Human Capital Development Forum In ICT – The Role of HR in Corporate Strategy Formulation & Implementation Presentation by Quinto Ojok MBA,FCCA,CPA,CBSCP.

Human Capital Development Forum In ICT – The Role of HR in Corporate Strategy

Formulation & Implementation

Presentation by Quinto Ojok MBA,FCCA,CPA,CBSCP

Director Finance & IT Services - Uganda Communications Commission (UCC)

[email protected]

+256772431290

Strategy

Programme overview• Introduction• Workshop objectives• Introduction to strategic planning &

management• Overview of BSC • Strategic Plan Formulation using BSC

Strategy

Introduction

• Strategic planning experience• Balanced scorecard experience

Strategy

Workshop Objectives

• As HR professional :• Understand the concept of BSC and acquire skills in

formulating a Strategic Plan using balanced score card• Understand how BSC can be used to improve

organisational / employee performance• Understand how to develop meaningful performance

measure• Revalidate Strategic Plan for your organisation using

BSC

Strategy

Corporate Strategic Planning & Management

1. Traditional Methodology - Situational Analysis - SWOT/PEST- Core values- Vision- Mission- SMART objectives- Strategies,- Programmes/ Activities - Monitoring & Evaluation

Strategy

Corporate Strategic Planning & Management

2. Balanced Scorecard Methodology

- Links vision, strategy to actions/programs Stakeholders Analysis- Customer Needs & Value

Propositions-Attributes, Relationship, Image Situational Analysis - Assessment of organisational

internal & external enablers & pains/SWOT & PESTLE Formulation or revalidation of high level strategic

foundations – Mission, Vision (measurable), Core Values Development of Strategic Themes and Results Naming of Perspectives Development of Strategic Objectives Organisation Strategy Mapping

Strategy

Con’t

• Determine measures & targets that drive performance

• Strategic initiatives –Projects/activities• Strategic Budgeting• Metrics automation –Business Intelligence

(Scorecard)• Cascading of objectives at departmental &

individual levels• Monitoring & Evaluation

Strategy

Balanced Scorecard?

• What is BSC?• An integrated strategic planning and

performance management systems that : Communicates with clarity the organisation’s Mission, Vision and

Strategy to the employees & other stakeholders Aligns day to day work with vision and strategy Provides framework for prioritising programmes, projects and

resources Uses strategic performance measures and targets to measure

progress

•

Strategy

Why BSC?

Strategy

• Leaders and managers need a tool to systematically drive:

Collective and individual accountability Performance reporting compliance Buy-in- through Participation

History of BSC

Strategy

1990- Dr. David Norton carried out a study on balanced organisation measures (financial and Non-Financial)1996- BSC translating strategy into action65% of fortune 1000 companies use BSC

Financial measuresNet profit – bottom lineMarket shareSales growthActual Vs BudgetCost effectiveness

Non-Financial measures• Stakeholder Satisfaction• Operational efficiency & effectives • Employee competence• Organisation capacity

Performance Perspectives BSC Methodology

Four dimensions called perspectives- view points

• Financial perspective- how do shareholders/stakeholders look at us

• Customers/ stakeholders perspective – how do customers look at us

• Internal business process perspective- What must we excel at ?

• Organisational capacity perspective- How have we developed our human, information & organisational capital

Strategy

Linking Actions to Mission ,Vision & Strategy (A2V) or Translating V&S2A

Strategy

BSC cont’When implemented properly, each one of these

perspectives contains four subparts consisting of: Strategic objectives Measures TargetsStrategic initiatives

Strategy

Bsc Cont’

Strategy

– Objectives – what you plan to achieve in that perspective

– Measures - how progress for that particular objective will be measured

– Targets - refer to the target value that the organization seeks to obtain for each measure

– Initiatives - what will be done to facilitate the reaching of the target

BSC Cont’

• The term “scorecard” signifies quantified performance measures and “balanced” signifies the system is balanced between: – Short-term and long term objectives– Financial and non-financial measures– Lagging and leading indicators– Internal and external performance

perspectives

Strategy

Business case for BSC

Strategy

9 Steps in Strategic Planning Formulation & Implementation

Strategy

STEP 1

Assessment

-Stakeholders analysis

- SWOT/PESTLE analysis

- Revalidate mission, vision ,core values

STEP 2

Strategy Formulation

- High Level Business strategies from STEP 1

strategic elements

STEP 3

Strategic objectives developed from STEP 2

strategies

STEP 4

Strategy Mapping

- Create strategy maps for each strategy

STEP 5

Measures & Targets

- Develop outcome & output performance of

strategic objectives

-

STEP 6

Strategic Initiatives

-Identify critical projects to improve performance

- Develop initiative performance measures

- Strategic Budgeting

STEP7

Performance Analysis

- collect, report & present visual performance

information

STEP 8

Cascading strategy to departmental &

individual

STEP 9

Evaluation

-Make correction on strategy based on actual

performance

Step One: Assessment

1.1 Stakeholders Analysis

Strategy

Customer Value Proposition

Strategy

Customer Value proposition

Strategy

Examples of Customer Value Preposition

Strategy

Strategy

•Artists •Education Institutions •Cultural Institutions•Public/Citizens

•Artists •Education Institutions •Cultural Institutions•Public/Citizens

•Standards•Entertainment•Education•Artist development•Information•Recording equipment & facilities•Archiving/storage facilities•Skills development•Capacity building•Local artefacts•Performance Management•Partnerships•Policy advice•Quality services•Taxes•Job satisfaction

•Standards•Entertainment•Education•Artist development•Information•Recording equipment & facilities•Archiving/storage facilities•Skills development•Capacity building•Local artefacts•Performance Management•Partnerships•Policy advice•Quality services•Taxes•Job satisfaction

Service Attributes•Value for Money•Reliable•Efficient on time deliveryRelationship•Customer centric•Professional•Empathetic•Friendly•ConsultativeImage•Reliable•Knowledgeable•Customer centric•Hi-tech•Trustworthy

Service Attributes•Value for Money•Reliable•Efficient on time deliveryRelationship•Customer centric•Professional•Empathetic•Friendly•ConsultativeImage•Reliable•Knowledgeable•Customer centric•Hi-tech•Trustworthy

•Employees•Board of Trustees•Tax Authority•Business Partners•Civil Society•Parliament •NGO’S•Media Houses•Government Depts./Agencies •Foreign Missions•Tourists

•Employees•Board of Trustees•Tax Authority•Business Partners•Civil Society•Parliament •NGO’S•Media Houses•Government Depts./Agencies •Foreign Missions•Tourists

Primary Customers Stakeholders Needs Value Preposition

Other Stakeholders

Assessment cont’

1.2 Situational Analysis- What are the facts

• Competition & Market analysis• Survey and assessment results• PESTLE Analysis• SWOT Analysis• Strategic Pains/Challenges & Enablers

Strategy

Strategy

SITUATIONAL ANALYSIS ENABLERS CHALLENGES/

PAINS

Strategic Issues Implication Strengths Weakness

Intern

al

Land in Prime Location Ease of access and room for expansion X

Skilled Human Resources Competence to implement the strategy X

Management &Trustee Goodwill Leadership engagement X

Unique Theatre Equipment & Facilities Competitive edge over others X

Insufficient Funds for strategic Initiatives Unfunded initiatives X

Poor Customer Care Negative Image X

Less Usage of Information Technology Inefficient operation & Negative Image X

Inadequate Partner Collaboration Lack of Funding Diversification X

Opportunities Threats

Extern

al

Political Goodwill Priority Policy implementation X

Committed Artists Less coordination efforts X

Existence of Laws and Sector Policies Proper mandate and guidance provided X

Vibrant Economy More disposable income X

Lack of Regulations Less enforcement X

Changing Cultural Trends Positive & Negative changes X X

Social Media Usage Positive & Negative trends X X

Competing Cultural Institutions Positive & Negative trends X X

Revalidate Strategic Elements• Mission

– Who we are ,our reason of existence.

- Our Mission is to provide………………• Vision- Describes where our organisation should be in 3-10 yrs, it is the

picture of the future or memory of the future- Measurable and time bound- Our Vision is to become ( achieve) …. In 2020• Strategic Destination Statement

- In 2020, we are the leading ICT training provider in Africa • Core values- What we stand for, our belief in the context of our

mission (defines our code of conduct)

Strategy

Mission StatementHow to develop a shared understanding of a Mission Statement

Discussion questions Answers

What service or product do we provide?

Who do we serve?

In what manner do we provide it

What higher level benefits are gained?

Example :“To provide quality training, consultancy and advisory services to the ICT Sector in Africa through development of appropriate programmes, strategic alliances and partnership”

Strategy

Vision StatementHow to develop a shared understanding of a Vision

Discussion questions Answers

What is our picture of the future in five years from now?

How will we know that we have achieved that? Will it be measurable?

How will the change impact on our stakeholders?

At what point in time will we achieve that?

“To be a leading and self-sustaining Centre of Excellence for ICT capacity building in Africa by 2018”.

Strategy

Step Two: Strategy FormulationWhat is Strategy

• A plan of action, an approach, a game plan for achieving a result or goal

• It is an hypothesis of the best way forward for an organisation to:

• - beat competition ( Private sector)• - Improve mission effectives (Public sector)• - Achieve its vision• - Satisfy customers, stakeholders including employees• - It is about making choices that have organisation wide

impact

Strategy

Strategy Formulation

Strategy

Strategy Perspectives

Strategy

Strategy

Strategy

Strategy

ABC Company

Theme Strategic Result:Cost effective services are delivered timely every time

OPERATIO

NAL EXCELLEN

CE

STRATEGIC PARTNERSHIPS

CUSTO

MER IN

TIMACY

Financial Performance

Customer

Processes

Organizational Capacity

Perspectives

Mission To preserve, develop, and promote Uganda’s culture globally through setting standards, building capacity and implementing national policies. Vision

A centre of excellence in nurturing culture as a primary driver of national development in Uganda by 2018

Core ValuesIntegrity, Team work , Professional & Accountability

UNCC Pillars of Excellence

Theme Strategic Result:Value added, win-win partnershipis enhanced

Theme Strategic Result:Knowledgeable, collaborative andConsultative relationship that exceedscustomer and stakeholders expectations

Strategic Themes Xticscharacteristics of a good strategic theme and

result• Breakdown vision into more operational terms• Represent the main focus areas of

organisational high level strategy• Are pillars of excellence• Cuts across business and support functions of

the organisation• Each has a corresponding strategic

result/desired outcome of the theme

Strategy

Strategic Themes

Strategy

Step Three: Strategic Objectives

Strategy

Strategic Objectives

Strategy

Strategic Altitude

Strategy

Strategic Altitude

Strategy

Strategic Objectives Cont’

Strategy

Strategy

Example: Objectives For a Government Agency

Strategy

Step Four: Strategy Mapping

Strategy

Strategy

Theme Strategy Map

Strategy

Theme Strategy Map

Strategy

Combinding theme Objectives into Tier 1 (corporate )Objectives

Strategy

Corporate Strategy Map

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Example Strategy Map

Strategy

Strategy

Strategy

Strategy

Objective Commentary: Improve IT utilisation Strategic objectives

Objective commentary

Performance measure candidates

Performance target

Strategic Initiatives

Improve IT utilisation

Deploy IT resources in all organisational processes to reduce service delivery and reporting turn around time. Increase data based decision making, knowledge sharing.

Intended Results/Outcomes:1.Online service delivery3.Online reporting4. Online customer self- service

% automated processes

100% 1. Develop IT strategy align to Business Strategy

2. Implement virtualisation of servers to accommodate increased operation and data

2.Implement centralised ERP and CRM and Business Intelligence

3.Train employees and customers on the use of online service delivery

Strategy

Strategy

Step 5: Performance Measure

Strategy

Strategy

Strategic Impact Measures

Strategy

Strategy

Strategy

Strategy

Strategy

Step Six : Strategic Initiatives

Strategy

Strategy

UNCC CORPORATE SCORECARD 2014-2018

Customer/Stakeholder Perspective

Strategic

Objective

Objectiv

e

Owner

Objective

Commentary

Performance

Measure

Target Strategic

Initiatives

Increase

Customer/

Stakeholder

Value

Gallery

Manager

The services provided to

customers should appeal to

the customers and fulfil their

needs at a reasonable charge.

Intended Result:

1.Satisfied

customers/stakeholders

2.Retained customers

1) Customer

satisfaction

score

2) % of repeat

customers

80%

60%

1. Develop

customer

/stakeholder

survey tool &

programme

2. Develop &

implement

production

quality assurance

programmes

3. Customer service

training &

coaching

programmes

4. Develop web-

based customer

service

Increase

Contribution

to Culture

Preservation,

Promotion and

Development.

Producti

on

Manager

.

Gallery

Manager

UNCC is committed to

preserving, promoting and

developing Uganda’s culture

for the benefit of the current

and future generations

through collection of art

artefacts, documentation of

local films, dance & drama;

education & sensitisation of

the public on art and culture

for socio-economic

development.

Intended Results:

1. Policy initiatives for

preservation,

promotion &

development of culture

are developed and

implemented

2. Local films, drama,

dance are

documented and

preserved

3. The communities are

educated and

sensitised on the role of

culture in Socio-

economic development.

4. Traditional artefacts are

collected and

preserved for current and

future generation.

5. Good cultures are

promoted and bad

cultures are discouraged.

1. % of policy

initiatives

contributing to

preservation ,

promotion &

development

of culture

2. % of shows

documented

3. Community

sensitisation

survey score

4. # of sub-

regions from

which artefacts

are Collected

5. Stakeholder

survey score

on contribution

of UNCC to

promotion of

culture.

60%

100%

80%

10

80%

1. Develop policy

initiatives for

preservation,

promotion and

development of

culture.

2. Develop

frameworks for

documentation of

local films ,drama

& dance

3. Develop

programmes for

collection of

artefacts;

sensitisation of

communities

Strategic Budgeting

STRATEGIC INITIATIVES BUDGET ( USD)

1 Develop Customer /stakeholder Survey Tool & Programme  2,500

2 Develop & Implement Quality Assurance Programmes  5,000

3 Develop and Implement Customer Service Training & Coaching programmes

 8,000

4 Develop Policy Initiatives for Preservation, Promotion and Development of Culture.

 10,000

5 Develop Frameworks for Documentation of Local films ,Drama & Dance  10,000

6 Develop Programmes for Collection of Artefacts; Sensitisation of Communities  90,000

7 Conduct Cost and Fees Analysis Programme  12,000

8 Develop Cost Control Programmes 4,000

9 Develop Finance and Operation Manuals  15,000

10 Develop & Implement Marketing & Advertising Strategy  50,000

11 Formulate Lobbying Strategy  25,000

12 Identify & Appraise Investment Projects  125,000

Strategy

Strategy

Strategy

Critical Success Elements For Managing Change

Strategy

Strategy

Strategy

• Thank You• Merci • Asante Sana• Zikoma

Strategy