30 Powerpoint Slides About IPM Operations

Prepare a 25 Slide Power Point Presentation that summarizes how the award winning company performed its operations by focusing on: The Organizational Profile, Strategy, Customers, Operations and the Main Results. 

Prepare a 5 Slide Power Point Presentation that shows how what you have learned thus far (in Chapters 1, 2, 3, 4, 5,15 & 19) was used by your award winning company to conduct its operations

requirements in attachment.

IPM application in attachment.

text book is operations management 12th edition, also in attachment

The main objective is to accomplish the main goals of the course by providing the opportunity to learn from what best practice organizations do to achieve best practice business operations that are aligned to the mission/vision and organizational operational strategy:

1. Select a Malcolm Baldrige Award Winning Application that has not been selected by anyone else and post it on the general Discussion Board on Blackboard. (2 points)

2. Prepare a 25 Slide Power Point Presentation that summarizes how the award winning company performed its operations by focusing on: The Organizational Profile, Strategy, Customers, Operations and the Main Results. (70 points)

3. Prepare a 5 Slide Power Point Presentation that shows how what you have learned thus far (in Chapters 1, 2, 3, 4, 5,15 & 19) was used by your award winning company to conduct its operations (15 points)

4. Present your Power Point to the class in our next meeting (10 minutes) (13 points)

Make sure you score all the available points.

Conrad

P/S Do not choose an Application Summary that has been selected by someone else. It will not be accepted.

2018 Malcolm Baldrige National Quality Award Application

INTEGRATED PROJECT MANAGEMENT COMPANY, INC. Inspiring Success through Ethical Leadership Since 1988

 

 

www.ipmcinc.com

(630) 789-8600

 

 

 

TABLE OF CONTENTS Glossary of Terms and Abbreviations ……………………………….. ORGANIZATIONAL PROFILE …………………………………… i

P.1 Organizational Description ……………………………………… i P.1a Organizational Environment ………………………………. i

P.1a(1) Product Offerings ……………………………………… i P.1a(2) Mission, Vision, and Values ………………………. ii P.1a(3) Workforce Profile …………………………………….. ii P.1a(4) Assets …………………………………………………… iii P.1a(5) Regulatory Requirements ………………………… iii

P.1b Organizational Relationships …………………………… iii P.1b(1) Organizational Structure …………………………. iii P.1b(2) Customers and Stakeholders ……………………. iii P.1b(3) Suppliers and Partners …………………………….. iii

P.2 Organizational Situation ……………………………………….. iv P.2a Competitive Environment ………………………………… iv

P.2a(1) Competitive Position ……………………………….. iv P.2a(2) Competitive Changes ………………………………. iv P.2a(3) Comparative Data ……………………………………. iv

P.2b Strategic Context …………………………………………….. v P.2c Performance Improvement System …………………….. v

CATEGORY 1: LEADERSHIP …………………………………… 1 1.1 Senior Leadership …………………………………………………. 1

1.1a Vision and Values ……………………………………………. 1 1.1a(1) Setting Vision and Values …………………………. 1 1.1a(2) Promoting Legal and Ethical Behavior ………… 1

1.1b Communication ……………………………………………….. 1 1.1c Mission and Organizational Performance ……………. 2

1.1c(1) Creating an Environment for Success ………….. 2 1.1c(2) Creating a Focus on Action ……………………….. 3

1.2 Governance and Societal Responsibilities ………………… 4 1.2a Organizational Governance ……………………………….. 4

1.2a(1) Governance System ………………………………….. 4 1.2a(2) Performance Evaluation ……………………………. 4

1.2b Legal and Ethical Behavior ……………………………….. 4 1.2b(1) Legal and Regulatory Compliance ……………… 4 1.2b(2) Ethical Behavior ………………………………………. 5

1.2c Societal Responsibilities …………………………………… 5 1.2c(1) Societal Well-Being ………………………………….. 5 1.2c(2) Community Support …………………………………. 5

CATEGORY 2: STRATEGY ……………………………………….. 6 2.1 Strategy Development ……………………………………………. 6

2.1a Strategy Development Process …………………………… 6

2.1a(1) Strategic Planning Process ………………………… 6 2.1a(2) Innovation……………………………………………….. 7 2.1a(3) Strategy Considerations …………………………….. 7 2.1a(4) Work Systems and Core Competencies ……….. 8

2.1b Strategic Objectives …………………………………………. 8 2.1b(1) Key Strategic Objectives …………………………… 8 2.1b(2) Strategic Objective Considerations …………….. 8

2.2 Strategy Implementation ………………………………………… 9 2.2a Action Plan Development and Deployment …………. 9

2.2a(1) Action Plans ……………………………………………. 9 2.2a(2) Action Plan Implementation ………………………. 9 2.2a(3) Resource Allocation …………………………………. 9 2.2a(4) Workforce Plans …………………………………….. 10 2.2a(5) Performance Measures ……………………………. 10 2.2a(6) Performance Projections ………………………….. 10

2.2b Action Plan Modification………………………………… 10 CATEGORY 3: CUSTOMERS …………………………………… 10

3.1 Voice of the Customer …………………………………………. 10 3.1a Customer Listening ………………………………………… 10

3.1a(1) Current Customers ………………………………….. 10 3.1a(2) Potential Customers ………………………………… 11

3.1b Determination of Customer Satisfaction and Engagement …………………………………………………… 11

3.1b(1) Satisfaction, Dissatisfaction, and Engagement ……………………………………………………… 11 3.1b(2) Satisfaction Relative to Competitors …………. 12

3.2 Customer Engagement …………………………………………. 12 3.2a Product Offerings and Customer Support ………….. 12

3.2a(1) Product Offering …………………………………….. 12 3.2a(2) Customer Support …………………………………… 13 3.2a(3) Customer Segmentation ………………………….. 13

3.2b Customer Relationships ………………………………….. 13 3.2b(1) Relationship Management ……………………….. 13 3.2b(2) Complaint Management ………………………….. 14

CATEGORY 4: MEASUREMENT, ANALYSIS, AND KNOWLEDGE MANAGEMENT ……………………… 14

4.1 Measurement, Analysis, and Improvement of Organizational Performance ………………………………………. 14

4.1a Performance Measurement ……………………………… 14 4.1a(1) Performance Measures ……………………………. 14 4.1a(2) Comparative Data …………………………………… 15 4.1a(3) Customer Data ……………………………………….. 15 4.1a(4) Measurement Agility ………………………………. 16

4.1b Performance Analysis and Review …………………… 17 4.1c Performance Improvement ………………………………. 17

 

 

4.1c(1) Future Performance ………………………………… 17 4.1c(2) Continuous Improvement and Innovation ………………………………………………………… 17

4.2 Information and Knowledge Management ……………… 18 4.2a Data and Information ……………………………………… 18

4.2a(1) Quality ………………………………………………….. 18 4.2a(2) Availability ……………………………………………. 18

4.2b Organizational Knowledge ……………………………… 18 4.2b(1) Knowledge Management …………………………. 18 4.2b(2) Best Practices ………………………………………… 19 4.2b(3) Organizational Learning ………………………….. 19

CATEGORY 5: WORKFORCE …………………………………. 20 5.1 Workforce Environment ………………………………………. 20

5.1a Workforce Capability and Capacity ………………….. 20 5.1a(1) Capability and Capacity ………………………….. 20 5.1a(2) New Workforce Members ……………………….. 20 5.1a(3) Workforce Change Management ………………. 21 5.1a(4) Work Accomplishment ……………………………. 21

5.1b Workforce Climate ………………………………………… 22 5.1b(1) Workplace Environment………………………….. 22 5.1b(2) Workforce Benefits and Policies ………………. 22

5.2 Workforce Engagement ……………………………………….. 23 5.2a Workforce Engagement and Performance …………. 23

5.2a(1) Organizational Culture ……………………………. 23 5.2a(2) Drivers of Engagement ……………………………. 23 5.2a(3) Assessment of Engagement ……………………… 23 5.2a(4) Performance Management ……………………….. 24

5.2b Workforce and Leader Development ………………… 24 5.2b(1) Learning and Development System…………… 24 5.2b(2) Learning and Development Effectiveness …………………………………………………….. 25 5.2b(3) Career Progression …………………………………. 25

CATEGORY 6: OPERATIONS ………………………………….. 25 6.1 Work Processes …………………………………………………… 25

6.1a Product and Process Design …………………………….. 25 6.1a(1) Determination of Product & Process Requirements ……………………………………………………. 25 6.1a(2) Key Work Processes ……………………………….. 26 6.1a(3) Design Concepts …………………………………….. 26

6.1b Process Management and Improvement ……………. 26 6.1b(1) Process Implementation ………………………….. 26 6.1b(2) Support Processes …………………………………… 26 6.1b(3) Product and Process Improvement ……………. 26

6.1c Supply-Chain Management ……………………………… 27

6.1d Innovation Management …………………………………. 27 6.2 Operational Effectiveness …………………………………….. 27

6.2a Process Efficiency and Effectiveness ………………… 27 6.2b Management of Information Systems ……………….. 29

6.2b(1) Reliability ……………………………………………… 29 6.2b(2) Security and Cybersecurity ……………………… 29

6.2c Safety and Emergency Preparedness ………………… 30 6.2c(1) Safety ……………………………………………………. 30 6.2c(2) Business Continuity ………………………………… 30

CATEGORY 7: RESULTS …………………………………………. 31 7.1 Product and Process Results …………………………………. 31

7.1a Customer-Focused Product & Service Results ………………………………………………………………… 31 7.1b Work Process Effectiveness Results …………………. 31

7.1b(1) Process Effectiveness and Efficiency ………… 31 7.1b(2) Safety and Emergency Preparedness …………. 34

7.1c Supply-Chain Management Results ………………….. 35 7.2 Customer Results ………………………………………………… 35

7.2a Customer-Focused Results ………………………………. 35 7.2a(1) Customer Satisfaction ……………………………… 35 7.2a(2) Customer Engagement …………………………….. 36

7.3 Workforce Results ………………………………………………. 37 7.3a Workforce-Focused Results …………………………….. 37

7.3a(1) Workforce Capability and Capacity ………….. 37 7.3a(2) Workforce Climate …………………………………. 39 7.3a(3) Workforce Engagement …………………………… 40 7.3a(4) Workforce Development …………………………. 41

7.4 Leadership and Governance Results ………………………. 42 7.4a Leadership, Governance, and Societal Responsibility Results …………………………………………… 42

7.4a(1) Leadership …………………………………………….. 42 7.4a(2) Governance ……………………………………………. 44 7.4a(3) Law and Regulation ………………………………… 44 7.4a(4) Ethics ……………………………………………………. 44 7.4a(5) Society ………………………………………………….. 45

7.4b Strategy Implementation Results ……………………… 47 7.5 Financial and Market Results ……………………………….. 47

7.5a Financial and Market Results …………………………… 47 7.5a(1) Financial Performance …………………………….. 47 7.5a(2) Marketplace Performance ………………………… 48

 

 

 

 

GLOSSARY OF TERMS AND ABBREVIATIONS

AARP After Action Review of Projects ADA Americans with Disabilities Act AM Account Manager AMCF Association of Management Consulting Firms AOS Available on Site AP Annual Plan BD Business Development BPP Business Planning Process CCS Creative & Communication Services Dept. CEO Chief Executive Officer CFO Chief Financial Officer CISSP Certified Information Systems Security Professional CoE Center of Excellence COO Chief Operating Officer CoP Community of Practice CR Central Region CRM Customer Relationship Management C-SPOTY Customer Service Person(s) of the Year D&D Discovery & Development Deltek Deltek Vision, IPM’s CRM & ERP system DRP Disaster Recovery Plan DRT Disaster Recovery Team DSO Days Sales Outstanding EAP Employee Assistance Program EBITDA Earnings Before Interest, Taxes, Depreciation,

and Amortization EEOC Equal Employment Opportunity Commission ER East Region ERP Enterprise Resource Planning ET Executive Team FAS Functional Assessment Summary FMLA Family and Medical Leave Act FTE Full-Time Equivalent FV Fundamental Values FY Fiscal Year GPTW Great Place to Work Greenhouse IPM’s innovation program HIPPA Health Insurance Portability and

Accountability Act HR Human Resources HRA Health Reimbursement Account The Hub IPM’s SharePoint site IAS Industry Assessment Summary ILPEx Illinois Performance Excellence Recognition

Program, the state-level Baldrige program Initiatives Strategic Initiatives, IPM’s action plans IPM Integrated Project Management Company, Inc. IPM Prep IPM’s consultant onboarding process IPPM Internal Project Portfolio Management IS Information Security IT Information Technology KPI Key Performance Indicator KPM Knowledge & Process Management Dept. LMS Learning Management System LRG Long Range Goal(s) M&B Mission & Beliefs

MAIOP Management, Analysis, and Improvement of Organizational Performance

Managed Right IPM’s promotional e-newsletter MD Managing Director NBD New Business Development NPS Net Promoter Score Objectives Strategic Objectives; internally called Strategic

Imperatives OFI Opportunity for Improvement OODA Observe–Orient–Decide–Act Ops Operations OSHA Occupational Safety and Health

Administration O&T Observations & Trends PC Principal Consultant PDCA Plan–Do–Check–Act PLA Project Launch Analysis PM Project Management PMA Project Management Associate PMC Project Management Consultant; also used

generically for PMA/PMC/SPMC/PC PMI Project Management Institute PMO Project Management Office PMP Project Management Professional PMT Portfolio Management Team PPE Project Performance Evaluation PPM Project Portfolio Management PQP Project Quality Plan PS&DP Performance Summary & Development Plan The Pulse IPM’s employee newsletter RAS Regional Assessment Summary RISP Risk Information Security Program ROVP Return on Values Project SA Strategic Advantage(s) SC Strategic Challenge(s) SII Societal Impact Index SLIM Service Line–Industry Matrix SME Subject Matter Expert SPA Single Point Accountable SO Strategic Opportunities SPI Service Performance Insight SPMC Senior Project Management Consultant SRM Strategic Realization Model SRPM Strategy Realization Program Manager SWOT Strengths–Weaknesses–Opportunities–Threats VOC Voice of the Customer VOICE Voice of Consultant VP Vision Priorities VPN Virtual Private Network VRO Vision Realization Officer WR West Region YOY Year over year Cycle of Improvement

 

 

 

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ORGANIZATIONAL PROFILE P.1 Organizational Description Recognizing a pressing need across industries for excellence in project execution, C. Richard (Rich) Panico founded Integrated Project Management Company, Inc. (IPM) in 1988, making it the first company in the U.S. dedicated to professional Project Management (PM). During his tenure as an executive of a Fortune 500 consumer products company, Rich realized that many companies struggled to execute their strategies reliably and efficiently. While most business consultancies helped organizations develop solutions and strategies, few focused on ensuring execution, and without the ability to execute, even the most well-crafted strategy produces no value. Rich believed that a values-based, ethical company dedicated to reliable planning and execution would be a sought-after resource, which proved to be correct. Rich’s overriding goal was to build a company with an extraordinarily motivating culture based on a foundation of honesty, integrity, and ethical precepts. The Company has consistently adhered to these principles throughout our history. IPM is a privately held business consulting company, providing exceptional leadership to transform strategies and solutions to sustainable results. IPM has offices in Chicago, Boston, Los Angeles, Minneapolis, San Francisco, St. Louis, and Parsippany, NJ, and provides services to a wide range of industries, including the Life Sciences, Healthcare, Consumer Products, and Industrial sectors. IPM tailors our well- established and continually evolving practices to address each client’s unique requirements. Over the past 30 years, IPM has served over 400 clients, led more than 4,000 projects, and continues to experience growth, financial success, and an impeccable professional reputation. IPM’s longevity depends on our ability to provide solutions and reliably plan and execute critical initiatives for our clients while continually evolving our business model, capabilities, and position in the market. IPM applies process, discipline, and leadership to ensure delivery of our high-quality services. Through diligent fiscal planning and management, the Company retains a very strong cash position and reserves. IPM has maintained negligible debt and has been completely debt free since 2009. This approach has underwritten our aggressive strategy for organic growth. IPM’s most impactful competitive advantages are our culture, consistently high-quality services, and our family members (employees). A thriving and sustaining values-based culture is a significant competitive advantage, as it cannot be purchased and takes years to establish. Since day one, our culture has received constant attention − it is protected, promoted, and repeatedly validated. We are obsessed with consistently operating in accordance with Our Fundamental Values (FV) and Our Mission & Beliefs (M&B). The principles and responsibilities identified within these documents govern our relationships and interactions both internally and externally. Consistent high quality is the bedrock of our individual and collective performance. In IPM’s world, quality is a passion

that defies complacency and forever seeks improvement. As Rich states: “Culture and quality have been, are, and will remain our highest priorities.” P.1a Organizational Environment P.1a(1) Product Offerings To better describe the Company’s capabilities to our markets, IPM has established service lines (Figure P.1-1). Focusing on selected service areas has enabled the Company to establish and grow strong foundations of knowledge in disciplines highly valued within the industries we serve. While a significant part of our business is within the Life Sciences sector, our strategy includes a priority to further diversify by creating inroads into our other markets and evolving new capabilities.

 

Figure P.1-1 IPM Service Line Overview

In support of the Company’s growth and diversification objectives, IPM has developed Centers of Excellence (CoEs) focused on various service lines. The CoEs were created to establish deeper subject matter expertise in specific areas representing significant market needs and opportunities. The CoE model provides structure, centralized knowledge, and dedicated employees within a specialty area, imparting resources, information, tools, examples, templates, and training materials to prepare our project management consultants (PMCs) for those engagements. The CoEs are continuously enhanced through lessons learned from project experiences and research.

The CoEs were created in 2014, and since 2016, oversight of them has been provided by a director and a governance structure. As part of the 2018–19 Strategic Plan, the CoEs were integrated into the newly established Discovery & Development Department, providing greater structure to evolving new capabilities and services. Each CoE is staffed by employees with a keen interest and career passion in that subject matter area. IPM currently has five CoEs: Project Portfolio Management (PPM), Mergers and Acquisitions (M&A), Business Technology (BT), Regulatory & Quality, and Change Management.

 

 

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To ensure optimal outcomes, services delivered by the IPM project team may include a PMC, manager, CoE subject matter expert (SME), and/or more experienced colleagues. P.1a(2) Mission, Vision, and Values IPM’s Mission & Beliefs (M&B) IPM has documented Our Mission & Beliefs (M&B), with our mission summarized in the opening sentence: Our essential purpose is to provide exceptional leadership to transform strategies and solutions to sustainable results. Some other crucial passages from our M&B include: IPM’s obsession with excellence, honesty, ethical conduct, and uncompromising integrity assures an impeccable reputation as the leader within our profession. … IPM’s values-driven, self-motivated, and highly skilled “family members” are our most important assets and the source of our differentiation. … It is the Company’s intent to maximize job security and to involve all employees in achieving this goal. … IPM’s Mission is honored each time a client’s expectations are exceeded, each time an employee achieves his or her dreams, each time IPM earns an employee’s loyalty, each time a worthy cause benefits from our efforts, and each time the Company positively influences our society and the world in which we live. The full M&B is available on site (AOS). IPM’s Vision IPM will be recognized as one of the most prestigious consulting firms in North America and renowned for providing exceptional leadership to transform strategies and solutions to sustainable results. IPM will realize profitable growth…to our centennial and beyond. IPM will be synonymous with “the best,” exemplified by excellence, ethical leadership, community involvement, and the highest commitment to our family members.

IPM Mission, Vision, Values, & Character Elements Mission: Our essential purpose is to provide exceptional

leadership to transform strategies and solutions to sustainable results.

Vision: IPM will be recognized as one of the most prestigious consulting firms in North America and renowned for providing exceptional leadership to transform strategies and solutions to sustainable results.

Fundamental Values:

Honesty, integrity, caring, respect, humility, responsibility, excellence, and spirituality.

Character Elements:

Diligence, enthusiasm, fairness, honesty, integrity, loyalty, resilience, sense of humor, trust, and work ethic.

Figure P.1-2 IPM Mission, Vision, Values, & Character Elements

IPM believes that if the Company focuses on sustaining an impeccable reputation, growth will inevitably follow. The Company defines Vision Priorities (VP) to ensure a deeper understanding of the Vision’s key components: Forever Relevant, Reputation & Recognition, Financial Strength, Affinity, Aspiration, and Societal Impact, which were refined and clarified as part of the most recent Business Planning Process (BPP). IPM’s Core Competencies IPM’s area of greatest expertise is project leadership, which requires the core competencies of applying process, planning, and execution, and it takes discipline to deliver all three.

IPM’s Fundamental Values (FV) The foundation of IPM’s FV is spirituality – our belief in a higher power and purpose. It is the genesis of our FV, which exert strong influence on decisions and behaviors, and guide our ethical “compass.” IPM’s Standards of Behavior In addition to the FV, the Company has established key attributes essential to each employee’s conduct for the sustainability of IPM’s culture. These Character Elements (see Figure P.1-2) are integral components of required behavior to be displayed in serving professional responsibilities and are assessed as part of each employee’s Performance Summary and Development Plan (PS&DP). The absolute elements of honesty and integrity must always be displayed. In 2018, IPM defined a Code of Conduct that further emphasizes the behavioral expectations for all employees. P.1a(3) Workforce Profile IPM employs 180 individuals in a non-union environment. The Company is primarily divided into two groups: Operations (Ops) and Corporate Services (Corporate). Meanwhile, the management team is segmented into the Executive Team (ET), Senior Management (SM), and Management (M). PMCs are the individual contributors on the Ops side, typically work on site at client locations, and are segmented into four levels based upon experience and expertise. The role of Principal Consultant (PC) was added to the existing consultant levels – Project Management Associate (PMA), PMC, and Senior PMC (SPMC) – to provide deep subject matter expertise, when required. PCs are expected to continually broaden their subject matter knowledge, thereby increasing IPM’s ability to provide better and more insightful solutions and generate more value for our clients. The workforce profile, which includes information regarding education, gender, and diversity, is shown in Figure P.1-3.

Workforce Profile

Segments Ops (78%); Corporate (22%) [ET (3%), SM (5%) M (13%), PMC (64%), Non- management Corporate (15%)]

Gender Male (63%), Female (37%)

Education Bachelor’s – 98%, Master’s – 51%, PhD – 9%

Ethnicity White (78%), Asian (12%), African American (6%), Hispanic (2%), Native Hawaiian or other Pacific Islander (2%)

Employment Status

1% part-time and 99% full-time

Figure P.1-3 Workforce Profile

While IPM has employed PMCs since our inception, the composition of our workforce has evolved over time due to the continued assessment of market needs, the consulting industry, and opportunities. All client-facing employees have minimally completed an undergraduate curriculum. Corporate Services, which includes Human Resources (HR), Finance, Communication and Creative Services (CCS), Knowledge and Process Management (KPM), Information Technology (IT),

 

 

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Business Development (BD), and Marketing, is almost entirely staffed with individuals who have their bachelor’s; overall, 98 percent of our employees have acquired at least an undergraduate degree. In addition to the need for higher education to serve our markets appropriately, there is often specific subject matter knowledge necessary to deliver value as a consultant. As an example, within the Life Sciences industry, the need for PMCs with knowledge and expertise within the Regulatory environment has increased over the past few years. To accommodate these market needs, specific experience and skill requirements are identified in seeking new candidates (job requisition). In all hiring decisions, the Company uniformly seeks individuals who align with our culture and exhibit strong leadership potential. To capitalize on the significant potential of our employees, KPM has increased in both strength and numbers, providing our PMCs with a robust repository of project protocols, information, and continuing education. Additionally, our document and creative services have evolved through the addition of employees in CCS. In 2014, Company growth also dictated acquiring in-house legal expertise to ensure comprehensive review of all contracts and increased scrutiny of all corporate legal matters. The factors that engage our employees in achieving our M&B and Vision – as validated by employee surveys – include: • Leadership behavior consistent with our M&B and FV

(Figures 7.4-1, 7.4-11) • Communication and transparency (Figures 7.4-5, 7.4-6) • Professional development (Figure 7.3-21) • Organizational support (Figures 7.3-13, 7.3-14) The nature of IPM’s consulting services does not necessitate special health and safety requirements, although when our PMCs require specific safety equipment for their protection at the client site, the Company provides it. P.1a(4) Assets While not “hard” assets laden, IPM’s assets include both the IRS-defined assets and valuable Company holdings considered key to our success, differentiation, and competitive advantage. IPM deems our people, culture, and reputation as critically important “assets.” Ultimately, the strategy, planning, execution, and delivery of our services are dependent on the commitment, knowledge, and conduct of our people. Key information and intellectual capital are also important assets of the business. To drive efficiency and performance, employees are supported with other assets, including laptops and multiple communication tools. This equipment, combined with IPM’s repository of information, training, and supervisory guidance, enables employees to perform to, and expand, their capabilities. Depreciable organizational assets include furniture, fixtures, IT hardware and software, and leasehold improvements (to the Company’s multiple leased offices). IPM maintains an asset listing to properly manage depreciation schedules and

conforms to Generally Accepted Accounting Principles in capturing assets on our Balance Sheet. P.1a(5) Regulatory Requirements IPM is incorporated in the State of Illinois and complies with regulatory requirements that apply in the states in which IPM operates and maintains offices. These regulations include: occupancy licenses, Equal Employment Opportunity Commission (EEOC), Occupational Safety and Health Administration (OSHA), Americans with Disabilities Act (ADA), Health Insurance Portability and Accountability Act (HIPAA), Internal Revenue Service, and state regulations (IL, MA, MO, CA, NJ, and MN). IPM’s business does not make it subject to special OSHA regulations or environmental, product, or financial requirements. P.1b Organizational Relationships P.1b(1) Organizational Structure The Company is a privately held C Corporation with a single director, the Chief Executive Officer (CEO). Voting shares are held by the ET – the CEO, Chief Financial Officer (CFO), Chief Operating Officer (COO), and Vision Realization Officer (VRO) – which serves as the Company’s operating board. In lieu of an Annual Board meeting, there is a yearly Corporate Resolution signed by the full ET, which identifies major decisions and expenditures. The ET meets on a weekly basis and is the governance body that monitors organizational performance. The ET also approves the business strategy and holds dedicated quarterly meetings to discuss topics of strategic importance. The ET members lead the organizational structure that includes Ops Managing Directors, Directors, multiple levels of PMCs, and the Corporate Services functions. P.1b(2) Customers and Stakeholders Customers primarily fall within four key market segments: Life Sciences, Healthcare, Consumer Products, and Industrial, although expectations and high-level requirements do not vary significantly between these segments. Within BD, customers are further segmented as new and existing. Regardless of market segment or BD category, a unique proposal is prepared specifically for each engagement. The primary deliverable is the achievement of a project objective, which is delineated in the proposal along with the key requirements of leadership, managing scope, schedule, budget, and risk, developing effective solutions, and meeting commitments. The customer’s project sponsor is the primary stakeholder, but the complex nature of our engagements means there are typically many other stakeholders representing our client’s multiple functional groups and company divisions. P.1b(3) Suppliers and Partners IPM does not rely on suppliers or partners to perform our consulting services. All services provided to clients are delivered through our full-time staff, who therefore make up our supply chain. IPM’s growth is dependent on our ability to staff an increasing volume of work, which requires strong employee retention and an aggressive recruiting program focused on meeting that demand.

 

 

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P.2 Organizational Situation P.2a Competitive Environment P.2a(1) Competitive Position IPM was established well before PM was recognized as a distinct profession and before the Project Management Institute (PMI) had published The Guide to the Project Management Body of Knowledge (PMBOK) or the Project Management Professional (PMP) certification was widely acknowledged. Throughout our history, IPM has planned and executed critical initiatives for some of the biggest companies in the world, reliably delivering project results and creating a positive legacy experience for project participants and stakeholders. This has been accomplished through both the project achievements and the environment created to ensure success (the IPM Experience), one comprised of caring, collaboration, cooperation, and professionalism. IPM’s reputation has been built on our ability to execute consistently and perform in an honest and ethical manner. A conduct statement based on IPM’s values is included within every proposal to establish a relational framework for each engagement. IPM has evolved the Company’s capabilities and our market positioning to obtain critically important strategic projects. Execution competency, subject matter expertise, problem- solving dexterity, and conduct aligned with our FV have allowed IPM to compete with “big” consulting firms, and further distance ourselves from project scheduling and coordination and other more tactical applications of PM consulting. The progression of KPM is another factor in IPM’s marketplace differentiation, as it has had a tremendous impact on quality, continuous improvement, and most of all, employee development. A significant body of knowledge – accessible via The Hub, IPM’s SharePoint site – has been developed and is a valuable resource to our PMCs, each of whom is on-boarded through a rigorous process. All employees are provided training on an ongoing basis. KPM has additionally developed a broad range of processes and tools to enhance efficiency of operations and expose clients to PM best practices. Unlike many other small and mid-sized consulting firms, IPM’s model employs full-time, direct employees rather than augmenting staff with independent consultants during high- demand times (flexible staffing model), thus preserving IPM’s quality standards and reputation. Instead of assigning someone who has not been thoroughly vetted to a client, IPM chooses to turn down business rather than risk poor performance or employee behavior inconsistent with our FV. To determine IPM’s relative size and growth, we have used data from IBISWorld, a business intelligence leader specializing in industry market research. The consulting industry as a whole was projected to generate $223 billion in revenue in 2017. Three of the largest firms – Accenture PLC, McKinsey & Company, and Deloitte Touche Tohmatsu –

currently capture 8% of the total market; more than 700,000 organizations combine to capture the remaining 92%, representing approximately $205 billion. IPM’s projected 2018 revenue represents a very small percentage of this market. In 2017, year-over-year industry growth was 4% while IPM’s was 11% (2016 – 2017); in the four-year span from 2013 to 2017, it was 62%, compared to 16% industry- wide. IPM’s competitors include sole proprietors, small boutique firms, medium-to-large consulting firms, and client PM groups. As PM has gained recognition, large consulting firms have placed a greater focus on selling it. Conversely, IPM has broadened our focus, emphasizing providing business solutions and leading more complex strategic projects. P.2a(2) Competitiveness Changes IPM’s leadership maintains awareness of competitive trends in PM services to drive strategic planning and action. Some notable recent trends: 1. The commoditization of PM is increasing as the PM

process is well understood. More project managers are being commissioned through educational institutions, internal company training programs, and through PMP certification preparation.

2. The number of competitors has increased.

3. The widespread failure of internal efforts to establish high-performing Project Management Offices (PMOs) is leading companies to outsource part or all of this function.

4. The outsourcing of procurement to managed services providers – third parties that handle negotiations of all contracted agreements – is increasing among large companies as a means of reducing consulting costs.

5. Organizations are struggling to evolve their strategy and keep up with rapidly changing market conditions affecting their businesses.

There is an increasing need to rapidly transform high-level strategies to discernable, sustainable results. IPM’s strategic initiatives (our internal term for action plans) are intended to counteract the trends that represent threats and capitalize on those that represent opportunities. The ability to develop solutions, execute them reliably, and embed change management to achieve and sustain the desired results and performance is a significant differentiator. This service feature, along with the quality of our people, Company longevity and reputation, and the overall added value of IPM’s composite capabilities, positions IPM between the very large consulting firms with their very high price points and the small and boutique firms that lack the support infrastructure and broad consulting capabilities. We “look big and can play big” and have a substantial value-to-price-point advantage. P.2a(3) Comparative Data Since our primary direct competitors are privately held consultancies, they do not publicize information pertaining to their performance, HR data, or customer satisfaction. Some

 

 

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professional organizations such as Service Performance Insight (SPI) and IBISWorld – and the now-defunct Association of Management Consulting Firms (AMCF) – provide limited data on the consulting industry, which is used when applicable. We have also used data from Baldrige Award recipients that provide similar services. For data outside of our industry, we use Great Place to Work (GPTW) and CompData, among others. P.2b Strategic Context IPM’s foremost strategic challenges are:

SC1) continuing to scale the business while maintaining a priority for culture and high quality SC2) developing higher-value consultative services to compete with larger firms while better differentiating the Company from the independent, small, and medium firms SC3) recruiting and retaining talented employees SC4) continuing to diversify our industry and base SC5) expanding brand recognition.

IPM’s strategic advantages are: SA1) our values-based culture (work environment) SA2) low to no debt and high cash reserves financial position SA3) clear and continually evolving PM processes SA4) a disciplined approach to strategic planning SA5) flexibility of our business model to pursue a large variety of consultative engagements SA6) sophisticated and scalable infrastructure SA7) longevity, reputation, long-term perspective, and track record of strong, organic growth.

P.2c Performance Improvement System IPM’s well-defined and ever-evolving BPP acts as a yearly cycle of improvement and has a specific component focused on identifying Opportunities for Improvement (OFIs). While this is a crucial component of our process, it is no more important than the day-to-day tactical focus on quality assurance and continuous improvement. In addition to the annual cycle of improvement that is the BPP, since 2014, we have had six additional cycles of fact-based improvement related to our Baldrige journey: 1. Our initial self-assessment before our first Illinois

Performance Excellence (ILPEx) Recognition Program application (2014)

2. The completion of our first ILPEx application (2015) 3. The feedback report from the 2015 ILPEx application

(2016) 4. Our second ILPEx application (2017) 5. The feedback report from our second application (2018) 6. Our 2018 Baldrige application (which you are now

reading)

Throughout the application that follows, the results of these cycles of improvement will be tagged with this icon: . It is critical to IPM’s culture and business success to foster continuous improvement, learning, and innovation, and to be more competitive; the identification of OFIs is central to that endeavor. Sources of OFIs are outlined in Figure P.2-1.

Performance Improvement, Innovation, and Learning: Sources of OFIs

Baldrige improvements Employee survey

ET meetings Greenhouse (innovation)

Ideation sessions Individual employee ideas

Lessons learned Managers meetings

Observations & Trends One-on-One meetings

Strategic Initiatives Team meetings

Technology planning Figure P.2-1 Performance Improvement, Innovation, and Learning

Once an OFI has been identified and defined, it is assigned a priority as well as a champion, and high-level metrics are then determined along with an execution team. IPM utilizes the PDCA process outlined in Figure P.2-2.

Figure P.2-2 PDCA Process

While in the execution (Do) phase, each OFI is tracked to ensure progress and confirm that it addresses the identified need. While OFIs address specific performance gaps, IPM’s BPP assures that the Company’s strategy, model, organizational structure, and capabilities remain relevant as market conditions and competitive influences change and new opportunities are discovered.

IPM is proud of our organization and we are excited to share more about our business. The following application represents our commitment to continue our journey, one that aligns with IPM’s passion to defy complacency through continuous improvement.

 

 

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CATEGORY 1: LEADERSHIP 1.1 Senior Leadership 1.1a Vision and Values 1.1a(1) Setting Vision and Values As the basis for establishing an exceptional values-based culture, IPM’s founder and CEO, C. Richard (Rich) Panico, set IPM’s values by creating Our Mission & Beliefs (M&B). This document is a proclamation of IPM’s business purpose, ethical philosophies, commitments to employees, and societal responsibilities. Our M&B is a culturally embedded influence that governs conduct, decisions, and strategy. At the same time, IPM’s Vision details the destination we are pursuing and sets the Company’s strategic direction beyond the next decade. To further advance employees’ understanding and affiliation with the Vision, senior leadership has identified Vision Priorities (VP), which were refined as part of the 2018–19 Strategic Plan. During this planning cycle, both the Vision and M&B were also updated to better align with IPM’s evolution to providing the higher-value service of planning and leading strategically critical initiatives for our clients.

While IPM’s key values have always been embedded in the M&B, in 2014 senior leadership established our Fundamental Values (FV), to emphasize IPM’s primary beliefs and core governing principles to our workforce and customers. We share our FV, Vision, and M&B with both current and prospective customers through our website and other communication channels like our e-newsletter, Managed Right, and the proposals we customize for each potential engagement. In these we highlight our values and culture as keys to our value proposition. Internally, our FV are reinforced as part of new employee onboarding and on an ongoing basis through the Performance Summary & Development Plan (PS&DP) process, where conformance to our FV is evaluated along with on-the-job performance.

In 2010, the Company established measurable, long-term goals along a 10-year horizon, known as Vision 2020 Long Range Goals (LRG). These objectives and benchmarks chronicle IPM’s progress toward our greater Vision, and results are reviewed annually with the entire organization. With the year 2020 looming closer, senior leadership established further-reaching 2025 LRG as part of the 2018–19 Strategic Plan.

Together, our FV, M&B, Vision, and the 2020/25 LRG provide the strategic framework to ensure that the Company’s leadership is choosing the most effective path to engage our family members (employees), sustain growth, and preserve our supportive, values-based culture—a significant competitive advantage that cannot be readily replicated (Figure 1.1-1).

Senior leaders show their commitment to the Company’s values by being a part of the interview process. At least two members of the senior team interview every late-stage candidate using the M&B and FV as part of the evaluation process to determine cultural fit. The CFO (since 2015) and Vision Realization Officer (VRO) (in prior years) have demonstrated their commitment to ethical business practices

by serving on the board of the Chicago chapter of the Better Business Bureau.

IPM also was the subject of a 2013 study published by Benedictine University’s Center for Values-Driven Leadership that correlates a values-driven culture with financial success.

1.1a(2) Promoting Legal and Ethical Behavior Because ethical behavior is so entwined in IPM’s core, much of senior leadership’s commitment to it can be found in 1.1a(1). IPM’s senior leaders have a passion for excellence, honesty, ethical conduct, and uncompromising integrity, as stated in our M&B. In words and actions, they promote and reinforce our commitment to our FV and M&B. Through our history, IPM leadership has validated its commitment to our values and philosophies when tested. One example was a client “poaching” one of our PMCs in violation of the reciprocal recruiting restraint in our contracts. The client ultimately agreed to a financial penalty, but to IPM leadership, the restitution was an ill-gotten gain. Rather than recognize the penalty as profit, the proceeds were divided among five charities. Profit never carries a higher priority than principles.

Senior leaders promote an organizational environment that requires a commitment to legal and ethical behavior by defining IPM’s Character Elements (Figure P.1-2) and including them as part of the PS&DP process. Honesty and integrity, which are foundational to legal and ethical behavior, are absolute, zero-tolerance conduct requirements.

1.1b Communication Since IPM’s inception, senior leadership has functioned with transparency. Key decisions and major changes are announced at the Annual Plan (AP) or quarterly Staff meetings that are attended by all employees. In the spirit of frank, two-way communication, senior leadership presents financial results, as well as the outlook, even though, as a privately held company,

Figure 1.1-1 Leadership System

 

 

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we are under no obligation to do so. This forum allows the background and reasons for decisions to be discussed with the entire staff and for their questions to be addressed. IPM’s twice-quarterly newsletter (The Pulse) is another communication tool to keep employees abreast of Company progress, financial status, and other important information during the months between quarterly Staff meetings. Each newsletter includes a message from Rich, which since 2018 has also been delivered as a podcast, an improvement based on staff feedback and implemented to increase the message’s consumption. While face-to-face communication is preferred, company-wide emails are sent to relay important news, such as promotions, new hires, and birth announcements.

IPM’s open-door policy invites employees to provide input at any time. Figure 1.1-2 highlights some of the frequent communication channels. There is no hierarchy restriction—if an employee believes that the best recipient of an idea is someone other than the immediate supervisor, he or she can absolutely approach the appropriate person. Members of senior leadership routinely hear from employees who want to discuss ideas, decisions, work environment, and/or the direction of the Company. As excerpted from M&B, “The Company’s culture must, in a disciplined, yet motivating fashion, forever embrace continuous improvement and teamwork, and defy complacency in any form.”

Figure 1.1-2 IPM Leadership Communication System

Each year, the Company’s Business Planning Process (BPP) begins by sending the AP survey to employees to gather their input on aids and hindrances to outstanding performance, trends observed in the marketplace, and feedback on IPM’s culture, as well as other qualitative and quantitative questions. The results are compiled and reviewed by the Executive Team (ET). Each quarter, the ET also reviews the most germane inputs on the Observations and Trends (O&T) Hub site, which was created to collect various insights all year round, instead of relying primarily on the annual AP survey.

To continually promote high performance and customer focus, senior leadership recognizes employee achievements in The Pulse, at quarterly Staff meetings, through social media (such

as a post on LinkedIn), and through the Customer Service Person(s) of the Year (C-SPOTY) awards. Senior leadership solicits C-SPOTY nominations and determines the winners, with statuettes distributed as part of a ceremony at the November Staff meeting. Finally, senior leadership uses personal contact—conversations, emails, or handwritten notes—as a means of genuinely recognizing performance.

The e-newsletter Managed Right is IPM’s vehicle for communicating with customers at the aggregate level. But to build engagement, IPM relies on the personal touch, with everyone in Operations (Ops) management, from the CEO down, maintaining and nurturing relationships with key customer contacts, through phone conversations, business lunches, and other in-person interactions. IPM also celebrates a Customer Appreciation Week, during which senior leadership sends emails thanking our clients for their continued business. PMCs and Directors are tasked with doing something special (typically lunch or supplying sweets) at the client sites to express our appreciation and further strengthen the relationships.

The Project Performance Evaluation (PPE) provides another vital communication channel for our clients. Upon project completion, IPM’s Chief Operations Officer (COO) initiates the PPE to our clients to gather their feedback on how well IPM has delivered during the engagement. These performance results are shared by senior leadership during each quarterly Staff meeting, and instances of high performance and complimentary quotes from clients are formally recognized.

1.1c Mission and Organizational Performance 1.1c(1) Creating an Environment for Success To create an environment for success, senior leadership uses our M&B and FV to guide the BPP. While strategies change to address dynamic market conditions, our M&B and FV establish a foundation of consistency to drive ethical deliberation, consistency of conduct, and a “true north” when making all decisions. Additionally, all those accepting promotions to managerial positions are required to sign a “Management Employment Agreement.” The Agreement defines leadership conduct that must be consistently exhibited and promoted. While financial and other performance metrics are important, these do not take precedence over alignment with our FV and M&B.

With rapidly changing market conditions presenting opportunities and threats, it is crucial that IPM is informed and prepared to evolve the business. The BPP is designed to obtain information about conditions and trends so that we can be organizationally agile and respond appropriately. Nearly every aspect of IPM is put under the proverbial microscope, and the insights yielded may influence or effect changes to our processes and/or model; therefore, each BPP cycle is a cultivation of organizational learning and serves as a cycle of improvement. Detailed components of IPM’s planning process are described in 2.1a(1). The Strategic Objectives (Objectives to conform to Baldrige vernacular, but referred to internally as Strategic Imperatives) related to establishing a Discovery & Development (D&D) function and Brand Refinement 2.0 are

 

 

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examples of the output of the 2018 BPP process, capturing our need to continually innovate and develop high-value services as well as expand brand distribution and knowledge.

In 2015, as part of the BPP, IPM’s organizational structure was modified to provide greater focus on areas of strategic importance. Recognizing the investment as an intelligent risk, the ET assigned Managing Directors (MD) to lead Healthcare and Consumer Products sectors and develop specific strategies to be implemented following ET approval. Around the same time, Business Development and Marketing, which had previously been a single entity, were separated to allow its MD to focus on the BD side, strengthening our ability to organically grow business development capabilities and capacity. Marketing was reassigned to report directly to the CEO, which led to a brand refinement initiative and the establishment of a Marketing portfolio management process, where the CEO and COO review the portfolio of marketing projects monthly to determine their prioritization, ensuring maximum value of the work being executed.

Senior leadership cultivates a supportive environment of learning for IPM’s workforce. Although our consultants primarily work at their respective client sites to foster customer engagement, they are the beneficiaries of significant organizational support. Our employees receive coaching from their managers, assistance from colleagues, support from the CoEs, plus training from Knowledge & Process Management (KPM). Job shadowing and collaboration on projects are used to teach new consulting skills. This supportive environment provides consultants with the necessary foundation for consistently providing outstanding customer experiences. Continuous improvement and organizational learning are essential components of sustainability, therefore IPM’s consultants collect post-project lessons learned from each client engagement, which are then disseminated through staff meetings, roundtables, and the After Action Review of Projects (AARP), so that the entire organization may benefit.

To create a workforce culture that fosters customer engagement, senior leadership requires weekly touchpoints between the client sponsor and the project manager, with additional meetings between the sponsor and the account manager to bolster the relationship. Each project team requests customer feedback through a PPE, the results of which are highlighted and emphasized at Staff meetings.

Through twice annual Organizational Planning sessions (5.1a(1)), the Company assesses our organizational strengths and depth of role succession. This succession planning is done to ensure the continued availability of proper resources for key roles. After our first Illinois Performance Excellence (ILPEx) application in 2015, it was recognized that the PS&DP process applied to all positions in the Company was not designed to specifically develop leaders for the highest levels. To address this need, Senior Leader Characteristics have been identified, and performance criteria for MDs defined, including specific pictures of success. The ongoing feedback mechanisms for MDs were revised in early 2017 and are now focused on four

key leadership competencies: Strategic, Execution, People, and Personal.

Additionally, the VRO, an ET role developed as a result of the 2015 BPP, was explicitly created to focus on succession planning. The VRO has been tasked with determining how the Company can continue to remain independent beyond the retirement of our founder and CEO, to achieve our goal of celebrating our 100th Anniversary and protect the interests of IPM’s primary stakeholders, our employees.

1.1c(2) Creating a Focus on Action Senior leadership generates Objectives as part of the BPP, and identifies the actions needed to achieve them in the form of Strategic Initiatives (Initiatives)—projects with a defined end state and timeframe for completion. Every strategic goal has a direct link to at least one Initiative. Each Initiative has an identified ET sponsor and a Single Point Accountable (SPA), the individual that owns the outcome of the Initiative. Through routine one-on-ones, employees and their supervisors discuss how to engage in activities to support IPM’s Initiatives, whether leading or providing execution support. While execution of internal Initiatives is vital to continuous improvement and Company evolution, employee participation must be balanced with focus on providing value to customers.

Senior leaders roll out the Initiatives during the AP meeting, the same meeting where the forecast for the upcoming year’s revenue and profit is unveiled. Initiatives and business results must share the spotlight. IPM develops AP themes, based upon reinforcing and promoting the Objectives and creating ongoing excitement and energy associated with the Strategic Plan. The themes—from Improve & Impress (1992) to Velocity to Vision (2018)—create a focus on action. Throughout the year, the theme is referenced in the newsletter and other communications, and each employee gets a theme button and framed picture with the associated artwork.

Additionally, IPM management has various regularly scheduled meetings (full roster AOS). Sessions like monthly senior leadership meetings, where the current state of the business is discussed along with issues critical to ongoing operation and growth, and weekly ET reviews, which ensure organizational alignment with our strategic goals, create a focus on action to improve the Company’s performance.

Throughout the year, senior leadership emphasizes the Company’s accomplishments and details our progress through the newsletter and at quarterly Staff meetings, while holding themselves accountable for results that need improvement. At regularly scheduled ET Strategy Meetings—which are often offsite and occur quarterly, at minimum—senior leaders look beyond the current state, to anticipate new market opportunities, and harness the talents of the organization to discover ways to further differentiate ourselves. The ET has a clearly defined vision for the Company, and they consistently take responsibility—one of our FV—for the organization’s actions.

 

 

 

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1.2 Governance and Societal Responsibilities 1.2a Organizational Governance 1.2a(1) Governance System The Company is privately held and structured as a “C” corporation; the CEO is the sole director. The ET (CEO, CFO, COO, and VRO) serve as the Company Board. In lieu of an annual Board meeting, the ET signs an annual Corporate Resolution, which identifies major decisions and expenditures agreed upon by voting shareholders (ET). Given IPM’s corporate legal structure, selection and disclosure policies for board members are not relevant. The ET also approves the business strategy and meets on a weekly basis as part of a formal business review.

While privately held companies are not subject to the regulations protecting investors in publicly traded firms, IPM holds the protection of our family members as a high priority. Therefore, to more formally identify the ET’s responsibilities relative to governance, the VRO outlined a Corporate Governance document, which was adopted in 2016. This document specifies corporate responsibilities by role/group, none of which are legally required, and some of which are not yet applicable, but their very existence keeps the ET focused on high standards of care. The Governance document was established with an annual review requirement, and the first review occurred at an ET meeting in the fourth quarter of 2017. All aspects of corporate governance were reviewed, and the first cycle of improvement occurred. Changes included clarifications of responsibilities and the addition of a biennial review of corporate financial statements. It was also determined that the annual examination of Corporate Governance would occur as part of the BPP cycle. All members of the ET signed off on the findings.

Senior leadership is held accountable to the rest of the Company through quarterly Staff meetings, which include communication of all goals and Initiatives—and their respective justifications—as well as the progress toward achieving them. In a display of further transparency, the Company’s financial results are also shared. In the months when there is no Staff meeting, financial results and other key company highlights are disseminated via The Pulse.

Company-wide feedback on the ET’s actions and decisions is received through the AP survey and independent external sources such as the Great Place to Work (GPTW) survey. The ET benefits from this feedback by reviewing ratings in such critical areas as credibility, communication, and ethical behavior. To amplify the importance management places on employee feedback, the LRG of Affinity will be tracked via scores on specific questions of the GPTW survey.

Due to our privately held status, IPM is not required to submit to external audits. Nonetheless, in conjunction with our Corporate Governance review, and due to the Company’s increasing size and complexity, the criticality of ownership succession planning was highlighted. Following a formal valuation of IPM as part of considering an employee stock ownership plan (ESOP), the ET decided in 2017 to authorize a formal review of our financial statements by an external

accounting firm. The biennial reviews will commence in 2019; previously, our accounting practices have been confirmed compliant with Regulatory requirements by two IRS audits. Internal audits of financial matters are conducted, starting with clear delineation of duties and appropriate reconciliation structures. Various other processes, such as our performance management system, are audited as well.

Continual vigilance of market conditions, the business development pipeline, resource capabilities and capacity, quality, service performance, and cash position enable IPM to be proactive. The Company utilizes a fiscally conservative approach by maintaining high cash reserves. This has allowed organic growth without incurring debt while protecting the interests of IPM’s stakeholders, comprised of both our ownership and employees.

The Company has an ownership succession plan to ensure Company continuity, should the CEO or other ET members become incapacitated or pass away. The ownership succession plan is directed and funded through a Shareholder Agreement, and our employees are aware of its existence.

1.2a(2) Performance Evaluation Consistent with IPM’s culture, senior leadership participates in and benefits from the PS&DP process. As part of their PS&DP, senior leaders (and all of management) receive 360º feedback, incorporating feedback from their direct reports and other members of management each year, which influences the overall rating. Along with market data, tenure, and contributions to the Company, these performance evaluations are also used to determine compensation. Bonus criteria for senior leaders are currently undergoing examination, a responsibility highlighted in the Corporate Governance review.

As with all employees, Character Elements, aligned with but more measurable than FV, are also discussed semi-annually as part of the scorecard/PS&DP process. A cycle of improvement occurred in 2017 with the rollout of distinct Performance Criteria for all senior leaders, along with a unique set of leadership traits that fall under the leadership competencies (1.1c(1)). These have been incorporated into all senior leader semi-annual scorecard and annual review documents, including Development and Training Plans, providing a roadmap to drive individual improvements (5.2a(4)).

1.2b Legal and Ethical Behavior 1.2b(1) Legal and Regulatory Compliance While many of our clients operate in highly regulated environments, the most significant legal and ethical concerns with our operations involve fulfilling contractual requirements. IPM’s proposals are written to clearly define the engagement’s objective, deliverables, assumptions, and terms and conditions. Project management processes and leadership provided by IPM’s PMCs combined with oversight by directors and support from functional groups, as required, position us to reliably meet our contractual obligations.

As we are a business-to-business service and have no physical products, we do not deal with community or public concerns

 

 

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and do not address any adverse societal impacts of our operations. However, the PPE and the PQP are used to monitor performance and stay on top of any risks associated with our offerings. Significant concerns are elevated to senior leaders for review and resolution. In 2014, an in-house attorney was hired to review all contracts, further ensuring proper scrutiny of contractual language and terms and minimizing variable interpretation of obligations. All significant or unique points of engagement, interpretations of obligations, or subjective judgments that may impact IPM’s liability, legal, or ethical position are discussed with and approved by senior leadership. IPM also evaluated and purchased professional liability insurance as a risk mitigation vehicle. The simple fact that we can and do carry $5 MM in coverage assures our clients of our legitimacy and their protection.

IPM complies with legal requirements, such as ADA, EEOC, HIPAA, OSHA, and others. These items are monitored by the ET. IPM’s goals for these are to be 100% compliant and have zero violations. See Figure 7.4-11 for measures and results.

1.2b(2) Ethical Behavior To promote and ensure ethical behavior in all interactions, ethical conduct and decision-making are referenced in proposal language as well as the PS&DP. The Character Elements are a crucial component of the PS&DP process and are closely monitored, as those values which underpin ethical conduct are essential considerations when assessing performance. In other words, adherence to our behavioral norms and values is an integral component of employee performance evaluation. The Company’s position on ethical conduct is discussed during employee orientation, quarterly Staff meetings, and newsletter articles. Candidates for employment are informed that there is zero tolerance for dishonesty or any other breaches of ethical behavior.

Like our Vision and M&B, the Management Employment Agreement heavily emphasizes ethics. To ensure all management personnel recall their obligations and to further reinforce its importance, the agreement has been reviewed annually at a management meeting since 2016. Ethical behavior of the ET is assessed through the AP and GPTW surveys (7.4.a(4)). IPM client contracts also include statements that promote bilateral compliance to ethical practices, such as confidentiality and reciprocal recruiting restraint agreements.

1.2c Societal Responsibilities 1.2c(1) Societal Well-Being The results of many IPM projects have a remarkable impact on the well-being of society. The greatest impact is seen in the launches of new products in the Life Sciences sector, where most of our business lies. IPM has helped develop life- saving/changing treatments for conditions such as major depressive disorder, vascular disease, chronic lymphocytic leukemia, moderate to severe rheumatoid arthritis, diabetes, and pulmonary arterial hypertension.

As part of the Baldrige journey, senior leadership realized we had no way to quantify the extent of our societal impact, and so a decision was made as part of the 2016 Strategic Plan to launch an internal Societal Impact Project. The project created the following dimensions for rating the societal impact through the creation of a Societal Impact Index (SII) for each client engagement. The SII (Figure 7.4-18) is tracked as a business metric and its continued growth is part of the 2025 LRG. It includes:

• Economic Impact: The economic impact the project has or is projected to have on the client, society, a local economy, etc.

• Environmental Impact: Reducing the client’s impact to the environment in its manufacture and sale of products or delivery of service.

• Social Impact: Strengthening of health, education, safety, or other form of community well-being.

• IPM’s Contribution: The degree to which IPM’s consultants will impact the project

Each dimension is rated on a High-Medium-Low (3-2-1) scale. A SII is then calculated using the formula: [(Economic Impact + Environmental Impact + Social Impact) * IPM Contribution / 27] * 100.

With our focus on leadership, IPM also emphasizes the importance of developing leaders for future generations. Rich is active at a local high school, serving on the strategy development committee and spearheading efforts to increase enrollment and advance the school’s mission. Additionally, IPM has hosted multiple leadership workshops for the school’s faculty over the last four years.

All retired laptop computers are donated to various organizations, including more than 100 to the above- mentioned school and over 50 to other charities as indicated in Figure 7.4-19. IPM also participates in a Letters to Santa program, fulfilling holiday gift requests for underprivileged youth (Figure 7.4-20).

IPM leadership also serves on various boards (Figure 7.4-17), from privately held companies to organizations like the Aspire and Chicago Finance Exchange, giving back to the community either directly or via economic development. IPM also develops future leaders by offering summer intern positions to college students (Figure 7.4-21).

To better contribute to the well-being of the environment, the 2013 remodeling of our home office included the installation of motion-detection lighting to conserve electricity, and the ballasts were changed to be energy efficient. Our paper consumption is significantly reduced by accessing documents electronically via The Hub, and each IPM function goes paperless whenever possible—the most recent BPP was a paperless process—and participates in recycling efforts.

1.2c(2) Community Support IPM’s primary philanthropic effort is Integrated Project Mercy (Project Mercy). In harmony with our M&B, Project Mercy demonstrates our commitment to be a good neighbor and civic

 

 

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leader by influencing the quality of education, contributing to economic vitality, and exhibiting and promoting good citizenship. Giving back is a core principle of our M&B, and Project Mercy aligns with IPM’s FV of caring and responsibility.

Formally established in 2007, the program focuses on providing support to children, education, disease research, and the homeless within the areas where IPM employees work and live. We identified our office locations as our key communities because of our objective to contribute more than just money—through Project Mercy, our employees dedicate their time and talents, and to maximize their impact (and minimize burdensome travel), that needs to be done in person in their communities. Each quarter, the designated IPM office selects a cause that all offices will support, and specific charities are identified by IPM employees and approved by senior leadership, ensuring that our charitable giving aligns with our M&B. Through these efforts, IPM employees have raised thousands of dollars and contributed hundreds of hours of volunteer time, with endeavors ranging from providing manual labor to capitalizing on our core competency by leading projects and helping develop strategies for our beneficiaries. Given the low overhead that most charities strive for, having properly run projects can have a great impact on the work they do, so we have not only led projects but also provided PM training pro bono for organizations such as the Make-A-Wish Foundation. In this way, IPM’s philanthropic reach goes well beyond our key communities.

Over the course of the past 10 years, improvements have been made to Project Mercy to facilitate maximum participation by IPM’s employees. When originally implemented, planning occurred on a quarter-by-quarter basis. Over time, it was realized that more advanced planning and more project leadership was necessary for volunteer activities to occur within the appropriate timeframe. As activity and volunteer participation increased over time, it was necessary to establish a procedure of scheduling biweekly conference calls with the Project Mercy leads to ensure proper planning. Since 2015, efforts have been planned two quarters in advance, which has resulted in a greater ability to execute our activities within each designated quarter and enabled maximum participation.

CATEGORY 2: STRATEGY 2.1 Strategy Development 2.1a Strategy Development Process 2.1a(1) Strategic Planning Process IPM conducts annual strategic planning using the Business Planning Process (BPP) illustrated in Figure 2.1-1. Our approach is divided into four key process steps: Step  Observe, Step  Orient, Step  Decide, Step  Act, collectively referred to as OODA. The BPP planning cycle begins each year in September and follows a series of planning meetings that culminate at the Annual Plan (AP) meeting in February with the rollout of the Strategic Plan to all employees.

The BPP supports the growth and profitability of our business. IPM’s long-term Vision and Vision 2020 and 2025 Long- Range Goals (LRG) are translated into action through the BPP. During Step 1 Observe, IPM collects and analyzes strategic insights about our markets and business conditions. In the Orient step, using the strategic insights identified in Step 1, we conduct a SWOT analysis (Strengths-Weaknesses- Opportunities-Threats) to identify strategic advantages, challenges, opportunities, and threats. The SWOT helps the Executive Team (ET) converge their thinking in the Decide Step, resulting in a Strategic Plan consisting of Strategic Objectives (Objectives, internally Imperatives), Strategic Goals (Goals), and Strategic Initiatives (Initiatives, our action plans). The Initiatives are prioritized to help determine timing and resource needs, and senior leadership conducts a gap analysis to identify the specific resource and capability requirements to implement the Strategic Plan. This workforce plan drives inputs to the annual budget. In Step 4 Act, the Strategic Plan is deployed to the workforce, as described in 2.2a(1). Execution of the Strategic Plan and achievement of action plans is tracked and improved throughout the year using the Internal Project Portfolio Management (IPPM) process.

IPM’s BPP incorporates both a top-down and bottom-up perspective, with the ET engaging all employees in the planning process through AP employee and management surveys. Senior leadership—the ET plus industry, functional, and regional managing directors (MDs)—are the key participants in our strategic planning. The Knowledge & Process Management (KPM) MD owns the OODA/BPP process and facilitates the BPP meetings.

Going into the BPP each year, the ET evaluates the effectiveness and efficiency of the BPP cycle during the previous year and makes any needed improvements. The process has gone through several cycles of improvement throughout IPM’s history, as evidenced by the process maps associated with past Strategic and Annual Plans (AOS). Based on previous Strategic Plan results and AP survey feedback, the most recent BPP evaluation cycles spawned two significant improvements. First, MDs were tasked with developing an

Figure 2.1-1 Business Planning Process – OODA

 

 

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Assessment Summary (Regional (RAS), Functional (FAS), or Industry (IAS), depending on their role) in the Observe step to provide strategic insights and identify the potential need for transformational change. Second, tiering of Initiatives was added in the Decide step to improve organizational alignment and the prioritization of effort.

As part of the Decide step, the ET articulates the strategic intent to guide IPM’s long-term growth and confirm the 2020/25 LRG, developing both short-term (one-year) and longer-term (two-year) plans to address these LRG targets. The two-year Strategic Plan is developed in each odd calendar year, also known as a Deep Dive year. The BPP in an even calendar year, called a Validation Year, uses the same BPP process but is focused on validating the existing plan given the current market and business conditions. This annual examination of the Strategic Plan gives the organization agility and operational flexibility to adapt to an evolving business environment. Additionally, brainstorming and divergent thinking are key aspects of the Observe step to ensure open consideration of organizational needs for transformational change.

As part of the BPP, Objectives, Goals, and Initiatives are created or validated annually. Objectives are “must do” actions that are essential to achieving the Vision and 2020/25 LRG. Goals are specific two-year targets that track success for each Objective and drive progress to 2020/25 LRG. Initiatives are projects or programs designed to accomplish the Objectives or otherwise improve performance. During the Decide step, the Initiatives are prioritized using a three-tier system. Tier 1 includes projects that are essential to achievement of Goals and are targeted to be completed in Year 1 of the Strategic Plan. Tier 2 Initiatives are strategic enhancers assigned a lower priority, which might not be completed until Year 2 of the Strategic Plan. Tier 3 Initiatives are functional continuous improvement projects not critical to the achievement of specific strategic goals.

Each BPP cycle contains an AP planning process that develops the preliminary action plan to implement the Strategic Plan for the upcoming fiscal year. The AP process includes resource planning, revenue budgeting, and expense and capital budget development, all aligned with the Strategic Plan. During the AP process, the LRG are linked to and directly supported by short-term strategic goals and tactics (Initiatives), and since 2014 this linkage has been depicted in a one-page roadmap of the Strategic Plan (AOS). This strategic roadmap is presented and explained to all employees at the AP meeting.

Internal Project Portfolio Management (IPPM) is accomplished through a dashboard on The Hub, launched in 2016, and curated by the Strategic Realization Program Manager (SRPM), a role created in 2014 to ensure ongoing management of the Strategic Plan. The SRPM monitors progress of action plans, changes to the Strategic Plan, and BPP process improvements identified with lessons learned and survey feedback. The SRPM reports quarterly to the ET on the IPPM and Initiatives results.

2.1a(2) Innovation IPM’s strategy development process stimulates innovation by involving all employees in the BPP throughout the planning cycle. Potential strategic opportunities and ideas are identified and collected from employees through multiple channels, including the Observation and Trends (O&T) Hub site, which feed the BPP during the Observe step of the OODA process, along with Greenhouse. Created in 2016 in response to AP survey feedback highlighting the need to foster more innovation, Greenhouse is IPM’s innovation support team that employs a formal process to generate and substantiate ideas for referral to the BPP. Through regular communication emphasizing the importance of innovation, the ET cultivates employee interest and generates participation in Greenhouse and O&T activities.

By combining the strategic insights from the Assessment Summaries with inputs from the O&T site and senior leadership brainstorming, strategic opportunities are identified during the Opportunities portion of the organizational SWOT analysis from the Orient step of the BPP. Our key strategic opportunities are the deployment of the Strategic Realization Office (SRO) and the collaborative and alliance Project Management Offices (cPMO and aPMO) as service offerings.

To determine which strategic opportunities are intelligent risks to pursue, IPM assigns an exploratory team to perform an assessment of the opportunity and its associated risks. The team then advises the BPP, which also considers if it is a good fit with aspects of our business, including our Mission & Beliefs (M&B), Vision, and core competencies. If greater depth is required to get a full accounting of the opportunity, an Initiative is developed.

2.1a(3) Strategy Considerations IPM collects relevant data and develops information for consideration during the Observe step of each strategic planning cycle, as depicted in the BPP Planning Funnel (Figure 2.1-2). As mentioned in 2.1a(2), the O&T Hub site— which gives employees a real-time collection venue for their insight on a broad spectrum of relevant topics such as competitive intelligence, technology, consulting, and PM trends—is crucial in accumulating this data and information.

Employee and management surveys are also key inputs to the ET and provide good situational awareness of the state of the business. MDs gather and analyze key information in their assigned areas and present their findings and recommendations to the ET in the form of Assessment Summaries. Beginning in 2018, the Discovery & Development (D&D) function will collect and analyze key service and market information to inform the BPP and advise the ET on strategic considerations and business risks for key strategic opportunities.

From the SWOT analysis in the Orient step, the ET identifies Strategic Challenges (SC) and Strategic Advantages (SA) (P.2b), Strategic Opportunities (SO), and potential blind spots, which help shape the overall Strategic Plan.

 

 

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Figure 2.1-2: BPP Planning Funnel

While the consulting industry has few regulatory requirements, our clients often operate under significant regulatory scrutiny. The IAS identify any risks associated with potential changes to our external business environment, which are then accounted for in the BPP.

In the Decide step, the ET holds a series of meetings to establish Objectives, Goals, and the tiered Initiatives. The ET assesses our ability to execute the Strategic Plan by analyzing the feasibility, acceptability, and suitability of the elements of the Strategic Plan. They also conduct a gap analysis to uncover any critical resource needs for successful completion of the Strategic Plan. Prior to finalization, the preliminary plan is shared with the entire management staff at the Directors’ Meeting to uncover any unidentified blind spots and further assess our ability to execute the plan.

2.1a(4) Work Systems and Core Competencies IPM’s area of greatest expertise is project leadership, which requires the core competencies of applying process, planning, and execution; it takes discipline to deliver all three. IPM’s Customer Value work system (Figure 6.1-1) is designed to provide exceptional project leadership consulting services. This involves delivery of all aspects of PM in 10 service lines to our four targeted industries. IPM employees perform all the activities of this work system and key work processes.

The ET determines which key processes will be accomplished by IPM’s workforce or external suppliers during the BPP Decide step. This approach leverages our core competencies and ensures that high-quality standards are consistently met for all clients, so that IPM maintains a clear advantage over competitors. The challenges of providing superior consulting services require adherence to proven processes by a highly trained staff. Use of contracted consultants makes consistent service delivery very difficult and risky for IPM; therefore, we eschew this approach.

During the ET’s review of the Customer Value work system, IPM’s business model and organizational structure are

assessed and validated as part of a gap analysis, with the ET making any appropriate revisions at that time. If organizational structure and support are insufficient to accomplish the initiatives, a key work process (or support process) is added. For example, in 2016, the IT function was expanded to include the additional unique support processes of information security (IS).

During the BPP, the ET examines current and potential future client needs to determine whether our core competencies are meeting the needs of our target clients and to identify any future organizational core competencies. If the ET determines a future core competency need, they evaluate how best to develop the competency—that is, through training or recruiting. IPM’s core competencies and work system are completely driven by our M&B, Vision, and Fundamental Values (FV), and they do not often shift significantly. Core competencies have evolved slightly over time to better enable IPM to exceed our clients’ expectations.

2.1b Strategic Objectives 2.1b(1) Key Strategic Objectives We currently have three key Strategic Objectives: Diversify, Grow, and Engage Talent. These are described in Figure 2.1-3 (Figure 2.1-3 contains business sensitive data and has been redacted.), including the timetable of their short- and long-term action plans and key goals and projected targets.

Key changes to products/services, customers, and markets are driven by the IAS and RAS and may be addressed by the Centers of Excellence built around various service lines. While no changes are currently in the works, the D&D function is itself a change and is being formed to drive these changes in the future. IPM has no partners and is not currently planning any changes to our suppliers or operations.

2.1b(2) Strategic Objective Considerations We develop our Strategic Objectives during the Decide step of the BPP after completing the SWOT analysis and examining our external and internal environments. To balance the Objectives among varying and potentially competing organizational needs, the Objectives are designed to help address strategic challenges and leverage core competencies, strategic advantages, and strategic opportunities. Specifically, the Objectives indicate how we will address weaknesses and threats and capitalize on strengths and opportunities identified in the SWOT. Figure 2.1-3 (Figure 2.1-3 contains business sensitive data and has been redacted.) shows the relationship between IPM’s Objectives and SC, SA, and core competencies identified in the BPP and described in the Org Profile.

IPM balances short-term and long-term planning horizons via prioritizing Initiatives, which specify how IPM will achieve each Objective and will be resourced in a short (Tier 1) versus long-term (Tier 2) timeframe. This ensures the most essential Initiatives (Tier 1) are completed in the coming year.

The ET considers and balances the needs of our key stakeholders—clients and employees—in the establishment of our Strategic Objectives during the Decide step of the BPP. At

 

 

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a high level, Engage Talent is focused on our employees and Diversify is client-focused, with Grow being a combination of both. The development of Strategic Goals and tiered Initiatives further supports the critical needs of each stakeholder group. Figure 2.1-3 IPM 2018/2019 Strategic Objectives and Goals (Figure 2.1-3 contains business sensitive data and has been redacted.)

2.2 Strategy Implementation 2.2a Action Plan Development and Deployment 2.2a(1) Action Plans Our short-term and longer-term action plans—our Tier 1 and 2 Initiatives—can be found in Figure 2.1-3. (Figure 2.1-3 contains business sensitive data and has been redacted.) (The roster of Tier 3 action plans is AOS.) Initiatives are developed during the Decide step to address our Strategic Goals and Objectives using the PDCA process depicted in Figure 2.2-1.

A lesson learned from the previous BPP was that all action plans were treated with equal priority resulting in longer-than- necessary durations for the most crucial Initiatives. To address this issue, tiering was incorporated into the 2018–2019 BPP with the highest priority Initiatives assigned to Tier 1. The new process focuses both resources and oversight on the key action plans—those that will have the greatest impact on the Objectives and are the most critical to the business—to generate shorter timelines and better outcomes.

2.2a(2) Action Plan Implementation Once the action plans are identified and prioritized, the ET begins their deployment by assigning Single Point Accountable (SPA) owners for each Initiative. The SPAs are ultimately responsible for identifying the necessary elements (scope, schedule, resources, success criteria, and metrics) to achieve successful completion of the Initiatives.

Initiatives are presented to the entire workforce during the Annual Plan meeting, after which SPAs recruit team members from across the organization based on needs and skills. Participation on an Initiative is a factor in each employee’s bonus determination as part of the “Building the Foundation” criterion.

Once the SPAs have identified the important elements of the action plans, IPM then utilizes our core competency of project leadership to execute them as projects and ensure our Objectives are achieved. To ensure sustainment of action plan results, upon completion the SPA completes a Final Project Summary, a document that includes a summary of the work completed, a list of deliverables created, conclusions from the SPA, and recommendations for the business.

All projects adhere to the stage gate process summarized in Figure 2.2-2. The more detailed stage gate process is available AOS.

Figure 2.2-1 Action Plan Development Process

Figure 2.2-2 Stage Gate Process

Following a 2016 cycle of improvement, the stage gate process was updated to include more stringent requirements for defining, executing, monitoring, and reporting progress as well as a set of standardized tools and templates.

2.2a(3) Resource Allocation Resources are allocated during the annual budgeting process conducted in the Decide step of the BPP to ensure the necessary financial and workforce resources are available to support the achievement of our action plans while meeting current operational obligations. The budget is developed by senior leadership and based on revenue and expense projections that incorporate the results of their bottom-up gap analysis. Beginning in 2017 and based on a cycle of improvement, functional departments now complete a workload analysis worksheet to complete their gap assessments and advise the ET. This gap analysis identifies both the capabilities and cross-functional resources needed to implement the new Strategic Plan and associated tiered Initiatives (Tiers 1, 2, and 3). The tiering drives the resourcing decisions by the ET regarding whether to add Operations or Corporate positions. Once the budget is approved by the ET, the resources are allocated based on functional needs with Tier 1 Initiatives receiving priority. This ensures the assignment and commitment of critical resources necessary to complete key action plans.

IPM manages risks associated with the Initiatives to ensure financial viability by conducting a risk assessment on the budget during the budget planning process. A computerized risk tool using Monte Carlo analysis is used to determine the confidence level of the pending budget. Approved budgets have a 95% confidence factor for meeting the budget based on the simulations conducted.

Additionally, the SRPM monitors resourcing risks associated with each action plan and elevates concerns to the ET at quarterly review meetings. Other measures to mitigate risk

In iti

at e Approve and

prioritize Identify team members

Pl an Finalize

charter Create plan E

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te Develop deliverables Report status La

un ch Implement

solution Measure success

 

 

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include the preparation of detailed schedules as well as formal risk management plans for each Initiatives.

2.2a(4) Workforce Plans IPM develops a key workforce plan to support short-term and longer-term strategic objectives and action plans during the Decide step of the OODA cycle by conducting a gap analysis. The key workforce plan for 2018 calls for increasing the capacity of our workforce from 176 to 196, with an additional 12 people in Operations and eight in Corporate, including two in KPM and two in D&D. The additional capacity will allow us to achieve our Strategic Goals by having the resources necessary to build the Life Sciences curriculum to Engage Talent. Increasing our capability in Life Sciences will also enable us to Grow (another goal) through greater revenue in that sector.

The 2018–19 Strategic Plan includes several Tier 1, 2, and 3 Initiatives dedicated to improving the capabilities of workforce. The required changes in capabilities were identified during the Orient step of the OODA and then addressed in the Decide step by adding Initiatives such as: Tier 1—Life Sciences curriculum Tier 2—Management training program 2.0 and Product Development CoE Tier 3—Learning & Development program 2.0

2.2a(5) Performance Measures The SRPM facilitates and monitors action plan progress and communicates monthly status to the ET via the IPPM dashboard. The dashboard tracks the achievement and effectiveness of our Initiatives by monitoring overall portfolio health (phase, state, and status) and the progress of each Initiative. In depth action plan reviews are conducted quarterly to monitor status against key measures identified in Figure 2.1-3. (Figure 2.1-3 contains business sensitive data and has been redacted.)

An update on the progress of Initiatives is given to the entire organization during quarterly Staff meetings, reinforcing organizational alignment, which the use of the IPPM dashboard does as well. Stored on The Hub, the dashboard has also increased the transparency of action plan execution.

2.2a(6) Performance Projections Performance projections for the 2018–19 Strategic Plan, our short-term planning horizon, are listed by Strategic Goal in Figure 2.1-3. (Figure 2.1-3 contains business sensitive data and has been redacted.) The goals support IPM’s Objectives to Diversify, Grow, and Engage Talent. These include employee satisfaction measured externally (GPTW survey) as well as internally (voluntary turnover rate).

Projections for our long-term planning horizon, the attainment of our Vision 2020 LRG (established in 2010), are listed in Figures 2.2-3 (Figure 2.2-3 contains business sensitive data and has been redacted.) and 7.4-23 (Figure 7.4-23 contains business sensitive data and has been redacted.),while the recently established projections for our 2025 LRG are seen in Figure 2.2-4 (Figure 2.2-4 contains business sensitive data and has been redacted.).

IPM utilizes available and appropriate benchmarks to measure the outcomes of action plans against competitor performance whenever possible. Where gaps are identified between internal and competitor performance, IPM adjusts current—or creates new—action plans to address the disparity. Examples include using the GPTW survey to measure employee satisfaction against Best in Class, which resulted in the implementation of comprehensive performance management and learning and development programs to address the identified gaps. Figure 2.2-3 Progress on Vision 2020 Long Range Goals (Figure 2.2-3 contains business sensitive data and has been redacted.)

2.2b Action Plan Modification If circumstances require a shift in action plans, the SPAs and associated teams are empowered to do so when rapid execution is necessary. The SPAs have the authority to make the changes as circumstances arise, using the same process defined in 2.2a(2), then communicate them to the SRPM via monthly status reports.

More substantial modifications of action plans requiring higher-level approval are adjudicated and approved during the quarterly reviews with the ET per Figure 2.2-1. Examples of changes that require high-level approval include reprioritization, additional resource needs, discontinuation of work, or the inclusion of new Initiatives. Critical changes are elevated and addressed at weekly ET meetings for rapid action. All modifications to action plans are subject to the same stage gate process as the original (Figure 2.2-2), thus ensuring their viability. Figure 2.2-4 2025 Long Range Goals (Figure 2.2-4 contains business sensitive data and has been redacted.)

CATEGORY 3: CUSTOMERS 3.1 Voice of the Customer 3.1a Customer Listening 3.1a(1) Current Customers IPM employs several key communication methods to listen to, interact with, and observe customers to obtain actionable information, as seen in Figure 3.1-1. These methods, which were evaluated and improved upon in 2016, allow for the collection of information to help senior leadership identify client requirements and potential upgrades to IPM services and processes. This cycle of improvement identified a gap that was closed with the addition of Post-sales insights, which allows for the collection of Voice of the Customer (VOC) data as it relates to opportunities that are won or lost. This—like other insights, new connections, or potential opportunities—is documented in the Customer Relationship Management system, Deltek Vision (Deltek), which also functions as our Enterprise Resource Planning (ERP) software.

 

 

Lead Generation & Qualification

• Target potential leads • Nurture relationships through interaction • Identify & develop business opportunities

Pre-Project

Project Kick-off

• Scope meeting with client • Project Launch Analysis (PLA)

• Stakeholder meetings • Scope alignment • Develop and confirm high level schedule and plan

Execute Project • Develop detailed plans • Complete deliverables • Stakeholder meetings

IPM Learning

• Upload documents/files • Confirm customer satisfaction • Lessons learned • Project Performance Evaluation (PPE)

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Figure 3.1-1 Listening and Communication Methods

In terms of marketing segments, a small variation in listening methods exists. For instance, IPM holds summits for Life Sciences and Healthcare but not for Consumer or Industrial, as our client base and targets are smaller in the latter two segments.

IPM utilizes Deltek, a web-based technology, as a repository for the information gathered through listening to current and potential customers. The main objectives in gathering feedback include the following:

• Understand the client’s perspective regarding interaction with IPM.

• Determine what the IPM experience means to the client, including the value added and sustainability of results.

• Identify improvement opportunities for our service offerings, service delivery, and client support.

• Create opportunities to stay connected, build relationships, and cultivate loyalty.

• Understand client service needs and how clients solve their business problems.

Additionally, IPM uses social media—primarily Twitter, LinkedIn, and Glassdoor—to listen to customers through both their interaction with our profiles and the various information they disseminate.

IPM listens to customers during the entirety of the customer life cycle (Figure 3.1-2), allowing us to customize the client experience and maximize their satisfaction. Having regular one-on-ones with sponsors (our key stakeholders) provides immediate feedback from customers regarding the quality of our support. It also builds lasting customer relationships that are key to the business, as highlighted by high customer retention (Figures 7.2-1) and satisfaction. Actionable feedback for individual projects is recorded in the Project

Quality Plan (PQP) and influences the quality of future products.

Figure 3.1-2 Listening through the Customer Life Cycle

3.1a(2) Potential Customers We document our interactions with potential clients at each stage of the Business Development (BD) Life Cycle (AOS) to determine client needs and tailor our service offerings to address them.

Individual employees are assigned ownership of prospective clients to contact and create a dialogue; these communications events keep us abreast of the needs of potential customers.

In addition to using social media to listen to all categories of customers, in 2015 IPM initiated the first of several Google AdWords campaigns to improve our listening to potential customers. From search terms and user engagement, we obtain actionable information on the services and solutions our prospective buyers are seeking. The data from AdWords are reviewed at the end of each campaign and on a quarterly and annual basis as part of our marketing analytics roll-up. The roll-up was introduced in 2014 to provide additional insight into some of the needs and problems of our prospective clients. It was updated in 2016 and again in 2017 and now includes a free-text field on the Opportunities page in Deltek to capture why potential engagements were won or lost, as described in 3.1a(1).

3.1b Determination of Customer Satisfaction & Engagement 3.1b(1) Satisfaction, Dissatisfaction, and Engagement Because our product offerings are the same regardless of market segment, IPM’s processes to determine customer satisfaction, dissatisfaction, and engagement are conducted consistently across IPM’s customer groups, as their needs in terms of our service are not markedly different. This standardized approach is validated by the consistently positive feedback we receive across all our market segments through the post-engagement Project Performance Evaluation (PPE). During an engagement, the PQP ensures that client requirements are known and can be met and exceeded. Additionally, the Account Manager (AM) and assigned PMC

Method Client Segment* Frequency

Conference participation CC, FC, PC Ongoing

Event attendance CC, FC, PC Ongoing

Webinars CC, FC, PC Ongoing

Face to face meetings CC, FC, PC Ongoing

Email CC, FC, PC Ongoing

Phone calls CC, FC, PC Ongoing

Mailings CC, FC, PC Ongoing

Website CC, FC, PC Ongoing

IPM industry summits CC, FC, PC Annual

PPE CC End of Project

Published articles & books CC, FC, PC Ongoing

Post-sales insights CC, PC Ongoing

Pardot CC, FC, PC, CoC Ongoing

Social media CC, FC, PC, CoC Ongoing

Kellogg project CC, FC One-time

*CC-Current Client, FC-Former Client, PC-Potential Client, CoC- Competitor Client

 

 

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conduct one-on-one discussions with the client sponsor and other key client stakeholders to solicit real-time performance feedback, gauge customer satisfaction, and identify opportunities to increase the value delivered. Any dissatisfaction is also quickly identified and addressed. IPM seeks to delight our customers and to exceed their expectations. New approaches and/or deliverables that achieve this level of response are incorporated into future offerings (e.g., a graphically oriented Final Project Summary has become commonplace following rave reviews to the creativity of one of our PMCs working with our Creative & Communication Services (CCS) department).

Within two weeks of completing an engagement, the PPE is administered to key client stakeholders to solicit feedback on IPM performance. The PPE includes numerical rating, pick- list, and qualitative response questions. Following our 2015 ILPEx application, the survey was revised. To drive increased client responsiveness, the entire survey was shortened by eliminating some questions and tightening others. A free-text field now allows survey takers to indicate how IPM exceeded their expectations or how they were left dissatisfied, providing a way to capture the ratio of satisfaction to dissatisfaction (Figure 7.2-5). While the PPE had always asked about a client’s likelihood to recommend IPM, the switch to a 10- point scale for all questions allows us to present the query in a format that mimics Net Promoter Score (NPS).

The change to the 10-point scale from the previous 5-point scale was motivated by a desire to gain additional granularity. Another revision in our survey process occurred to enhance data integrity. AMs can now eliminate questions to ensure all queries are germane to an engagement, as irrelevant questions had previously resulted in some confounding data.

PPE results are reviewed by the AM and the PMC to identify performance that exceeds client expectations and builds loyalty. These examples serve as models for service improvement. When unfavorable feedback is received, an investigation is started, which may include direct follow-up with the client to fully understand their concerns. Actions are then taken to mediate customer issues. If appropriate, lessons learned from unfavorable feedback are shared among Ops management to minimize the risk for recurrence.

Customer engagement is determined through the NPS question. IPM also uses our client retention metric to measure engagement (Figure 7.2-10). New business opportunities that are derived from repeat customers and customer referrals are recorded accordingly in Deltek to enable analysis of trends. Aggregated PPE data have been captured on The Hub since 2016, creating a central database for all results and improving the functionality and ease of retrieving and analyzing them. From this data, senior leadership gleans insights into our performance, service offerings, and strategy, which are then shared at quarterly Staff and Directors’ Meetings.

3.1b(2) Satisfaction Relative to Competitors A primary motivation for adding the NPS question to the PPE was to use it as a benchmark for comparing our customer

satisfaction with the NPS of other organizations. The 2015 PPE revision also added a relative satisfaction question, asking clients to rate our performance relative to their satisfaction when hiring various categories of competitors (Figure 7.2-4).

On the qualitative side, information relative to competitors is obtained through discussions with current and potential customers.

3.2 Customer Engagement 3.2a Product Offerings and Customer Support 3.2a(1) Product Offering To determine what services to offer, senior leadership evaluates opportunities and trends, the business environment (internal and external), and IPM’s Strategic Advantages (SAs). The results of the Industry and Regional Assessment Summaries (IAS and RAS) are taken into consideration to better determine customer and market needs and requirements for our services.

Utilizing IPM’s listening methods (Figure 3.1-1), BD, Marketing, and Ops identify unmet customer opportunities and industry trends, which are logged in the Observations & Trends (O&T) site on The Hub. All entries are then analyzed by senior leadership. During the Business Planning Process (BPP), Strategic Initiatives (Initiatives) are then developed, as appropriate, to adapt product offerings to better exceed customer expectations. Additional input to the development of Initiatives comes from interactions during the sales process and client feedback via the PPE and are reviewed at quarterly Directors’ Meetings.

In 2014, the BPP yielded the creation of Centers of Excellence (CoEs) for four of our service lines—Project Portfolio Management (PPM), Change Management, Business Technology, and Life Sciences Quality and Regulatory—to identify and adapt offerings to meet and better serve current customers and thereby expand the relationships. This is accomplished through the development of processes, tools, resources, training, and support structures. The CoEs are additionally showcased by Marketing and BD to facilitate entering new markets and attracting new customers.

Adaptation to our CoE service lines occurred in response to market conditions, when two factors influenced the addition of a CoE for Mergers & Acquisitions in 2015. First, for years we had been assisting customers struggling with integrations and had seen the value we could provide in this area. Second, consolidation and acquisition had increased in our industry segments. And again in 2016, we realized that the need for regulatory and quality support extended beyond the Life Sciences. The Food Safety Modernization Act was among the most prominent examples of the increased regulatory oversight that many of our industry segments were experiencing, and knowing that our expertise would cross over effectively, the Life Sciences–specific CoE was adapted and re-cast as the industry agnostic Regulatory & Quality CoE. This change allowed us to attract new, non–Life Sciences customers.

 

 

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Our newest market segment, Healthcare, was established following extensive research into opportunities to provide value in that arena. A key method for refining our offering in this market was the establishment of a Healthcare Advisory Board, which included external industry executives to advise the Executive Team (ET) and help formulate our strategy for successfully penetrating this market. Having served its purpose, the Board was disbanded in 2014.

To attract new customers and expand our relationship with existing ones, IPM uses the IAS and RAS to identify unfulfilled needs to expand our offerings. Since our customer base does not view PM as a core competency—and we had observed the trend of outsourcing other functions—in 2016 IPM endeavored to offer an entirely outsourced Project Management Office (PMO) as a service. Early in 2017, IPM landed our first outsourced-PMO engagement.

Moving forward, new product offerings will be the domain of the newly formed Discovery & Development (D&D) function.

3.2a(2) Customer Support IPM integrates customer support in the service delivery for each engagement; our entire service model revolves around providing support and information to customers. Our key means of customer support are the assigned PMC and AM, who are bolstered by other IPM staff such as the CoEs, KPM, CCS, Principal Consultants (PCs), and other Subject Matter Experts (SMEs). Customers easily seek information and support through the access afforded by on-site presence of the PMC. Frequent interactions with the customer are thus actually unavoidable. The PMC also has formal—typically weekly—one-on-one meetings with the primary customer, the project sponsor. Standard PM tools such as a schedule and risk register also serve as key communication mechanisms, conveying the details of the approach that IPM will use to provide support. Each engagement is customized to specific client needs, so the particular mechanisms used can vary between different customers regardless of market segment.

To further enable our customers’ ability to conduct business with us, the AM also remains in close contact with and is readily accessible to the sponsor throughout the engagement. Clients also know to visit our website, where they access educational information about project management and IPM’s service lines, along with white papers and case studies from other IPM engagements.

 
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