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Facilitators’ Training Program

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  • 1. FACILITATORS’ TRAINING PROGRAM 14-16 JANUARY, 2003 GRAND BLUEWAVE HOTEL, SHAH ALAM THE BALANCED SCORECARD
  • 2. PURPOSE OF THIS PROGRAM
    • TO DEVELOP THE SKILLS AND ABILITIES TO MOVE A BSC INITIATIVE.
    • EMPHASIS IS ON DEVELOPING ABILITY TO DEVELOP OTHERS IN DEVELOPING AND IMPLEMENTING THE BSC.
    • FOCUS OF PROGRAM IS TRAINING FACILITATORS WHO CAN ASSIST IN THE ROLLOUT AND IMPLEMENTATION OF THE BSC.
    • EXPECTATION IS THAT PARTICIPANTS OF THIS PROGRAM WILL BECOME THE INTERNAL BSC EXPERTS.
    • SOME MAYBE EXPECTED TO LEAD THE INITIATIVE IN VARIOUS CAPACITIES.
  • 3. WHAT MAKES A GOOD BSC INTERNAL FACILITATOR?
    • GOOD UNDERSTANDING OF THE BSC
      • CONCEPTUAL AND OPERATIONAL LEVEL.
    • WILLINGNESS TO LISTEN.
    • ABILITY TO USE QUESTIONING TECHNIQUE.
    • ABILITY TO PERFORM CRITICAL SCRUTINY.
    • POSSESS FACILITATION SKILL.
    • HAS A DECENT LEVEL OF CREDIBILITY AND RESPECT.
  • 4. HOW THE FACILITATOR PROVIDES VALUE ADD?
    • IMPART WORKING UNDERSTANDING OF THE BSC AND PRACTICAL SKILLS RELATED TO ITS USE.
    • ASSIST TRAINEES EXPLORE THE ISSUES RELATING TO THEIR STRATEGY.
    • STIMULATE TRAINEES TO CRITICALLY EXAMINE THEIR STRATEGY.
    • GENERATE REFINEMENT OF THE STRATEGY
    WHAT? WHY?
  • 5. ESSENCE OF STRATEGY
    • DEFINES HOW THE ORGANIZATION INTENDS TO COMPETE.
    • DEPICTS THE CAUSAL RELATIONSHIP BETWEEN OUTCOME AND ACTIONS.
    • PRESENTS A MODEL OF HOW INTERNAL CAPABILITIES SHOULD BE ARRANGED.
    • HOW ORGANIZATION INTENDS TO GENERATE PROFIT.
  • 6. MANAGING STRATEGY STRATEGIC OUTCOME STRATEGY FORMULATION STRATEGY IMPLEMENTATION B.S.C
  • 7. STRATEGY FORMULATION
    • STRATEGY FORMULATION INVOLVES ANALYSIS .
    • OUTCOME OF ANALYSIS SHOULD BE THE SYNTHESIS OF THE ORGANIZATION’S BUSINESS HYPOTHESIS.
    • THE PROCESS OF FORMULATION MUST MOVE FROM GENERAL TO SPECIFIC.
    • CULMINATION IS THE CREATION OF ORGANIZATION’S BUSINESS MODEL THAT DEFINES:
      • WHERE TO GO FROM WHERE WE ARE?
      • WHAT TO DO TO GET THERE?
      • HOW TO DO IT?
  • 8. STRATEGY FORMULATION TOOLS BUSINESS MODEL FORMULATION STRATEGIC PRIORITY MATRIX SWOT ANALYSIS STRATEGIC POSITION ANALYSIS
  • 9. STRATEGIC POSITIONING MAP
    • STRATEGIC ANALYSIS CANNOT IGNORE THE CONTEXT AN ORGANIZATION IS OPERATING.
    • ANALYSIS HAS TO EXAMINE ORGANIZATION’S RELATIVE PERFORMANCE.
    • NEED TO COMPARE WITH COMPETITORS.
    • STRATEGIC POSITIONG MAP HELPS PREVENT ANALYSIS FROM DEVIATING FROM NON-CRITICAL ISSUES.
    • HELPS TO EXAMINE FUTURE DIRECTION.
  • 10. DEVELOPING THE STRATEGIC POSITIONING MAP
    • IDENTIFY AT LEAST TWO PERFORMANCE ISSUES IN INDUSTRY.
    • LIST OUT MAIN COMPETITORS.
    • USE A SIMPLE GRAPH TO CHART RELATIVE POSITION WITH COMPETITORS.
    • DECIDE WHERE ORGANIZATION WANTS TO GO NEXT.
    • USE MAP AS BASIS FOR SWOT ANALYSIS.
  • 11. USING STRATEGIC POSITIONING MAP SERVICE FUNCTIONALITY ? ? ?
  • 12. FACILITATOR’S NOTE:PRACTICAL ISSUE IN THE USE OF POSITIONING MAP
    • A QUESTION THAT MAY ARISE REGARDING THE USE OF THE POSITIONING MAP IS WHERE DO YOU OBTAIN THE INFORMATION NEEDED TO DEVELOP A POSITIONING MAP?
    • EXPLAIN THAT IN MOST SITUATIONS COMPLETE AND PERFECT INFORMATION WILL NOT BE AVAILABLE.
    • ORGANIZATIONS NEED TO BE PRAGMATIC AND RESORUCEFUL IN GETTING THE NEEDED INFORMATION.
    • EXPLAIN ALSO THAT THE STRATEGIC POSITIONING MAP IS MEANT TO BE AN APPROXIMATE RATHER THAN AN EXACT TOOL.
    • ALSO POINT OUT THAT THE USEFULNESS OF A POSITIONING MAP DEPENDS ON HONESTY.
  • 13. GUIDELINES IN USING STRATEGIC POSITIONING MAP
    • QUALITY AND ACCURACY OF INFORMATION AFFECTS QUALITY OF ANALYSIS.
    • HONESTY NEEDED TO LEARN OF RELATIVE POSITION.
    • TRY TO LIMIT NUMBER OF DIMENSIONS USED.
    • REMEMBER THAT COMPETITIVE POSITION IS DYNAMIC AND ALWAYS CHANGING.
      • NEED TO ALSO FORECAST FUTURE TREND.
  • 14. SWOT ANALYSIS
    • ON THE BASIS OF INSIGHTS FROM STRATEGIC POSITIONING MAP PERFORM S.W.O.T ANALYSIS.
    • STRENGTH:
      • WHAT ORGANIZATION IS GOOD AT?
    • WEAKNESSES:
      • WHAT ORGANIZATION IS WEAK AT?
    • OPPORTUNITIES
      • WHAT OPPORTUNITIES EMERGING?
    • THREAT:
      • WHAT ARE THE THREATS AND HOW WILL IT AFFECT PERFORMANCE?
  • 15. FACILITATOR’S NOTE: MAKING SWOT ANALYSIS EFFECTIVE
    • SWOT ANALYSIS CAN BE CONFUSING AND GENERATE A LOT OF INFORMATION THAT IS NOT ALWAYS USEFUL.
    • TRAINERS NEED TO STEER THE DISCUSSION BY HIGHLIGHTING A NUMBER OF POINTS.
      • STRENGTH AND WEAKNESSES ARE INTERNAL CONDITIIONS OF THE ORGANIZATION.
      • OPPORTUNITIES AND THREATS ARE CONDITIONS EXTERNAL TO THE ORGANIZATION.
      • SCRUTINIZE THE TRAINEES’ INPUT BY EXAMINING WHETHER THEY’VE GOT THIS RIGHT.
      • ALSO POINT OUT THAT STRENGTH IS NOT JUST WHAT YOU HAVE BUT, MORE IMPORTANT, WHAT YOU ARE GOOD AT .
  • 16. PROBLEM WITH SWOT ANALYSIS
    • SELECTIVE PERCEPTION.
    • CONFUSION BETWEEN WHAT YOU HAVE AND WHAT YOU ARE GOOD AT.
    • GENERATES TOO MUCH INFORMATION.
    • UNABLE TO PROVIDE FOCUS.
    • UNACTIONABLE.
    • ABOVE PROBLEMS CAN BE REDUCED USING STRATEGIC PRIORITY MATRIX.
  • 17. STRATEGIC PRIORITY MATRIX LO HI HI LO STRATEGIC ISSUE STRATEGIC IMPACT URGENCY SECONDARY TAKE NOTE NOT IMPORTANT
  • 18. FACILITATOR’S NOTE: WHY PRIORITIZATION IS NECESSARY?
    • AN ADVANTAGE OF PARTICIPATION IN STRATEGY FORMULATION IS THE RICH GENERATION OF IDEAS.
    • HOWEVER, NOT EVERYONE IS PRIVY TO INFORMATION ESP. ON CONSTRAINS ON ORGANIZATIONS.
    • A STRATEGY IS IMPLEMENTED WITHIN THE CONSTRAINS OF LIMITED RESOURCE.
    • FORCING THE DISCUSSION TO NARROW DOWN PRIORITIES USING THE STRATEGI PRIORITY MATRIX HELPS ORGANIZATIONS FOCUS OF THE IMPORTANT ISSUES.
  • 19. SYNTHESIZING STRATEGY: THE BUSINESS MODEL
    • IDENTIFY CUSTOMER BASE.
      • WHO’S YOUR CUSTOMER?
    • VALUE DELIVERY.
      • WHAT VALUE TO DELIVER AND HOW TO DO IT?
    • STRATEGIC CONTROL.
      • HOW TO DEFEND POSITION?
    • BUSINESS SCOPE.
      • WHAT SHOULD BE INTERNALIZED?
  • 20. SWOT MATRIX WHICH WEAKNESS CAN CAUSE ADVERSE IMPACT? HOW TO RESPOND AND PROTECT BUSINESS? THREAT WHICH WEAKNESS AN IMPEDIMENT? MATCH STRENGTH WITH OPPORTUNITIES. OPPORTUNITIES WEAKNESS STRENGTH
  • 21. DEVELOPING THE BSC: THE FOUR PERSPECTIVES FINANCIAL/ STAKEHOLDER PERSPECTIVE CUSTOMER PERSPECTIVE INTERNAL PROCESS PERSPECTIVE LEARNING AND GROWTH PERSPECTIVE
  • 22. BSC TOOLS
    • STRATEGY MAP
      • A GRAPHIC PRESENTATION OF CAUSAL MODEL OF STRATEGY
      • DEPICTS LINK BETWEEN PERSPECTIVES AND BETWEEN GOALS AND INTERNAL ARRANGEMENT.
    • SCORECARD
      • PRESENTS LINK BETWEEN SHORT-TERM AND LONG-TERM ISSUES.
      • DEPICTS TEMPORAL LINK OF STRATEGY.
      • PRESENTS SEQUENCES OF CAUSE-EFFECT RELATIONSHIPS.
      • PROVIDES BASIS FOR PERFORMANCE MONITORING.
  • 23. DEVELOPING A STRATEGY MAP
    • IDENTIFY STRATEGIC ISSUES IN FINANCIAL/STAKEHOLDER PERSPECTIVE.
    • IDENTIFY CRITICAL FACTORS FOR SUCCESS.
    • CRITICAL FACTORS FOR SUCCESS IN FINANCIAL/STAKEHOLDER PERSPECTIVE USED AS BASIS FOR DETERMINING STRATEGIC ISSUES FOR CUSTOMER PERSPECTIVE.
    • REPEAT PROCESS FOR INTERNAL PROCESS AND LEARNING PERSPECTIVES.
  • 24. STRATEGY MAP PLANNING LADDER FINANCIAL CUSTOMER INTERNAL PROCESS LEARNING STRATEGIC ISSUES C.F.S STRATEGIC MEASURES STRATEGIC ISSUES STRATEGIC ISSUES STRATEGIC ISSUES C.F.S C.F.S C.F.S STRATEGIC MEASURES STRATEGIC MEASURES STRATEGIC MEASURES
  • 25. EXAMPLE STRATEGY MAP PLANNING LADDER FINANCIAL CUSTOMER INTERNAL PROCESS LEARNING ATTAIN PRFT SALES AS BDGTD QTRLY SALES DVLP TRBLSHTG CMPTNCY STSFY CUSTOMER INSTALL QLTY SYSTEM PCT TRAINED ESTBLSH QLTY TEAMS DLVR QLTY INCDNCS OF COMPLAIN QLTY TEAMS OPRTNL PCT CRTFD
  • 26. F1: Reduce Total Cost By 6% F2: Produce At Budgeted Target F3: Attain Sales At Budgeted Level C2: Satisfy Customer By Delivering Quality C1: Increase Value Add To Customer By Providing Technical Assistance IP1: Reduce Plant Turnaround Time IP2: Improve Hr Morale & Productivity IP3: Improve Logistic Cost IP4: Create Technical Support Team IP5: Install Quality Mgt System L1: Improve Skills Related To Plant Turnaround L3: Acquire Knowledge On Customers’ Technologies L4: Dvlp Quality Troubleshooting Skills L2: Improve Supervisory Skills ACHIEVE PROFITABILITY Financial Customer Internal Process Learning INNOVATIVE CHEMICALS STRATEGY MAP
  • 27. FACILITATOR’S NOTE: HOW TO EVALUATE THE STRATEGY MAP?
    • ITEMS IN THE FINANCIAL/STAKEHOLDER PERSPECTIVE SHOULD BE STATEMENTS OF OUTCOME DESIRED BY THE ORGANIZATION.
    • ITEMS IN THE INTERNAL PROCESS AND LEARNING PERSPECTIVE SHOULD BE STATEMENTS OF ACTIONS TAKEN TO DELIVER THE OUTCOME.
    • ENCOURAGE TRAINEES TO BE SPECIFIC ABOUT THE ITEMS IN EACH NODE. AVOID GENERALITIES AND CLICHE.
    • EMPHASIZE ALSO THE NEED TO BE SELECTIVE.
    • THE ARROWS FROM EACH NODE MUST BE SPECIFICALLY CONNECTED TO SPECIFIC NODE/S.
    • EMPHASIZE TO TRAINEES THAT HAVING A STRATEGY MAP DOES MEAN THE STRATEGY IS GOOD OR RIGHT.
  • 28. CHARACTERISTICS OF GOOD STRATEGY MAP
    • ISSUES SPELLED OUT IN TANGIBLE AND ACTIONABLE TERMS.
    • IDENTIFIES THE CRITICAL AND NOT JUST THE COMMON.
    • SHOWS CLEAR CAUSAL LINKAGE.
    • COMMUNICATES IN AN EASILY UNDERSTOOD MANNER.
    • PRODUCT OF A PROCESS OF ITERATIVE DISCUSSION.
  • 29. PROBLEMS IN DEVELOPING STRATEGY MAP
    • LACK OF CONSENSUS ON CAUSAL MODEL.
      • CAN BE DUE TO HASTINESS AND LACK OF PARTICIPATION.
    • MODEL DEVELOPED MORE OF FASHION THAN FIT.
      • MORE CLICHÉ THAN SUBSTANCE.
    • ISSUES IDENTIFIED ABSTRACT AND AMBIGUOS.
    • SINK HOLE ANALYSIS.
  • 30. S1.GNRT RM650K/YR PROFIT AFTER 4 YEARS S2. ATTAIN BEST COLLEGE POSITION STAKEHOLDER CUSTOMER C1. DLVR QUALITY TEACHING IP6. IMPROVE FACILITIES IP7. EXPAND COMPUTING FCLTS IP8. EXPAND HOSTEL FCLTS IP10. EXPAND ENGNRG LAB FCLTS C2. PROVIDE QUALITY FCLTS IP1. USE LATEST TCHNG METHDLGY & CRCLM INTERNAL PROCESS IP3. REDUCE TURNOVER IP5. IMPRV SALARY IP2. RCRT QLFD TEACHERS IP4. MONITOR JOB STSFCTN L1. DVLP CMPTNCY ON LATEST TCHG MTHD L3. ACQUIRE BNCHMRKG INFO ON FCLTS QLTY L2. MONITOR TRENDS IN CRCLM DVLPMNT IP9. FCLTS MNTNC FACILITATOR'S SUPPLEMENTARY MATERIAL 2 S3. ATTAIN 6,000 (60:40) STDNT’S ENROLLMENT PG. 23A IP11. AGRSV CMPGN IP11. OFFFER DEGREE
  • 31. SNAPPLE STRATEGY MAP INCREASE PRFTBLTY INCREASE MRKT SIZE IMPROVE PRFT MARGIN OFFER UPSCALE IMAGE FULFILL HEALTH CONCERN MORE FLAVOURS MRKT TO UPSCALE RSTRNTS AND HOTEL CHAIN MRKT THRU HEALTH FOOD STORES & PHRMCIES IMPRV RATE OF NEW PRDCT DVLPMNT TRAIN SALESFORCE ON CRPRT ACCOUNT SALES ACQUIRE MRKT INTLGNC CREATE PREMIUM BRND IMAGE ENFORCE QLTY & PRDCTVTY STD ON MNFCTRS TRAIN MNFCTRS ON QLTY AND PRDCTVTY SYSTEM FINANCIAL CUSTOMER INTERNAL PROCESS LEARNING FACILITATOR'S SUPPLEMENTARY MATERIAL 3b: PG. 25B
  • 32. FACILITATOR’S NOTE: COMMON MISTAKES IN DVLPG STRATEGY MAP
    • A MAJOR PROBLEM IS USUALLY IN MIXING UP THE INTERNAL PROCESS AND CUSTOMER PERSPECTIVE.
    • ANOTHER MAJOR PROBLEM IS THE LACK OF CAUSAL LINK BETWEEN NODES.
    • USUALLY THIS IS A REFLECTION OF A POORLY THOUGHT OUT STRATEGY.
    • A MINOR PROBLEM IS USUALLY IN MIXING UP THE LEARNING AND INTERNAL PROCESS PERSPRECTIVE.
    • USUALLY DIFFERENCE OF INTERPRETATION AND THE IMPACT OF SUCH A CONFUSION DOES NOT IMPEDE IMPLEMENTATION OF THE STRATEGY.
    • TRAINER TO NEED TO QUESTION AND GET TRAINEE TO EXPLAIN AND JUSTIFY THEIR STRATEGY MAP.
  • 33. CASCADING THE STRATEGY MAP
    • STRATEGY MAP SHOULD BE DEVELOPED FOR DEPARTMENTS/DIVISIONS TO HELP CASCADING THE SCORECARD LATER ON.
      • IDENTIFY PROCESS OWNERS IN CORPORATE STRATEGY MAP.
      • USE INFO AS BASIS FOR FUNCTIONAL MAP.
    • SUPPORT FUNCTION STRATEGY MAP SHOULD USE OTHER FUNCTIONS AS THEIR INTERNAL CUSTOMER.
      • EXAMINE INTERNAL PROCESS PERSPECTIVE OF FUNCTIONAL AND CORPORATE MAP.
    • STRATEGY MAP SHOULD BE DEVELOPED UP TO THE ORGANIZATIONAL LEVEL WHERE THE APROACH TO ACTIVITIES CAN STILL BE SEEN IN TERMS OF PERSPECTIVES USED.
  • 34. IC1: Reduce plant turnaround time IC2: Improve HR morale and productivity IC4: Create technical support team IC5: Install qlty mgt system INTERNAL CUSTOMER HRM PROCESS HP1: Ensure adequateand qlfd staffing of turnaround team HP3: Recruit exprncd engineeers HP4: Train sprvsrs to imprv skills HP5: Intrdc stress mgt prog HP6: Rcrt or redeploy ppl for technical support team HP7: Crtfy qlty teams HP8: Train qlty teams HRM STRATEGY HS2: Monitor job climate HS1: Idntfy best practice in plant turnaround HS3: Revamp recruitmnt approach HS4: Identify and benchmark against relevant quality practice HP2. Train in plant tunraround FACILITATOR'S SUPPLEMENTARY MATERIAL 4: SUPPORT FUNCTION STRATEGY MAP: INNOVATIVE CHEMICAL HRM DEPT PG. 26A
  • 35. ELEMENTS OF THE SCORECARD
    • CAUSE-EFFECT RELATIONSHIP.
      • MEASURES DVLPD SHOULD BE PART OF CHAIN IN CAUSE-EFFECT RELATIONSHIP.
    • OUTCOMES AND PERFORMANCE DRIVERS.
      • OUTCOMES ARE GENERIC AND PERFORMANCE DRIVERS UNIQUE TO ORGANIZATION.
      • PERFORMANCE DRIVERS COMMUNICATE HOW OUTCOME TO BE ACHIEVED.
      • BASIS FOR DEVELOPING LEAD AND LAGGARD MEASURES.
    • LINK TO FINANCIALS.
      • WHAT RETURNS EXPECTED FROM STRATEGY?
  • 36. DEVELOPING THE CORPORATE SCORECARD
    • DEVELOP SELECTIVE MEASURES OF PERFORMANCE.
      • DATA CAN BE COLLECTED ACCURATELY
      • RELEVANT FOR C.F.S.
      • CAN HAVE POSITIVE IMPACT ON BEHAVIOUR
      • THOSE ACCOUNTABLE CAN INFLUENCE.
    • KEY MEASURES ARE IDENTIFIED FROM STRATEGY MAP AND STRATEGY MAP PLANNING LADDER:
      • DATA INFORMATION KNOWLEDGE.
    • MEASURES USED SHOULD INVOLVE LEAD AND LAGGARD MEASURES.
      • LEAD MEASURES DERIVED FROM INTERNAL PROCESS PERSPECTIVE
  • 37. FACILITATOR’S NOTE: ROLE OF THE SCORECARD
    • EMPHASIZE THAT THE MEASURES IN THE SCORECARD I.E. THE DRIVER AND OUTCOME MEASURES ARE RESULTS THAT ARE RELATED OVER TIME.
      • THEY ARE CAUSALLY RELATED AND OCCUR AT DIFFERENT POINTS IN TIME.
    • THE REASON FOR HAVING BOTH MEASURES IS TO ENABLE DETECTION OF EARLY DEVIATIONS OR CONFORMANCE WITH PLAN.
    • THE DRIVER OUTCOMES BECOMES THE PRIMARY FOCUS IN MONITORING PERFORMANCE.
  • 38. EXAMPLE INCREASE PROFIT BY 20% INCREASE SALES FROM NEW PRODUCTS BY 15% REDUCE COST BY 10% NEW PRODUCTS LAUNCHED PROMOTIONAL CAMPAIGN OUTCOME PERFORMANCE DRIVERS REDUCE PRODUCTION COST BY 15% REDUCE WARRANTY CLAIM BY 40% PRODUCT LAUNCHED PER QRTR PROMOTIONAL EXPENDITURE PER NEW PRDCT LEAD MEASURES COST PER UNIT REDUCTION WARRANTY CLAIM WITHIN 6 MONTH OF PURCHASE
  • 39. FACILITATOR’S NOTE: TYPICAL MISTAKES IN DVLPG THE SCORECARD
    • TRAINEES SOMETIMES GET CARRIED AWAY WITH THE THINKING ABOUT STRATEGY MAP WHERE THE APPROACH TO CAUSAL RELATIONSHIP IS SPATIAL.
    • TRAINERS NEED TO EMPHASIZE THAT THE SCORECARD IS ABOUT TEMPORAL CAUSAL RELATIONSHIP.
    • SOMETIMES TRAINEES TEND TO CHOSE TOO MANY MEASURES AND SOMETIMES MEASURES THAT ARE DIFFICULT TO BE CAPTURED. TRAINERS NEED TO ENCOURAGE TRAINEES TO BE SELECTIVE .
    • AS IN THE STRATEGY MAP, A KEY TASK FOR TRAINERS IS TO GET TRAINEES TO EXPLAIN AND JUSTIFY THE MEASURES THEY HAVE CHOSEN. OF PARTICULAR CONCERN IS TO GET THEM TO DEFEND THE VALIDITY OF THE CAUSAL RELATIONSHIP.
  • 40. CASCADING THE SCORECARD
    • WHERE AVAILABLE, REFER TO FUNCTIONAL STRATEGY MAP TO DEVELOP FUNCTIONAL SCORECARD.
      • CORPORATE PERFORMANCE DRIVERS USUALLY FUNCTIONAL OUTCOME MEASURE.
    • FOR PERSONAL SCORECARD, IDENTIFY PROCESS OWNER OF ACTIVITIES.
    • AS BEFORE, IDENTIFY THE DRIVERS OF EACH OUTCOME.
  • 41. CASCADING THE SCORECARD PRFRMNCE DRIVER PRFMRNC DRIVER PRFMNC DRIVER OUTCOME MEASURES OUTCOME MEASURES OUTCOME MEASURES CORPORATE LEVEL FUNCTIONAL LEVEL OPERATIONAL LEVEL
  • 42. EXAMPLE FUNCTIONAL OUTCOME FUNCTIONAL PERFORMANCE DRIVERS FUNCTIONAL LEAD MEASURES PRDCT DVLPMNT: NEW PRODUCT PER QUARTER NEW PRODUCT LAUNCHED MKTG:TIMELY MARKET RESEARCH PRDCT DVLPMNT: TIME FROM DESIGN TO CMRCLZD PRODUCT MKTG: MARKET RESEARCH PERFORM AS PER CALENDAR
  • 43. SCORECARD CASCADING TABLE Acquire knowledge on tchnlgy future and use of Delphi tchnq. Expand method for mrkt research. Assist Prdct Dvlpmnt identify viable product. Perform market research within calendar and budget given SNR MNGR Market Research Train team members in creative problem solving. Imprv technology/ expertise sharing among prdct dvlpmnt teams. Design qlty prdcts with features wanted by mrkt. Dvlp new prdcts fulfilling financial criteria MANAGER Wireless technology Dvlp corporate memory on new technology. Estblsh business intelligence processes. Dvlp 3 year technology forecast. MANAGER Technology forecasting Enhance product design and design-to-prdctn transfer competency. Reduce design- to-comrclztn cycle to 5 months. First in market to offer customers with latest technology. Introduce 2 new products/qrtr with profit margin of at least 35%. SNR MNGR Product Dvlpmnt Develop know-how on latest product and production technology Reduce product dvlpmnt time. Offer new products with better features and quality than competitors. Generate 40% of profit from products less than 2 years old. GM MARKETING LEARNING INTERNAL PROCESS CUSTOMER FINANCIAL
  • 44. GUIDELINES ON DEVELOPING THE SCORECARD
    • DEVELOPING AND CASCADING THE SCORECARD IS THE MOST DIFFICULT AND MESSY PART OF THE BSC.
    • IT IS AN EXERCISE IN JUDGEMENT
      • KAPLAN AND NORTON CAUTION AGAINST IMITATION.
      • THEY ALSO EMPHASIZED THE IMPORTANCE OF PARTICIPATION OF THOSE INVOLVED.
    • ALWAYS ENSURE THAT MEASURES DEVELOPED HAVE CAUSAL RELATIONSHIP.
    • EXTENT OF SCORECARD CASCADE DEPENDS ON SCOPE OF TASK AND DEGREE OF CONTROL OF INDIVIDUAL HAS.
  • 45. FACILITATOR’S NOTE: SCORECARD EXERCISE
    • DEVELOPING AND CASCADING THE SOCRECARD IS THE MOST DIFFICULT PART OF THE BSC.
    • WHERE TIME PERMITS, TRY TO HAVE MORE EXERCISES TO SHARPEN THE SKILLS OF THE TRAINEES.
    • WHEN POSSIBLE, CHOSE A REAL ORGANIZATIONAL EXAMPLE AND GO THROUGH THE EXERCISE OF DEVELOPING AND CASCADING THE SCORECARD.
    • ADVANCED PREPARATION IS NEEDED TO DO THIS.
  • 46. MANAGING CHANGE IN BSC IMPLEMENTATION
    • BSC IMPLEMENTATION IS PROCEDURAL AND BEHAVIOURAL CHANGE.
    • VERY IMPORTANT TO GET MEMBERS ON BOARD.
    • NEED TO RECOGNIZE LIMITATION OF INDIVIDUAL KNOWLEDGE.
    • ROLLOUT REQUIRES TIME AND PARTICIPATION.
    • STRENGTH OF BSC IS IN THE EMPHASIS ON PARTICIPATION
      • GET PARTICIPATION ESPECIALLY ON KEY ISSUES
      • START AT STRATEGY FORMULATION ITSELF.
      • ALSO IMPORTANT IN DVLPNG STRATEGY MAP AND SCORECARD.
  • 47. STEPS TO DEVELOP MEANINGFUL PARTICIPATION
    • ESTABLISH DIALOGUE AND NOT JUST 2-WAY MONOLOGUE.
    • MANAGEMENT, ESPECIALLY HIGHER UPS, NEED TO STEP BACK.
    • CREATE CLIMATE FOR OPEN DISCUSSION
      • NOTHING MAN-MADE IS SACRED.
      • DON’T BE HASTY SHOOTING DOWN SEEMINGLY UNWORKABLE IDEAS.
      • APPOINT NEUTRAL, RESPECTED AND SKILLFUL PERSON TO CHAIR DISCUSSION.
      • DE-EMPHASIZE STATUS AND HIERARCHY.
    • LISTEN AND SEEK TO UNDERSTAND THOSE WITH THE MOST CRITICAL VIEWS.
      • THEY MAY HAVE MORE INSIGHT THAN THE “YES MEN”
      • DON’T KILL HANG NADIM
  • 48. FACILITATOR’S NOTE: SIGNIFICANCE OF PARTICIPATION
    • FACILITATORS NEED TO POINT OUT THAT DEVELOPING THE BSC IS A COGNITIVE AND SOCIAL PROCESS.
    • DEVELOPING MEANINGFUL PARTICIPATION IS A VERY IMPORTANT PART OF THE PROCESS.
    • FAILURE TO DEVELOP MEANINGFUL PARTICIPATION RENDERS THE BSC IMPLEMENTATION PROCESS AN AUTOCRATIC AND MECHANISTIC PROCESS.
    • POINT OUT THAT PARTICIPATION IS THE PROCESS THAT MAKES BSC TOOLS EFFECTIVE.
  • 49. GUIDELINE IN BSC ROLLOUT PROCESS
    • ESTABLISH A STEERING COMMITTEE OR PROJECT MANAGEMENT TEAM.
    • DO NOT DELEGATE TO MIDDLE LEVEL. MUST BE LEAD FROM THE TOP.
    • REQUIRES ACTIVE INVOLVEMENT AND LEADERSHIP FROM THE TOP.
    • SET A ROLLOUT CALENDAR.
    • TIE SCORECARD MEASURES TO PERFORMANCE APPRAISAL.
    • MAKE MONITORING SCORECARD A KEY AND REGULAR MANAGEMENT AGENDA.
    • MAY NEED TO START WITH A PILOT PROJECT.
  • 50. KEY CHANGE AGENTS
    • BSC ARCHITECT
      • CHARTS OUT OVERALL INITIATIVE
      • SECURES BUY-IN AT HIGHEST LEVEL
      • POSSIBLE LEADER OF STEERING COMMITTEE.
    • CHANGE AGENT
      • RESPONSIBLE FOR TROUBLE-SHOOTING AND INITIATING NEEDED TRANSFORMATION
      • REQUIRES A PERSON WITH BROAD KNOWLEDGE AND GOOD INTERPERSONAL SKILLS.
    • COMMUNICATOR
      • EDUCATES, TRAIN AND DEVELOP UNDERSTANDING OF OTHERS.
      • MUST BE GIVEN TIME AND RESOURCES.
      • CHOSE SOMEONE GENUINELY INTERESTED AND COMMITED TO BSC INITIATIVE.
  • 51. FACILITATOR’S NOTE: IDENTIFYING CHANGE AGENTS
    • DIFFERENT ORGANIZATIONS MAY USE DIFFERENT TITLES AND DESIGNATION FOR THOSE RESPONSIBLE IN IMPLEMENTING BSC.
    • GET THE TRAINEES TO DISCUSS AND IDENTIFY WHO IS PLAYING WHAT ROLE IN THEIR ORGANIZATION.
    • WHAT SHORTCOMINGS ARE THERE IN THE PRESENT ARRANGEMENT?
  • 52. BSC ROLLOUT
    • MEASUREMENT ARCHITECUTRE.
      • UNIT SELECTION
      • IDENTIFY LINKAGE BETWEEN UNIT AND CORPORATE
    • DEFINE STRATEGIC OBJECTIVES.
      • EXAMINE MISSION AND COLLECT AND SYNTHESIZE INPUT ON OBJECTIVES
      • EXAMINE CAUSE-EFFECT RELATIONSHIP OF OBCJTVS
      • PRESENT BACK TO TOP MGT AND BUILD CONSENSUS ON STRATEGIC THEME AND OBJECTIVES.
  • 53.
    • SELECT STRATEGIC MEASURES
      • SUBGROUP MEETINGS TO REFINE OBJECTIVES
      • WORKSHOP 2 TO GET FEEDBACK AND OWNERSHIP
    • BUILD IMPLEMENTATION PLAN
      • HOW TO CAPTURE DATA AND LINK WITH INFO SYSTEM
      • WORKSHOP 3 TO GAIN FINAL CONSENSUS.
      • SET CALENDAR AND FINAL EXECUTION.
  • 54. FACILITATORS’ ROLE AS INTERNAL EXPERTS
    • UNDERTAKE ADVANCED PREPARATION.
    • CONSIDER DVLPG PRO FORMA STRATEGY MAP.
    • DVLP STRATEGY MAP OF CURRENT STRATEGY AND DISCUSS HOW FUTURE SHOULD BE.
    • HANDLE STATUS DIFFERENCES IN DISCUSSION WISELY.
    • MANAGE DISCUSSION AND KEEP IT PRODUCTIVE.
    • FACILITATORS MUST REMAIN NEUTRAL.
  • 55. HOW THE BSC INITIATIVE CAN FAIL?
    • STRATEGY FORMULATION POORLY DONE.
    • LACK OF PARTICIPATION.
    • LACK OF OWNERSHIP.
    • CYNICISM.
    • PERSONAL FEAR AND DISCOMFORT.
    • LACK OF MGT COMMITMENT.
    • FAILURE TO ALIGN ORGANIZATIONAL PROCESSES.
    • FAILURE TO ALLOCATE RESOURCES.
    • IGNORE SOCIO-PSYCHO ASPECT OF IMPLEMENTATION .
  • 56. HOW TO PREVENT FAILURE?
    • IDENTIFY STRATEGIC CHANGE SET .
    • IDENTIFY POSSIBLE PROBLEMS AND SOURCES OF RESISTANCE.
    • RECOGNIZE AND ADDRESS GRIEVANCES.
    • CHART OUT CHANGE MANAGEMENT PROCESS.
    • BE REALISTIC ABOUT THE CHANGE MANAGEMENT PROCESS.
  • 57. ALTERNATIVE APPROACHES IN ROLLOUT
    • PIONEER INITIATIVE.
    • READY SYSTEM INTERVENTION.
    • HURTING SYSTEM INTERVENTION.
    • BUILD CRITICAL MASS SUPPORT.
  • 58. FINAL NOTE
    • IMPLEMENTING THE BSC IS NOT EASY AND REQUIRES TIME.
    • THE BSC CONSISTS TOOLS AND PROCESSES.
    • DO IT WELL, DO IT RIGHT THE FIRST TIME.
    • TAKE INTO CONSIDERATION ORGANIZATIONAL HISTORY.
    • CUSTOMIZE AND ADAPT TO ORGANIZATIONAL NEEDS AND CONDITIONS.
    • DON’T LET THE BSC BECOME A STRAIGHTJACKET.
    • DEVELOP INTERNAL EXPERTISE TO ENSURE SUSTAINABILITY.
    • BSC IS NOT LOWER LEVEL RESPONSIBILITY.
    • DON’T LET BUREACRACY DISTRACT FROM STRATEGY.
    • LEADERSHIP FROM THE TOP, LEADERSHIP FROM THE TOP, LEADERSHIP FROM THE TOP…

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