Managing Strategy<br />The BSCsolutionTM<br />Aligning Strategy with Execution<br />and<br />Transforming Intangible Asset...
Misalignment & Miscommunication of Organizational Strategy<br />How does an organization assure their strategies are under...
The BSCsolutionTM<br />Transforming<br />Organizations into<br />Strategically<br />Focused Businesses<br />Developing <br...
Evidenced-based management
Flexibility to shift strategy
Enterprise-wide Accountability</li></ul>Creating<br />ActionableStrategy<br />Mobilizing<br />Change<br />Value Add<br />P...
The 12Critical Strategic Readiness Areas<br />Commitment Developing a strategically focused culture<br />1<br />Committed ...
What Are Scorecards And What Is Balanced?<br />Scorecards<br />Part of the BSC integrated solution for strategic managemen...
 Key measurable targets for each objective.</li></ul>Managers<br />Develop departmental scorecards detailing their:<br /><...
 Measurable targets
 Owners and timelines
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Balanced Scorecards DJA

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Balanced Scorecards DJA

  1. 1. Managing Strategy<br />The BSCsolutionTM<br />Aligning Strategy with Execution<br />and<br />Transforming Intangible Assets <br />Into<br />Tangible Outputs<br />David Allinson<br />
  2. 2. Misalignment & Miscommunication of Organizational Strategy<br />How does an organization assure their strategies are understood and internalized by all employees to assure the Mission is achieved?<br />
  3. 3. The BSCsolutionTM<br />Transforming<br />Organizations into<br />Strategically<br />Focused Businesses<br />Developing <br />Strategically<br />Focused<br />Culture<br /><ul><li>Operational Alignment with Strategy
  4. 4. Evidenced-based management
  5. 5. Flexibility to shift strategy
  6. 6. Enterprise-wide Accountability</li></ul>Creating<br />ActionableStrategy<br />Mobilizing<br />Change<br />Value Add<br />Process<br />Establishing<br />Accountability<br />And<br />Focus<br />Driving<br />Organizational <br />Awareness<br />
  7. 7. The 12Critical Strategic Readiness Areas<br />Commitment Developing a strategically focused culture<br />1<br />Committed to a systemic process<br />12<br />Business Reviews<br />2<br />Documented mission & strategy<br />4<br />11<br />Budget & operations management<br />3<br />Buy-in from leadership team<br />4<br />5<br />2<br />4<br />10<br />Communicate Strategy/State of Business<br />1<br />Strategy mapped to top objectives<br />5<br />1<br />2<br />1<br />4<br />5<br />9<br />2<br />Individual Objectives / Scorecards<br />Targets established<br />3<br />6<br />8<br />Appraisals linked to Incentives<br />Executive Dashboard<br />Monitoring<br />Scoring:<br />1 = No or unaware.<br />2 = No, but have discussed/considered.<br />3 = Yes, but only recently implemented.<br />4 = Yes, but still not ingrained in culture.<br />5 = Yes, well established process in culture. <br />7<br />A Strategically Focused Organization has a “5” in all 12 Areas.<br />
  8. 8. What Are Scorecards And What Is Balanced?<br />Scorecards<br />Part of the BSC integrated solution for strategic management. BSCs detail key functional initiatives in support of each company-level strategic objective. BSCs are enterprise-wide and measure progress towards each initiative. Thus, assuring strategies are achieved. BSCs align all functions and activities with the strategies and mission.<br />Balanced<br />Per the Hackett Group (A global business process advisory firm www.thehackettgroup.co.uk), traditional financial measures should total 20% of all performance measures. 80% should be customer, operational process and intangible measures (e.g., human, technology and organizational capital). <br />Executives<br />Develop a “one-pager” mapping strategy statements to:<br /><ul><li> Core objectives in support of the strategy statements, and
  9. 9. Key measurable targets for each objective.</li></ul>Managers<br />Develop departmental scorecards detailing their:<br /><ul><li> Initiatives
  10. 10. Measurable targets
  11. 11. Owners and timelines
  12. 12. Cross-organizational interdependencies</li></li></ul><li>THEFOUNDATION<br />Strategy Mapping<br />
  13. 13. THEFOUNDATION<br />Departmental Scorecard<br />
  14. 14. Scorecards & Cross-Organizational Collaboration<br />Product Management/R&D Scorecard<br />Initiative<br />Target<br />Due Date<br />Ownership<br />Objective 1 <br />Create a web-based interactive community.<br />Marketing Scorecard<br />Finance Scorecard<br />Objective 1<br />Increase market awareness for new PSO capabilities<br />Initiative<br />Initiative<br />Target<br />Target<br />Due Date<br />Due Date<br />Ownership<br />Ownership<br />Objective 1<br />Improve revenue predictability<br />Strategy<br />Mapping<br />Sales/Distribution Scorecard<br />Initiative<br />Target<br />Due Date<br />Ownership<br />Objective 1<br />Shift revenue mix to solutions<br />BSC is a powerful tool for focused Strategy, execution and feedback<br />
  15. 15. Benefits<br />CHRONIC EXECUTION GAPS CLOSED<br />Measuring forward-looking financial and non-financial targets produces early gap identification. Cause and effect relationships are identified and controlled.<br />STRATEGY TRANSLATION AND COMMUNICATION<br />Executive team communicates to employees, partners and investors in a common operating language based on the BSCsolution TM. Employee attrition rates decrease, financial and non-financial targets are achieved and Board meetings are more effective.<br />CROSS ORGANIZATIONAL COLLABORATION INCREASES<br />Interdependent initiatives drive accountability across organizations. Silos diminish, critical functional linkages are measured.<br />FINANCIAL AND MARKET PERFORMANCE IMPROVE<br />Discretionary capital and resource decisions have focus on strategic statements. Cash dependent cycles compress and operating margins improve. Go-to-market plans and value drivers are monitored, corrected and optimized.<br />STRATEGY MEASURED/CORRECTED<br />Strategy feedback process proactively identifies risk/opportunity to the business plan. Executive team becomes nimble at recognizing, mitigating risks, pursuing the right opportunities and tuning strategy.<br />
  16. 16. BSCsolutionTM - Five Phase Implementation <br />1<br />5<br />4<br />3<br />2<br />Developing<br />Strategically<br />Focused<br />Culture<br />Creating<br />Actionable<br />Strategy<br />Driving<br />Organizational<br />Awareness<br />Establishing<br />Accountability<br />& Focus<br />Mobilize<br />Change<br />Align<br />Assess<br />Sustain<br />Key Activities:<br />Understanding of how CEO/CFO think about the business, its mission and supporting strategies as well as the management of those strategies.<br />Determine the organization's level of strategic "readiness".<br />Educate CEO/CFO on the organization's level of strategic "readiness".<br />Determine initial communication plan to employees.<br />Establish personal employee objectives and targets.<br />Link employee appraisals to objectives and an incentive plan for achieving targets.<br />Create incentive plans tightly linked to achieving targets.<br />Establish an on-going employee communication program.<br />Establish mid-quarter business reviews.<br />Establish monthly financial reviews.<br />Create a Strategy Map<br />Create Departmental Scorecards<br />Obtain buy-in on the departmental Scorecards<br />Example of Key Deliverables & Outputs:<br />Document interview for CEO and CFO.<br />Document Mission Statement and top strategies in support of the Mission.<br />Spider gram<br />A Strategic Map of objectives and targets that support strategies<br />Final approved departmental scorecards<br />Content for communication (e.g., town hall meeting, Web cast, emails, etc.)<br />Employee information packets (e.g., Strategy Map and Departmental Scorecards).<br />Individual scorecards<br />Revised appraisals for executives, managers & individual contributor.<br />Incentive plans for executives managers and individual contributors.<br />Communication plan and calendar<br />Framework for mid-quarter business reviews<br />Framework for monthly financial review.<br />
  17. 17. Keys to BSCsolutionTM Success<br />The CEO or CFO Should be a Sponsor and Involved<br /><ul><li> Awareness and internalization of the shared mission, vision and values required to execute the strategy.
  18. 18. Availability of qualified leaders at all levels to mobilize the organization towards its strategy.
  19. 19. Alignment of people, budgets, process and incentives with the strategy at all organization levels.
  20. 20. No boundaries on communication, knowledge sharing and cross-organizational collaboration.</li></ul>Culture<br />Leadership<br />Alignment<br />Teamwork<br />Commitment to An On-Going Reporting Tool For Both Management and the Board. <br />

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