Measuring business-success-1193959058510276-5

796 views
763 views

Published on

Published in: Business, Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
796
On SlideShare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
62
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Measuring business-success-1193959058510276-5

  1. 1. Measuring Business Success – Business Performance Management System1.562.860.8637info@cpsphere.com ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTSwww.cpSphere.com
  2. 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 1.562.860.8637 growth@cpSphere.com info@cpsphere.com ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS www.cpSphere.com www.cpSphere.com
  3. 3. Agenda Why measure Business Performance What is Corporate / Business Performance Management  Strategy Map  Goals & Objectives  Scorecard – Key Performance Metrics  Initiatives Review Process1.562.860.8637info@cpsphere.com ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTSwww.cpSphere.com
  4. 4. 1.562.860.8637info@cpsphere.com ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTSwww.cpSphere.com
  5. 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 System1.562.860.8637info@cpsphere.com ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTSwww.cpSphere.com
  6. 6. Why measure business performance ? Supports Facilitates Strategic Tracks progress Improves corrective actions Planning & Goal towards goals accountability to address Setting using metrics performance gaps1.562.860.8637info@cpsphere.com ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTSwww.cpSphere.com
  7. 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 Initiatives1.562.860.8637info@cpsphere.com ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTSwww.cpSphere.com
  8. 8. Components of Business Performance Management System Strategy Map – Road map to success Goals & Objectives – Direction & Focus Scorecard – Measurement & Communication1.562.860.8637info@cpsphere.com ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTSwww.cpSphere.com
  9. 9. Sample Companies who achieved significant success through Scorecard Implementation1.562.860.8637info@cpsphere.com ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTSwww.cpSphere.com
  10. 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 average1.562.860.8637info@cpsphere.com ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTSwww.cpSphere.com
  11. 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 satisfaction1.562.860.8637info@cpsphere.com ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTSwww.cpSphere.com
  12. 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?1.562.860.8637info@cpsphere.com ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTSwww.cpSphere.com
  13. 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 Develop the Brand Improve Inventory Acquisition/ as Upscale Management Process Internet Presence Retention Relationships Management and Up selling Skills Improve Operational Skills Integrate IT / Business Systems1.562.860.8637info@cpsphere.com ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTSwww.cpSphere.com
  14. 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 light1.562.860.8637info@cpsphere.com ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTSwww.cpSphere.com
  15. 15. Goals & Objectives - Importance • Goals provides focus and ensures all the functions and elements of the organization are moving towards a common destination1.562.860.8637info@cpsphere.com ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTSwww.cpSphere.com
  16. 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 • Initiatives1.562.860.8637info@cpsphere.com ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTSwww.cpSphere.com
  17. 17. Scorecard1.562.860.8637info@cpsphere.com ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTSwww.cpSphere.com
  18. 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 organization1.562.860.8637info@cpsphere.com ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTSwww.cpSphere.com
  19. 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 Gump1.562.860.8637info@cpsphere.com ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTSwww.cpSphere.com
  20. 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 necessary1.562.860.8637info@cpsphere.com ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTSwww.cpSphere.com
  21. 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?1.562.860.8637info@cpsphere.com ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTSwww.cpSphere.com
  22. 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 targets1.562.860.8637info@cpsphere.com ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTSwww.cpSphere.com
  23. 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 minutes1.562.860.8637info@cpsphere.com ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTSwww.cpSphere.com
  24. 24. Super Market Strategy Map1.562.860.8637info@cpsphere.com ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTSwww.cpSphere.com
  25. 25. CPSPHERE – HELP YOU FOCUS & GROW Did we all Get it?1.562.860.8637info@cpsphere.com ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTSwww.cpSphere.com

×