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
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
Association of Management Consulting Firms
AOS
Available on Site
AP BD
Annual Plan
Business Development Business Planning Process Chief Executive Officer Chief Financial Officer Center of Excellence Chief Operating Officer Community of Practice
Strategic Objectives; internally called Strategic Imperatives
BPP CCS CEO CFO CoE COO CoP CISSP
OFI
Opportunity for Improvement Observe–Orient–Decide–Act Occupational Safety and Health Administration Operations
Creative & Communication Services Dept.
OODA
Ops
OSHA
Certified Information Systems Security Professional
O&T
Observations & Trends Principal Consultant Plan–Do–Check–Act Project Launch Analysis Project Management
PC
PDCA PLA PM PMA PMC PMI PMO PMP PMT PPE PPM PQP
CR
Central Region
CRM
Customer Relationship Management Customer Service Person(s) of the Year
C-SPOTY
Project Management Associate
D&D Deltek
Discovery & Development
Project Management Consultant; also used generically for PMA/PMC/SPMC/PC Project Management Institute Project Management Office Project Management Professional Portfolio Management Team Project Performance Evaluation Project Portfolio Management IPM’s employee newsletter Regional Assessment Summary Risk Information Security Program Return on Values Project Strategic Advantage(s) Strategic Challenge(s) Societal Impact Index Service Line–Industry Matrix Subject Matter Expert Single Point Accountable Strategic Opportunities Service Performance Insight Project Quality Plan Performance Summary & Development Plan Senior Project Management Consultant Strategy Realization Program Manager Strengths–Weaknesses–Opportunities–Threats Strategic Realization Model
Deltek Vision, IPM’s CRM & ERP system
DRP DRT DSO EAP
Disaster Recovery Plan Disaster Recovery Team Days Sales Outstanding
Employee Assistance Program
EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization Equal Employment Opportunity Commission
EEOC
ER
East Region
PS&DP The Pulse
ERP
Enterprise Resource Planning
ET
Executive Team
RAS RISP ROVP
FAS
Functional Assessment Summary Family and Medical Leave Act
FMLA
FTE
Full-Time Equivalent Fundamental Values
SA SC SII
FV FY
Fiscal Year
GPTW
Great Place to Work
SLIM SME
Greenhouse
IPM’s innovation program Health Insurance Portability and Accountability Act
HIPPA
SPA SO SPI
HR
Human Resources
HRA
Health Reimbursement Account
SPMC SRM SRPM SWOT
The Hub
IPM’s SharePoint site
IAS
Industry Assessment Summary
ILPEx
Illinois Performance Excellence Recognition Program, the state-level Baldrige program Strategic Initiatives, IPM’s action plans Integrated Project Management Company, Inc. IPM’s consultant onboarding process Internal Project Portfolio Management
Initiatives
VOC
Voice of the Customer Voice of Consultant
IPM
VOICE
IPM Prep
VP
Vision Priorities
IPPM
VPN VRO WR YOY
Virtual Private Network Vision Realization Officer Year over year Cycle of Improvement West Region
IS IT
Information Security Information Technology Key Performance Indicator
KPI KPM LMS LRG M&B
Knowledge & Process Management Dept.
Learning Management System
Long Range Goal(s) Mission & Beliefs
ORGANIZATIONAL PROFILE P.1 Organizational Description
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.
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
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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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%)
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 . 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. Honesty, integrity, caring, respect, humility, responsibility, excellence, and spirituality . Diligence, enthusiasm, fairness, honesty, integrity, loyalty, resilience, sense of humor, trust, and work ethic.
Vision:
Fundamental Values:
Character Elements:
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.
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. 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, P.1b Organizational Relationships P.1b(1) Organizational Structure 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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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
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 –
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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
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,
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
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.”
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
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
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