You know how to create the business plan. Now learn how to WORK THE PLAN. See how to measure corporate performance, and tweak/adjust your strategy based on real feedback

1. Measuring Business Success
– Business Performance
Management System
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
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www.cpSphere.com

2. ITS NOT STRATEGY THAT MATTERS – IT’S EXECUTION THAT COUNTS
 cpSphere

Delivering Next Generation of Solutions
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1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
www.cpSphere.com
info@cpsphere.com
www.cpSphere.com

3. Agenda
Why measure Business Performance
What is Corporate / Business Performance
Management
 Strategy Map
 Goals & Objectives
 Scorecard – Key Performance Metrics
 Initiatives
Review Process
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

4. 1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

5. I think I am doing everything right but my
business is still not successful…….I wonder why????
No goals….everyone
Lack of Direction Lack of focus
doing their own thing

No Performance Management & Measurement System
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

6. Why measure business performance ?
Facilitates
Supports Tracks progress corrective actions
Improves
Strategic towards goals to address
accountability
Planning & Goal performance
using metrics
Setting gaps
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

7. Business Performance Management System
Strategic Planning
Create Environment
For Change
Communicate Strategies
Define Goals
Implement Scorecard
Measure Performance
Track Progress
Identify & Eliminate Problems
Improve Processes
Evaluate and Adjust
Continuous Improvement
Redefine Initiatives
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

8. Components of Business Performance
Management System
Strategy Map – Road map to success
Goals & Objectives – Direction & Focus
Scorecard – Measurement &
Communication
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

9. Sample Companies who achieved significant
success through Scorecard Implementation
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

10. Success Story
• In early 1990’s Mobil Oil Corporation was ranked
lowest in its industry & the business was not profitable
• In 1994, Balanced Scorecard was introduced and
implemented for all the Marketing & Refining units
• In less than 2 years, Mobil achieved number one rank
in its industry and its profitability was 56% above
industry average
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

11. Success Story
• BMW adopted Balanced Scorecard in 1998
• Their number of customers grew by over 200%
within 3 years
• Their number of vehicles sold grew by 175% within 3
years
• BMW has been recognized for high level of customer
& dealer satisfaction
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

12. Strategy Map – Four
Perspectives
FINANCIAL CUSTOMER
what financial objectives must How the customers perceive us?
we accomplish to increase What customer needs do
shareholder value? we meet?
INTERNAL
To satisfy our customers and
stakeholders, in which business
processes must we excel?
LEARNING & GROWTH
To achieve our goals,
what skills and technology we
need to improve?
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

13. Strategy Map – Road map to success
Objectives
Increase Company Value
Sales
Improve
Growth
Profitability
High Quality at Reasonable Prices
Excellent Customer Service
Factor & Customer Intimacy
Improve Customer
Improve Inventory
Develop the Brand
Acquisition/
Internet Presence
Management Process
as Upscale
Retention
Relationships Management and Up
Improve Operational Skills
selling Skills
Integrate IT / Business Systems
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

14. Goals & Objectives - Power of Goal
• Colonel Harland Sanders was rejected by 100’s of restaurant owners before
he came up with KFC
• Milt Campbell, an Olympic Athlete, had a goal to be “Gold Medalist”. He
tried 4 times before he became a Goal Medalist
• Thomas Edison said he didn’t fail 10,000 times but he came up with
10,000 ways to product electric light
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

15. Goals & Objectives - Importance
• Goals provides focus and ensures all the functions and
elements of the organization are moving towards a
common destination
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

16. Scorecard – Measurement &
Communication
• Objectives (from the Strategy Map)
• Key Performance Measures to track progress on the
objectives
• Targets for the Measures
• Owners for the Measures
• Initiatives
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

17. Scorecard
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

18. Key Performance Measures
Key Performance Measures are FACTS about the
business which allow the Company to:
• F ocus efforts towards meeting Company’s goals
• A ssess quality of the core processes
• C lose gaps through corrective actions
• T rack progress towards company’s strategic plan
• S upport accountability and communication to the
organization
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

19. Targets
• Should be aligned with strategic plan and give
organization a goal to aim for
• Targets are necessary because:
“If you don’t know where you’re
going, you’re probably not
gonna get there.”
Forrest Gump
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

20. Ownership & Accountability
• Assign owners to each measure who will be
accountable for:
– Tracking and Monitoring Actual results
– Eliminating Problems before they grow by taking timely
corrective actions
– Defining and implementing initiatives to meet company
targets
– Reviewing targets / initiatives periodically and revise as
necessary
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

21. Review Process
Scorecard is a “Living Document” which require regular
reviews (monthly) and revisions (quarterly) as
necessary
• How are we doing?
• Are we measuring the right things?
• Are the initiatives effective in achieving the desired
results?
• Have the organizational goals changed?
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

22. Next Step
• How would you apply Scorecard into your Business?
1. Share company’s vision with your key staff.
2. Define strategy map and business goals / objectives
3. Develop Scorecard
a. Performance Measures
b. Assign priorities
c. Assign Owners
d. Establish Targets
e. Track Actual
4. Develop initiatives for objective where significant gaps exist
between actual and targets
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

23. Exercise
• Create a Scorecard for a Super Market
1. CA Based Super Market Chain with stores in CA only
2. Current Annual Revenue $150 million
3. Vision to be a National Chain in 5 years with $500 million in
revenue
4. Attached is a Strategy Map
You have 30 minutes
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

24. Super Market Strategy Map
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

25. CPSPHERE – HELP YOU FOCUS & GROW
Did we all Get it?
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com