Innovative Corporate Performance Management: Five Key Principles to Accelerate Results - Hardcover

Paladino, Bob

Hardcover

ISBN 10: 0470627735 ISBN 13: 9780470627730

Publisher: Wiley, 2010

Synopsis

Award-winning strategies to drive game changing meaningful results during the most challenging economy in decades

Drawing from executive and thought leader Bob Paladino's research and advisory experiences and collaboration with award-winning and high-performing organizations, this sequel his global best seller Innovative Corporate Performance Management: Five Key Principles to Accelerate Results provides a clear road map for executing enterprise strategy.

• Reveals a proven implementation model that has accelerated breakthrough results
• Shares over 40 new, innovative best practices common to Malcolm Baldrige, Balanced Scorecard Hall of Fame, Sterling quality, Fortune 100 Best, APQC, and Forbes award winners
• Provides a CPM Process Blueprint and diagnostic to score your organization and establish a plan for your award winning performance
• Offers a fresh approach to integrating proven methodologies proven by case companies that have been awarded over 100 awards
• Includes key process maps, strategic planning frameworks, strategy maps, customer and competitor intelligence methods, balanced scorecards, comparative tables, project plans, testimonials, charts, graphs, and screen shots of CPM, CRM, BSC and KM systems

All-new case studies and best practice research are included from world-renowned enterprises as well as insights from executives who have won the most globally recognized awards in business.

About this title

About the Author

Bob Paladino, founder of Bob Paladino & Associates, LLC, (www.paladinoassociates.com) is a former executive and longtime thought leader and implementation practitioner in the CPM field. His firm advises boards of directors and executives and offers a full suite of CPM services for rapidly implementing and integrating proven best practices to drive breakthrough results. He contributes to leading research projects at several institutes and has established dozens of CPM offices and core processes for leading companies. He is a highly sought-after speaker for industry and trade events and executive roundtables with experience in over sixty cities globally. Author's royalties are donated to the United Flight 93 Tower of Voices national memorial, as well as to Salute America's Heroes, an organization dedicated to providing aid to wounded and disabled military veterans and their families.

From the Back Cover

Praise for Innovative Corporate Performance Management, sequel to bestselling Five Key Principles of Corporate Performance Management

"Paladino offers practical insights, drawn from best-practice examples, on how a CPM office helps organizations successfully execute their strategies."
―Dr. Robert S. Kaplan, Harvard Business School; co-inventor of the Strategy Focused Organization, Balanced Scorecard, and Activity Based Management

"An excellent extrapolation of the Kaplan and Norton strategy management framework. The case studies are the jewels that provide the secret to success."
―Dr. David P. Norton, co-inventor of the Strategy Focused organization and Balanced Scorecard; founder and Director, Palladium Group, Inc.

"Bob has a wealth of knowledge and experience that he shares, both personally and professionally through his books. We have just begun implementing his five principles of corporate performance management and already our results have been outstanding. Bob's approach and methodology work in all types of organizations and situations. His approach focuses on getting results and improving organizational performance. In a relatively short period of time, we have experienced both."
―Francine Padgett, Senior Vice President and CFO, MidMichigan Health, and Greg Rogers, President and CEO, MidMichigan Medical Center–Midland

"What I find most fascinating regarding Bob Paladino's work is his ability to transcend both the public and private sectors. His vast knowledge of both for-profit and nonprofit organizations enables him to find those best practices that work in both. His latest book is laced with so many gems the book needs a dedicated space on every CEO's desk!"
―Gary Butler, Assistant Chief Scout Executive, Boy Scouts of America

"As the economy recovers from the Great Recession, the 'new normal' business environment requires that executive management rethink their organization's business model and how it will produce high-performance results. Drawing on his vast practical experience and case studies of award-winning companies, Bob Paladino provides new insights on his key principles of corporate performance management (CPM) that have produced differentiating results. This is a must-read for any executive management team striving for high performance in the 'new normal' global economy."
―William G. Shenkir, William Stamps Farish Professor Emeritus and former dean, McIntire School of Commerce, University of Virginia

"Companies that can successfully manage change will succeed and prosper. As a business leader, I am keenly interested in tools that help mitigate risk of strategic execution. By providing the pragmatic insights from his case studies and the abundance of best practices, Bob once again gives business leaders that tool to both manage execution risk and accelerate improved results."
―Bill Arendt, former corporate controller, Sprint Nextel

From the Inside Flap

What do award-winning companies know about innovative corporate performance management (CPM) that eludes most of today's executives? How do they organize and conduct themselves to achieve outsized results during the worst recession ever? Learn the secrets to executing strategy effectively in Bob Paladino's Innovative Corporate Performance Management. The case companies in this book have amassed over 175 prestigious awards and share over 160 CPM best practices―it's time to add your company's name to the list.

A global CEO survey reveals the difficulties executives face in trying to keep up with rapid global change. So, what are the core processes and best practices that award-winning commercial, public, and nonprofit enterprises leverage to manage this gap?

From the author of Five Key Principles of Corporate Performance Management―the #1, bestselling CPM book for three years running―this dynamic book offers insights from business leaders who have won the most globally recognized awards in business, as well as:

• Five Key Principles self-scoring diagnostics

• Key strategic frameworks

• Managerial models

• Strategic planning methods

• Strategy maps

• Balanced scorecards

• Customer surveying and competitive intelligence methods

• Process models

• Communications plans

• Quality improvement tools

Discover what winners of honors like the Malcolm Baldrige, State Baldrige/Quality, Fortune 100 Best, APQC, and Balanced Scorecard Hall of Fame awards already know. Get the techniques and innovative best practices that will set your business apart from the rest of the pack. Brimming with numerous case studies and research from world renowned and revered enterprises, Innovative Corporate Performance Management presents you with the clear road map you need to execute enterprise strategy that works.

Excerpt. © Reprinted by permission. All rights reserved.

Innovative Corporate Performance Management

Five Key Principles to Accelerate ResultsBy Bob Paladino

John Wiley & Sons

Copyright © 2011 John Wiley & Sons, Ltd
All right reserved.
ISBN: 978-0-470-62773-0

Chapter One

Introduction

What do award-winning companies know that eludes many of today's executives? How do they organize and innovate to achieve outstanding results in their fields of endeavor? What core and innovative processes and best practices do they have in common that they can leverage in challenging times to achieve success? How have they overcome what a recent CEO study calls the "change gap," or the ability to innovate and change in a challenging market?

In good times, strengths and weaknesses of a business model are often overlooked. In bad times, as with the global recession, weaknesses often come to the forefront. Market forces and prolonged recession have caused organizations to rethink their business models and innovate through best practices. I was intrigued by how several companies have thrived and innovated, particularly in one of the worst recessions since the Great Depression. Leaders were kind enough to share their stories with me. Research in this book focuses on core best practices from my first book and on how award-winning organizations have developed dozens of new, innovative best practices not only to survive but also to lead their sectors.

That some should be rich shows that others may become rich, and, hence, is just encouragement to industry and enterprise. —Abraham Lincoln

What about the First Book?

My first book, Five Key Principles of Corporate Performance Management, was published in January 2007 and to my surprise was the number 1 release on the largest global Web channels, Amazon and Barnes & Noble. For three years it has continued to be the number 1 corporate performance management (CPM) title (from over 2,500 titles globally). All royalties are donated to www.honorflight93.org to honor the families of Flight 93 and www.saluteamerica.org to assist wounded soldiers to rebuild their lives. Since this book builds on the first, I will share some of the strategic backdrop and research highlights from the first book that motivated its publication.

In 2001, I was fortunate to be invited by the CEO of Crown Castle International (a telecommunications company) to be the senior vice president of global performance (CPM office) and to form and deploy a new CPM office. Crown shortly thereafter experienced what is now referred to as the telecom meltdown. The economic backdrop and research showed conditions were very challenging, as demonstrated by the following:

* Kaplan and Norton, co-inventors of the Strategy Focused Organization and Balanced Scorecard, and my former employers and mentors, discovered that "9 out of 10 companies fail to implement their strategies" and that four barriers (vision, people, management, and resources) were responsible for these shortcomings. * Fortune magazine reported, "If making the Fortune 100 best lists is an enormous accomplishment, consider how tough it is to repeat the feat every single year. Just 22 companies have appeared on our list every year since its 1998 inception." Between 1998 and 2004, the turnover of Fortune 500 companies has been staggering. * Booz Allen Hamilton's study, "Why CEOs Fall: The Causes and Consequences of Turnover at the Top," showed turnover among chief executives soared 53 percent between 1995 and 2001. The number of CEOs who left their jobs under pressure more than doubled during that period, and average CEO tenure plunged more than 23 percent, according to the study of 2,500 publicly traded companies. * Drake Beam Morn's (DBM) study, "CEO Turnover and Job Security," revealed that two-thirds of the world's companies have changed CEOs at least once in the last five years.

In response, my team and I relentlessly searched for methods and best practices from award-winning companies to share with the Crown organization to assist in improving our performance.

We researched, visited, and collaborated with over 40 award-winning organizations that encompassed all types of business models including government, quasi-government, publicly traded, privately owned, and nonprofit; and that participated in numerous sectors including aerospace, financial services, telecommunications, consumer products, utility, pharmaceutical, entertainment, communications, and high technology hardware and software.

This research revealed a common DNA consisting of 30+ CPM best practices that were grouped by the Five Key Principles:

Principle 1: Establish and deploy a CPM office and officer.

Principle 2: Refresh and communicate strategy.

Principle 3: Cascade and manage strategy.

Principle 4: Improve performance.

Principle 5: Manage and leverage knowledge.

The companies of the executives who generously shared their methods with us have earned an impressive roster of awards and honors, including the following:

* U.S. President's Malcolm Baldrige National Quality Award (MBNQA)

* Kaplan and Norton Global Balanced Scorecard Hall of Fame Award

* Deming Quality Award

* American Productivity & Quality Center Best Practice Partner Award

* State Quality Awards (based on MBNQA criteria)

* Fortune's "100 Best Companies to Work For"

* Several other honors and awards in each case

In truth, I was thrilled to direct Crown's global improvement efforts with a very supportive and collegial executive team and employee base. The CPM best practices started to take hold, and Crown earned several notable, globally recognized awards and honors, including the following:

* The Wall Street Journal ranked Crown in the Top 20 Most Improved Companies in Shareholder Value (out of 4,000). * The company's share price appreciated from $1 to over $30 during my tenure. * The company won the Balanced Scorecard Hall of Fame Award from Kaplan and Norton. * The company won the American Productivity & Quality Center Best Practice Partner Award. This was the beginning of the Five Key Principles model (shown in Exhibit 1.1) that has since been used by dozens of organizations to emulate the winners, with striking results. This model has been updated based on the results of new research.

Innovation and Accumulated Knowledge

Since the Crown experience and the publication of my first book, I was often asked if I would follow up on the initial book and continue the research. I became intrigued by how several companies led their sectors prior to and during one of the worst recessions since the Great Depression, and I decided to pursue further research on them for this sequel. The case companies have amassed over 175 distinguished awards and honors.

Innovation has been at the heart of our existence and advancement for centuries. Alchemists would argue that innovation is really our natural state. Exhibit 1.2 chronicles some innovations spanning 5,000 years for us to ponder and appreciate.

To put a sharper point on our need to embrace and adapt to an increasingly innovative society, consider the following trends.

The U.S. Congress invented the U.S. patent system in 1790. In 1883, the U.S. Patent and Trademark Office processed only a few hundred patents. However, between 1977 and 2008, a deluge of 2,096,055 patents were filed. This is not a uniquely American experience, for every society has its way of expressing innovation or creativity.

Globally, the World Intellectual Property Organization reports the explosion of patents and ideas in its annual report. Consider that it took almost 100 years for Japan to reach a level of 150,000 patent filings per year, but only 20 more years to reach almost 450,000 patent filings per year. The rate of innovation is clearly accelerating. The United States, China, and Europe have all attained 150,000 or more filings per year.

Failing to understand and embrace change and innovation can be costly. Did you know the following companies were removed from the S&P 500 index during this past decade?9 What happened? They failed to innovate on one level or another.

Anheuser Busch

AT&T Corp.

Bear Stearns Cos.

Seagram Co.

Alcan, Inc.

BellSouth Corp.

Circuit City

Countrywide Financial

COMPAQ

Dow Jones & Co.

Enron Corp.

Global Crossing

Lehman Brothers

Lucent Technologies

Merrill Lynch

Maytag

Nortel Networks

Bank One

Reebok International

Adolph Coors Co.

Rohm & Haas Co.

Schering-Plough Corp.

Times Mirror

Unicol Corp.

Wachovia Corp.

WorldCom Inc.

Wyeth

CEO Study Reveals the "Change Gap"

One of the most comprehensive CEO global surveys by IBM10 in late 2009, which studied over 1,000 leaders of the largest global enterprises in Europe (403), North and South America (358), and Asia (359), revealed the following astounding insights:

* Organizations are bombarded by change, and many are struggling to keep up. * Eight out of ten CEOs see significant change ahead, and yet the gap between expected change and the ability to manage it has almost tripled since the prior year's CEO study. * CEOs view more demanding customers not as a threat, but as an opportunity to differentiate. CEOs are spending more to attract and retain increasingly prosperous, informed, and socially aware customers.

* Nearly all CEOs are adapting their business models; two-thirds are implementing extensive innovations. * More than 40 percent are changing their enterprise models to be more collaborative. In the 2006 CEO survey, 57 percent of CEOs felt their companies changed successfully, yet 65 percent of CEOs felt change would continue, a change gap of 8 percent.

In the 2009 CEO survey, 61 percent of CEOs felt their companies changed successfully, yet 83 percent of CEOs felt change would continue, a change gap of 22 percent.

More astonishingly, the change gap expanded from 8 percent to 22 percent, an increase of 275 percent in just three years.

Also, while the number of companies that successfully manage change has increased slightly, the number reporting limited or no success has risen by 60 percent. So what is causing this growing gap? Constant change is certainly not new. But companies are struggling with its accelerating pace. Everything around them seems to be changing faster than they can.

I thank the 11 leadership teams for generously sharing the innovative CPM journeys of their award-winning companies, which have defied the odds and thrived in these challenging times. My hope is that you as a reader will gain key insights, leverage these CPM best practices to accelerate results, and realize your full potential.

(Continues...)

Excerpted from Innovative Corporate Performance Managementby Bob Paladino Copyright © 2011 by John Wiley & Sons, Ltd. Excerpted by permission of John Wiley & Sons. All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
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Edition details

• Publisher: Wiley
• Publication date: 2010
• Language: English
• ISBN 10: 0470627735
• ISBN 13: 9780470627730
• Binding: Hardcover
• Edition number: 1
• Number of pages: 432