Strategic Plan Development & Balanced Scorecard Implementation

Strategic Services for Public Retirement System

The Business Need

A state-run Public Employees Retirement System is one of the largest public pension systems in the United States with approximately $60B in assets and more than 900,000 members.  In late 2007, the client recognized that it needed to transform its processes and culture so that it could continue to improve as an organization.  To achieve the desired transformation, the client determined that it needed a five-year Strategic Plan and the creation of an enterprise wide Balanced Scorecard (BSC).  In addition, the client determined that it needed to develop in-house planning skills and, as a result, required the winning consultancy to team with the client personnel for the engagement.

Centric’s High-Impact Approach

In 2008, the client selected Centric after a competitive selection process.   Centric immediately assessed the client organization to determine skills, capabilities, and barriers to change.  From this information, a series of executive level sessions were  conducted which relayed the assessment information & helped define the Strength, Weaknesses, Opportunities and Threats to the organization.  In addition, the executive level sessions defined / con- firmed the mission & vision as well as established the fundamental objectives of the future strategy. With this foundation in place, Centric organized its client team members into four Strategic Theme Teams (STTs) organized around the structure of the BSC:  Financial, Customer Service, Internal Process and Learning & Growth.  To ease the stress of learning and then using new concepts and techniques, the project employed a “train then do” approach.  Under this approach, STT teams received training only for module of work they were to undertake (for example BSC and Plan information such as Objectives (refined), Strategy Maps, Performance Measures, and Initiatives). After the training, Centric consultants then facilitated, advised and/or assisted the STTs in the development of their assigned modules.  As the project work progressed Centric refined and then consolidated the information so that:  the enterprise BSC was completed; an initial BSC management tool implemented; the initiatives for transformation estimated and the Strategic Plan assembled within the planned timeline. As a result of this approach, the client STT members were able to claim ownership of the con- tent and direction (a major component for the successful adoption of the coming changes). Key outcomes from the engagement included:

  • On time delivery of the Strategic Plan
  • Publication of the client first formal Strategic Plan
  • Development of a five year plan identifying priority, estimated cost & implementation time line
  • Creation of an Enterprise level BSC
  • Implementation of an Organizational Change Management Program for the acceptance of the Plan and BSC
  • Integration of the new Planning Process within the existing Budget Process
  • Development of the client Planning and BSC cadre

Results

Centric successfully completed the engagement and turned over management of the Strategic Plan and BSC to the client team.