1、Crystal Group One Day Balanced Scorecard Training,2,2018/8/22,2004 Balanced Scorecard Collaborative Pty Ltd ,Seminar Map,Module 0: Welcome,Module 1: Introduction and BSC Concepts and Process,Module 2: Strategy Mapping,Module 3: Identifying Measures and Setting Targets,Module 4: Linking Initiatives t
2、o Strategy,Module 6: Cascading the BSC,Module 7: Communications and the BSC,Module 9: BSC and SWOT Analysis,Module 10: BSC Portal Technology,Module 8: Becoming a Strategy-Focused Organization,Module 5: Getting to First Report,Page 2, 2004 Balanced Scorecard Collaborative Inc. ,001M_H2_Mapping_Partic
3、ipant Guide,3,2018/8/22,2004 Balanced Scorecard Collaborative Pty Ltd ,Build a high-level understanding of the Balanced Scorecard Concept and its applicationEnsure the Crystal Group team understands the BSC development processUnderstand the Technology Tools that will be used to power the BSC develop
4、ment and implementation process,Workshop Objectives,What are your objectives for the day?,Introduction to BSC Concepts and Process,5,2018/8/22,2004 Balanced Scorecard Collaborative Pty Ltd ,Source: Michael Porter, “What is Strategy”, Harvard Business Review, Nov-Dec 1996,What Is Strategy?,Strategy i
5、s the way an organization seeks to achieve its vision and mission A set of goals/objectives A method involving people, resources, and processesAccording to Michael Porter, strategy is defined by Unique competitive position for the company Based on clear trade-offs and choices vis-vis competition Reg
6、arding value propositions and activitiesStrategy specifies what you do, and dont do,6,2018/8/22,2004 Balanced Scorecard Collaborative Pty Ltd ,“Less than 10% of strategies effectively formulated are effectively executed.”Fortune June 21, 1999, “Why CEOs Fail” by Ram Charan,“Strategies most often fai
7、l because they arent executed well.” Execution Bossidy, Larry and Ram Charan, Execution: The Discipline of Getting Things Done” Crown Business: New York (2002), page 15,The Challenge Is Translating Strategy Into Action,7,2018/8/22,2004 Balanced Scorecard Collaborative Pty Ltd ,Todays Management Syst
8、ems Were Designed to Meet The Needs of Stable Industrial Organizations That Were Changing Incrementally,Only 5% of the work force understand the strategy,60% of organizations do not link budgets to strategy,Only 25% of managers have incentives linked to strategy,The People Barrier,The Vision Barrier
9、,The Resource Barrier,9 of 10 companies fail to execute strategy,There Are Four Barriers to Strategy Execution,Operational Fire fighting!,8,2018/8/22,2004 Balanced Scorecard Collaborative Pty Ltd ,1. Brookings Institute analysis of S&P500 companies,The source of value has shifted from tangible to in
10、tangible assets.,Our management systems were designed to manage tangible (financial) assets.,Why Is It So Difficult to Execute Strategy?,9,2018/8/22,2004 Balanced Scorecard Collaborative Pty Ltd ,Service Quality,Customer Confidence,Revenue,Customer Retention,Training,Information Technology,Creating
11、Value from Intangible Assets Is Different,Intangible Assets Do Not Have A Direct Impact on Financial Results It Is Usually a Second-Order or Third-Order Impact,The logic of cause-and-effect defines how intangible assets are converted into tangible outcomes.,10,2018/8/22,2004 Balanced Scorecard Colla
12、borative Pty Ltd ,How to Measure the Value of Intangible Assets: Strategic Readiness,Human Capital Information Capital Organization Capital,INTANGIBLE ASSETS,Strategy,Short-term Assets Accounts Receivable Inventory Long-term Assets Equipment Property Goodwill,TANGIBLE ASSETS,Readiness,Liquidity,Stra
13、tegic Readiness: The degree to which an intangible asset meets the requirements of the strategy.,11,2018/8/22,2004 Balanced Scorecard Collaborative Pty Ltd ,Strategic Readiness the degree to which an intangible asset meets the requirements of the strategy,Strategy,Strategic Jobs & Competencies,“Cros
14、s-sell the product line”,Solutions selling / relationship management Product line knowledge Licensed Certified Financial Planner,Strategic Readiness,Certified,Not Certified,40,100,“Strategic Job Readiness Ratio” = 40%,Financial Planner,Example: Measuring the Strategic Readiness of Human Capital,12,2
15、018/8/22,2004 Balanced Scorecard Collaborative Pty Ltd ,Dr. Robert Kaplan,Marvin Bower Professor Leadership Development, Harvard Business School Co-founder and Chairman of Balanced Scorecard Inc. Co-Author (with David P. Norton) of: The Balanced Scorecard: Translating Strategy Into Action The Strate
16、gy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment Strategy Maps,Keynote Introduction,13,2018/8/22,2004 Balanced Scorecard Collaborative Pty Ltd ,Everyones Job,Organization Alignment,Translate Strategy,Translate Strategy,Executive Leadership,Executive Le
17、adership,Continual Process,Organization Alignment,Everyones Job,Continual Process,The Answer: A “Strategy-Focused Organization”,14,2018/8/22,2004 Balanced Scorecard Collaborative Pty Ltd ,Balanced Scorecard Hall of Fame Achieving Breakthrough Results,US Army,UK Ministry of Defence,Royal Norwegian Ai
18、r Force,National Reconnaissance Office,Financial Services,Commercial Vehicle Business Unit,Engineering Polymers,Information and Communication Mobile,North AmericaMarketing & Refining,Human Resources,Property & Casualty,15,2018/8/22,2004 Balanced Scorecard Collaborative Pty Ltd ,Translate the strateg
19、y to operational termsLink and align the organization around its strategyMake strategy everyones jobMake strategy a continuous processProvide a change agenda,so everyone can understand.which creates a “line of sight” from “boardroom to backroom.”through personal contribution tostrategic implementati
20、on.through organizational learningand adapting.for executive leadership tomobilise change.,Principles of a Strategy-Focused Organization,16,2018/8/22,2004 Balanced Scorecard Collaborative Pty Ltd ,At the highest conceptual level, the Balanced Scorecard is a framework that helps organizations transla
21、te strategy into operational objectives that drive both behavior and performance.,What Is a Balanced Scorecard?,17,2018/8/22,2004 Balanced Scorecard Collaborative Pty Ltd ,Four Business Perspectives,The Balanced Scorecard converts strategy into an integrated system defined across four business persp
22、ectives.,The Strategy,18,2018/8/22,2004 Balanced Scorecard Collaborative Pty Ltd ,The Four Perspectives Pull Together Proven Management Concepts into a Simple Framework,Internal Perspective,Financial Perspective,Learning & Growth Perspective,Customer Perspective,Return on Investment,Reputation,Sourc
23、es of Growth,Sources of Productivity,+,+,“Build the Brand”,“Make the Sale”,“Deliver the Product”,“Service Exceptionally”,Productivity Strategy,Human Capital,Information Capital,Organization Capital,Image,Relationship,Product Service,Revenue Strategy,The economic model of key levers driving financial
24、 performance,The identification of targeted customer segments and their value proposition,. The process-focused view of the business using the value chain,The intangible assets necessary to drive performance,1,2,3,4,19,2018/8/22,2004 Balanced Scorecard Collaborative Pty Ltd ,EVA,ROI,(CRM) Customer R
25、elationship Management,TQM/ Quality,Process Reengineering,Change Management,HR Strategy,BSC The Integrator of the Best Management Practices,20,2018/8/22,2004 Balanced Scorecard Collaborative Pty Ltd ,Natural Cause and Effect Logic,To Build the Strategic Capabilities,Needed to Deliver Unique Sets of
26、Benefits to Customers.,To Drive Financial Success.,And Realize the Vision,Equip Our People.,Financial Results,Customer Benefits,Internal Capabilities,Knowledge, Skills, Systems, and Tools,21,2018/8/22,2004 Balanced Scorecard Collaborative Pty Ltd ,Why the Balanced Scorecard Works,CORPORATE,BUSINESS
27、UNITS,SBU 1xxxxxx,SBU 2xxx,SBU 3xxx,2. Each SBU develops a long-range plan and BSC consistent with corporate strategic agenda.,CORPORATE SCORECARD (Shared Strategic Agenda) Theme Aggressive Growth Customer Loyalty Speed and Flexibility Customer IntimacyOperational ExcellenceRight SkillsAccountabilit
28、y Culture,1. A corporate scorecard defines overall strategic priorities.,SHARED SERVICE UNITS,SHARED SERVICE UNITS Finance Marketing IT Sales General Services Human Resources Organizational Development,3. Each Shared Service Unit develops a plan and BSC for “best practice” sharing to createsynergies
29、 across SBUs.,Focuses the Organization,Aligns the Organization,Adapts the Organization,22,2018/8/22,2004 Balanced Scorecard Collaborative Pty Ltd ,Financial,Maximise return on assets,Profitable growth,Learning & Growth,Internal,Customer,Industry leading employee satisfaction,World-class leadership e
30、ffectiveness,Ensure market-driven skill development,Proactively build & manage relationships,Seamless cross-group delivery of services,Leverage asset base,Continued Public Support,Customer Service Excellence,Manage operation costs,Communication and education programs,Effective customer service proce
31、sses,Understand drivers of customer value,Ensure reliable service,Electric Utility, Inc.Strategy Map,23,2018/8/22,2004 Balanced Scorecard Collaborative Pty Ltd ,ROCE Revenue growth Asset utilisation rate Operating costs / customer,Maximise returns Profitable growth Leverage asset base Manage operati
32、ng costs,Customer satisfaction rating,% revenue from deregulated products/services % trading revenue Revenue from new services % customers served through alliances and joint ventures NPV product/service pipeline % R&D projects meeting protocol gates (D)Customer/partner satisfaction (5 point scale) R
33、eliability index Communication/education coverage (%) % communication/education plans executed (D)Promised delivery % New product uptake rate On-time market research projects (D)Customer satisfaction rating C.S. Center (see above) Problem resolution cycle time Customer Service Center (D)% rated capa
34、city attainedEmployee productivity improvement% cost reduction Cost of disruption vs. plan Time to recovery (D),Optimise Core Business Optimise core utilisationMax. return on resource allocationContinued cost management Enterprise-wide risk managementContinued Public Support Proactively manage relat
35、ionships Ensure reliable service Communicate/educate customersCustomer Service Excellence Seamless cross-group delivery Understand customer drivers Effective customer servicesBusiness Growth Capitalise on deregulationopportunities Optimise trading opportunities Develop innovative services Use allian
36、ces and joint ventures Leverage cross-group R&D,Strategic skill coverage ratio Hours in strategic skills training (D) Employee satisfaction rating (5 point scale)Leadership effectiveness rating (upward appraisal5 point scale),Ensure market-driven skillIndustry leading employee satisfactionWorld-clas
37、s leadership effectiveness,Objectives,Measures (D=Drivers),14% 6% 80% $150,80%,5% 10% $500M 10% $500M 90%4.0 90/100 100% 80%90% 20% 90%85% 6hr80%2%4% +/-15% 8 hr,65% 10 3.04.0,FY03,14.5% 8% 85% $140,85%,7% 12% $550M 20% $550M 95%4.5 92/100 100% 85%95% 25% 95%89% 4hr85%3%5% +/-10% 4 hr,75% 12 4.04.5,
38、FY04,15% 12% 90% $125,90%,10% 15% $600M 25% $600M 100%4.5 95/100 100% 90%97% 30% 100%95% 3hr90%4%6% +/-5% 2 hr,85% 15 4.54.5,FY05,Targets,Industry leading customer loyalty,Customer,Internal,Learning & Growth,Financial,Customer loyalty program,Telecom infrastructure development Trading risk assessmen
39、t (work support)Research alliance programPreventative maintenanceCommunity outreach programCross-selling marketing program Service dispatch automationCIS upgrade Call center software integrationFossil maintenance benchmarkShared service benchmark/outsourcing initiative ERP implementation,Initiatives
40、,Competency profilingPerformance compensation linkLeadership training program,Electric Utility, Inc.Measures, Targets, & Initiatives,24,2018/8/22,2004 Balanced Scorecard Collaborative Pty Ltd ,Objectives,Seamless Cross- Group Delivery of Services,Targets,97% (first time),Service Dispatch Automation,
41、Initiatives,Measures,Promised Delivery %,Strategic Theme: Customer Service Excellence,Financial,Learning & Growth,Profitable Growth,Ensure Market- Driven Skill Development,Industry Leading Customer Loyalty,Max. Return on Assets,Customer,Internal,Understand Drivers of Customer Value,Effective Custome
42、r Service Processes,Objectives Statement of what strategy must achieve and whats critical to its success,Targets The level of performance or rate of improvement needed,Strategic Theme: Diagram of the cause and effect relationships between strategic objectives,Initiatives Key action programs required
43、 to achieve objectives,Measures How success in achieving the strategy will be measured and tracked,Seamless Cross- Group Delivery of Services,BSC Terminology,25,2018/8/22,2004 Balanced Scorecard Collaborative Pty Ltd ,What are the goals of the BSC for Crystal Group?,BSC Goals/Benefits Discussion Que
44、stion,26,2018/8/22,2004 Balanced Scorecard Collaborative Pty Ltd ,Balanced Scorecard Six-Step Development Process,27,2018/8/22,2004 Balanced Scorecard Collaborative Pty Ltd ,Stage 1: Information Gathering & trainingStage 2: Corp. BSC developmentStage 3: SBU BSC developmentStage 4: Function BSC devel
45、opmentStage 5: Summary,Week,Kick-Off,Project Schedule,1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16,3 SBU.Map,Workshop #3,Interview/Train,28,2018/8/22,2004 Balanced Scorecard Collaborative Pty Ltd ,Project Approach,Strategy Mapping,30,2018/8/22,2004 Balanced Scorecard Collaborative Pty Ltd ,Teams in the Pr
46、ocess,Strategy Mapping,Inputs to the Process,Pitfalls,2.1,2.2,2.3,2.4,Module 2 Map,31,2018/8/22,2004 Balanced Scorecard Collaborative Pty Ltd ,Teams in the BSC Development Process (typical),BSC Development,Core Team,Leadership Team,Measurement Teams,Leadership Team,Role: Champion process and make st
47、rategic BSC decisions Participate fully and openly in workshops and oversight support Provide resources and oversight support for Core-Team and Measurement-Teams,Membership: Leader of organisation and direct reports Specific functional leaders as required,Time Commitment: Variable see project plan,32,2018/8/22,2004 Balanced Scorecard Collaborative Pty Ltd ,Core Team,Teams in the BSC Development Process (Continued),BSC Development,Core Team,Leadership Team,Measurement Teams,Role: Lead the execution of the process Create the strategy map Lead Measurement Teams Develop implementation plan,
