ABF Advanced Balanced Scorecard Conference
April 2009
* How BSC can link and facilitate strategy planning
* Performance management measurement through Balanced Scorecard
* BSC as business intelligence to help organisation build strategic direction and measure the progress of strategic execution
8. Balanced Scorecard: Corporate Financial “ To satisfy our stakeholders, what Financial objectives must we accomplish?” Internal Process “ To satisfy our customers, in which internal business processes must we excel?" Customer “ Who are our target customers? What is our value proposition?” Learning & Growth “ What capabilities and tools do our employees require to help them execute our strategy?
9. Balanced Scorecard: NGOs, Non-Profits, Governments Mission “ Who are our targets? What is our value proposition?” Internal Process “ To satisfy our targets, in which internal processes must we excel?" Learning & Growth “ What capabilities and tools do our staff require to help them execute our strategy? Financial “ To fulfill the Mission, what Financial, how do we fund Internal Processes?”
17. What is the Business Model? USP Market Discipline Profit Model
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19. Strategy: Value Disciplines Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution) www.myCNI.com.my www.OOBEY.com
20. Strategy: Value Disciplines Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution) www.myCNI.com.my www.OOBEY.com
21. Strategy: Value Disciplines Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution) www.myCNI.com.my www.OOBEY.com
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24. Strategy: Disciplines Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution)
25. Strategy: Disciplines Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution) HP well-balanced portfolio, mass customization Acer super lean cost structure, aggressive pricing Apple powerful products, premium pricing, limited range Still Doing well in 2009
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27. Summary: Today’s presentation 1. Business Model + BSC = Boundaries Done 2. Strategy + BSC = How 3. PMS + BSC = Execution
67. Cause and Effect Revenue Base Retention Share Gain Positioning Adjacent Market New Business Financial Learning & Growth Internal Process Customers Cost Margin Cash Flow Asset Operational Excellence Product Leadership Customer Intimacy Investment Strategy Competencies Information Systems Motivation, empowerment, alignment Satisfaction
68. Cause and Effect: An Example Financial Learning & Growth Internal Process Customers / Distributors Revenue Growth Productivity Market Value Department Operations Supplier & Alliances External Involvement Target Markets Products/ Services Channel Strategies Human Resources Technology Information & Intelligence Systems & Processes
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72. Cascading Customer Perspective BD New Business Mkt Share Gain Mkt Base Retention Indirect Direct Targets Strategies Goals
73. E3 – Department BSC Customer Perspective – Marketing Department Budgeting Share Gain Base Retention OPEX CAPEX Targets Strategies Goals
74. Individual MBO Employee A – Marketing Executive Re: Base Retention Competition Crossovers Class B Customer Retention Class A Customer Retention Score Weight (%) Targets Action Plans KRAs
75. What’s In Between Planning and Execution? Succession Planning (Business Continuity) Talent Management Differentiation Performance Management System Budgeting + Planning KPIs BSC Business Model www.myCNI.com.my www.OOBEY.com
76. What’s In Between Planning and Execution? Succession Planning (Business Continuity) Talent Management Differentiation Performance Management System Budgeting + Planning KPIs BSC Business Model a.k.a. Strategy Planning a.k.a. Strategy Implementation www.myCNI.com.my www.OOBEY.com
79. Performance Execution Clarity www.myCNI.com.my www.OOBEY.com Useless Poor Average Good Excellent Commit Suicide E Not Good D Good C Very Good B Excellent A
80. Performance Execution Clarity www.myCNI.com.my www.OOBEY.com Commit Suicide Not Good Good Very Good Excellent Unacceptable performance E Did not fully meet planned results D Achieved Planned Results C Higher than planned results B Consistently achieved 4 for 3 quarters A