Strategy by Measurement

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    Notes on slide 1

    Success is the accomplishment of goals and fulfillment of purpose. It is shared with all stakeholders and is aligned with mission, vision and values.Success is achieving performance

    Success is the accomplishment of goals and fulfillment of purpose. It is shared with all stakeholders and is aligned with mission, vision and values.Success is achieving performance

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    Strategy by Measurement - Presentation Transcript

    1. Strategy by Measurement
      From Butterfly Effects to Success
      Atif Abdul-Rahman
    2. A single flap of a butterfly’s wing CAN lead to a tornado elsewhere…
    3. A SINGLEmeasure in a company can make or break the business.
    4. Although a bit exaggerated, many companies have seen similar effects…
    5. Strategy by Measurement
    6. Strategy
    7. …is the plan to act
      Strategy
    8. …is the plan to act
      Act…to achieve goals
      Strategy
    9. …is the plan to act
      Act…to achieve goals
      Goals…that define Purpose
      Strategy
    10. Purpose
    11. “A group of people get together and exist as an institution that we call a company so they are able to accomplish something collectively that they could not accomplish separately, they make a contribution to society,
      Do something which is of value.”
      -David Packard
      Purpose
    12. The Vision…
      “A group of people get together and exist as an institution that we call a company so they are able to accomplish something collectively that they could not accomplish separately, they make a contribution to society,
      Do something which is of value.”
      -David Packard
      Purpose
    13. The Vision…
      “A group of people get together and exist as an institution that we call a company so they are able to accomplish something collectively that they could not accomplish separately, they make a contribution to society,
      Do something which is of value.”
      -David Packard
      The Mission…
      Purpose
    14. The Vision…
      “A group of people get together and exist as an institution that we call a company so they are able to accomplish something collectively that they could not accomplish separately, they make a contribution to society,
      Do something which is of value.”
      -David Packard
      The Mission…
      The Core Values…
      Purpose
    15. The Vision…
      “A group of people get together and exist as an institution that we call a company so they are able to accomplish something collectively that they could not accomplish separately, they make a contribution to society,
      Do something which is of value.”
      -David Packard
      The Mission…
      The Core Values…
      All define the Purpose
      Purpose
    16. Am I meeting my Purpose?
    17. Am I meeting my Purpose?
      Am I Successful?
    18. Success
    19. Success is the accomplishment of goalsand fulfillment of purpose. It is shared with all stakeholders and is aligned with mission, vision and values.
      Success
    20. Success is the accomplishment of goals and fulfillment of purpose. It is shared with all stakeholders and is aligned with mission, vision and values.
      Success is exceeding performance
      Success
    21. But How to you define Performance? How
      Performance
    22. But How to you define Performance? How
      But how do you define performance?
      Performance
    23. But How to you define Performance? How
      But how do you define performance?
      How do you track it and then act upon it?
      Performance
    24. But How to you define Performance? How
      But how do you define performance?
      How do you track it and then act upon it?
      How do you know that the ‘SYSTEM’ is truly measuring performance?
      Performance
    25. The SYSTEMmeasures, monitors and manages performance.
    26. The SYSTEMmeasures, monitors and manages performance.
      However, The SYSTEMmay not be evenpresent in the first place!
    27. Performance
    28. Measure
      Performance
    29. Measure
      What does it take to succeed?
      Performance
    30. Measure
      What does it take to succeed?
      Each business unit has to define its performance based on its strategy, enterprise infrastructure, corporate culture and its environment.
      Performance
    31. Measure
      What does it take to succeed?
      Each business unit has to define its performance based on its strategy, enterprise infrastructure, corporate culture and its environment.
      By scoring performance, businesses can truly gauge their standings.
      Performance
    32. Measure
      What does it take to succeed?
      Each business unit has to define its performance based on its strategy, enterprise infrastructure, corporate culture and its environment.
      By scoring performance, businesses can truly gauge their standings.
      What Gets Measured, Gets Done!
      Performance
    33. Monitor
      Performance
    34. Monitor
      Success demands agility, the ability to shift directions, change course of actions and evolve!
      Performance
    35. Monitor
      Success demands agility, the ability to shift directions, change course of actions and evolve!
      This calls for timely monitoring of performance.
      Performance
    36. Monitor
      Success demands agility, the ability to shift directions, change course of actions and evolve!
      This calls for timely monitoring of performance.
      This gives right time for action, faster decision making and brings the power of control back to the people.
      Performance
    37. Monitor
      Success demands agility, the ability to shift directions, change course of actions and evolve!
      This calls for timely monitoring of performance.
      This gives right time for action, faster decision making and brings the power of control back to the people.
      Monitoring gives Business Insight
      Performance
    38. Act!
      Performance
    39. Act!
      “Change is the process by which the future invades our lives “ Alvin Toffler
      Performance
    40. Act!
      “Change is the process by which the future invades our lives “ Alvin Toffler
      Act & take control of the environment before the environment changes and takes control of U
      Performance
    41. Act!
      “Change is the process by which the future invades our lives “ Alvin Toffler
      Act & take control of the environment before the environment changes and takes control of U
      Develop a plan and execute it!
      Performance
    42. Act!
      “Change is the process by which the future invades our lives “ Alvin Toffler
      Act & take control of the environment before the environment changes and takes control of U
      Develop a plan and execute it!
      Strategy + Action = Performance
      Performance
    43. “Knowing what to measure and how to measure it makes a complicated world much less so. If you learn how to look at the data in the right way you can explain riddles that otherwise might have seemed impossible. Because there is nothing like the sheer power of numbers to scrub away layers of confusion and contradiction.”
    44. That SYSTEM is EPM
    45. EPM = CPM (corporate) = BPM(not process)
      EPM
    46. EPM = CPM (corporate) = BPM(not process)
      Enterprise Performance Management
      EPM
    47. EPM = CPM (corporate) = BPM(not process)
      Enterprise Performance Management
      Performance has to be managed!
      EPM
    48. EPM = CPM (corporate) = BPM(not process)
      Enterprise Performance Management
      Performance has to be managed!
      It Is a management system which gluesstrategy and execution together.
      EPM
    49. EPM Manifesto
    50. PUT STRATEGY TOACTION
      EPM Manifesto
    51. ACT!
      EPM BENEFITS
    52. ACT!
      AGILITY
      EPM BENEFITS
    53. ACT!
      AGILITY
      AGILITY CONSOLIDATIONTIMELINESS
      EPM BENEFITS
    54. ACT!
      AGILITY
      AGILITY CONSOLIDATIONTIMELINESS
      EPM provides the capability to consolidate financial & nonfinancial data and provide a holistic view between business processes and strategy. This determines the required changes quickly and with completeness.
      EPM BENEFITS
    55. ACT!
      CONTROL
      EPM BENEFITS
    56. ACT!
      CONTROL
      ACCURACY CONTROL TOTAL QUALITY
      EPM BENEFITS
    57. ACT!
      CONTROL
      ACCURACY CONTROL TOTAL QUALITY
      EPM provides companies the mechanism through which they can practice a total quality imitative by connecting their strategy with their control processes and with their operations processes allowing them to establish compliances effectively.
      EPM BENEFITS
    58. ACT!
      TRANSPARENCY
      EPM BENEFITS
    59. ACT!
      TRANSPARENCY
      AWARENESS COLLABORATION TRANSPARENCY
      EPM BENEFITS
    60. ACT!
      TRANSPARENCY
      AWARENESS COLLABORATION TRANSPARENCY
      EPM provides a platform where stakeholders can communicate their performance and can drill down to any KPI from any view all the way to the data sources, processes and applications. This gives the imitative for data quality, enterprise awareness and a highly collaborative work environment
      EPM BENEFITS
    62. ENTERPRISE PERFORMANCE MANAGEMENT
      Creating Connections & Synergies
    63. PEOPLE
      ENTERPRISE PERFORMANCE MANAGEMENT
      Creating Connections & Synergies
    64. PEOPLE
      PROCESSES
      ENTERPRISE PERFORMANCE MANAGEMENT
      Creating Connections & Synergies
    65. TECHNOLOGY
      PEOPLE
      PROCESSES
      ENTERPRISE PERFORMANCE MANAGEMENT
      Creating Connections & Synergies
    66. TECHNOLOGY
      PEOPLE
      PROCESSES
      ENTERPRISE PERFORMANCE MANAGEMENT
      Creating Connections & Synergies
    67. TECHNOLOGY
      STRATEGY
      PEOPLE
      PROCESSES
      ENTERPRISE PERFORMANCE MANAGEMENT
      Creating Connections & Synergies
    68. TECHNOLOGY
      SHAREHOLDERS
      STRATEGY
      PEOPLE
      PROCESSES
      ENTERPRISE PERFORMANCE MANAGEMENT
      Creating Connections & Synergies
    69. TECHNOLOGY
      CUSTOMERS
      SHAREHOLDERS
      STRATEGY
      PEOPLE
      PROCESSES
      ENTERPRISE PERFORMANCE MANAGEMENT
      Creating Connections & Synergies
    70. TECHNOLOGY
      CUSTOMERS
      SHAREHOLDERS
      STRATEGY
      PEOPLE
      PROCESSES
      ENTERPRISE PERFORMANCE MANAGEMENT
      Creating Connections & Synergies
    71. TECHNOLOGY
      CUSTOMERS
      SHAREHOLDERS
      STRATEGY
      PEOPLE
      PROCESSES
      ENTERPRISE PERFORMANCE MANAGEMENT
      Creating Connections & Synergies
    72. EPM LIFECYCLE Performance Dashboards, Wayne W. Eckerson, Wiley
    73. 1.STRATEGIZE
      EPM LIFECYCLE Performance Dashboards, Wayne W. Eckerson, Wiley
    74. 2. PLAN
      EPM LIFECYCLE Performance Dashboards, Wayne W. Eckerson, Wiley
    75. 3. MONITOR/ANALYZE
      EPM LIFECYCLE Performance Dashboards, Wayne W. Eckerson, Wiley
    76. 4. ACT/ADJUST
      EPM LIFECYCLE Performance Dashboards, Wayne W. Eckerson, Wiley
    77. 2. PLAN
      1.STRATEGIZE
      3. MONITOR/ANALYZE
      4. ACT/ADJUST
      EPM LIFECYCLE Performance Dashboards, Wayne W. Eckerson, Wiley
    78. BUT WHAT DRIVES SUCCESS FOR THE EPM?
      ORGANIZATION STRATEGY MAPVISION INFRASTRUCTURETARGETS TECHNOLOGY MISSION BUDGETINGPROCESS INCENTIVESPLANNING EXECUTIVE BUY-INFORECASTINGKPICONSOLIDATIONMODELS METRICS SCORECARDS INITIATIVES ALERTS GOALS AGENTS ACTIONS DECISIONS DASHBOARDS BI ANALYTICS DATA MODEL REPORTS PEOPLE
    79. BUT WHAT DRIVES SUCCESS FOR THE EPM?
      ORGANIZATION STRATEGY MAPVISION INFRASTRUCTURETARGETS TECHNOLOGY MISSION BUDGETINGPROCESS INCENTIVESPLANNING EXECUTIVE BUY-INFORECASTINGKPICONSOLIDATIONMODELS METRICS SCORECARDS INITIATIVES ALERTS GOALS AGENTS ACTIONS DECISIONS DASHBOARDS BI ANALYTICS DATA MODEL REPORTS PEOPLE
    80. BUT WHAT DRIVES SUCCESS FOR THE EPM?
      ORGANIZATION STRATEGY MAPVISION INFRASTRUCTURETARGETS TECHNOLOGY MISSION BUDGETINGPROCESS INCENTIVESPLANNING EXECUTIVE BUY-INFORECASTINGKPICONSOLIDATIONMODELS METRICS SCORECARDS INITIATIVES ALERTS GOALS AGENTS ACTIONS DECISIONS DASHBOARDS BI ANALYTICS DATA MODEL REPORTS PEOPLE
    81. BUT WHAT DRIVES SUCCESS FOR THE EPM?
      ORGANIZATION STRATEGY MAPVISION INFRASTRUCTURETARGETS TECHNOLOGY MISSION BUDGETINGPROCESS INCENTIVESPLANNING EXECUTIVE BUY-INFORECASTINGKPICONSOLIDATIONMODELS METRICS SCORECARDS INITIATIVES ALERTS GOALS AGENTS ACTIONSDECISIONS DASHBOARDS BI ANALYTICS DATA MODEL REPORTS PEOPLE
    82. BUT WHAT DRIVES SUCCESS FOR THE EPM?
      ORGANIZATION STRATEGY MAPVISION INFRASTRUCTURETARGETS TECHNOLOGY MISSION BUDGETINGPROCESS INCENTIVESPLANNING EXECUTIVE BUY-INFORECASTINGKPICONSOLIDATIONMODELS METRICS SCORECARDS INITIATIVES ALERTS GOALS AGENTS ACTIONS DECISIONS DASHBOARDS BI ANALYTICS DATA MODEL REPORTS PEOPLE
    83. BUT WHAT DRIVES SUCCESS FOR THE EPM?
      ORGANIZATION STRATEGY MAPVISION INFRASTRUCTURETARGETS TECHNOLOGY MISSION BUDGETINGPROCESS INCENTIVESPLANNING EXECUTIVE BUY-INFORECASTINGKPICONSOLIDATIONMODELS METRICS SCORECARDS INITIATIVESALERTS GOALS AGENTS ACTIONS DECISIONS DASHBOARDS BI ANALYTICS DATA MODEL REPORTS PEOPLE
    84. BUT WHAT DRIVES SUCCESS FOR THE EPM?
      ORGANIZATION STRATEGY MAPVISION INFRASTRUCTURETARGETS TECHNOLOGY MISSION BUDGETINGPROCESS INCENTIVESPLANNING EXECUTIVE BUY-INFORECASTINGKPICONSOLIDATIONMODELS METRICS SCORECARDS INITIATIVES ALERTS GOALS AGENTS ACTIONS DECISIONS DASHBOARDS BI ANALYTICS DATA MODEL REPORTS PEOPLE
    85. BUT WHAT DRIVES SUCCESS FOR THE EPM?
      ORGANIZATION STRATEGY MAPVISION INFRASTRUCTURETARGETS TECHNOLOGY MISSION BUDGETINGPROCESS INCENTIVESPLANNING EXECUTIVE BUY-INFORECASTINGKPICONSOLIDATIONMODELS METRICS SCORECARDS INITIATIVES ALERTS GOALS AGENTS ACTIONS DECISIONS DASHBOARDS BI ANALYTICS DATA MODELREPORTS PEOPLE
    86. It’s a bitmore complicated than that!
    87. Lets take a car analogy
    88. Car Analogy
      Analogy EPM
    89. Car Analogy
      Analogy EPM
      Destination Vision
    90. Car Analogy
      Analogy EPM
      Destination Vision
      Map Strategy Map
    91. Car Analogy
      Analogy EPM
      Destination Vision
      Map Strategy Map
      Routes Planning
    92. Car Analogy
      Analogy EPM
      Destination Vision
      Map Strategy Map
      Routes Planning
      Roads Infrastructure
    93. Car Analogy
      Analogy EPM
      Destination Vision
      Map Strategy Map
      Routes Planning
      Roads Infrastructure
      Traffic Rules Compliance
    94. Car Analogy
      Analogy EPM
      Speed Data Model
    95. Car Analogy
      Analogy EPM
      Speed Data Model
      Rear View Mirror Consolidation
    96. Car Analogy
      Analogy EPM
      Speed Data Model
      Rear View Mirror Consolidation
      GPS Forecasting
    97. Car Analogy
      Analogy EPM
      Speed Data Model
      Rear View Mirror Consolidation
      GPS Forecasting
      Gears Processes
    98. Car Analogy
      Analogy EPM
      Speed Data Model
      Rear View Mirror Consolidation
      GPS Forecasting
      Gears Processes
      Transmission Technology
    99. Car Analogy
      Analogy EPM
      Speed Data Model
      Rear View Mirror Consolidation
      GPS Forecasting
      Gears Processes
      Transmission Technology
      Dashboard Scorecards
    100. Car Analogy
      Analogy EPM
    101. Car Analogy
      Analogy EPM
      Fuel Executive Buy-In
    102. Car Analogy
      Analogy EPM
      Fuel Executive Buy-In
      Steering KPIs
    103. Car Analogy
      Analogy EPM
      Fuel Executive Buy-In
      Steering KPIs
      Motion Actions
    104. Car Analogy
      Analogy EPM
      Fuel Executive Buy-In
      Steering KPIs
      Motion Actions
      Passengers Shareholders
    105. Car Analogy
      Analogy EPM
      Fuel Executive Buy-In
      Steering KPIs
      Motion Actions
      Passengers Shareholders
      Mileage Performance
    106. KPI
      KPIs represent a set of measuresfocusing on those aspects of performancethat are the most crucialfor the continued successof an organization.
      –David Parmenter, CEO, Waymark Solutions, Author “Key Performance Indicators”
    107. KPI
      The only difference between a metric and a KPI is that a KPI embodies a strategic objective and measures performance against a goal.
      -TDWI Best Practices Report FQ09: Performance Management Strategies , How to create and deploy effective metrics By Wayne W. Eckerson
    109. THE CHOSEN ONE
    110. THE CHOSEN ONE
      K-P-I
      KEY PERFORMANCE INDICATOR
    111. “Show me a company that thinks it has key performance indicators (KPIs) measured monthly and quarterly, and I will show you measures that do not create change,alignmentand growthand have never been KPIs.”
      - David Parmenter, CEO, Waymark Solutions, Author “Key Performance Indicators”
      KPI
    112. Measures = Metrics
      KPI
    113. Measures = Metrics
      All KPIs are metrics but not all metrics are KPIs
      KPI
    114. Measures = Metrics
      All KPIs are metrics but not all metrics are KPIs
      Metrics are the key to analyzing process effectiveness and efficiency
      KPI
    115. Measures = Metrics
      All KPIs are metrics but not all metrics are KPIs
      Metrics are the key to analyzing process effectiveness and efficiency
      KPIs affect organizational behavior
      KPI
    116. Single KPI
      Case Study
      Source: “Key Performance Indicators”, David Parmenter*
      British Airways
      * With slight enhancements
    117. Single KPI
      Source: “Key Performance Indicators”, David Parmenter*
      British Airways
      * With slight enhancements
    118. Single KPI
      Source: “Key Performance Indicators”, David Parmenter*
      British Airways
      * With slight enhancements
    119. Single KPI
      Source: “Key Performance Indicators”, David Parmenter*
      British Airways
      * With slight enhancements
    120. Single KPI
      Source: “Key Performance Indicators”, David Parmenter*
      British Airways
      * With slight enhancements
    121. Single KPI
      Source: “Key Performance Indicators”, David Parmenter*
      British Airways
      * With slight enhancements
    122. Single KPI
      Source: “Key Performance Indicators”, David Parmenter*
      British Airways
      * With slight enhancements
    123. Single KPI
      Source: “Key Performance Indicators”, David Parmenter*
      British Airways
      * With slight enhancements
    124. Single KPI
      Source: “Key Performance Indicators”, David Parmenter*
      British Airways
      * With slight enhancements
    125. Single KPI
      Source: “Key Performance Indicators”, David Parmenter*
      British Airways
      * With slight enhancements
    126. Single KPI
      Ready to GO
      A single KPI lead Lord King, x-chairman of British Airways to improve overall corporate performance.
      This KPI became the single ambition of each employee in her/his respective area of work
      Source: “Key Performance Indicators”, David Parmenter*
      British Airways
      * With slight enhancements
    127. What is the best number of KPIs
      for an organization?
      How Many KPIs?
    128. Kaplan/Norton – Around 12
      Parmenter – Around 10
      Eckerson – Around 5-7
      How Many KPIs?
    129. How Many Metrics?
      There are no best practices, metrics can go into hundreds and thousands depending on the level of detailcaptured, interdependencies, the diversity of business domains captured in the systems etc.
    130. Challenge
      How does one select around 10 metrics (as KPIs) from a list of hundreds or thousands?
    131. Rule of Thumb guidance
    132. Rule of Thumb guidance
      Handpicked based on certain established norms and trends.
    133. Systematic Short listing
    134. Systematic Short listing
      KPIs are the output of a systematic process of short listing based on the organizational structure, strategy and planning.
    135. Intuition & Gut Feeling
    136. Intuition & Gut Feeling
      Handpicking KPIs based on human intuition and gut feeling
    137. Challenge
      Handpicking KPIs usually do not last long!
    138. Challenge
      Handpicked KPIs may have bias of human judgment!
    139. Challenge
      Handpicked KPIs may not be selected exhaustively!
    140. Challenge
      Handpicking KPIs take longer time and cost!
    141. Challenge
      Handpicked KPIs may not represent all perspectives of the business
    142. Challenge
      Strong need of a KPI framework which contains both structure and process to cater to this challenge.
    143. Challenge
      The KPI framework needs to be interconnected with the overall EPM picture
    144. Some KPI Frameworks
    145. Performance Prism
      • Vast coverage area
      • Most Flexible and Customizable
      Strong emphasis on stakeholder success.
      *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    146. Performance Prism
      • Vast coverage area
      • Most Flexible and Customizable
      Focuses on Processes and Capabilities, not just strategies and ambitions
      *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    147. Performance Prism
      • Vast coverage area
      • Most Flexible and Customizable
      Nevertheless, focuses on long termsuccess
      *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    148. Performance Prism
      • Vast coverage area
      • Most Flexible and Customizable
      Measures based management is not explicit but can be made to be so.
      *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    149. Performance Prism
      • Vast coverage area
      • Most Flexible and Customizable
      Process based improvement is the key!
      *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    150. Performance Prism
      • Vast coverage area
      • Most Flexible and Customizable
      Flexiblein structure but development process is less incrementaland less iterativecompared to alternate approaches
      *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    151. Performance Prism
      • Vast coverage area
      • Most Flexible and Customizable
      Development cycles might take longer timesthan alternatives due to vast coverage area.
      *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    152. Mostly used for Enterprise Architecture ROI
      Applied Information Economics
      • Based on Decision Theory and Actuarial Sciences
      • High value of worth in IT valuation
      *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    153. Rarely used as the sole framework for KPIs.
      Applied Information Economics
      • Based on Decision Theory and Actuarial Sciences
      • High value of worth in IT valuation
      *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    154. Works well for justifying quantification of qualitative metrics
      Applied Information Economics
      • Based on Decision Theory and Actuarial Sciences
      • High value of worth in IT valuation
      *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    155. Falls shortof becoming a comprehensive EPM framework
      Applied Information Economics
      • Based on Decision Theory and Actuarial Sciences
      • High value of worth in IT valuation
      *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    156. Balanced Scorecard
      • Most Popular
      • Improvements - 3rd Generation BSCs
      A guideline, not a roadmap
      *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    157. Balanced Scorecard
      • Most Popular
      • Improvements - 3rd Generation BSCs
      A framework with flexible process approaches
      *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    158. Balanced Scorecard
      • Most Popular
      • Improvements - 3rd Generation BSCs
      Highly collaborative
      *This assessment is based on comments available on the public domain & not on any scientifically established premise.
      *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    159. Balanced Scorecard
      • Most Popular
      • Improvements - 3rd Generation BSCs
      Highly visible and transparent
      *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    160. Balanced Scorecard
      • Most Popular
      • Improvements - 3rd Generation BSCs
      Most popular framework
      *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    161. Balanced Scorecard
      • Most Popular
      • Improvements - 3rd Generation BSCs
      Framework is scalable
      (currently 3rd Generation Balanced Scorecarding standard is available.)
      *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    162. Balanced Scorecard
      • Most Popular
      • Improvements - 3rd Generation BSCs
      Framework is customizable
      (many case studies with significant changes on the underlying structure and approach.)
      *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    163. Balanced Scorecard
      • Most Popular
      • Improvements - 3rd Generation BSCs
    164. Balanced Scorecard
      Structure
    165. Balanced Scorecard
      Structure
      An organization of performance artifacts
      (metrics, KPIs, Goals, Objectives & Strategy)
    166. Balanced Scorecard
      Structure
      Structure develops context for each performance artifact
    167. Balanced Scorecard
      Structure
      The context determines the purpose and usage for each
      performance artifact.
    168. Balanced Scorecard
      Structure
      It also allows for clearer communication
    169. Balanced Scorecard
      Structure
      The contexts are developed through 'Perspectives'
    170. Balanced Scorecard
      Structure
      'Perspectives' can be any and many
    171. Balanced Scorecard
      Structure
      The original Balanced Scorecard approach had four…
    172. Balanced Scorecard
      Structure
      Financial Perspective
      Customer Perspective
      Business Processes
      Internal Learning and Growth
    173. Balanced Scorecard
      Structure
      The recent 3rd Generation BSC has two more...
    174. Balanced Scorecard
      Structure
      Employee Perspective
      Shareholder Perspective
    175. Balanced Scorecard
      Structure
      Companies can choose to develop their own perspectives
    176. Balanced Scorecard
      Structure
      However, the essence of having a balance between
      financial and nonfinancial perspective has to be maintained
    177. Balanced Scorecard
      Structure
      Balancing means that all perspectives are taken under
      consideration when determining performance
    178. Balanced Scorecard
      Structure
      It also means that all performance artifacts chosen are
      mutually consistent
    179. Balanced Scorecard
      Structure
      ...meaning one performance artifact does not conflict or
      negate any other chosen artifact.
    180. Balanced Scorecard
      Structure
      Perspectives are chained through cause and effect
      relationships
    181. Balanced Scorecard
      Structure
      Perspectives also allow for determining KPIs from
      metrics
    182. Balanced Scorecard
      Structure
      Perspectives are used as a tool for strategy communication using strategy maps
    183. Balanced Scorecard
      Structure
      The Strategy Map is the cornerstone of strategy
      communication
    184. Balanced Scorecard
      Structure
      It groups and links the organizational goals & objectives into perspectives and determine a cause effect relationship
    185. Balanced Scorecard
      Structure
      This allows all stakeholders to identify the fundamental line of action for combined success
    186. Balanced Scorecard
      Structure
      A strategy map helps people at all levels in the organization to relate performance with their domain of
      responsibility
    187. Balanced Scorecard
      Structure
      Strategy maps enable a unidirectional approach towards better performance.
    188. Sample Strategy Map
    189. OK…
      There is the Strategy Map…
    190. OK…
      There is the Strategy Map…
      The KPIs…
    191. OK…
      There is the Strategy Map...
      The KPIs…
      The KPIs Framework…
    192. OK…
      There is the Strategy Map …
      The KPIs…
      The KPIs Framework…
      The People…
    193. OK…
      There is the Strategy Map…
      The KPIs…
      The KPIs Framework…
      The People…
      The Processes…
    194. OK…
      There is the Strategy Map…
      The KPIs…
      The KPIs Framework…
      The People…
      The Processes…
      The Technology…
    195. OK…
      There is the Strategy Map…
      The KPIs…
      The KPIs Framework…
      The People…
      The Processes…
      The Technology…
      The Governance…
    196. OK…
      There is the Strategy Map…
      The KPIs…
      The KPIs Framework…
      The People…
      The Processes…
      The Technology…
      The Governance…
      The Business…
    197. OK…
      There is the Strategy Map…
      The KPIs…
      The KPIs Framework…
      The People…
      The Processes…
      The Technology…
      The Governance…
      The Business…
      Where Do I Start?
    198. The approach to establish an EPM framework is subjective and depends on…
    199. The Company
    200. The Company
      The KPI Team
    201. The Company
      The KPI Team
      Market Conditions
    202. The Company
      The KPI Team
      Market Conditions
      Existing Maturity of EPM Know-How
    203. And…
    204. ORGANIZATION STRATEGY MAPVISION INFRASTRUCTURETARGETS TECHNOLOGY MISSION BUDGETINGPROCESS INCENTIVESPLANNING EXECUTIVE BUY-INFORECASTINGKPICONSOLIDATIONMODELS METRICS SCORECARDS INITIATIVES ALERTS GOALS AGENTS ACTIONS DECISIONS DASHBOARDS BI ANALYTICS DATA MODEL REPORTS PEOPLE
    205. A cloud of other aspects!
      ORGANIZATION STRATEGY MAPVISION INFRASTRUCTURETARGETS TECHNOLOGY MISSION BUDGETINGPROCESS INCENTIVESPLANNING EXECUTIVE BUY-INFORECASTINGKPICONSOLIDATIONMODELS METRICS SCORECARDS INITIATIVES ALERTS GOALS AGENTS ACTIONS DECISIONS DASHBOARDS BI ANALYTICS DATA MODEL REPORTS PEOPLE
    206. Myriad of Approaches
    207. Myriad of Approaches
      Choose which meets your EPM’s purpose
    208. Approach
      Balanced Scorecard
    209. No matter what approach U take, follow these guidelines…
      Approach
      Balanced Scorecard
    210. Parallel Activities
      Approach
      Balanced Scorecard
    211. Parallel Activities
      Each Powers the Other
      Approach
      Balanced Scorecard
    212. Parallel Activities
      Each Powers the Other
      Frequent Iterations
      Approach
      Balanced Scorecard
    213. Parallel Activities
      Each Powers the Other
      Frequent Iterations
      To and Fro
      Approach
      Balanced Scorecard
    214. Parallel Activities
      Each Powers the Other
      Frequent Iterations
      To and Fro
      Till Convergence…
      Approach
      Balanced Scorecard
    215. Parallel Activities
      Each Powers the Other
      Frequent Iterations
      To and Fro
      Till Convergence…
      i.e. Agreement & Feasibility
      Approach
      Balanced Scorecard
    216. KPI Development
      Approach
      Balanced Scorecard
    217. KPI Survey must be scoped into iterations
      KPI Development
      Approach
      Balanced Scorecard
    218. KPI Survey must be scoped into iterations
      KPIs must be worked in batches
      KPI Development
      Approach
      Balanced Scorecard
    219. KPI Survey must be scoped into iterations
      KPIs must be worked in batches
      Starting with the most critical…and visible
      KPI Development
      Approach
      Balanced Scorecard
    220. KPI Survey must be scoped into iterations
      KPIs must be worked in batches
      Starting with the most critical…and visible
      Iterations...KPIs from focused to comprehensive
      Approach
      Balanced Scorecard
    221. Approach
      Balanced Scorecard
    222. Approach
      Balanced Scorecard
    223. Iteration
      Approach
      Balanced Scorecard
    224. Iteration
      Approach
      Balanced Scorecard
    225. Iteration
      Approach
      Balanced Scorecard
    226. Iteration
      Approach
      Balanced Scorecard
    227. Iteration
      Approach
      Balanced Scorecard
    228. Iteration
      Approach
      Balanced Scorecard
    229. Iteration
      Approach
      Balanced Scorecard
    230. No matter how much you think you have finalized the KPI framework….
      Approach
      Balanced Scorecard
    231. No matter how much you think you have finalized the KPI framework….
      Be ready for changes and further iterations
      Approach
      Balanced Scorecard
    232. No matter how much you think you have finalized the KPI framework….
      Be ready for changes and further iterations
      Be Agile!
      Approach
      Balanced Scorecard
    233. References and Credits
      Photo Credits:
      adactio
      AmyLovesYah
      arjun01
      brian_hillegas
      drcorneilus
      easyflow
      exfordy
      faisal198846
      lepiaf
      Malias
      rhettmaxwell
      References:
      The Balanced Scorecard: Translating Strategy into Action by Robert S. Kaplan and David P. Norton (Hardcover - Sep 1, 1996)
      Performance Dashboards: Measuring, Monitoring, and Managing Your Business by Wayne W. Eckerson (Hardcover - Oct 14, 2005)
      Key Performance Indicators: Developing, Implementing,and Using Winning KPIs by David Parmenter (Hardcover - Jan 16, 2007)
      Performance Dashboards and Analysis for Value Creation (Wiley Finance) by Jack Alexander (Hardcover - Nov 3, 2006)
      Balanced Scorecard Step-by-Step: Maximizing Performance and Maintaining Results - Hardcover (Sep 1, 2006) by Paul R. Niven
      The Performance Prism: The Scorecard for Measuring and Managing Business Success by Andrew Neely, Chris Adams, and Mike Kennerley (Hardcover - Jun 27, 2002)
      How to Measure Anything: Finding the Value of "Intangibles" in Business by Douglas W. Hubbard (Hardcover - Aug 3, 2007)
      TDWI Best Practices Report: How to create and deploy effective metrics, Wayne Eckerson, Q1, 2009
    234. Contact
      Atif Abdul-Rahman,
      atif.abdulrahman <at> gee mail
      www.linkedin.com/in/atifabdulrahman
      www.knowledgeworks.wordpress.com
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