Madinah institute Webinar 'The Wisdom Chronicles - Competing to Win' A book by Dr. Ted Marra
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Here is a Webinar which provides further insight into my book, 'The Wisdom Chronicles: Competing to Win'. If you look at the slides in 'notes' format, you will see some of the comments I made as well. Enjoy.
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Madinah institute Webinar 'The Wisdom Chronicles - Competing to Win' A book by Dr. Ted Marra
- 1. The Wisdom Chronicles:The Wisdom Chronicles: Competing to WinCompeting to Win
- 3. Whether you like it or not, you are âcompeting for the futureâ and the choices you make now will determine if you will be a âwinner or a loserâ
- 4. One of the Many ThingsOne of the Many Things Business Schools Donât TeachBusiness Schools Donât Teach
- 5. Where do We Start?Where do We Start?
- 9. The Leadership TeamThe Leadership Team ď§ It must be a â teamâ â â all one teamâ ď§ All team members must be passionate and embrace the core values/beliefs of the organisation â ensuring they are role models and are leading by example ď§ Relationship mastery ď§ Common understanding, commitment to achieving and regular reinforcement of the core purpose & vision ď§ Inspirational â looking for ways to help their people reach their full potential; engagement specialists ď§ Earn and maintain trust and confidence of all stakeholders ď§ Doing the right things right â holistic not parochial thinking; excellence, not just quality; long-term view, not expediency ď§ Take every opportunity to ensure their organisation is creating and delivering value to all key stakeholders
- 10. Business Model
- 11. Merck (Late 1920âs)Merck (Late 1920âs) Core Shared PurposeCore Shared Purpose We are in the business of preserving and improving human life. All of our actions must be measured by our success in achieving this goal.
- 12. Your Number OneYour Number One Enabler or Inhibitor toEnabler or Inhibitor to Your Organisationâs SuccessYour Organisationâs Success
- 13. Business Model
- 14. Our Values @ weworkOur Values @ wework INSPIRED ď§We do what we love and are connected to something greater than ourselves. ENTREPRENEURIAL ď§We are creators, leaders, and self-starters. We try new things, we challenge convention, and weâre not afraid to fail. AUTHENTIC ď§We are genuine to our brand, mission, and values. We're not perfect, and we don't pretend to be. We are, though, always honest and as transparent as we can be. TENACIOUS ď§We never settle. We get shit done and we get it done well. Be persistent and knock down walls--literally if you have to. You have our permission. GRATEFUL ď§We are grateful for each other, our members, and to be part of this movement. We don't take success for granted. Weâre happy to be alive. TOGETHER ď§We are in this together. This is a team effort. We always look out for one another. We have empathy, we know we're all human, and know we canât do any of this alone.
- 15. Business Model
- 16. Renewal â The Continuous RejuventationRenewal â The Continuous Rejuventation SystemSystem in Continuous listening, learning and improvement Innovation Innovation Innovation Innovation Adaptation (the wheel) Renewal = Adaptation, Innovation & Learning The Operating Environment Sensor Rock Dead ahead! Then a drop off! Senso r Senso r Senso r
- 18. Hewlett-PackardHewlett-Packard Bill Hewlett: â I want to discuss why a company exists in the first place⌠I think many people assume, wrongly, that a company exists simply to make money. While this is an important result of a companyâs existence, we have to go deeper and find the real reasons for our being⌠We inevitably come to the conclusion that a group of people get together and exist as an institution that we call a company so that they are able to accomplish something collectively that they could not accomplish separately â they make a contribution to society
- 20. The BT Ireland Vision âTo become the leading provider of networked IT services and communications solutions on the island of Ireland by driving value for our customers and people and through relentless pursuit of outstanding service, innovation and business excellenceâ
- 21. When the Direction is Unclear, the Message Interpreted Differently or There are Hidden Agendas M M M M M M MM M Inefficiency, Ineffectiveness Doing the right things for the business and doing them right can be compromised as the âsilo mentalityâ reigns supreme
- 22. Total Petroleum â Desired Future State âAll One Teamâ Common Goal: Vision Achievement = Initiatives
- 23. PLAN Foundation Facilitation Defining the Business Model Aligning the Organization PRINCIPLES OF ENGAGEMENT
- 24. Vision Alignment Vision Culture CSFs V OS BEI Drivers of Performance D1 D2 D3 D1 D2 D4 D3D2D1D1KBOâs , Strategies Ownership & Infrastructure D4D4 People Customer Process Financial Madinah Institute Webinar: Magic, Myth, Madness orMadinah Institute Webinar: Magic, Myth, Madness or Best Practise Methodology? 11 September 2013Best Practise Methodology? 11 September 2013
- 25. The True Purpose ofThe True Purpose of an Organisationan Organisation
- 26. The True Purpose of anyThe True Purpose of any OrganisationOrganisation Continuously create and deliver value to all key stakeholders including society
- 27. PLAN DO/EXECUTE Foundation Facilitation Realization Defining the Business Model Aligning the Organization âCreating and Delivering Valueâ PRINCIPLES OF ENGAGEMENT
- 28. Do/Execute Ensure Operational Excellence Build Organizational Capability The Foundations of Value Creation and Delivery
- 29. Defining âValueâ â The RightDefining âValueâ â The Right Way!Way! Value is any intangible or tangible â benefitâ which the customer or other stakeholders perceive & appreciate and which the competition or other providers are either unwilling or unable to make available
- 30. Brand Image/ Reputation Process Product Service Customer Support Technology Information Customer/ Stakeholder Experience People Innovation The 10 Sources of âValueâ
- 31. Attitude of Service Show that you Care Build Trust & Confidence Show that you Enjoy what you do Be the best you can be â first time, every time Be an Advocate Show Respect Show Appreciation The 8 Pillars of Service Excellence
- 32. 80 % 18% 2% Kaizen; Continuous Quality Improvement; Comparisons Identify & Adapt Best Practices (Benchmarking: Internal and External) Breakthrough (Transformational) Systematic approaches utilized The Innovation Continuum
- 33. Managing the Customer Relationship: Customer Engagement Map (B2B) Sales Process Delivery Customer Purchase Decision Customer Purchase Consideration Installation Repair Service / Maintenance First Invoice Order Submission Credit Review Purchase Cycle Customer Purchase Consideration Training Technical Support Account Maintenance âXerox Copier Businessâ What are some of the Critical Questions Senior Management Need to Ask and Answer about this Engagement Map?
- 34. The âSensing SystemâThe âSensing Systemâ
- 35. PLAN DO/EXECUTE Foundation Facilitation Realization Defining the Business Model Aligning the Organization Creating and Delivering Value Sensing System PRINCIPLES OF ENGAGEMENT âThe Whiskers of a Catâ
- 36. Defining âAgilityâ â The RightDefining âAgilityâ â The Right Way!Way! Agility is the capability of an organisation to anticipate, clarify, assess and act e.g., decide and execute on an opportunity (or counter a threat) faster and better than competition
- 37. The Changing Requirements for Information Rapidly Changing Stable Stable Rapidly Changing MarketConditions (customers&competition) Technology Where is your organization today? How fast is your operating and market environment changing? Whether you like it or not â whether you are ready or not, every organization is moving toward the most uncomfortable cell in the above matrix! Increased need for ârealâ time data & information â˘Customer â˘Market â˘Competition
- 38. Consumer Consideration Find Item In-Store Assistance (visible/available, accessible, professional/knowledgeable, courteous/respectful) In-Store Experience (avoid unpleasant surprises, e.g., not having advertised items) Consumer Decision I Travel to Location (logistics convenience) Managing the Consumer Relationship: Consumer Engagement Map (B2C) Attract or Connect with Consumers Advertising Message and Image Communication Arrival Consumer Decision II Purchase Item Consider Other Items Decision III Checkout Process Product Usage Service Delivery (installation) After Sales Experience The Customer Promise, Keeping Commitments, Meeting Expectations Convince & Convert to or strengthen loyalty Resolving problems or complaints Decision IV Should I return in the future based upon this experience?
- 39. Innovation/New Opportunity Matrix Existing New New Markets/Segments/Sectors Existing Extension Products/Services Technology Setting Priorities: market attractiveness â potential size of market â number of existing and âtargetâ customers who have an interest and their potential profitability Success comes from identifying the customers you really want most, attracting them and then keeping them by building exceptional relationships based upon the most appropriate value proposition Existing Extension New Your Organization today YourOrganization tomorrow Profitability
- 40. AT&T Universal Card Services Management Led Operations Feedback Strategies Customer Expectation Research Direct Customer Feedback Process Management Selected Feedback Strategies Data Service Examples Customer Satisfier Survey Customer Value Tree Data Source Ex. Cust. Satisfier Srvy. Benchmarking Performance Research Data Source Ex. Commendations Suggestions Complaints Non-contact Assoc. Call Monitoring Cust. Retention ERC Feedback Data Source Ex. Customer Contact Standards Customer Contact Monitoring Call Type Trend Data Organization Improvement Activities Customer Listening Post Team Long Term Modification of Existing Polities/Procedures & Standards Short Term Integration of Cust. Feedback into the Strategic Planning & Product/Service Development Processes (see Item 3.1 Customer Relationship Management Strategies FeedbackLoop Public Information Malcolm Baldrige Award Summary Document provided by AT&T at the 1992 Winnerâs Conference
- 42. The Critical Success Factors Behind Effective Decision Making
- 43. Identifying the Key Strategic Decision Making Positions in Your Organisation Simple Complex Frequent Rare Frequency Type What Decision Domains are the focus of more of your decisions â Human Performance Excellence; Operational Excellence; Competitiveness and Growth; Relationship Excellence; Others? Significance (e.g.,resources,change, market/competitiveimpact) Key Positions Key Positions
- 44. 44 . The Decision Making Process âHigh Levelâ View âSystematic, Integrated, Comprehensiveâ Moving Toward Hyper-Decision Making Decide** Feedback Loop to Planning and Future Decision Making and Execution ⢠= Identify, collect and analyse the right and most comprehensive data and information; ensure that not only core decision factors but also other âinfluencingâ factors are considered; include a rigorous evaluation (not just a âgut feelâ) of the potential consequences of alternatives including what would happen if only 50% of the desired impact occurred; the value created and/or delivered and to whom; what if we did nothing? ** = Is the decision approaching optimality? Are we minimising the âcost of lost opportunity? *** = Is the execution flawless? **** = Are the right , best and most advanced analytical tools being utilised for assessment? What about unintended consequences? Decide**
- 45. Measures of SuccessMeasures of Success KPIâsKPIâs
- 46. IMPROVE PLAN DO/EXECUTE MEASURE Foundation Facilitation Realization Actualization Defining the Business Model Aligning the Organization Creating and Delivering Value Agility/Resiliency Exceptional Stakeholder Relationships Competitiveness Societal Benefits Sensing System PRINCIPLES OF ENGAGEMENT
- 47. Process Balanced Scorecard (of KPIâs) People Financial Customer
- 48. Technology, Information Architecture & Networking Renewal Operational Excellence Competitiveness & Profitable Growth Relationship Mastery Agility & Resiliency Value Creation & Delivery Human Performance Excellence Societal Benefits (Sustainability)Execution Competitiveness and Growth The New Generation Balanced Scorecard
- 49. IMPROVE PLAN DO/EXECUTE MEASURE Foundation Facilitation Realization Actualization Defining the Business Model Aligning the Organization Creating and Delivering Value Agility/Resiliency Exceptional Stakeholder Relationships Competitiveness Societal Benefits Sensing System PRINCIPLES OF ENGAGEMENT
Editor's Notes
- Points: I would like to personally welcome everyone â thank you for coming! I have been fortunate: 42 Years 37 Countries 160 organisations â private, public, NGO; Hi-tech, low-tech; large multinational (shell, IBM, Xerox, Johnson and Johnson, Boeing) â virtually every industry, product/service category; SMEâs + 28 years of working with either the Baldrige or EFQM Excellence frameworks
- Wisdom Chronicles Chronicle â record of a journey â my journey â my observations and hopefully some wisdom How I define wisdom â analogy to 98 Octane petrol
- To me, running an organisation today is a lot like the game of chess: strategic Anticipation of your opponent (or other forces in your operating environment) Planning your own moves in advance and having contingencies There is a time limit â âopportunitiesâ - the âwindow stays open just so longâ â General Patton
- How to build an enduring organisation â one that through dynamic change and turbulence, stands the test of time and through it all sets the standard for excellence by delivering superior performance and continuously creates and delivers value to all key stakeholders Business schools and consultants love to make the world more complex â buzz words like complexity and big data reign supreme (although as Steven Jobs has said, big data is about the past. Decisions are about the future. In the end, you have to choose â complexity or simplicity. I offer the latter In my mind the world is a complex or simple as you allow it to be. One can easily create a hundred parameters to worry about when running an organisation, but not that many of them really count for that much. Academics and consultants love it because it gives them something to write and teach about or consult about To me, if I have learned anything in my 42 years, it is that success comes down to having a relentless focus on a vital few factors. Thatâs really what my book is all about â those vital few factors as I see them â the ones which allow you to âcut through the fogâ of things like complexity and big data and stay on track toward better ensuring you win a âpole positionâ or something close to it in the future.
- To me there is only one place to start and that is with the business model, which, as you will see, I define differently than most
- My observations over time have been that the business model of an organisation should consist of the following:
- We are going to speak briefly about each one of these
- Two key observations: The leadership team of an organisation will either make it or break it as far as organisational success is concerned What I have seen, and others like Dr. Philip Sadler in London, top authour in the UK, is that 90%+ of the time when you see an organisation under-performing or failing the root cause is due to a leadership team which is under-performing or failing to do the right things right for their organisation What are a few of the characteristics of the leadership team that I have seen can make a difference between success and failure of an organisation? (there are more in my book, The Wisdom Chronicles)
- I will just highlight a few: Team Role model â Agrokor Relationship mastery â employee engagement â PBZ Bank; customer engagement â lethal weapons Doing the right things right â Peter Drucker (one of these is to create and deliver value to all key stakeholders )
- The shared purpose â people must buy in, feel a sense of pride and ownership, resonate (feel good) It is the anchor that keeps the ship from drifting into uncharted or dangerous waters, Keeps senior management from being distracted (e.g., constancy of purpose â my 7 Deadly Sins of Management research) Letâs look at an example
- Literally at EVERY management committee meeting (and Board meeting) one of the last items on the agenda should be: âBy the decisions we made here today, have we been true to our core purpose â our reason for being? How do we know?â
- Well, this says it all really and that #1 enabler or inhibitor is your (who knows?)
- Your culture â how you do things around here â your attitudes, values/beliefs and associated behaviours The problems Fear and intimidation/ draconian â General Motors â I worked there almost 8 years â (another deadly sin of management â anti-role model behaviour â de-motivates, de-moralises, erodes the fabric of the organisation â weakens it Or strengthens it â hereâs an example
- Redefining the shared office industry with a new model What we have here are the values of the organisation I cannot tell you the number of organisations that I have gone into where there is nice list of values on the wall behind lucite or glass (teamwork, innovation) and no one knows what they mean â they have never been defined or reinforced and senior management behaves badly and inconsistently relative to the values (they have not been internalised, they donât âliveâ them) â most of the time they donât even âtalkâ about them The above need to go one step further â to the behaviours â what would you need to observe an employee including a senior executive doing in order to be able to say âthey are a role modelâ for teamwork or innovation or being grateful?
- Hereâs possibly a new concept for many of you One of the comments by Gary Hamel last year at a conference was the need to develop organisations which continuously renew themselves as few have been able to do. Some like Proctor and Gamble, Nestle, Ford have done so â other newer entrants such as Apple, Google, Amazon, Ebay were born with that genetic characteristic. Kodak, General Motors, Blackberry didnât â to mention just a few It is the seamless integration of adaptation, innovation and learning as shown in the following diagramme
- Adaptation is more of an outside in process â your sensing system must identify emerging trends, changing requirements, competitive intelligence, technological evolution and more which can impact what you do as an organisation as well as how you do it â âchangeâ â linkage should be to your core competencies Innovation is more of an inside out process in my opinion â it is here that you are building a stimulating environment which nurtures creativity and innovation â always looking for new and better ways of doing everything you which add value â a key Learning â are we conducting lessons learned sessions after every project or initiative? Do we ask as supervisors, managers and senior managers almost daily â what can we do better and differently tomorrow to improve our performance or the performance of our organisation? We must âreflectâ and ask ourselves âWhat have we learned this past week that can help us be better next week?â Are we a learning organisation or are we lack any institutional memory â no documentation â information carried in peopleâs heads, tribal knowledge?
- Principles of engagement â âwith societyâ and with communities Image/reputation/brand strength is impacted by what we do or donât do as just one example: governance, ethical business practices, corporate social responsibility, environmental sustainability issues and more would be included here
- Another is Johnson and Johnson Credo, Merck, Sony and more believe that they have a responsibility to be stewards for ensuring better quality of life for people â for communities, for society
- I consider the âoutputâ of the business model to be the âvisionâ and it should be âvisionaryâ and clear to all and be time delimited (not something like: our vision is that during the next 100 years we will get betterâŚ..) It must inspire people â make them want to participate â to follow, to join you on your voyage to the future â excite them, get them to rally around it and to feel as though they can contribute and make a difference It must do the same for key stakeholders â key customer accounts, for example, suppliers and more You know you have a problem when the audience begins to yawn when the vision statement is read! The major issue faced by organisations is not just formulation, but more the execution â the how do we get there One last point: Does every employee know what their contribution needs to be and are they fully capable of making that contribution â have we given them all the knowledge, skills, tools and methods they need??????????
- This is just one example. Whatâs missing? Timing â when will this be achieved? What is included? CSFâs The challenge is how do you harness the full power of the organisation to achieve the vision? What do I mean? Letâs take a look at two charts which can helpâŚâŚâŚ
- This is often the way it is after the vision is announced â everyone may nod their head âyesâ in the management committee meeting, but what happens after is anyoneâs guessâŚâŚâŚâŚâŚ What do we want? Anyone?
- Here, everyone across the organisation as well as up and down the organisation is focused on one thing - the common goal of achieving the vision
- Organisational alignment is not a new concept â in 1994 ODI in Boston and Paul Labovitz wrote a book on it (I had discussions with him). Unfortunately it went no where. Senior management didnât get it and, well, to be honest, it was not defined in the best possible way. Like many consultants, it was overly complicated It is, nonetheless, one of the single most powerful approaches â if done right (as you will see in the next diagramme) available to an organisation for achieving success â and superior performance as well as achieving the vision! One reason for that is that if done right, the organisation is constantly challenged â just as in the case of the core purpose by having to answer questions such as: Is each of our key business objectives and strategies defined in a way that we know their achievement will lead to achievement of the vision â avoid wasted effort and wasted resources?
- I wonât go through this. There is great webinar presentation â by me, as it happens, on this topic â it is in the archives of Madinah Institute. Just a couple items of mention: CSF â from BT â still too high to develop good measures (the Titanic and Corporate level measures analogy) Drivers KBOâs/strategies â action plans â characteristics (see my book and the Webinar for more detail on this) â ownership is part of the action plan â not much good to establish an action plan if no one is accountable Infrastructure â again my book there is a discussion of the concept of decision domain councils â human performance excellence, operational excellence, relationship excellence, competitiveness and growth and the benefits â subsets of the MC each with itâs own SBIT of hi-pots Balanced scorecard â although old, it is a foundation â we will look at a new generation one shortly
- This really says it all Peter Drucker said â create a customer Then I said â identify the customers you want, attract them and keep them by building an exceptional relationship based upon the most appropriate value proposition (again see my book) I have since simplified it even more
- Itâs that simple
- Here it is â this is the realisation step â the output of all you do as an organisation. If you arenât creating and delivering value, you shouldnât exist and I donât mean stakeholder value â smoke screen for short-termism, greed and profits come first â jeopardising the long-term success of an organisation (Enron, Lehman brothers, Tyco, you name it) â research clearly shows it to be the case as well - an invention of some creative consultants & financial analysts or economists to help make senior management get fatter bonuses
- Once again, based upon my observations over the years, the alignment phase includes the formulation and execution of your plans â all of which should result in creation and delivery of value Those plans should, in my experience focus most often on building capability in a few key areas of the organisation. Sure, there may be others, but if I had to pick the most important ones they would be these: Operational excellence â getting the routine things right first time, every time â reliability â the foundation.. Reducing variation (6-sigma/lean or other techniques); then building organisational capability in the key areas identified in this chart Competencies â 2 types core and organisational (7 sins/CEOâs/Managing Directors) Stakeholder engagement â more about listening , learning and taking action Relationship mastery Human performance excellence â moving beyond âfeetâ and even âheadâ to heart â energy, passion, emotional attachment â moving beyond obedience, diligence and expertise to taking initiative , stimulating creativity and releasing passion New product, service and support development â innovation, customer/end user focus So, now, how do I define âvalueâ?
- Just that simple What are the sources of value? In my work I have found 10. Here they are.
- I wonât go into these in any detail â just a few mentions. Chapters 3 and 4 of my book go into great detail on this topics I will just say this quickly about: Process â 2 main issues: ease of doing business; responsiveness/cycle time People Now here are a few more
- The factors I have found over the years that customers want more than any others from you each and every time they do business with you. A customer may forget what you say. they may even forget what you do. But they will never forget how you made them feel. My Morrisonâs back to the floor experience â feel good feeling, glad they came, left with a smile on their face â engaged them made them feel special How many of your senior management could do it?
- The truth about innovation â no silver bullet, but needs to be there to a greater or lesser extent â Sonoco products, (low), McDonalds (medium) or Apple (high) No innovation should be pursued unless it is clear that value is being created for some stakeholder somewhere This is my opinion of how innovation breaks down â again all innovation is good if it creates value, but realise that 80% is âŚ.., 18% is âŚ.. and 2% maybe is âŚâŚâŚâŚ (IPad â redefines an industry - a disruptive technology ) How I define it: âAlways looking for new and better ways of doing everything you do which adds value for some stakeholderâ
- This is critical yet so few executives understand it â when I ask them to draw this â they are very often clueless. Letâs quickly go through it â talk about the interactions Key questions: Whatâs most important Where is competition doing better Where can we add greater value so that customers will acknowledge and appreciate it Our people âŚâŚâŚ Customer having greatest difficulty (how would you know?) How do customers âfeelâ about doing business with you? It will determine whether they will be back â unless you have a monopoly
- Anyone have a cat as a pet? Lost its whiskers â how would it behave? Unsure of itself? Judgement impaired Same for an organisation â it needs to have good whiskers â sensing system â strategic information architecture or the judgement of the leadership team will be impaired - lacking Your âsensing systemâ is THE Key to agility and key to decision making â optimal decisions faster and better Letâs take a quick look at both of these issues â first agility. What do I mean?
- Without a best practise sensing system, how can your organisation be agile? It is a CSF! Here is what is happening
- This is a simplified picture of the operating environment in which many organisations find themselves Read the words if time, talk about General Motors 1973 and then âŚâŚâŚâŚâŚâŚâŚ
- This concept of sensing system clearly carries over to the engagements customers have with your organisation. Here is a retail setting â it could be Bauhaus, Home Depot, B&Q, any retailer really (is advertsing working â attracting customers â the right customers? â it starts there and keeps going âŚâŚâŚ.) At the very least you would want to know what? How many of the 4 key decisions identified above in the diagramme are being made in your favour. If not, why not? Are your customers coming back? Are they buying more? Are they giving positive referrals to others? There is clearly a lot more beyond just this as the next diagramme clearly shows
- Here you see other dimensions â other parameters that need to be included in any comprehensive âsensing systemâ Again my book devotes a full chapter â chapter 5 to this topic However, many organisations build their sensing system to complement their core strength â for example AT&T Universal Card Services (or First Direct Bank in the UK)
- We wonât go into detail here, but have look and you will see that in this âcustomer relationship domainâ the âsensing systemâ is, in fact world class. This system, by the way was one of several factors that contributed to AT&T Universal Card Services winning the prestigious Baldrige Performance Excellence Award in 1992, marking this company as being âworld-classâ or among the best of the best Yet, this system which is 23 years old remains world-class today! Few organisations have anything even remotely close.
- A few words on decision making â a topic which is so vitally important to organisational success but about which little is written, little research is done. Would you say this is a key topic? Who is writing or doing things in this area: PWC, Baker Street, Informed Decisions, Ontonix, QuantelliaâŚ.. My own âHyper-Decision Makingâ â slide share
- An organisationâs âdecision intelligence quotientâ â there may be more, but âŚâŚâŚâŚ. Is decision making in your organisation better than a zero-sum game? HR systems Infrastructure Competencies Strategic positions â next chart
- What are yours? How well are decision being made? Are you experiencing any âcost of lost opportunityâ because too slow, sub-optimal, unintended consequences, more? Competencies? Sensing system?
- Decision making should be a legitimate business process Here is an example â walk through it quickly Note: The âsensing systemâ plays a huge role in the planning step and in assessing impact â to mention just a two.
- So how do we measure if we have been successful as an organisation?
- This is the actualisation step â the measurement step Are we even measuring the right things and doing so the right way? If I had to pick 4 performance categories, these would be the ones â to me most important of all In the beginning there wasâŚâŚâŚâŚ..
- The logic is inescapable â Kaplan and Norton 1996, but Baldrige in 1987! Trying to drive strategic planning from this, to me is putting the cart before the horse â yet some practitioners try Aside from the fact that the research says 60-80% of balanced scorecard implementations fail But the logic is the key and needs to be kept in mind as follows: All business results are the consequence of people working in a process â no other way if you had your choice â great people, even dysfunctional processes or dysfunctional people and great processes, which would you pick and why? Your people and processes touch the customer in many cases â your engagement maps â remember. If you do it right, the customer âfeels goodâ. If they feel good, good things will happen for your organisation one of which is financial success Dave McCamus 1987 â Xerox Canada â ahead of his time
- Here is what I am seeing as the new generation balanced scorecard â or at least the performance categories senior management should start paying attention to. Why? Because competitiveness is being driven, influenced by more critical factors than before. How much each will âweigh inâ or count is unclear â each organisation will be different. what is clear to me is that these performance categories need to be seriously evaluated for every organisation moving forward if they are serious about âwinningâ and not just being an âalso ranâ However, relentless focus on purpose and vision â and critical success factors are keys Talked about human performance excellence, agility, renewal, societal benefits, value creation and delivery, relationship mastery Human performance excellence â generational issues â Millennials, Gen X, Y, Z resiliency â J&J Execution â research - Childress - Fastbreak 85%/15% (formulation/execution) Technology â digitalisation, mobility, connectivity, networking increasingly critical
- So, here we are â we have finished our tour for this time. I hope you have gained some insights and understanding â possibly are feeling compelled to take action for improvement in key areas of your organisation as a result.