus Focus

Coaching Coaching

Your Your plan. plan.

Time Time Management Management Your Your calendar calendar

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RECAP SESSION 2: OUR BIASES In-group Bias Confirmatory bias Implicit stereotype Affinity bias Benevolence bias Groupthink

“The mom is the CEO” 5

RECAP SESSION 2: THE PLANNING & EXECUTION SYSTEM 20 years Guiding Statement Vision, Mission, Strategy, Values, Business model, Operating model Used during onboarding, input to the strategic plan, to read in the morning to get you energized

5 years

Annual

Quarterly

Monthly

Weekly

Daily

Strategic Plan Annual Management Plan & Budget Quarterly Board Report, OKRs

Annual Planning Meeting All Hands Meeting

Co m

mu nica

tion s

Quarterly Board Meetings

Monthly Mgt. Reports

&R e po rtin

g

The Weekly Legend

Monthly Mgt. Meetings

Daily Calendar The Monday Legend & Friday WIR Team Meetings

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RECAP: SESSION 2 THE PLAN TOOL FRAMEWORK 3 2

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4

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How to be “strategic” when planning.

Touchstone Consulting Group 7

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.

Proprietary and Confidential to Renew LLC

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QUESTION WHY HAVE AN ANNUAL PLAN?

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Your Planning and Execution System The Executive needs a systematic approach to translate a lofty vision statement down to what must we do today and tomorrow.

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TOPIC WHAT IS THE ANNUAL MANAGEMENT PLAN (AMP)?

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THE PLANNING & EXECUTION SYSTEM 20 years Guiding Statement Vision, Mission, Strategy, Values, Business model, Operating model Used during onboarding, input to the strategic plan, to read in the morning to get you energized

5 years

Annual

Quarterly

Monthly

Weekly

Daily

Strategic Plan Annual Management Plan & Budget Quarterly Board Report, OKRs

Annual Planning Meeting All Hands Meeting

Co m

mu nica

tion s

Quarterly Board Meetings

Monthly Mgt. Reports

&R e po rtin

g

The Weekly Legend

Monthly Mgt. Meetings

Daily Calendar The Monday Legend & Friday WIR Team Meetings

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THE ANNUAL MANAGEMENT PLAN • 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).

• Uses: For developing the budget; guiding work for the quarter, month, week and day; keeping management focused; for board to evaluate management.

• Development time: ~2 to 5 days by senior management team.

• Who builds: The CEO and management team, with input from your team.

• Who owns: The CEO and management team.

• Who approves: The board.

• Length: 5-7 pages.

• 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.

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TOPIC HOW TO BUILD YOUR AMP

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RECAP: SESSION 2 THE PLANNING TOOL 3

2

5

1 4

How to be “strategic” when planning.

Touchstone Consulting Group 15

INPUTS: DATA INFORMS THE AMP

Market Last Year’s Annual Management Plan Last Years Financial Statements & Budget Team and management input

Strategic Plan

Execution Battle Rhythms The TheAMP AMP

Quarterly OKRs. Monthly Review. Weekly Legend.

Daily Work

Execution Battle Rhythms

Budget

Quarterly review. Monthly Fin Stat Review. 13-week CF. Daily controls

Hit AMP goals

Hit budget goals

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A DIVERSE TEAM BUILDS THE SMARTEST PLANS BY… …reducing business risk •

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.

“Many of today’s companies are still run by male-only teams and they are in danger of myopia when it comes to risk.’’

Franscesca Lagerberg Global leader for tax services and sponsor of women in leadership Grant Thornton US

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A DIVERSE TEAM BUILDS THE SMARTEST PLANS BY… …reducing business risk but the qualities that a diverse team brings are nuanced 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

“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.’’

Pamela Harless Chief people and culture officer at Grant Thornton US 18

A DIVERSE TEAM BUILDS THE SMARTEST PLANS BY… …better understanding customers, markets and opportunities

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).

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STEPS TO BUILDING A PLAN 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.

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.

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DEEP DIVE INTO STEP 2 Description 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 New York • Begin exiting investment to drive sustainability

SMART Objectives (Goals) 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

• Be on track to being the fastest growing investment firm on the East Coast

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AMP TIPS • 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.

• Give time to write it well and put it in your own words.

• It needs to get the company (and you) excited for action – out of bed at 5am.

• Get that gender-balanced perspective (you’ll thank me!)

• It must be used! (next section). Print it and put it on your desk. Read it every morning until you memorize it.

• Don’t let perfect be the enemy of great.

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TOPIC HOW TO USE YOUR AMP THE QUARTERLY OKR SYSTEM STEPS 5

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THE MASTERS OF EXECUTION

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COMPANIES THE USE OKR SYSTEM

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THE PLANNING & EXECUTION SYSTEM 20 years Guiding Statement Vision, Mission, Strategy, Values, Business model, Operating model Used during onboarding, input to the strategic plan, to read in the morning to get you energized

5 years

Annual

Quarterly

Monthly

Weekly

Daily

Strategic Plan Annual Management Plan & Budget Quarterly Board Report, OKRs

Annual Planning Meeting All Hands Meeting

Co m

mu nica

tion s

Quarterly Board Meetings

Monthly Mgt. Reports

&R e po rtin

g

The Weekly Legend

Monthly Mgt. Meetings

Daily Calendar The Monday Legend & Friday WIR Team Meetings

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QUARTERLY OKRS: HOW IT WORKS • What is it? A systematic approach to breakdown AMP into executable quarterly Objectives (O) and Key Results (KRs) that teams and individuals execute.

• 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.

• How it works: – If you accomplish all Quarterly KRs your accomplishment of the Quarterly Objective.

– If you accomplish all Quarterly OKRs, your accomplishment of the Annual Objectives.

– KR1 + KR2 + KR3 = Objective 1 – Q1 OKRs + Q2 OKRs + Q3 OKRs + Q4 OKRs = Annual Objectives – Generally, you should have 3-5 KRs per Objective.

– Each unit or division has their own OKRs.

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QUARTERLY BATTLE RHYTHM 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.

Source: https://www.tanics.io/tanics-blog/okrs-101-the-basics 29

THE PLANNING & EXECUTION SYSTEM 20 years Guiding Statement Vision, Mission, Strategy, Values, Business model, Operating model Used during onboarding, input to the strategic plan, to read in the morning to get you energized

5 years

Annual

Quarterly

Monthly

Weekly

Daily

Strategic Plan Annual Management Plan & Budget Quarterly Board Report, OKRs

Annual Planning Meeting All Hands Meeting

Co m

mu nica

tion s

Quarterly Board Meetings

Monthly Mgt. Reports

&R e po rtin

g

The Weekly Legend

Monthly Mgt. Meetings

Daily Calendar The Monday Legend & Friday WIR Team Meetings

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MONTHLY BATTLE RHYTHM 1. Hold an end-of-month “Managers’ meeting”, chaired by the COO or CEO 2. Each manager reports on the status of their quarterly KRs – TvA and update with a percentage (i.e., KR1: 50%).

3. Each manager shares any issues or risks of not accomplishing their KRs. 4. Team decides where and how to shift resources to support.

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THE PLANNING & EXECUTION SYSTEM 20 years Guiding Statement Vision, Mission, Strategy, Values, Business model, Operating model Used during onboarding, input to the strategic plan, to read in the morning to get you energized

5 years

Annual

Quarterly

Monthly

Weekly

Daily

Strategic Plan Annual Management Plan & Budget Quarterly Board Report, OKRs

Annual Planning Meeting All Hands Meeting

Co m

mu nica

tion s

Quarterly Board Meetings

Monthly Mgt. Reports

&R e po rtin

g

The Weekly Legend

Monthly Mgt. Meetings

Daily Calendar The Monday Legend & Friday WIR Team Meetings

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WEEKLY BATTLE RHYTHM: THE WEEKLY LEGEND • What is it: The company’s weekly project management tool. Activities are designed and executed each week that are aligned to the quarterly/monthly KRs • 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

• 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

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

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

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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LEGEND Guiding Statements (20+ Years)

Annual Objectives for YEAR

Success for the Week

Values:

Objective 1: AAAA

1.Department 1: 2.Department 2: 3.----

Vision: Mission: Strategy:

I Musts 1. CEO: 1) 2. COO: 1) 3. CFO: 1) Department 1 Q1 Objective: 1.

KR 1 Activity 1 2.

KR 2 Activity 2:

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EXAMPLE 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.

Annual Company-wide

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.

Q1 Investor Management Objective: Designing and implementing a new engagement strategy that creates connection between IAN members and their companies.

Quarterly Team OKR Aligned

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.

Week of Feb 4: Work on videos with Matt. 4-5pm on Monday. Purpose, outcomes and agenda in invite.

Weekly Legend

Daily Calendar Check 35

THE PLANNING & EXECUTION SYSTEM 20 years Guiding Statement Vision, Mission, Strategy, Values, Business model, Operating model Used during onboarding, input to the strategic plan, to read in the morning to get you energized

5 years

Annual

Quarterly

Monthly

Weekly

Daily

Strategic Plan Annual Management Plan & Budget Quarterly Board Report, OKRs

Annual Planning Meeting All Hands Meeting

Co m

mu nica

tion s

Quarterly Board Meetings

Monthly Mgt. Reports

&R e po rtin

g

The Weekly Legend

Monthly Mgt. Meetings

Daily Calendar The Monday Legend & Friday WIR Team Meetings

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EXAMPLE CALENDAR

Proprietary and Confidential to Renew LLC

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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

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TOPIC SUMMARY PULLING IT ALL TOGETHER, AND INTO TO EXECUTION

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THE STRATEGIC PLAN ALIGNS TO THE GUIDING STATEMENTS Guiding Statement Vision Mission Values Strategy

Today

5-year

5-year

Strategic Plan 2024

Strategic Plan

5-year Strategic Plan

5-year

5-year

Strategic Plan

Strategic Plan

5 Strategic Plans = Vision

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THE AMP ALIGNS TO THE STRATEGIC PLAN

2019 AMP Today

2020 AMP

2021 AMP

5 AMPs

2022 AMP

2023 AMP

5-year strategic goals

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QUARTERLY OKRS ALIGNS TO THE AMP

Q1

Q2

Q3

Q4

Q1 OKRs

Q2 OKRs

Q3 OKRs

Q4 OKRs

4 Quarters

Annual Goals

Annual Plan

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MONTHLY WORK ALIGNS WITH QUARTERLY OKRS

M1

M2

M3

KRs

KRs

KRs

3 Months

Quarterly OKRs

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WEEKLY LEGEND/I MUSTS ALIGN TO MONTHLY KRS

W1

W2

W3

I Musts

I Musts

I Musts

4 Weeks

W4 I Musts Monthly KRs

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DAILY ACTIVITIES/MEETINGS ALIGNS WITH WEEKLY I MUSTS

M

T

W

Th

F

Meeting / Activity

Meeting / Activity

Meeting / Activity

Meeting / Activity

Meeting / Activity

5 Days

Weekly I Musts

Map your I Musts to your Calendar!

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BREAKOUT GROUP ACTIVITY • Question 1: 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 improve?

• Question 2: What is one thing out of this session you will immediately implement? How? When? Where?

Write down your answer to question 2, and share it with someone (your team, a friend) and ask them to hold you accountable.

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SUMMARY  The 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.  The Calendar is the “plan for the day.” REMEMBER: Calendars are not just for meetings.  Include women in planning

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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 prepare or update your AMP.

3.

For the next session: Be prepared to share at the next session.

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REFLECTION TIME Take 5 minutes – What did you learn?

– What will you immediately apply to your company?

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Thank you! www.renewstrategies.com

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