Are we on strategy Trials Tribulations

“Are we on strategy? ” Trials & Tribulations of implementation Keith Grocock Senior Resource Management Officer General Services Department The World Bank

A typical year for GSD • Arrange 30, 000 trips involving 25 million air miles of staff travel, 24000 visa applications and over 400 thousand hotel nights. • Heat, air condition, clean and maintain 7 HQ buildings and over 3. 2 million RSF • Handle 10, 000 calls to Facilities Help Desk • Process 100, 000 visitors to Bank buildings • Translate 8 million words into more than 20 languages • Handle at least one resident mission evacuation • Serve 1. 8 million meals from 5 restaurants • Handle 20 million items of mail

Why implement the Balanced Scorecard? • No ‘Burning platform’? • But many challenges for GSD – Get Business Unit /Managers to • think and act Strategically • talk to each other (get out of their silos) • become a problem solving ‘team’ – define what ‘GSD’ bring to the table? • The Scorecard Methodology, a chequered history in the bank, but – strong VP interest in methodology – more strategy fewer indicators • Seeing success in action Scorecard - UNDP

The Brief • Engage the GSD management team in a challenging strategy discussion • Develop a process for an ongoing strategic dialogue • Reinvigorate the Balanced Scorecard into a value adding business tool • A different approach “sell” not “tell” • Evolution not revolution • Build upon success

Approach to the Project • An option based approach contingent on the outcome • Option to expand – rollout to every business unit • Option to abandon - an interesting experience but no thanks • Option to continue - with just a GSD ‘corporate’ scorecard • Methodology would have to stand or fall on its own merits • VP support… but open minded • Limited budget and time commitment • Limited internal resource

Selecting the right consultants • • Strategy as a social process Strong process but adaptable Effective at challenging the established mind set Getting inside the World Bank culture Ability to establish a rapport at multiple levels Track record Skills and knowledge transfer Our choice Phil Kirby and Organization Thoughtware Inc

The Process • Scan and plan – Interviews with BU management team, customers – Create a ‘messy’ strategy map • Two day workshop – mission statement – consensus strategy map – objectives, BU owners and indicators – weightings and alignment • Follow up one day workshop – period of review and reflection – validate the strategy map – Determine key actions and projects – Establish a management process

Workshop Dynamics • Handling the VP’s leadership style • Facilitating a very unfamiliar conversation • The Challenge process and creating anxiety

To provide best value for current and new services in support of the World Bank millennium development goals Management Board Manage Relationships Be a proactive service organization that responds to client needs with valued services and creative solutions Cost Effective Services Customer Expert Advice & Solutions A Positive and convenient GSD Experience Services to meet standards Internal Processes Service Innovation Customer Relationship Management Develop & Implement self help tools. Internal Coordination & Communication Provide efficient and cost effective services PEOPLE INFRASTRUCTURE Accountable, Aligned and Skilled Workforce Partnering with Contractors Operational Excellence Learning & Growth CULTURE High service Orientation that improves continuously

Workshop Outcomes • • A challenging and thought provoking discussion Engagement from most people involved Consensus on a GSD Strategy map and scorecard A strong desire to have strategic dialogues at the BU level • Varying level of commitment to the management process • Prepared to “give it a go”

GSD Scorecard Development approach Next steps Top of House Strategy Communicate to Business Units Management Review Process Create Scorecards Collect data “ HYBRID MODEL” Align BU Scorecard Objectives to Top of House Implement & Develop support software Develop BU Strategy Identify suitable support software

Outcome of the Business Units Rollout • Repeated process of 2 day workshop plus 1 day follow up • 12 Business units around 120 people • Created and aligned 12 strategy maps and scorecards • Units varied in how far they got through the process during the workshops • First real opportunity for discussion and debate for many participants

Response to the Business Unit Workshops “This is possibly the most productive and useful workshop I have attended in the USA” Travel, Food and Conference Services (Head of ) “ I felt that the workshop encouraged honest, open and objective discussion” Procurement “Forced us to think out of the box” Facilities Operations “Forced us to focus on our own internal processes and move the bar up”Global Real Estate “Being given the forum to share/voice ideas/views on critical and relevant ideas” Translation & Interpretation unit “Opportunity to engage in good meaningful dialogue with my team” Printing & Graphics “The overview of our work program with my colleagues, something we never get to do” Food Services

Building Momentum - Sell don’t tell • No top down edict – a personal commitment from each manager • “Your scorecard” not “Our scorecard” • “If it doesn’t add value then don’t use it” • Up to each manager to decide how to use and develop the tool for their BU • BU managers drive process and pace of implementation • Support and guidance available on request • Leadership at BU level critical

Towards a management Review Process Review meeting confirm have regular Targets Strategy Map Projects & initiatives The ongoing strategic dialogue validate Strategic Objectives align set challenging Objective Indicators review

Momentum slows Review meeting The ongoing strategic dialogue Projects & initiatives Targets Objective Indicators Strategy Map Strategic Objectives

An evolving management process Top of house management team met monthly initially • Many indicators in development or no real data • Many indicators slows moving • Old debates reopened on objectives and indicators • buzz of the workshop not replicated • Disconnect with ‘my day job’ • Responsibility not taken • Accountability not demanded • Leadership critical

A new consensus emerges A “smoldering” platform appears • $4. 5 million budget cut over next three years • Client satisfaction survey feedback less than we would wish • Process reviews and trend indicators revealing need for improvement • Intense Institutional focus on strategic alignment and performance • Staff satisfaction weak in some BUs Growing realization that the GSD strategy map didn’t fully reflect our strategic focus

A new VP and a more formalized management process What When Who Bank wide QBR Quarterly MD and VP Review GSD corporate scorecard and strategic review Quarterly Management Team Formal Operational and strategic review, Review progress MOU Quarterly VP and Business Manager Scorecard review with key people in BU Optional not less than quarterly BU Manager and team Exception review, Adverse trends upcoming issues Monthly BU Manager 1: 1 Resource Manager Desktop review Daily over the web QPR software

So what has been achieved? • Facilitated a GSD wide discussion and debate on strategy • Created a framework for ongoing strategic dialogue • Methodology becoming embedded in the “language” of the department • QPR software implemented ready for rollout • Facilitating change at BU level • Accountability contracts linked directly to Scorecard for managers • Ownership of strategy • Surfaced many submerged issues • Flexed to the culture while managing the change • Scorecards developed on QPR collecting content prior to full roll out

Succesful

Some learning points • • Find a burning platform to rally around Learn how to have strategic conversations It is not show and tell Individual versus problem solving teams – red is not dead It is tough for leaders to change their style Not enough time and resource allocated Implementing technology was a distraction Leadership commitment and (nature of commitment critical) • Keep it simple – even if compromises • Know you’re the players and learn how to work with them

Know your players Hi • Outward displays of commitment Commitment • Workmanlike approach, pragmatic • Like to be seen leading the charge • Committed to make it work • Saying more important than doing • Quietly get on with it • Procrastinators • Non-committal • Clearly articulate their disagreement • Watching and waiting • Consistent • Undermine by stealth • Abstain from involvement unless coerced Lo Lo Visibility Hi

It is a closed loop process - no “cherry picking” Hi This is fun No free lunches Create Strategy Map Social interaction Debate objectives Weight Objectives Grunt work Define objective owners Prioritize projects Define Indicators Align processes The rubber hits the road Define indicator data sources Accept accountability Gather data Set targets Commit to management process Lo Lo Individual effort involved Hi

So what did we get right? • • Soft sell and contingent approach Recognized the importance of independent facilitation Created a forum for a discussion about strategy Over half of GSD staff directly involved in strategy Had a strong process with a concrete outcome Allowed BU managers to run with the process Selected good software to support the methodology Great timing – 2 steps ahead of the rest of the bank

Some thoughts on the technology • • Facilitating or detracting from the development process Scorecard = the ‘system’ Gaps in the content – an issue or not? Overly complex indicators Dedicated resource to set up the scorecard Know your procurement process Off the shelf or customization Cornerstone of the management process going forward

Managing the pace of change is critical

Thank you for listening Any questions?

Biography – Keith Grocock • • Joined World Bank October 2002 Senior Resource Management Officer • HSBC (UK) Bank • Unilever • Education – – Strategy Development Management Information Infrastructure – Business Warehouse Client Satisfaction Program Financial Management of Bank Real Estate & Facilities Operations – – Senior Manager Strategy Development Finance Director HSBC UK Investment (mutual) Funds Financial Controller of HSBC UK Savings and Investment Business Financial Controller Life, Pensions & Investment Business – Commercial and Operations Manager – Permabond Engineering Adhesives – MBA (Dist. ) 1999 – ACMA Chartered Management Accountant 1991 – Batchelor of Engineering 1988 (Civil Engineering)