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THREE PILLARS OF CONTEMPORARY

MANAGEMENT EXCELLENCE

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STRATEGY MANAGEMENT

PROCESS MANAGEMENT

PROJET MANAGEMENT

THREE PILLARS OF CONTEMPORARYMANAGEMENT EXCELLENCE

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Source: Strategy to Transformation [Diagram from Roger Burlton, BPTrends]

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EACH MAY HAVE ORGANIZATIONAL UNIT

Head

Sector1

Department 1

Department 2

Sector 2

Department 1

Department 2

Sector 3

Department 1

Department 2

Sector 4

Department 1

Department 2

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EACH MAY HAVE ORGANIZATIONAL UNIT

Head

OSM Sector1

Department 1

Department 2

OBPM Sector 2

Department 1

Department 2

Sector 3

Department 1

Department 2

Sector 4

Department 1

Department 2

PMO

Office of Strategy ManagementOSM

OBPM

PMO

Office of Business Process Management

Project Management Office

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Q1: WHAT IS THE ROLE OF EACH OFFICE?

Q2: HOW CAN THEY WORK TOGETHER?

OSM

OBPM

PMO

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Q1: WHAT IS THE ROLE OF EACH UNIT?

Q2: HOW CAN THEY WORK TOGETHER?

OSM

OBPM

PMO

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OFFICE OF STRATEGY MANAGEMENT

OSM

OBPM

PMO

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WHAT IS OSM ?OSM

OBPM

PMO

“The Office of Strategy Management integrates and coordinates activities across functions and business units to align strategy with operations”

Kaplan, R. S., and Norton, D. P. 2008. The Execution Premium: Linking Strategy to Operations for CompetitiveAdvantage. Harvard Business Press, Boston, 283-284

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WHY OSM ?OSM

OBPM

PMO

5%

25%

60%

85%

9 of 10

organizations fail to

execute strategy

Clive Keyte, Oct 2012, business2community.com

Only 5% of the work force

understands the strategy

The Vision Barrier

Only 25% of managers have

incentives linked to strategy

The People Barrier

60% of organizations don’t

link budgets to strategy

The Resource Barrier

85% of executive teams

spend less than one hour per

month discussing strategy

The Management Barrier

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WHAT DOES OSM DO?OSM

OBPM

PMO

OSM must run the process

OSM may run the process

OSM links strategy to a process run by someone else

• CFO: Chief Financial Officer HRO: Human Resource Officer CIO: Chief Information Officer CMO: Chief Marketing Officer CKO: Chief Knowledge Officer

X

ROLESTRATEGY MANAGEMENT PROCESS

Balanced Scorecard Management – Design and report on the BSC measures

1

Organization Alignment – Ensure all business and support units are aligned with the strategy

Strategy Reviews – Shape the agenda for management strategy review and learning meetings

Strategy Communication – Communicate and educate employees about the strategy and performance

5 Initiative Management – Identify and oversee management of strategic initiatives

6CFO, HRO,

CIO, CMO

Planning / Budgeting – Link financial, human resources, information technology, and marketing to strategy

HRO Human Capital Alignment – Ensure all employee’s goals, incentives and development plans link to strategy

CKO Best Practice Sharing – Facilitate a process to identify and share best practices

Strategy Development – Help the CEO and executive team formulate and adapt the strategy

Inte

gra

tive

Co

ntr

ibu

tory

Co

re

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EXAMPLE OF STRATEGY MANAGEMENT FRAMEWORKOSM

OBPM

PMO

results

performance measures

Process

Initiative

EXECUTION

performance measures

results

1

3

4

5

6

• Mission, Values, Vision • Strategic Analysis• Strategy Formulation

DEVELOP THE STRATEGY

• Strategy Map / Themes• Measures / Targets• Initiative Portfolios• Funding / Stratex

TRANSLATE THE STRATEGY

ALIGN THE ORGANIZATION

• Business Units• Support Units• Employees• Board of Directors

PLAN OPERATIONS

• Key process improvement• Resource capacity plan• Budgeting

• Profitability Analysis

• Strategy Correlations

• Emerging Strategies

TEST & ADAPT

• Strategy Reviews

• Operating Reviews

MONITOR & LEARN

Strategic Plan

•Strategy Map•Balanced Scorecard•Stratex

Operating Plan

•Forecast•Resource Requirements•Dashboards•Budgets

2

Kaplan, R. S., and Norton, D. P. 2008. The Execution Premium: Linking Strategy to Operations for CompetitiveAdvantage. Harvard Business Press, Boston, 283-284

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EXAMPLE OF OSM REFERENCE MODELOSM

OBPM

PMOSt

race

tra®

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OSM

OBPM

PMO

OFFICE OF BUSINESS PROCESS MANAGEMENT

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WHAT IS BPM?

خدمات العمالء اإلدارة المالية اإلدارة القانونية إدارة االئتمان الشؤون اإلدارية

اإلدارة الرئيسية

إقراض العمالء

1إجراء فرعي

3إجراء فرعي

2إجراء فرعي

OSM

OBPM

PMO

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WHAT IS OBPM? OSM

OBPM

PMO

“The Office of BPM is a mechanism that isused to coordinate BPM initiatives anddeliver the related benefits throughout theorganization”

AlKharashi, B., Tregear, R. et al. 2011. Establishing the Office of Business Process Management. Leonardo Consulting,Canberra.

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OSM

OBPM

PMO

WHAT DOES OBPM DO?

Based on BPTrends Methodology, Boston

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OSM

OBPM

PMO

EXAMPLE OF BPM FRAMEWORK

BPTrends Associates BPM Methodology

BPTrends Methodology, Boston

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OSM

OBPM

PMO

EXAMPLE OF OBPM REFERENCE MODELPr

oce

tra®

Translate Strategy

Into Processes

Gather and Analyze

BPM Demands

Define BPM Projects

Portfolio

Plan prioritized

BPM Projects

Manage BPM

Projects & Portfolio

Disseminate BPM

Results and Culture

BPM Projects BPM Results

SUPPORT PROCESS MANAGEMENT SUPPORT PROCESS IMPROVEMENT

MANAGE BPM STRATEGY

BPM Demands

Strategic

Demands

Administer BPM methods

and tools

Administer BPM Roles and

Responsibilities

Administer BPM Services

Portfolio

Operational

Demands

1. Understand Project

2. Analyze Process

3. Redesign Processes

4. Coordinate Process

Change Implementation

5. Roll Out Redesigned

Business Process

Educate and Train on

Process Management

Maintain Process

Architecture & Repository

Support Performance

MeasurementMeasure Process Maturity

Support Continuous

Improvement

SUPPORT THE OFFICE OF BPM

Maintain Process

Improvement Methodlogy

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PROJECT MANAGEMENT OFFICE

OSM

OBPM

PMO

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WHAT IS PM? OSM

OBPM

PMO

“Project is a temporary endeavor undertakento create a unique product, service or result.”

“Project management, then, is theapplication of knowledge, skills andtechniques to execute projects effectivelyand efficiently”

Source: Project Management Institute Inc, 2008. A Guide to the Project Management Body of Knowledge (PMBoK®Guide) Fourth Edition, Project Management Institute Inc, Newtown Square, Pennsylvania, Section 1.4.4.

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WHAT IS PMO?

“Project Management Office is anorganizational body or entity assignedvarious responsibilities related to thecentralized and coordinated managementof projects under its domain”

Source: Project Management Institute Inc, 2008. A Guide to the Project Management Body of Knowledge (PMBoK®Guide) Fourth Edition, Project Management Institute Inc, Newtown Square, Pennsylvania, Section 1.4.4.

OSM

OBPM

PMO

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WHAT DOES PMO DO? OSM

OBPM

PMO

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WHAT DOES PMO DO? OSM

OBPM

PMO

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Q1: WHAT IS THE ROLE OF EACH UNIT?

Q2: HOW CAN THEY WORK TOGETHER?

OSM

OBPM

PMO

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COLLABORATION,NOT COMPLETION