Measuring Business Success

  • 18,552 views
Uploaded on

You know how to create the business plan. Now learn how to WORK THE PLAN. …

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

More in: Business , Technology
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
  • Really its very interesting and nice.
    Are you sure you want to
    Your message goes here
No Downloads

Views

Total Views
18,552
On Slideshare
0
From Embeds
0
Number of Embeds
1

Actions

Shares
Downloads
1,568
Comments
1
Likes
10

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Measuring Business Success – Business Performance Management System 1.562.860.8637 ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS info@cpsphere.com www.cpSphere.com
  • 2. ITS NOT STRATEGY THAT MATTERS – IT’S EXECUTION THAT COUNTS  cpSphere  Delivering Next Generation of Solutions 17215 Studebaker Rd. Suite 390 Cerritos, CA 90703 1.562.860.8637 1.562.860.8611 growth@cpSphere.com 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