session 700 adding value: strategic planning and ... value: strategic planning and demonstrating...

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Session 700 Adding Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC and Owner, Strategic Business Plans, LLC And Fred Stein, General Counsel, Redbox (“Act One-Establishing Your Role and Setting Up A Legal Department”) William C. Potter (“Act Two-Strategic Business Planning: Making Your Legal Department an Effective Partner to Your Company’s Business Units”) Fred Stein (“Act Three: Goal Setting and Metrics”)

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Page 1: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Session 700 Adding Value: Strategic Planning and

Demonstrating Success

William C. Potter, C.L.O., Contact 33, LLC and

Owner, Strategic Business Plans, LLC And

Fred Stein, General Counsel, Redbox

(“Act One-Establishing Your Role and Setting Up A Legal Department”)

William C. Potter (“Act Two-Strategic Business Planning: Making Your Legal Department an Effective Partner to

Your Company’s Business Units”)

Fred Stein (“Act Three: Goal Setting and Metrics”)

Page 2: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Act One Establishing Your Role and Setting

Up a Legal Department

Bil Potter & Fred Stein

The slides for this portion of the presentation are based on slides originally prepared and presentations previously given by James W. Peck, formerly Corporate Vice

President, General Counsel & Secretary, Nypro, Inc., and James M. McGrew, Client Relations Executive at Ogletree Deakins, LLC

Page 3: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

First Days as GC: 6 Questions, Answers & Actions

On Which to Thrive Question # 1: Who is Your Management Team? • Meet and Get to Know the Management Team

• Meet every member of management and, just as importantly, their respective leadership teams and administrative assistants.

• Learn about the company, the business and industry. • To the extent you can, interview them:

• Learn their backgrounds, interests, management styles, pet peeves. • Learn about the company, the business and industry. • Learn their preconceived notions of lawyers ... and then defy them! • First impressions matter.

Page 4: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

First Days as GC: 6 Questions, Answers & Actions

On Which to Thrive Question # 1: Who is Your Management Team? • Meet and Get to Know Your Team

• Do the same with your department • Get to know your staff

• Strengths • Needs • Begin the strategic planning process

• You are now a manager • Learn your company’s human resources rules and procedures • Get to know HR – look for opportunities for HR management training, if

needed

Page 5: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

First Days as GC: 6 Questions, Answers & Actions

On Which to Thrive • Question #2: How Do You Let Your Business People Know You Are

About Business? • Get in the boat and grab an oar. Let the business people know you’re

business focused. You’re here to partner with them to solve problems and create solutions so they can run the business.

• Learn the business. Critical. Strive to become an expert. Go to “the floor” immediately; demonstrate interest and excitement in the business of each of your clients and their roles and then demonstrate that your skills and background can make their lives easier.

Page 6: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

First Days as GC: 6 Questions, Answers & Actions

On Which to Thrive • Question #2: How Do You Let Your Business People Know You Are

About Business? • Learn the industry. Learn everything you can about the industry.

Ask management about key associations/industry groups to join; subscribe to industry periodicals.

• Learn the culture. Re-learn the culture. In other words, make no assumptions.

• Ask questions and ask for help.

Page 7: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

First Days as GC: 6 Questions, Answers & Actions

On Which to Thrive • Question #3: Who Are Your “Clients” & How Do You Service

Them?

• BOD/C-Level Executives • Executive VPs • Mid-Level Executives • Down to Entry Level Managers. • External “Clients”-Vendors, Customers, Others

Page 8: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

First Days as GC: 6 Questions, Answers & Actions

On Which to Thrive • Question #3: Who Are Your “Clients” & How Do You Service

Them?

• Client/customer service mentality. These are your “clients” so tell them you will refer to them as such. There is one good thing about law school and law firm training: A client service mentality.

• Be accessible and responsive. This is a top issue. Give your clients your home number, your cell number and any other number you may have.

• Lunches or other opportunities to network: Do them early and often.

Page 9: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

First Days as GC: 6 Questions, Answers & Actions

On Which to Thrive • Question #3: Who Are Your “Clients” & How Do You Service

Them?

• Ask if you can attend client staff meetings. The sooner you know, the quicker you can help your clients avoid problems and capitalize on opportunities.

• Become part of the fabric. Strive to become known as a key business partner and advisor – not just “the legal department.”

Page 10: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

First Days as GC: 6 Questions, Answers & Actions

On Which to Thrive • Question #4: How Do You “Learn” Your Role

• Become the Secretary to the Board. Gets you a seat at the highest table (Board of Directors) even if at first you’re there only to take the minutes. While you’re there, get to know your Board personally. Offer to help them in any way possible. They are your second-most important constituency next to your own boss.

• Become a (or the) contract signer in your Company. Gives you a seat at the table on legal and business issues. Start with NDAs if necessary and build from there.

Page 11: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

First Days as GC: 6 Questions, Answers & Actions

On Which to Thrive • Question #4: How Do You “Learn” Your Role

• READ, READ, READ. Get your hands on anything that explains the Company: Articles, By-Laws, Board minutes, registration statements, key contracts, proxy statements, press releases, etc.

• Review the website, every word. Review any intranet.

Page 12: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

First Days as GC: 6 Questions, Answers & Actions

On Which to Thrive • Question #4: How Do You “Learn” Your Role

• Time for a road trip – I. As soon as possible, get to the plants or other locations away from HQ. It’s where the money gets made and many of your important clients may not be at HQ anyway. Get to know the key players.

• Time for a road trip – II. Go personally meet all of your law firms, or have them come to you. Find out where the relationships are between law firm attorneys and the Company. Candidly discuss your expectation, pet peeves, etc. Law firms can be great sources of knowledge about your own Company.

Page 13: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

First Days as GC: 6 Questions, Answers & Actions

On Which to Thrive • Question #4: How Do You “Learn” Your Role

• Deliver early and noticeable successes. TRANSLATION: SAVE MONEY ASAP!! Lower the cost of outside legal services. Study the ACT Value Challenge and it’s successes – consider value billing arrangements. Enlist the help of law firms that are like-minded.

• Learn how the compensation structure of the Company works, especially for senior management and frame your cost reduction measures in those terms, i.e., you’re lowering costs to improve profitability in key areas that will then benefit all employees in terms of better compensation. It’s a simple, but important message and will demonstrate quickly to your clients that you “get it.”

Page 14: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

First Days as GC: 6 Questions, Answers & Actions

On Which to Thrive • Question #5: How Do You Become a “Corporate Communicator”

and NOT a “Lawyer Communicator”? (Also, known as being a Team Leader/Member and not Mr./Ms. Diva Lawyer!)

• Communicate as crisply/concisely as possible, especially to the CEO and the Board. Also, and this is key, avoid the use of “legalese.”

• Communicate timely and meet all deadlines – just like in private practice. Hire only law firms that do the same.

Page 15: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

First Days as GC: 6 Questions, Answers & Actions

On Which to Thrive • Question #5: “Corporate Communicator”/Team Leader-Member

• Be OK with being overruled. Embrace it as the right business decision, even if it has legal risk (so long as it’s not illegal).

• Explain to your clients where the real risks are, the “Bet the Company Clauses,” and why they really can’t cross those lines.

• Train and survey, survey and train. They’re your clients, so look to them for advice and guidance. What’s important to them?

Page 16: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

First Days as GC: 6 Questions, Answers & Actions

On Which to Thrive • Question #5: “Corporate Communicator”/Team Leader-Member

• Keep asking for help. Admit that you’re still learning the business and still need their help.

• Marketing is not a dirty word. Indeed, it’s essential. What is your brand within the organization? Who else is going to showcase your successes? Find appropriate ways to demonstrate your “wins” and savings. Do a Year-End Report – keep it to 5 pages, but ensure that the key victories and achievements get visibility. Also, promote the successes of your team (once you get to hire a team, that is!).

Page 17: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

First Days as GC: 6 Questions, Answers & Actions

On Which to Thrive • Question #6: How Do You Get from Point A to Point B to Point Z …

And Demonstrate It?

• Strategically plan. Run your department/ function like a business. Develop a business/ strategic plan. (And Listen to Bil in Act Two!)

• Metrics, Metrics and More Metrics! Develop, implement and monitor relevant metrics for your Legal Department and your Company (And listen to Fred in Act Three!)

Page 18: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

ENJOY YOURSELF! Being a GC is a “HOOT”!

There may not be a better position to fulfill you as a professional and a person! Many folks in our profession would love

to be a GC, only a few are chosen!

Enjoy the ride!!

All The Days of Your Life as GC: 1 Last Super Critical Point of Advice On

Which to Thrive

Page 19: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

By William C. Potter

Act Two: Strategic Business Planning-

Making Your Legal Department an Effective Strategic Business Unit

AND a Critical Partner to Your Company’s Other

Strategic Business Units

Page 20: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Strategic Business Planning

3 Examples - Chicago Cubs

FroYo Who North America

Page 21: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Strategic Business Planning Chicago Cubs Reality: No W.S. Championships since 1906 What is the Goal? Lovable Cubbies OR Championship Teams ?

Page 22: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Strategic Business Planning

Cubbie Results: Low Revenue Non-competitive Business Model -Low Morale : Stakeholders -Unattractive: Free Agents/Mgt.

Page 23: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Strategic Business Planning The Plan: Clear Statement of the Goal Clear Map to the Goal Clear Implementation Change: Business Model Morale

Page 24: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Strategic Business Planning Result: Ground Up Restructuring Improved Revenue Improved Facilities (But really long lines to the Men’s Restrooms!) Improved Product Lines THE GOAL IS IN SIGHT AND ACHIEVABLE!

Page 25: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Strategic Business Planning FroYo Reality– Hugh Financial Profits Hugh Growth in Stores #s, Sales Volumes & # of Chains Little Effort Required (“Printing Money”) Little, if any, Strategic Planning

Page 26: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Strategic Business Planning FroYo Results – Rush to Enter Industry Poor Filtering of Franchisees/ Investors Poor Understanding of What/ Why Succeeded/Failed

“Houston, We Have a Problem”

Page 27: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Strategic Business Planning Who North America – “Dr. Who” - TARDIS - Eccentric, yet compassionate, extra-terrestrial Time Lord zips through time and space to solve problems and restore justice via TARDIS

Page 28: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Strategic Business Planning Who North America Reality –

WHERE CAN I BUY DR. WHO PARAPHENIALIA IN INDIANA?

Page 29: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Strategic Business Planning Who North America “Result” –

CREATE THE NORTH AMERICAN DISTRIBUTION COMPANY FOR

DR. WHO

(AND A WHOLE LOT OF OTHER GEN-CON SHOWS AND FAVORITES OUT

OF YOUR BEDROOM CLOSET!)

Page 30: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Strategic Business Planning Who N.A. Current “Reality” – Phenominal Business Web-Based (Primarily) Once a Month Warehouse Sale : Pulls Customers from 7 States

Page 31: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Strategic Business Planning Who N.A. “Future” Reality ?

HOW DO YOU SUSTAIN GROWTH?

WHAT WOULD YOU DO, FIRST?

Page 32: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Strategic Business Planning

A. Types of Legal Departments/General Counsels

1. Static Role a. Limited participation in defining

Corporate Strategies b. Emphasis on compliance c. Primarily Reactive & Autonomous

Page 33: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Strategic Business Planning

2. Proactive Role a. Seek to merge corporate legal parameters to the corporate strategic business plan b. Full involvement in development of corporate business strategies c. Reduced emphasis on compliance

Page 34: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Strategic Business Planning

3. Middle Role – Holistic Approach a. Proactive, future focus b. Compliance role is not lost in the shuffle – autonomy is important c. Requires understanding business in detail d. Timely advice – even before business unit knows it needs legal advice

Page 35: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Strategic Business Planning II. The Business Plan Model for Leading and Managing Your Legal

Department B. Basic Elements of a Business Plan-Traditional Structure 1. Executive Summary 2. Departmental Description and Vision 3. Market Definition 4. Product and Service Knowledge 5. Marketing Strategy for Department Services 6. Fiscal Management 7. Resource Management

Page 36: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Strategic Business Planning-

Current Methodologies

V. Bringing SBP into the 21st Century A. Balanced Scorecard B. Performance Prism

Page 37: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

SBP: The Balanced Scorecard

A. Strategic Business Planning: The Balanced Scorecard by Robert S. Kaplan & David P. Norton 1) First introduced in early 1990’s through series of articles 2) 1996: The Balanced Scorecard by Mr. Kaplan and Mr. Norton was published by the Harvard Business Review Press

Page 38: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,
Page 39: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

SBP: The Balanced Scorecard A. Balanced Scorecard 1. Is organized around four distinct perspectives: a. Financial-How does your Department (or Company) look to/at its stakeholders/shareholders? b. Customer-How does your Department (or Company) look to/at its customers? c. Internal-At what must your Department (or Company) excel? d. Innovation & Learning-How can your Department (or Company) continue to innovate and create value?

Page 40: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

B. THE PERFORMANCE PRISM

“The Performance Prism: The Scorecard for Measuring and Managing Business Success” by Andy Neely, Chris Adams & Mike Kennerley (Prentice Hall Financial Times; 2002)

Page 41: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,
Page 42: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

SBP: The Performance Prism B. The Performance Prism 1. The Performance Prism starts with five funda- mental questions: a. Who are your stakeholders and what do they want & need from the your Department or your Company? b. What does your Department or Company want and need from its stakeholders?

Page 43: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

SBP: The Performance Prism c. What strategies does your Department or Company need to put in place to satisfy these sets of wants and needs? d. What processes does your Department or Company need to create to allow it to execute its strategies?

Page 44: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

SBP: The Performance Prism e. What capabilities, i.e., people, tech- nology, infrastructure, is needed to allow your Department or Company to operate its processes more effectively and efficiently?

Page 45: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

SBP: The Performance Prism

3. This is the value of the Performance

Prism—

360/Multi-Dimensional & Multi-

Perspective Analytic Views of the

Company…yesterday, today and

tomorrow.

Page 46: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

SBP: The Performance Prism 4. Important Points about the Performance Prism: a. The Performance Prism has a holistic orientation—views the Company as existing within a complex “geo-economic ecosystems”. b. The Balanced Scorecard has a more narrow view of the role of stake- holders interaction with the Company. c. The Balanced Scorecard has a more narrow definition of who or what is a stakeholder…doesn’t include end-users, employees, suppliers, regulators, pressure groups, local communities, retirees, etc. d. The Performance Prism is focused on stakeholder value…not just shareholder value.

Page 47: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

SBP: The Performance Prism 5. Key terms in the Performance Prism: a. Effectiveness-The extent to which the stakeholder’s requirements are met. b. Efficiency-The measure of how econo- mically the Company’s resources are utilized when providing a given level of stakeholder satisfaction.

Page 48: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

SBP: The Performance Prism c. Performance Measurement-The process of quantifying the efficiency and effectiveness of a past action. d. Performance Measure-Is a parameter used to quantify the efficiency and/or effectiveness of a past action. e. Performance Metric-The scope, content and component parts of a broadly-based performance measure.

Page 49: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

SBP: The Performance Prism f. The sum of the above terms is: The Performance Measurement System- 1) Enables informed decisions to be made and actions to be taken because it 2) Quantifies the efficiency and effectiveness of past actions through the acquisition, collation, sorting, analysis and interpreta- tion of appropriate data.

Page 50: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

-Existing -Stakeholders -Strategies, -Distill complexity - Pick Measures processes & Questions & & Systems -SWANs & capabilities Measures OWANs -Success & Failure –Create Business -Validate Mapping Perform. Model w/ “10 Tests” -Refine -ID Surplus Meas. -Plan & Build Sys. -Data to Decision -Renew Meas. Meas. Defin. Improvements Cycle as needed -Agr. Owners -Check & Remove -Deploy -”Cause & Effect” -Rev. & Recmd. & “Double Loop” Sys. Imprvmt.

RELATE EXPLORE SIMPLIFY SELECT

RECORD ELIMINATE IMPLEMENT OPERATE REFRESH

REVIEW

Page 51: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

SBP: The Performance Prism 6. 10 Steps to Getting Started: a. Step #1: Examine your existing performance measures and management systems 1) Are the right things being measured? 2) Are they being measured in the right way? 3) Are the correct data being captured and analyzed correctly? 4) Is your Company acting on the data? Correctly? b. Step #2: Does your Company’s performance measures and management systems sufficiently address all the key stakeholders and the essential needs/wants? Do they sufficiently address your Company’s wants and needs from its stakeholders?

Page 52: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

SBP: The Performance Prism

7B. Questions to ask in the process of designing the Performance Measurement System:

a. What is the reason for this measure? b. What do you want to measure it? c. What data is available for this measure? d. Who is going to act on the measurement once data becomes available for it ? e. What do we do with the benefit of this knowledge?

Page 53: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

SBP: The Performance Prism

8. Critical Questions to Ask about the Data: a. What data is relevant? b. Where do we get the data? c. Who is going to collect the data? d. How often is the data collected? e. How often will the data be reviewed?

Page 54: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

SBP: The Performance Prism 6. 10 Steps of The Performance Prism, cont’d. c. Step #3: Consider the success (and/or failure) of your Department/Company’s existing systems relative to each stakeholder and your Company’s strategies, processes and capabilities. How responsive are they to satisfying each stakeholder’s wants/needs? d. Step # 4: Create a unique high-level business performance model synthesizing and linking each of the key perfor- mance management elements (stakeholder satisfaction/ contribution, strategies, processes and capabilities).

Page 55: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

SBP: The Performance Prism 6. 10 Steps of The Performance Prism, cont’d. e. Step #5: Apply the maps and models, derived from the Performance Prism framework, as the basis for selecting the appropriate questions and then the measures you need to manage your business. f. Step #6: In detail, define each measure focusing on the purpose, formula, frequency, source and owner of that data. Then apply the Ten Tests to validate the accuracy and value of each selected measure.

Page 56: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

SBP: The Performance Prism

D. Once your Performance Measurement System is designed, you need to ask these 10 questions: 1. The Truth Test-Are we really measuring what

we set out to measure? 2. The Focus Test-Are we only measuring what

we set out to measure?

Page 57: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

SBP: The Performance Prism D. 10 Questions for Perf. Meas. Sys. Design,

Cont’d.

3. The Relevancy Test-Is it the right measure of the performance factor we want to measure? 4. The Consistency Test-Will the data always be collected in the same way whoever measures it?

Page 58: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

SBP: The Performance Prism

D. 10 Questions for Perf. Meas. Sys. Design, Cont’d.

5. The Access Test- Is it easy to locate and capture the data needed to make the measurement? 6. The Clarity Test-Is there any ambiguity possible in interpreting the results? 7. The “So-What” Test-Can and will the data be acted upon?

Page 59: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

SBP: The Performance Prism

D. 10 Questions for Perf. Meas. Sys. Design, Cont’d.

8. The Timeliness Test-Can the data be accessed rapidly and frequently enough for action? 9. The Cost Test-Is the measurement worth the cost of the measurement? 10. The Gaming Test-Is the measurement likely to encourage inappropriate or undesirable behavior?

Page 60: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

SBP: The Performance Prism 6. 10 Steps of The Performance Prism, cont’d. g. Step #7: Identify which measures are not needed and can be eliminated. Then confirm this to be true and remove them. h. Step # 8: In implementing your Performance Measure- ment System, apply the systems and practices related to them, managing the measures in the process. Then refine your application and review the relevance of the measures and processes.

Page 61: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

SBP: The Performance Prism 6. 10 Steps of The Performance Prism, cont’d. i. Step #9: Analyze the data to gain insights to the “cause and effect” relationship between data, measures, application to track the effectiveness of decisions taken in order to determine and then deliver best practices” performance levels. j. Step#10: Finally, regularly review and refresh both the measures and the measurement systems.

Page 62: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

E. Figure 3.8: Implementation Planning Schematic

__ ___ ___l _ _ __ l __ ___

ID Redundant Measures &

Processes

Define New

Reprts, Data

Sources &

Analy.

Conf. New

Meas. Ownrs, Users & Provdrs

.

Design Repting Presnt.

& Distrib.

Deter. LT/ST

Perfrm. Targets

Plan Modfd. Perfrm.

Mgt. Procs.

Devlp. Critical

Path Implmt.

Plan

Assess Deploy. Cost/

Benefit & Risk

Impcts.

Specify Communication & Education Requirements

Page 63: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

SBP: The Performance Prism G. Now you are ready to use the measures to address the five key areas: 1. Stakeholder Satisfaction- Who are your Company’s key stakeholders? What do they need and want from the it? 2. Stakeholder Contribution- What does the Company want and need from its stakeholders on a reciprocal basis? 3. Strategies- What strategies does the Company need to put into place to satisfy the wants and needs of its stake- holders, while also satisfying its requirements also?

Page 64: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

SBP: The Performance Prism

G. Five Key Areas, cont’d.: 4. Processes- What processes does the Company need to implement to allow it to execute successfully its strategies? 5. Capabilities- What capabilities does the Company need to possess to allow it to operate its processes necessary to imple- ment successfully its strategies?

Page 65: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,
Page 66: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

SBP: The Performance Prism H. Role of Measurement in Strategy Creation & Execution. 1. This approach on the role of measurement in strategy creation and execution is equally applicable in the process and capabilities segments of the Performance Prism. 2. The following slide is from Figure 5.4, “The Role of Measurement in Strategy Creation and Execution” from The Preformance Prism by Neely/ Adams/Kennerly.

Page 67: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Validate Challenge

Monitor Review

Strategy

Assumptions: Promotion Impacts;

Product Intros; Brand Exten.; & Pricing Policies

Inputs: Mkt. Intel.

Data; Internal Perform. Data; &

Executive Intuition

Dependencies: Exchange Rates;

Inflation: Taxes; &

Competitor Actions

Outcomes: Goal

Achieve.? Milestone Achieve.? Others?

Page 68: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

SBP: The Performance Prism

I. So what does the final result look like? 1. It is Company specific. 2. It is holistic in approach. 3. It evolves regularly. 4. It is tested repeatedly. 5. It is questioned frequently. 6. It is reviewed and revised based on new data on a set schedule.

Page 69: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

-Existing -Stakeholders -Strategies, -Distill complexity - Pick Measures processes & Questions & & Systems -SWANs & capabilities Measures OWANs -Success & Failure –Create Business -Validate Mapping Perform. Model w/ “10 Tests” -Refine -ID Surplus Meas. -Plan & Build Sys. -Data to Decision -Renew Meas. Meas. Defin. Improvements Cycle as needed -Agr. Owners -Check & Remove -Deploy -”Cause & Effect” -Rev. & Recmd. & “Double Loop” Sys. Imprvmt.

RELATE EXPLORE SIMPLIFY SELECT

RECORD ELIMINATE IMPLEMENT OPERATE REFRESH

REVIEW

Page 70: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

SBP: The Performance Prism

K. Sources for the Balanced Scorecard and the Performance Prism are:

1. The Balanced Scorecard by Robert S. Kaplan & David P. Norton (2nd Ed., 1996). 2. The Performance Prism by Andy Neely, Chris Adams & Mike Kennerley (2002)

Page 71: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Act Three: Goal Setting and Metrics

Fred Stein General Counsel, Redbox

Page 72: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

"'Cheshire Puss,' she began, rather timidly, as she did not at all know whether it would like the name: however, it only grinned a little wider. `Come, it's pleased so far,' thought Alice, and she went on. `Would you tell me, please, which way I ought to go from here?’

'That depends a good deal on where you want to get to,' said the Cat. `I don't much care where--' said Alice. `Then it doesn't matter which way you go,' said the Cat. `--so long as I get SOMEWHERE,' Alice added as an explanation. `Oh, you're sure to do that,' said the Cat, `if you only walk long

enough.'“ --Lewis Carroll in Alice's Adventures in Wonderland

Page 73: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Goal Setting and Metrics

• Why set goals? • How do you set goals? • How do you know if you are succeeding?

Page 74: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

WHY SET GOALS?

Goal Setting and Metrics:

Page 75: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Why Set Goals?

• Good goal setting helps translate strategy into action • Goal setting facilitates continuous improvement • Goal setting helps prevent surprises • Goal setting motivates great performers • Goal setting discourages micro-managing

Page 76: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Why Set Goals? • Goal setting facilitates continuous improvement

• The exercise of setting a target, measuring results, and then tracking progress regularly, all force you to – confront your success or lack of success, and – make appropriate changes

Page 77: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Why Set Goals? • Goal setting helps prevent surprises

• Avoiding surprises is one things that our business counterparts will measure us by – whether we ask them to or not

• When you set goals and continually track and measure progress, it is hard to be surprised by changes in the business

• If anything changes for the worse, you immediately see it and can make course corrections

Page 78: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Why Set Goals? • Goal setting motivates great performers

• Successful people tend to be compulsive goal-setters • When measurable goals aren’t established, it becomes hard

to differentiate the lower performers from the top performers • When differentiation doesn’t occur, you risk losing great

performers • Goal setting helps you recognize and compensate great

performers appropriately

Page 79: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Why Set Goals? • Goal setting discourages micro-managing

• When clear goals are set, success is defined, and micromanagement is not necessary

• Not only do top performers like goals, but they also like the freedom and creativity to get them done in their own way

• Most great performers will say, “Tell me what results you want, what resources I have, and then get out of my way”

Page 80: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

HOW DO YOU SET GOALS?

Goal Setting and Metrics:

Page 81: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Good goal setting is not easy

Page 82: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

How do you set goals? • Your goals should dovetail with your internal clients, and

funnel into overall corporate goals • Finding goals which are appropriate and measurable is hard

work, and requires much time, effort and feedback • Limit goals to a manageable number – 3 to 6 • Avoid complexity – make them simple to measure and

understand

Page 83: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

In other words, think SMART!

Specific Measurable Attainable Relevant Time bound

How do you set goals?

Page 84: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Examples of SMART Goals Opportunity Sample Ideas Example of S.M.A.R.T.

Goal

Alignment with Business Partners

Establish SLAs with business partners Continue to foster healthy, interactive client relationships based on trust and respect Inject legal team members into department meetings and processes

Meet all SLAs Subjective feedback from department leaders Participation in dep’t meetings on at least a bi-weekly basis with Marketing, Sales, Risk Mgmt, and HR

IP Protection Protect company’s IP through institution of program designed to identify IP early and protect it in an appropriate fashion (e.g., as a trade secret, patent filing, trademark filing, etc.)

Monthly meetings with Marketing to identify marks to protect Monthly meetings with IT/IS and Engineering to identify patentable claims and copyrights Bring outside patent counsel in quarterly for above meetings File no less than [X] patent apps per year

Page 85: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

SMART Development Objectives Opportunity Sample Ideas Example of S.M.A.R.T.

Development Objective

Broaden Business Knowledge

Meet with department managers to broaden business understanding Read industry specific periodicals for insights

Broaden understanding of cross-functional business by job shadowing a different department head each quarter for 1 day, through end of year, to gain better understanding of how decision making impacts other functions/overall company Subscribe to (and read) industry publication “XYZ” by Q3; discuss observations and insights with manager monthly; incorporate into 1:1's

Develop Others Regularly provide others with timely and specific feedback Strive to maintain an environment where positive continuous improvement is the goal Resist the urge to "jump in" to save the day if an employee struggles

Before the end of Q3, partner with HR to gather insights and new approaches; meet on monthly basis Before mid-year and year-end performance evaluations with team, review with manager

Page 86: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

HOW DO YOU KNOW IF YOU ARE SUCCEEDING?

Goal Setting and Metrics:

Page 87: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

The best way to find out if your clients are

satisfied is to ASK THEM

Page 88: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Measuring Customer Satisfaction • Understand: They understand my business model and goals, and can add value as a partner

• Anticipate: They demonstrate the ability to anticipate my department’s needs and proactively provide assistance

• Quality: They provide high value customer service in response to my questions and concerns

• Creative: They approach my problems or issues with an open mind and work with me to find the best solutions

• Change Management: They keep me apprised of their workload, plans, and projects so I know what to expect

• Timeliness: They are very responsive to my changing expectations and requests

• Consult: They use their subject matter expertise in a consultative approach to meet my needs

• Perspective: Their ongoing support is a reflection of my stated expectations

• Values: They model behaviors consistent with the company’s values

Page 89: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Measuring Customer Satisfaction

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Legal: Q3

Page 90: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

The most important thing about conducting a satisfaction survey is what you do with the answers

Page 91: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Go from good …

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Legal: Q3

Page 92: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

… to great!

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Legal: Q3 Legal: Q4

Page 93: Session 700 Adding Value: Strategic Planning and ... Value: Strategic Planning and Demonstrating Success William C. Potter, C.L.O., Contact 33, LLC ... General Counsel & Secretary,

Good goal setting helps translate strategy into action