Adaptive Strategic Planning - turning insights into action for Global Manufacturers

Adaptive Strategic Planning: Keeping Your Strategy Ahead of Change Insights to Action Workshop

If there is a conversation about the future of the profession, you're bound to hear Hood's name mentioned as one of the people leading the way. Accounting Today

Tom Hood, CPA, CITP, CGMA

! Named the Second Most Influential in Accounting

by Accounting Today Magazine 2013 ! Top 150 Influencer by Linked-In ! Top 25 Influencers in Learning & HR by HR

Examiner ! Top 25 Public Accounting Thought Leaders by

CPA Practice Adviser ! Working on Learning Management with AICPA/

CPA2Biz, Cloud Curriculum, Performance Management /XBRL, Leadership & Generations

CEO Maryland Association of CPAs (MACPA) www.macpa.org Business Learning Institute (BLI) www.blionline.org

http://www.linkedin.com/in/tomhood/

Ebonie Jackson, CPA,CITP, CGMA

Strategic Management Consultant at Health Care Regulatory Consultants, LLC

Financial Leader for Owens Corning Global Financial Standards Implementation

Leader Plant Controller Member of AICPA Council, IMTA Executive

Board, Manufacturing and E.D.G.E Conference Planning Committees

Member of to be in the Inaugural Class of the AICPA Leadership Academy

http://www.linkedin.com/pub/ebonie-jackson/3/37a/63b

Strategic Management Consultant Health Care Regulatory Consultants, LLC

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The Challenge

Is Change Changing?

4X 7X 1670 1890

Historical Context The Perfect Storm

Web 2.0

Globalization

Generations

Source: Don Tapscott - Wikinomics

The New Normal - VUCA

So what does that mean for strategic

planning?

What would Rita say? ! Competitors and customers have

become too unpredictable, and industries too amorphous.

! The forces at work here are familiar: the digital revolution, a flat world, fewer barriers to entry, globalization.

! To stay ahead, they need to constantly start new strategic initiatives, building and exploiting many transient competitive advantages at once.

! Though individually temporary, these advantages, as a portfolio, can keep companies in the lead over the long run.

Innovate often, decide quickly, succeed or fail, repeat

Rita McGrath, Columbia Business School Author End of Competitive Advantage

The end of competitive advantage?

The Innovators Paradox

! Ideas arent failing because of the insights or product features. Ideas are failing because we are trying to force them to fit the past.

! The more successful you are the stronger the pull of the core (and past) - Geoffrey Moore

! Dont pave cowpaths... - Dr. Michael Hammer

Agenda

! What is Insight to Action (I2A)?

! How Do You Use I2A? (Real World Examples) ! Putting it All Together (Hands on Business Case)

Insight to Action

Establish Shared Meaning & Context as it relates to your Past, Present & Future

i2a: Insights to Action - Sight - Insight

What does the world Really want from us, next? ! In other words, what opportunities

unfold if you put yourself in service to and take your direction from the people in the world you most want to succeed and who most want you to succeed?

! What do the underlying trends suggest could be possible future states?

! Where is there a small but growing trend?

! What can you learn from analogies and metaphors (i.e. Post Office, Kodak)?

Source: Geoffrey Moore Escape Velocity

Establish Shared Meaning & Context So what does this mean to us?

i2a: Insights to Action - Sight - Insight

Hindsight Foresight - Insight

i2a: Insights to Action Create The best way to predict the future is to create it.

Peter Drucker

Get it o the Paper and into the Hearts, Smarts and Ingenuity of your Organization

To buy-in, they have to have weighed-in.

-Patrick Lencioni

i2a: Insights to Action Action Planning

Real World Example (Manufacturing Plant)- Sight

Background ! Small Manufacturing Plant ! New Line ! Projected Loss in Manufacturing Productivity and

Increase in Cost/ Unit

Real World Example (Manufacturing Plant)- Sight

How is the world Changing? ! Projected losses in manufacturing productivity and

significant increase in material cost/ unit ! Challenge- To build a robust operations plan to

properly inform upper management about how we plan to overcome the full cost impact of the new line, while keeping plant employees motivated about facing our new challenges.

How is the world Changing? ! Corporate Challenge

Video from CEO ! History Map

Real World Example (Manufacturing Plant)- Sight

What does this mean to us? ! Find High Leverage

Opportunities by Reviewing: Corporate Challenge Video

from CEO History Map SCOTs

- Strengths - Challenges - Opportunities - Threats

Real World Example (Manufacturing Plant)- Insight

What possibilities do we see? ! Set priorities

Critical Essential Incidental

! Come up with a plan to execute

Real World Example (Manufacturing Plant)- Create

What direction should we give? ! Communicate Plan

Real World Example (Manufacturing Plant)- Communicate

Real World Example (Manufacturing Plant)- Inspire

Who do we need to enlist to help us? (Find creative ways to enlist help)

Real World Example (Corporate Process Improvement)- Sight

Background ! Large Corporate Finance, Sourcing, &Accounting

Departments and Business Unit Operations ! Improve inflation reporting and forecasting process

Real World Example (Corporate Process Improvement)- Sight

How is the world Changing? ! Process mapping of global inflation reporting and

forecasting (start at plant and rolling-up to corporate ! Challenge- To improve inflation reporting and

forecasting process by making it more timely, actionable, and accurate

How is the world Changing? What does this mean to us? ! Kick-off Meeting ! Process Mapping ! SCOTs

Real World Example (Corporate Process Improvement)- Sight and Insight

What possibilities do we see? ! Set priorities

Critical Essential Incidental

! Come up with a plan to execute

Real World Example (Corporate Process Improvement)- Create

Real World Example (Corporate Process Improvement)- Communicate and Inspire

What direction should we give? Who do we need to enlist to help us? (Find creative ways to enlist help)

Wanted: Ambidextrous Innovators

Definition: (The Free Dictionary) Unusually skillful; adroit, facile The word "ambidextrous" is derived from the Latin roots ambi-, meaning both and dexter, meaning right or favorable. Innovation is, the application of new solutions that meet new requirements, inarticulate needs, or existing market needs. This is accomplished through more effective products, processes, services, technologies, or ideas that are readily available to markets, governments and society. - Wikipedia

Wanted: Ambidextrous Innovators

Collaborative Communication Creative Strategic Thinking Navigators of Change Grounded in Business

In a period of rapid change and increasing complexity, the winners are going to be the

people who can LEARN faster than the rate of CHANGE and faster than their COMPETITION.

- Tom Hood, CPA.CITP.CGMA 10/17/13 T

Putting it All Together (Business Case)

! Sight What do we see? ! Insight- What does this mean to us? ! Create- What possibilities do we see? ! Communicate- What direction should we give? ! Inspire-Who do we need to enlist to help us?

The Research

2

1,000

10,000

http://www.slideshare.net/thoodcpa/cpa-vision-2025

CPAs are trusted advisors who, combining insight with integrity deliver value by:

T

Communica5ng the total picture with clarity and objecLvity Transla5ng complex informaLon into criLcal knowledge

An5cipa5ng and creaLng opportuniLes Turning insights into ac5on to transform vision into reality

Questions

42

www.blionline.org

The Four Most Important Words in

Business today?

What do you think?

- Tom Peters

www.blionline.org

Your Competitive Advantage

It is hard to plan for the long-term future when you dont know what is going to happen five

minutes from now.

Today, a competitive edge based solely on material advantage is thin and temporary; the edge quickly becomes the margin. The ability to define the edge, and the ultimate competitive advantage, is found in the smarts, heart and ingenuity of your people.

Thats your powerhouse. Tap that, train it, focus it and mobilize it; now youve engaged a network and inspired a sustainable shift.

www.blionline.org

Engagement Alignment - Commitment

An artist is someone who uses bravery, insight, creativity, and boldness to challenge the status

quo Seth Godin - Linchpin

The CPA as Artist

A leaders job is to define context and provide hope and inspiration..."

Tom Hood, CPA.CITP CEO Maryland Associa5on of CPAs Business Learning Ins5tute (443) 632-2301 E-mail [email protected] Web hQp://www.macpa.org Blog hQp://www.cpasuccess.com Blog hQp://www.bizlearningblog.com

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Contact Information Ebonie Jackson, CPA, CITP, CGMA Strategic Management Consultant Health Care Regulatory Consultants, LLC E-mail [email protected]

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Tom Hood, CPA,CITP,CGMA CEO Maryland AssociaLon of CPAs Business Learning InsLtute (443) 632-2301 E-mail [email protected] Web hOp://www.macpa.org Blog hOp://www.cpasuccess.com Blog hOp://www.bizlearningblog.com