Spark Framework
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The document outlines a strategic planning framework called Spark, focusing on the systematic approach to setting objectives, choosing actions, and managing resources to achieve desired outcomes. It emphasizes monitoring performance and environmental factors to identify problems or opportunities, along with utilizing tools for dynamic execution and decision-making. The framework can be applied to various management contexts, enhancing organizational flexibility and efficiency while addressing constraints to drive innovation.
Spark Framework
- 1. Strategic Planning Responsive Tracking Objectives & Targets Course of Action Activities Capabilities Resources Monitoring Diagnostics Response Relevant Environment
- 2. How can we manage X? How can we manage Y better? Strategic Planning Responsive Tracking What are our objectives? What course of action will allow us to achieve those objectives? What activities need to be conducted to execute that course of action? What capabilities are required to conduct those activities? What resources are required to provide capabilities and support activities? Regularly monitor performance during execution to identify any problems or opportunities. Determine the causes of those problems or opportunities identified during monitoring. Respond to those problems or opportunities to maintain balanced execution. What environmental factors should be considered during planning and tracked during execution? Strategic Planning Responsive Tracking What are the current objectives of Y? Is the current course of action sufficient to accomplish those objectives? Are the activities being conducted sufficient to execute the chosen course of action? Are the identified capabilities sufficient to conduct those activities? Are the resources committed sufficient to provide required capabilities and support activities? What were the latest performance values as compared to the planned targets? What were the causes of any problems or opportunities? How were those problems and opportunities addressed? What are the environmental factors that have impacted execution?
- 3. (E) CLEARS provides the options for addressing problems, opportunities, and changes in the relevant environment. Change: We can change something in the plan. Limit: We can limit something in the plan. Enhance: We can enhance something in the plan. Add: We can add something to the plan. Remove: We can remove something from the plan. Status Quo: We can leave the plan as is. (A) Objectives and targets consist of a factor, metric, and timeline. “Reach sales of two million dollars within three years” Seven Metric Types with Examples Cumulative: Reach sales of two million dollars within three years Measurement: Maintain a production quantity of exactly thirty units per month. Range: Maintain a headcount of between 50 and 75 staff in region. Binary: Ensure machine is operational within 2 weeks. Rating: Achieve a rating of fully compliant this year. Min: Ensure at least 80% of trainees pass the examination. Max: Ensure that we have no more then a 5% annual attrition rate. Targets represent progress towards an objective. Target 1 Target 2 Target 3 Target 4 Objective (B) FELOS is a tool that will help you brainstorm potential courses of action. Fast: Is there a course that will allow you to quickly accomplish the objectives? Easy: Is there an easy course? Low Cost: Is there a low cost or less resource intensive course? Organic: Is there a course that can be done without external resources? Safe: What is the safest course in terms of minimizing risk and disruption? (C) Monitor for performance that exceeds or falls short of target values. In addition, you should be monitoring for changes in the relevant environment. Scarcity (Problems) exist when performance falls short of objective or target values. This represents a problem in that the committed resources are not sufficient to execute the strategic plan. Waste (Opportunities) exist when performance exceeds objective or target values. This represents an opportunity as there may be a surplus of resources committed which can be reallocated to other areas of the organization. (D) Review for the causes of problems and opportunities in the order below. Extraordinary Factor Change in Environment Imbalanced Strategic Plan Strategic Planning Responsive Tracking Objectives and Targets Course of Action Activities Capabilities Resources Monitoring Diagnostics Relevant Environment 1 2 3 4 5 7 8 6 Response 9 SPARK Process* Strategic Planning 1. Set objectives and targets (A) 2. Choose a course of action (B) 3. Organize activities 4. Identify required capabilities 5. Allocate human and operational resources • Human resources provide capabilities • Operational resources support activities 6. Review plan for balance and alignment Responsive Tracking (Cycle until Complete) 7. Monitor performance and environment (C) 8. Diagnose cause of problems or opportunities (D) 9. Respond to problems and opportunities (E) *Examine environment through process. (Opposite)
- 4. Examining the Relevant Environment Compatible Impact / Influence Yes No High Low Utilize Fix Watch Leverage Internal Stakeholders • Executive Level Management • Departmental Management • Relevant Employees • Internal Customers • Shareholders External Stakeholders • Customers • Suppliers • Partners Resource Availability • Operational Resources • Space • Time • Money • Technology • Material • Human Resources • Management and Leadership • Intellectual • General (Provides Capabilities) Organization • Culture • Management Vision and Priority • Policies and Accepted Practices Other • Competition • Regulatory • Market • “What else is relevant to the strategic plan?” List Factors Examine as Applicable Compatibility Compatibility is determined based on whether an environmental factor negates or potentially negates that which is under examination. Potential Objective – Raise sales by 20% within 3 years. Executive VP – “I think we are going to need to see faster growth than that.” The position is not compatible because the stakeholder’s position is not aligned with the potential objective. Impact / Influence The level of impact or influence is determined by the immediate relevance of an environmental factor to your purpose or agenda. Potential Objective – Raise sales by 20% within 3 years. Executive VP – “I think we are going to need to see faster growth than that.” Given that the VP is responsible for the division for which this objective is being proposed, his influence on the program is high. Exec. VP
- 5. Ryan’s SPARK Program: Strategic Planning Ryan Gibson received a promotion to oversee a group that manages appliance deliveries in the Midwest. When he was assigned to this position, his boss explained to him that the group was struggling because of a shortage of delivery staff. Deliveries were late about ten percent of the time, and customer satisfaction with delivery service personnel has been declining. This last holiday season was a disaster with numerous complaints and returns, not to mention the cost of the discounts that were provided to appease angry customers. The Vice President has made it clear that improving on-time deliveries and increasing customer satisfaction should be Ryan’s priorities. She further stated that the company should see significant improvement in these areas before the next holiday season. She also explained that the staff shortage was not expected to resolve anytime soon given the tight labor market and stiff competition for talent from other companies. Situation Activities 1. Identify the most common customer delivery complaints within one month. Required Capabilities Analytical Skills (Analyst) Required Operational Resources: N/A 2. Develop new delivery engagement process within one month. Required Capabilities Process Design (Process Engineer) Documentation (Technical Writer) Delivery Experience (Delivery Employee) Required Operational Resources Printing Budget 3. Model a system for classifying deliveries according to on time probability within one month. Required Capabilities Analytical Skills (Analyst) Required Operational Resources: N/A 4. Set up a specialized delivery system for high-risk deliveries within three months. Required Capabilities Process Design (Process Engineer) Required Operational Resources: N/A 5. Set up a new system that classifies drivers by length of service within one month. Required Capabilities Analytical Skills (Analyst) Required Operational Resources: N/A 6. Develop nonmonetary rewards and perks that incentivize drivers to stay with the company within three months. Required Capabilities Human Resources Expertise (HR Specialist) Delivery Experience (Delivery Employee) Required Operational Resources: N/A Activities, Capabilities, and (Resources) Objectives 1. Reduce customer complaints from sixty complaints per thousand deliveries to no more than fifty complaints within three months, no more than forty within six months, and to no more than twenty-five complaints within nine months. 2. Improve on-time deliveries from the current rate of ninety percent to at least ninety-five percent within six months and at least ninety-eight percent within nine months. 3. Improve delivery employee retention by reducing attrition from the current twenty-five percent of drivers a year to no more than twenty percent within six months and no more than fifteen percent within nine months. We will establish a new delivery engagement process that will address the most common customer complaints. We will identify deliveries that are the least likely to be on time as at-risk deliveries and then incentivize staff to improve the odds of delivering those on time. Finally, we will set up a new program for our drivers which provide non-monetary incentives for remaining with us, which include the selection of routes based on seniority as routes become available. Other perks include free delivery coupons for friends and family for every year an employee remains with the company. Course of Action
- 6. Ryan’s SPARK Program: Dynamic Tracking Monitoring Checkpoint: One Month (Reviewed as on right) 1. Identify the most common customer delivery complaints. (Activity Check) 2. Develop new delivery engagement process. (Activity Check) 3. Set up a system for classifying deliveries according to on time probability. (Activity Check) 5. Set up a new system that classifies drivers by length of service. (Activity Check) Monitoring Checkpoint: Three Months (Reviewed as on right) 1. Set up a specialized delivery system for high-risk deliveries. (Activity Check) 2. Set up a new system that classifies drivers by length of service. (Target Check) 3. Develop nonmonetary rewards and perks that incentivize drivers to stay with the company. (Activity Check) 4. Reduce customer complaints from sixty complaints per thousand deliveries to no more than fifty complaints. (Target Check) Monitoring Checkpoint: Six Months (Upcoming) 1. Reduce customer complaints from fifty complaints per thousand deliveries to no more than forty complaints. (Target Check) 2. Improve on-time deliveries from the rate of ninety percent to at least ninety- five percent. (Target Check) 3. Improve delivery employee retention by reducing attrition from the current twenty-five percent of drivers a year to no more than twenty percent. (Target Check) Monitoring Checkpoint: Nine Months (Upcoming) 1. Reduce customer complaints to no more than twenty-five complaints per thousand deliveries within nine months. (Objective Check) 2. Improve on-time deliveries to at least ninety-eight percent within nine months. (Objective Check) 3. Improve delivery employee retention by reducing attrition no more than fifteen percent within nine months. (Objective Check) Monitoring Schedule 1. Identify the most common customer delivery complaints. Activity Check: This activity was completed on schedule. (Completed) 2. Develop new delivery engagement process. Activity Check: We have not completed this activity. (Problem) Diagnosis: Technical writer was delayed by another project. (Extraordinary) Response: Ryan will extend (Enhance) the activity timeline by two weeks. 3. Set up a system for classifying deliveries according to on time probability. Activity Check: This activity was completed on schedule. (Completed) 4. Set up a new system that classifies drivers by length of service. Activity Check: We have not completed this activity. (Problem) Diagnosis: Drivers union and HR are both opposed to this measure. (Relevant Environment) Response: Ryan will (Change) the activity to simply getting a list of drivers with their start date. The official classification of drivers is no longer part of the activity. Extend (Enhance) the target completion date by two weeks. 1. Set up a specialized delivery system for high-risk deliveries. Activity Check: This activity was completed on schedule. (Completed) 2. Set up a new system that organizes drivers by when they started with the company. Activity Check: This activity was completed on schedule. (Completed) 3. Develop nonmonetary rewards and perks that incentivize drivers to stay with the company. Activity Check: We have not completed this activity. (Problem) Diagnosis: Drivers union claims that their contract prohibits preferential selection of route assignments, claiming routes are assigned randomly to ensure fairness. (Relevant Environment) Response: (Add) the new activity "Within a month propose to management that some financial resources be made available to reward driver loyalty." (Remove) the current activity from the program. 4. Reduce customer complaints from sixty complaints per thousand deliveries to no more than fifty complaints. Target Check: Receiving forty-eight complaints per thousand deliveries (Balanced) Monitoring Checkpoint 1 Month Monitoring Checkpoint 3 Months
- 7. SPARK Benefits and Applications Enhances Management Capabilities SPARK provides managers with a systematic, well-defined process that focuses on balanced planning and responsive execution. Improves Organizational Flexibility SPARK allows managers to quickly transition to new roles and challenges by providing a universal yet comprehensive approach to management. Scalable SPARK can be used at any level of an organization whether it be the management of groups, projects, or the entire organization. Flexible Level of Detail SPARK can be as detailed or general as the user prefers, since the value of the framework lies in the management approach and process. SPARK works equally well for those that love managing down to the last detail as well as those who prefer a more general approach. Improved Situational Awareness SPARK significantly enhances situational awareness allowing one to better understand the performance or lack thereof when analyzing an organization. Universal SPARK provides consistency and uniformity across different functions within an organization, facilitating the spread of best practices. Comprehensive Model of Management SPARK provides a comprehensive overview of management which can be used to better understand the role and application of related tools and models. Managerial Efficiency SPARK provides managers with the right questions in the right sequence, enhancing situational awareness and effectiveness. Built for Contingencies SPARK provides tools and processes to identify and respond to problems and opportunities as they arise during execution. Applications Group or Team Management Supervisors and managers of small groups and teams can utilize SPARK to improve performance and enhance group capabilities. Project Management SPARK is excellent for project management and is especially effective at maintaining focus while minimizing scope creep. Change Management SPARK provides an effective means of managing change initiatives within an organization, given the focus on dynamic execution. Organizational Management SPARK is a powerful tool for managing organizations at the highest levels, providing transparency and clarity to employees, customers, and partners. Training Programs Training managers can use SPARK programs to oversee development and continuous learning within their organizations. Competitive Analysis SPARK provides a lens through which to view and analyze competitive organizations. Troubleshooting Managers can use the SPARK Framework to quickly identify potential reasons for underperformance in troubled areas of an organization. Crisis Management SPARK allows managers to cut through the noise and focus on what’s important, which is invaluable when it comes to crisis and uncertainty. Alliance or Relationship Management SPARK can be a powerful tool for managing alliances, joint ventures, or other cooperative endeavors. Entrepreneurship A SPARK Program can be used to rein in the chaos of a startup. Benefits
- 8. Key Ideas Strategy is the selective conversion of ideas and questions of purpose, vision, identity, evolution, competence, and desire into a set of formatted objectives. Put simply, I believe strategy is the development of actionable objectives. These objectives initiate the strategic planning process as laid out in the SPARK Framework. The numerous strategic tools and frameworks available provide excellent means for generating these ideas and questions. However, those same tools rarely provided the mechanisms needed to execute. As an example, if you were to use SWOT Analysis, what do you do with the results of that analysis? How do you steer your organization according to the findings? How about the ideas generated from a BCG Analysis? How do we execute based on those findings? SPARK provides the bridge from strategic ideation to strategic execution. The Role of Strategy Balanced Management is execution without scarcity or waste. Scarcity (Problems) Scarcity is present when performance falls short of objective or target values. This represents a problem in that the committed resources are not sufficient to execute the strategic plan. Waste (Opportunities) Waste is present when performance exceeds objective or target values. This represents an opportunity in that some resources may be reallocated to other areas of the organization where scarcity exists. Effective Management = Balanced Management The role of capabilities and the human resources that provide them is central to the framework. SPARK requires a deliberate understanding of what human resources can provide in terms of the capabilities required by various activities. While strategic planning involves the identification of those human resources that can provide a capability, it is the role of responsive tracking to ensure those human resources are actually providing them. People are Collections of Capabilities Strategic Planning is not Exclusive When reflecting on the books I have read and the research I have conducted regarding strategy and the concept of competitive advantage, I have come to understand competitive advantage as follows. The greater the ability of an organization to retain and direct collective critical thinking capabilities towards organizational goals and purpose, the greater that organization’s competitive advantage. Everything else is temporary. Critical Thinking is Competitive Advantage Innovation is born of constraint; for without constraint, innovation has no purpose. I wanted to harness the power of constraints in the SPARK Framework. The introduction of constraints forces one to think differently, providing ideas they would not have otherwise had. The real or artificial constraints we can introduce during the strategic planning process will spur the ideation of potential courses of action that might not otherwise have been seen. I wanted SPARK to provide a route to not only management, but innovation as well. Constraint and Innovation Strategic planning is often defined in the most exclusive manners, somehow insinuating that only the highest executives and consultants are capable are conducting it. This could not be further from the truth. In fact, by limiting the definition in this manner, managers often are not exposed to the bevy of works and tools that will undoubtably make them more successful in their current roles. The SPARK Framework does not differentiate between the strategic planning process for a child opening a lemonade stand or a CEO running a Fortune 500 firm. The scope may be different, but the process remains the same. We should be managing people to three ends. 1. Build New Capabilities – We seek to build new capabilities in people so that they may be deployed in furtherance of organizational objectives. 2. Enhance Existing Capabilities – We seek to enhance people’s current capabilities so that they produce additional value. 3. Maintain Existing Capabilities – We seek to maintain people’s current capabilities so that they provide the value as planned. Managing People
Editor's Notes
- #2: SPARK was developed as an answer to the question “How can I manage x?”. Using Socratic Examination we broke the concepts of management down into component pieces, organizing them into an easily understandable framework which managers can use to expand their capabilities and effectiveness. Over the next couple of hours, you are going to gain a thorough understanding of SPARK and begin to see how you can apply it within your own roles.