1. Measuring Business Success
– Business Performance
Management System
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2. ITS NOT STRATEGY THAT MATTERS – IT’S EXECUTION THAT COUNTS
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3. Agenda
Why measure Business Performance
What is Corporate / Business Performance
Management
Strategy Map
Goals & Objectives
Scorecard – Key Performance Metrics
Initiatives
Review Process
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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
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6. Why measure business performance ?
Supports Facilitates
Strategic Tracks progress Improves corrective actions
Planning & Goal towards goals accountability to address
Setting using metrics performance
gaps
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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
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8. Components of Business Performance
Management System
Strategy Map – Road map to success
Goals & Objectives – Direction & Focus
Scorecard – Measurement &
Communication
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9. Sample Companies who achieved significant
success through Scorecard Implementation
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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
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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
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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?
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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
Develop the Brand Improve Inventory
Acquisition/
as Upscale Management Process Internet Presence
Retention
Relationships Management and Up
selling Skills Improve Operational Skills
Integrate IT / Business Systems
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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
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15. Goals & Objectives - Importance
• Goals provides focus and ensures all the functions and
elements of the organization are moving towards a
common destination
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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
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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
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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
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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
info@cpsphere.com ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
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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?
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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
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info@cpsphere.com ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
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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
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24. Super Market Strategy Map
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25. CPSPHERE – HELP YOU FOCUS & GROW
Did we all Get it?
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