Five Key Principles of Corporate Performance Management E-Book

Bob Paladino

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 560

Veröffentlichungsjahr: 2011

Beschreibung

In Five Key Principles of Corporate Performance Management, Bob Paladino shares his decades of experience to provide proven, real-world implementation insights from globally recognized and award-winning organizations. You'll discover what today's Fortune 100 companies are doing right, and how to implement their enterprise techniques and strategies within your own organization to maximize success.

Leseprobe

Table of Contents

Praise

Title Page

Copyright Page

Pathway to Success

Acknowledgments

CHAPTER 1 - Introduction

BEST PRACTICE AWARD-WINNING ENTERPRISE CASES

WHY READ THIS BOOK?

PRINCIPLE 1: ESTABLISH AND DEPLOY A CPM OFFICE AND OFFICER

INTEGRATING PRINCIPLES 2 THROUGH 5 CPM PROCESSES AND METHODS

SUMMARY

MY PROMISE

• NOTES

CHAPTER 2 - Why Do Most Companies Fail to Implement Their Strategies?

FOUR BARRIERS TO STRATEGY IMPLEMENTATION

INDUSTRY CLOCK SPEED: A NEW CONSIDERATION TO IMPLEMENTING STRATEGY

TOP FIVE BLOCKERS TO CPM PROJECT AND PROCESS SUCCESS

SUMMARY

• NOTES

CHAPTER 3 - Research and the Five Key CPM Principles

PRINCIPLE 1: ESTABLISH AND DEPLOY A CPM OFFICE AND OFFICER

CROWN CPM OFFICE AND OFFICER IS BORN

CPM RESEARCH

HIGH-PERFORMING ORGANIZATIONS

PRINCIPLE 1: ESTABLISH AND DEPLOY A CPM OFFICE AND OFFICER

PRINCIPLE 2: REFRESH AND COMMUNICATE STRATEGY

PRINCIPLE 3: CASCADE AND MANAGE STRATEGY

PRINCIPLE 4: IMPROVE PERFORMANCE

PRINCIPLE 5: MANAGE AN D LEVERAGE KNOWLEDGE

SUMMARY

• NOTES

CHAPTER 4 - Principle 1

CROWN CASTLE INTERNATIONAL: BEST PRACTICE CASE

CITY OF CORAL SPRINGS: BEST PRACTICE CASE

TENNESSEE VALLEY AUTHORITY: BEST PRACTICE CASE

MEDRAD: BEST PRACTICE CASE

SERONO: BEST PRACTICE CASE

LB FOSTER COMPANY: BEST PRACTICE CASE

FLORIDA DEPARTMENT OF HEALTH: BEST PRACTICE CASE

AMERICAN RED CROSS: BEST PRACTICE CASE

BRONSON METHODIST HOSPITAL: BEST PRACTICE CASE

RICOH BEST PRACTICE: BEST PRACTICE CASE

KEYCORP: BEST PRACTICE CASE

SPRINT NEXTEL: BEST PRACTICE CASE

CHAPTER 5 - Principle 2

PARETO INC.: FOUNDATIONAL STRATEGY MAP CASE STUDY

CROWN CASTLE INTERNATIONAL: BEST PRACTICE CASE

CITY OF CORAL SPRINGS: BEST PRACTICE CASE

TENNESSEE VALLEY AUTHORITY: BEST PRACTICE CASE

MEDRAD: BEST PRACTICE CASE

SERONO: BEST PRACTICE CASE

LB FOSTER COMPANY: BEST PRACTICE CASE

FLORIDA DEPARTMENT OF HEALTH: BEST PRACTICE CASE

AMERICAN RED CROSS: BEST PRACTICE CASE

BRONSON METHODIST HOSPITAL: BEST PRACTICE CASE

RICOH: BEST PRACTICE CASE

KEYCORP: BEST PRACTICE CASE

SPRINT NEXTEL: BEST PRACTICE CASE

• NOTES

CHAPTER 6 - Principle 3

PARETO INC.: BALANCED SCORECARD INTRODUCTION

CROWN CASTLE INTERNATIONAL: BEST PRACTICE CASE

CITY OF CORAL SPRINGS: BEST PRACTICE CASE

TENNESSEE VALLEY AUTHORITY: BEST PRACTICE CASE

MEDRAD: BEST PRACTICE CASE

SERONO: BEST PRACTICE CASE

LB FOSTER: BEST PRACTICE CASE

FLORIDA DEPARTMENT OF HEALTH: BEST PRACTICE CASE

AMERICAN RED CROSS: BEST PRACTICE CASE

BRONSON METHODIST HOSPITAL: BEST PRACTICE CASE

RICOH: BEST PRACTICES CASE

KEYCORP: BEST PRACTICE CASE

SPRINT NEXTEL: BEST PRACTICE CASE

• NOTES

CHAPTER 7 - Principle 4

INTRODUCTION TO SIX SIGMA

CROWN CASTLE: BEST PRACTICE CASE

CITY OF CORAL SPRINGS: BEST PRACTICE CASE

TENNESSEE VALLEY AUTHORITY: BEST PRACTICE CASE

MEDRAD: BEST PRACTICE CASE

LB FOSTER: BEST PRACTICE CASE

New Customer Key Account Management Process

FLORIDA DEPARTMENT OF HEALTH: BEST PRACTICE CASE

AMERICAN RED CROSS: BEST PRACTICE CASE

BRONSON METHODIST HOSPITAL: BEST PRACTICE CASE

RICOH: BEST PRACTICES CASE

HOUSTON CHRONICLE : BEST PRACTICES CASE

• NOTES

CHAPTER 8

Principle 5

CROWN CASTLE: BEST PRACTICE CASE

CITY OF CORAL SPRINGS: BEST PRACTICE CASE

TENNESSEE VALLEY AUTHORITY: BEST PRACTICE CASE

MEDRAD: BEST PRACTICE CASE

FLORIDA DEPARTMENT OF HEALTH: BEST PRACTICE CASE

AMERICAN RED CROSS: BEST PRACTICE CASE

BRONSON METHODIST HOSPITAL: BEST PRACTICE CASE

RICOH: BEST PRACTICE CASE

RAYTHEON COMPANY: BEST PRACTICE CASE

• NOTES

CHAPTER 9 - Five Key Principles Self-Diagnostic and CPM Research Resources

CPM DIAGNOSTIC: THREE EASY STEPS

CPM RESEARCH RESOURCES

CAM-I

Index

Additional Praise For Five Key Principles of Corporate Perfromance Management

“This book is emblematic of Bob’s considerable expertise in organizing a company around the Strategy Focused Organization approach using the Balanced Scorecard Method. As founder, chairman and CEO of Crown Castle International (CCI:NYSE) I hired Bob as a consultant to lead a program to initiate CCI on the SFO method. He later joined CCI and led a successful organizational transformation to a much more efficient global platform in the telecommunications industry.

I am now chairman and majority shareholder of two international organizations; one in the multi-jurisdictional payroll arena and another in the aerospace industry and Bob is successfully transforming those companies into Strategy Focused Organizations. He is probably THE most knowledgeable and experienced individual in implementing the SFO approach to better organizational efficiency given his hands on experience and his considerable knowledge of accounting and finance as a CPA.”

—Ted B. Miller, Jr., Chairman, M7 Aerospace and Chairman, Imperium International

“This book brings strategy to life through real-life application and provides the road map needed to truly unite a company in its objectives. Bob Paladino’s method encourages team work, cross functional thinking and drives company success.”

—Preston Atkinson, Chief Operating Officer, Whataburger, Inc.

“Bob Paladino has taken a balanced approach of taking all attributes of high performing businesses and turning them from theory to practical application. His book also discusses a step by step approach by using case studies which, if followed, will help organizations get to the maturity level in a timely manner.”

—Ashok G. Vadgama, President, Center for Advanced Management Institute (CAM-I)”

“All companies today are looking for sustainable competitive advantages—which are more difficult to achieve. Consistent execution in performance and defining the right metrics are critical steps to achieving them. This book provides excellent insights to get you started!”

—Ralph Vasami, President Universal Weather & Aviation

This book is printed on acid-free paper.

Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data

Paladino, Bob, 1959-

Five key principles of corporate performance management / Bob Paladino.

p. cm.

Includes index.

ISBN-13: 978-0-470-00991-8 (cloth)

1. Organizational effectiveness. 2. Management. 3. Performance—Case studies. 4. Executives.

I. Title.

HD58.9.P35 2006

658.4’06—dc22

2006025192

My Family

I offer praise to my grandfather, Alberto “Poppy” Paladino, for his courage as a teenager to migrate from Tuscany just after the turn of the twentieth century and for imparting his values of integrity, hard work, and education to his sprawling family tree. Thank you to my parents, Albert and Dorothy, for their enduring support and for being excellent role models. Special admiration to my wife, Ellen, for her positive attitude and to my children for keeping me inspired.

Our Freedom

I express gratefulness for my freedom of speech and have enormous respect for those who have preserved it. I will share book royalties to aid injured soldiers returning home and with the United Flight 93 Tower of Voices Memorial. It contains 40 wind chimes; sounds in the wind are a living memory of the 40 persons honored, many of whose last contact was through their voices.

To express your appreciation, please go to www.honorflight93.org and www.saluteheroes.org, both IRS Section 501(c)(3) nonprofit organizations.

Pathway to Success

Waste no more time talking about great souls and how they should be. Become one yourself!

—MARCUS AURELIUS ANTONINUS

Acknowledgments

This book could not have been possible without the special contributions from a number of organizations, clients, executives, and practitioners. More important than contributions to this book is the recognition they deserve for efforts to advance the field of corporate performance management, the results they helped achieve for their organizations, and their value-centric approach to performance.

American Red Cross: Rod Tolbert, Director, Reporting and Monitoring, Chapter Quality Assurance; Kevin Hans, Manager, Knowledge and Innovation, Chapter Quality Assurance; and Steve Stegeman, Senior Director, Strategic Planning and Analysis, Corporate Strategy

APQC: Carla O’Dell, President; Cindy Hubert, Executive Director; Sebastian Francis, Senior Advisor; John Eleftheriou, Vice President Professional Services; project leaders Darcy Lemons and Rachele Williams; the APQC team; and numerous member company research project participants

ASMI: Carl DeMaio, President and Founder; and the ASMI team

Balanced Scorecard Collaborative (BSCol), a Palladium Company: Robert S. Kaplan and David P. Norton, creators of the Balanced Scorecard and Strategy-Focused Organization concepts; its employees, alumni, and numerous clients and study group members

Bronson Methodist Hospital: Michele Serbenski, Executive Director, Corporate Effectiveness and Customer Satisfaction

CAM-I: Ashok G. Vadgama, President, and numerous members of research and study groups

City of Coral Springs: Kevin Knutson, Director of Communications and Marketing (formerly Budget and Strategic Planning Manager during Sterling Award period), and Chelsea Stahl, Performance Measurement Analyst

Crown Castle International: John Kelly, Chief Executive Officer; executive and leadership teams; former Global Performance (Corporate Performance Management) team members; and Crown employees

Florida Department of Health: Donna Marshall, Performance Management Director, Office of Performance Improvement; and Laura Reeves, Performance Consultant Team Leader, Office of Performance Improvement

Hearst Publications Houston Chronicle: Mary Ann Wendt, Director, Human Resources (former Director, Organizational Development); Anna Singletary, Director of Productivity (former Six Sigma Organizational Leader); and numerous colleagues

Intercomp Technologies LLC: George E. Reese, Global Chief Executive Officer and a founder of Crown Castle International; and leadership teams in Geneva, Switzerland, and Moscow, Russia

KeyCorp: Michele Seyranian, Executive Vice President and Senior Planning Manager of Strategic Planning

LB Foster Company: Lee B. Foster, Chairman of the Board; Stan Hasselbusch, President and Chief Executive Officer; Jeffrey Poholsky, Manager, Strategic Planning; Merry Brumbaugh, Vice President, Tubular Products; Sam Fisher, Senior Vice President, Rail Products; Don Foster, Senior Vice President, Piling Products; John Kasel, Senior Vice President, Operations and Manufacturing; Dave Russo, Senior Vice President, Chief Financial Officer and Treasurer; Jack Klimp, General Manager; and company employees

M7 Aerospace: Ted B. Miller Jr., Chairman M7 Aerospace, Chairman of Imperium International, and a founder of Crown Castle International; Ron Frederick, Chief Executive Officer; Kevin Brown, Senior Vice President of Finance and Corporate Development; executive management and senior management team members; and employees worldwide

Medrad: Rose Almon-Martin, Vice President of Performance Excellence and Marketing Services

Ricoh Corporation: Katsumi “Kirk” Yoshida, President and Chief Executive Officer, Ricoh U.S.; Kuni Minakawa, Chief Financial Officer, Ricoh U.S.; Hede Nonaka, Vice President, Marketing, Ricoh U.S.; Robert Ingoglia, Vice President, Promotion and Communications, Ricoh U.S.; Dan Piccoli, Vice President of Quality and Business Excellence, Ricoh U.S.; Marilyn Michaels, Director, Quality and Performance, Ricoh U.S.; and Edward A. Barrows, Principal, Strategic Management System and Professor of Strategy, Babson College

Serono International: Lawrence Ganti, Corporate Director, Strategy Management

Sprint Nextel: William G. Arendt, Senior Vice President and Controller; Tolga E. Yaveroglu, Director Corporate Strategy; and Jenevieve Creary, Senior Manager Corporate Strategy; Sprint Nextel employees

Tennessee Valley Authority: Bill Kolz, Senior Program Manager, Performance Management Process; and Steve Saunders, General Manager of Benchmarking and Industry Analysis

John Wiley & Sons: Sheck Cho, Executive Editor, and the Wiley publishing team

CHAPTER 1

Introduction

FIVE KEY PRINCIPLES OF CORPORATE PERFORMANCE MANAGEMENT

Man’s mind, stretched to a new idea, never goes back to its original dimensions.

—OLIVER WENDELL HOLMES

What do award-winning companies know that eludes most of today’s executives? How do they organize and conduct themselves to achieve outsized results? What core processes and best practices do they leverage? Winning executives unselfishly and gladly share their best practices with you. Will you invest your time to understand these key differentiators? If so, then welcome to the pathway of change and join me in a stimulating journey.

There is an exciting new role—the corporate performance management (CPM) executive—that is emerging in companies, government agencies, and nonprofit organizations. The CPM executive is more savvy and able to execute strategy and accelerate results by leveraging and integrating CPM best practice processes. This book is an implementation guide that offers a fresh perspective based on new award-winning CPM executives’ reflections, experiences, and best practices organized around Five Key Principles in CPM. My hope is that you will rapidly adapt their best practices to realize further success in your enterprise. If executing strategy effectively is of interest to you, then welcome to the winners’ circle and read on.

BEST PRACTICE AWARD-WINNING ENTERPRISE CASES

This book encapsulates best practice research from globally recognized enterprises and provides guidance to enable you to rapidly implement your strategy through integrated CPM efforts. It also draws from my direct experience as vice president leading one of Kaplan and Norton’s Balanced Scorecard consulting divisions; senior vice president of global performance at Crown Castle International (Crown); and client, research, study group and advisory experiences with award-winning and high-performing organizations. Case studies include winners of these awards:

• Kaplan and Norton Global Balanced Scorecard Hall of Fame Award

• U.S. President’s National Malcolm Baldrige Quality Award

• Deming Quality Award

• American Quality and Productivity Center (APQC) Best Practice Partner Award

• Governor’s Sterling Award (based on Baldrige Criteria)

• Wall Street Journal “Top 20 Most Improved Companies in Shareholder Value Creation”

• Fortune “100 Best Companies to Work For”

• Forbes Best Managed Companies

I’m against a homogenized society, because I want the cream to rise.

—ROBERT FROST

Award recipients and high performers present a rich source of strategy management best practices for your CPM program and offer a leading edge perspective. I am grateful to the Crown executive team and employees. While my team facilitated CPM processes, Crown employees brought them to life. They earned Kaplan and Norton’s coveted Balanced Scorecard Hall of Fame Award, the globally recognized APQC Best Practice Partner Award, and contributed to Crown being ranked on The Wall Street Journal’s list of “Top 20 Most Improved Companies in Shareholder Value Creation” (out of over 1,000 listed companies).

Chapter 2 explores reasons why companies fail to implement their strategies, including Kaplan and Norton’s “four barriers,” MIT Dr. Fine’s research on Clock Speed, and five project blockers learned from years in the field. Chapter 3 provides a summary of over two dozen Five Key Principles best practices as a handy reference tool. Chapters 4 through 8 are devoted to in-depth case studies, one chapter for each of the Five Key Principles, developed in collaboration with leading award-winning enterprises and their CPM leaders. Chapter 9 provides a self-scoring CPM program diagnostic and a resource section on leading edge CPM research, a lifelong pursuit.

WHY READ THIS BOOK?

Optimum performance will be the only option for the business managers of tomorrow. The Five Key Principles in Bob Paladino’s book and his method of molding them into daily effort will be the blueprint for highly successful leaders to deliver the expected positive results.

—PRESTON ATKINSON, CHIEF OPERATING OFFICER, WHATABURGER, INC.

Executives today are expected to demonstrate results faster than ever before; chief executive officer (CEO), chief financial officer (CFO), chief operating officer (COO), and chief information officer (CIO) turnover has accelerated rapidly in the past 10 years. HR Magazine reports CEO churn is at an all-time high. Increasingly, new CEOs enter a company, fail to deliver, and are sent packing. Sometimes, if they do produce results, other companies snatch them up. Either way, the process starts all over again. Turnover among chief executives soared 53 percent between 1995 and 2001, according to the 2002 study “Why CEOs Fall: The Causes and Consequences of Turnover at the Top,” conducted by Booz Allen Hamilton of McLean, Virginia. The number of CEOs who left their jobs under pressure more than doubled during that period, and average CEO tenure plunged more than 23 percent, according to the study of 2,500 publicly traded companies. More recently, Booz Allen Hamilton reported the rate of departure for underperformers quadrupled since 1995, with European and North American CEOs topping the list of involuntary exits in 2005. Global CEO departures reached record levels for the second year in a row, and may be peaking, according to the fifth annual survey of CEO turnover at the world’s 2,500 largest publicly traded corporations. The study also found that performance-related turnover set a new record in North America.1

A different study—“CEO Turnover and Job Security”—released by Drake Beam Morn (DBM) estimates that two-thirds of the world’s companies have changed CEOs at least once in the last five years.2 Clearly, the amount of time allotted to implementing strategies to achieve results has been compressing. This book provides reasons why companies fail to implement their strategies and offers a blueprint for change.

The measure of success is not whether you have a problem to deal with, but whether it’s the same problem you had last year.

—J. F. DULLES

Fortune magazine reports, “If making the Fortune 100 Best lists is an enormous accomplishment, consider how tough it is to repeat the feat every single year. Just 22 companies have appeared on our list every year since its 1998 inception.”3 Between 1998 and 2004, the turnover of Fortune 500 companies has been staggering.

Research shows that CEOs and enterprises benefit from a CPM Office, Officer, and integrated processes based on the Five Key Principles more than ever to enable higher organizational performance. High-performing enterprises practice these Five Key Principles:

Principle 1. Establish and deploy a CPM Office and Officer. Principle 2. Refresh and communicate strategy. Principle 3. Cascade and manage strategy. Principle 4. Improve performance. Principle 5. Manage and leverage knowledge.

EXHIBIT 1.1Five Key Principles of CPM

© Copyright 2006 Bob Paladino & Associates, LLC

Exhibit 1.1 shows the CPM Office at the center of the Five Key Principles. The Office integrates and facilitates the Five Key Principles concurrently throughout the enterprise; dozens of best practices and case studies are discussed throughout the book.

PRINCIPLE 1: ESTABLISH AND DEPLOY A CPM OFFICE AND OFFICER

By three methods we may learn wisdom. First, by reflection, which is noblest; second, by imitation, which is easiest; and third, by experience, which is bitterest.

—CONFUCIUS

This book short draws from all three learning methods above. Principle 1, Establish and Deploy a CPM Office and Officer, is at the center of the CPM efforts and is responsible for implementing strategy through a portfolio of CPM methods, processes, and frameworks collectively referred to as the Five Key Principles. This Office reports to the CEO or a CEO direct report to integrate a defined set of CPM processes to drive global and local performance. Basically, they aid contemporary CEOs and their teams to deliver results faster. This book devotes significant attention to better understanding and providing in-depth case studies to define the new, vital role in enterprises. As a former executive in the Office of the CEO and currently a practitioner assisting enterprises to establish and execute the duties of the CPM Executive, I provide a road map to key roles and responsibilities. Crown will serve as a reference point for each CPM principle, complemented by numerous case studies as told by the executives from award-winning enterprises and last valuable experiences from the field. Although my title at Crown was Senior Vice President Global Performance, for purposes of establishing common terminology for this book I shall refer to this role as the CPM Officer and the department as the CPM Office.

Five Key Principles provides a lean best practice case study approach to strategy management to simplify and bring together disparate methods into an integrated, simplified CPM framework. Many public and private enterprises create islands of CPM expertise but fail to provide for an integrated CPM framework to drive results. Have you heard these comments in your organization? Are there some disconnects in implementing strategy?

• “We complete our strategic plan each year but it sits on the shelf until next year.”

• “The executives always roll out the initiative du jour.”

• “The folks in quality know about quality, we don’t, it is too complicated.”

• “The sales team deals with the customer, we only focus on operations.”

• “They never communicate the strategy, I am not high enough in the company.”

• “We are too busy fighting fires to deal with strategic issues.”

• “Our dashboard has hundreds of measures, but which ones are important?”

Five Key Principles cases are told by experienced executives. The cases have been selected to enable you to understand how to rapidly integrate and leverage proven methods and processes to manage strategy. This book is based on my direct experience as a CPM Officer, on best practices research with enterprises that have won numerous awards, and direct consulting experience to high performing enterprises.

We learn from pattern recognition, repeating steps and processes that enable us to build and achieve. Over many years, I have studied strategy management patterns of success, both as a Crown executive and as a global consultant providing professional services on behalf of Towers Perrin, PricewaterhouseCoopers, and Kaplan and Norton’s firm The Balanced Scorecard Collaborative (a Palladium company). I have had the good fortune and privilege of collaborating with globally known experts and thought leaders in the CPM field who have provided validation for establishment of a dedicated CPM executive role in enterprises to drive meaningful change.

INTEGRATING PRINCIPLES 2 THROUGH 5 CPM PROCESSES AND METHODS

Measurement without the opportunity to improve is harassment!

—W. EDWARDS DEMING (FATHER OF QUALITY)

The current fragmented approach to strategy management has resulted in islands of competencies (see Exhibit 1.2) rarely optimized. Many programs fail, many companies fail.

Recall the turnover of companies in the Fortune 100 list. Further, with so many experts today marketing single tools, so-called silver bullets, how do you know where to start? The “experts” would have you believe their wrench, hammer, or screwdriver is the panacea or single solution to your performance problems. However, is your organization one-dimensional? How do you simultaneously deal with global competition, accelerated outsourcing, shortened product and service life cycles, customers that are more sophisticated, fleeting intellectual property, a mobile labor force, and demanding investors? How could you expect one method to address all these challenges?

EXHIBIT 1.2CPM Processes Disconnected

© Copyright 2006 Bob Paladino & Associates, LLC

Only the fool learns from his own mistakes, the wise man learns from the mistakes of others.

—OTTO VON BISMARCK

The beauty of the hammer is that it can readily fix the problem of the nail. What about the problem of the crooked screw or loosely fitting bolt? Does your organization suffer from many tools or competencies that lack integration? Do process owners or department heads conflict at times? Nevertheless, when do you use which tool? At what speed do you introduce these tools to the organization? How will you optimize the many moving parts in your organization? By now this simple metaphor has highlighted the fact that one tool or process is not sufficient today; your organization has many interrelated issues and pressures and requires a CPM executive to facilitate an integrated toolbox and provide guidance and direction to vital CPM processes.

Five Principles provides a clear road map for executing enterprise strategy by drawing on and integrating multiple methods to optimize results. The book provides a lean, simplified approach to development and use of integrated CPM. How long will your CEO or boss remain patient? Experience in strategy implementation captured in book case studies is the best teacher and guide.

SUMMARY

The organizations selected for in-depth case studies have earned several notable awards, some multiple awards. Exhibit 1.3 displays a subset of awards, those reserved for truly distinguished performances and granted to a very limited group of recipients. For example, the U.S. President’s Malcolm Baldrige National Quality Award is reserved for just five organizations annually. The Fortune “100 Best Companies to Work For” is a broader group, but, as thousands of companies apply, recipients are a very distinguished group. Similarly, Fortune magazine reports thousands of enterprises use the Balanced Scorecard but approximately a dozen annually earn the coveted and globally renowned Balanced Scorecard Hall of Fame Award.

Case study enterprises offer unique insights to their CPM processes, methods, approaches, roles, responsibilities, organization, and results for your research and reuse to accelerate your CPM program.

EXHIBIT 1.3Award-Winning Case Study Companies

MY PROMISE

Five Key Principles provides practical executive and practitioner best practice examples on how to establish the new CPM Office to manage strategy using integrated CPM processes. I am fortunate to have experienced hundreds of improvement programs and projects at Fortune 500 companies, government agencies, and nonprofit organizations over the past 20-plus years. I am glad to report that most were successful. In this book I am not evangelizing theory but rather providing proven, real-world implementation insights from award-winning organizations.

An honest tale speeds best, being plainly told.

—WILLIAM SHAKESPEARE

• NOTES

1 Chuck Lucier, Paul Kocourek, and Rolf Habbel, Strategy+Business, “CEO Succession 2005: The Crest of the Wave” Summer 2006, www.boozallen.com.

2 Robert Grossman, “Forging a Partnership Executive Turnover,” HR Magazine (April 2003).

3 “Blue Ribbon Companies 2004,” www.fortune.com Web site, November 4, 2005.

CHAPTER 2

Why Do Most Companies Fail to Implement Their Strategies?

Planning is an unnatural process; it is much more fun to do something. And the nicest thing about not planning is that failure comes as a complete surprise.

—SIR JOHN HENRY-JONES

This chapter discusses the four barriers, popularized by Kaplan and Norton, that companies encounter by failing to realize their strategic objectives. This chapter expands this thinking and brings a brand new perspective on the strategic context for these failures. We turn to MIT professor Dr. Charles Fine’s research on industry rate of change, or “Clock Speed,” and its impacts on companies brought about by failing to understand and develop strategic and management processes to address it. In reactionary efforts to address the four barriers and Clock Speed, enterprises often commence corporate performance management (CPM) projects, many of which fail. For this reason, we will touch on the top five blockers that undermine well-intended business improvement efforts. Five Key Principles offers a comprehensive, lean, and proven approach for strategy implementation and management.

FOUR BARRIERS TO STRATEGY IMPLEMENTATION

One of my fondest and most enlightening professional growth experiences was leading one of Kaplan and Norton’s Balanced Scorecard consulting practices. Not only did I have regular interactions with Bob and Dave, but I also had the opportunity to participate with them on research, conferences, and study projects. During these years, my practitioner and client teams designed and implemented the Balanced Scorecard in scores of enterprises. I found myself immersed in a kind of applied research firm where the founders, arguably the most prolific and successful business thinkers of our time, provided a wellspring of new ideas the consulting division innovated and deployed with clients. In turn, the consulting clients provided a rich environment for discovering new approaches to adapting the strategy-focused organization (SFO) principles of the Balanced Scorecard to drive results.