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OpEx Balanced Scorecard Deployment Training Module

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Operational Excellence Consulting: Training Module including 79 slides covering Balanced Scorecard History & Benefits, Four Dimensions of a Balanced Scorecard, Balanced Scorecard Development & Deployment Process, Balanced Scorecard Deployment Challenges & Resolution Strategies, Balanced Scorecard Template & Detailed Instructions, and Project Evaluation & Selection Matrix.

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Transcript of "OpEx Balanced Scorecard Deployment Training Module"

  1. 1. 1 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Operational Excellence - Balanced Scorecard Deployment by Operational Excellence Consulting LLC
  2. 2. 2 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Achieving Operational Excellence requires the successful implementation of a integrated Business Execution System that effectively and seamlessly integrates the following four building blocks: Strategy Deployment, Performance Management, Process Excellence, and High Performance Work Teams. Strategy or Policy Deployment is the process that aligns and links business strategy and execution. Performance Management is the process that translates strategic initiatives into measurable objectives and goals. Operational Excellence can be achieved and sustained with the right attitude, the right mindset, and the right competencies. Well designed, efficient, and effective Management, Value Chain, and Support Processes are necessary to deliver world- class results. Strategy Deployment Performance Management High Performance Work Teams Process Excellence Operational Excellence Business Execution System
  3. 3. 4 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. There are three types of business leaders:  Those who know the score and know they are winning;  Those who know the score and know they are losing; and  Those who don’t know the score. Modern business managers thirst for information and knowledge while drowning in a sea of data.
  4. 4. 6 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. The Three Rights - Doing the Right Things, Doing them at the Right Time, and Doing Them Right.
  5. 5. 8 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Strategy Deployment & Balanced Scorecards  Only 5% of the workforce understands their company strategy.  Only 25% of managers have incentives linked to strategy.  60% of organizations don’t link budgets to strategy.  86% of executive teams spend less than one hour per month discussing strategy. – Source: Balanced Scorecard Collaborative Strategy is an expression of what an organization intents to do to get from a current state to a future state. Strategy is often expressed in terms of a vision statement, initiatives, objectives and goals. It is usually developed at the top levels of the organization, but executed by lower levels within the organization.
  6. 6. 10 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Strategy Deployment & Balanced Scorecards According to the Balanced Scorecard Collaborative, there are four barriers to strategic implementation: 1. Vision Barrier – No one in the organization understands the strategies of the organization. 2. People Barrier – Most people have objectives that are not linked to the strategy of the organization. 3. Resource Barrier – Time, energy, and money are not allocated to those things that are critical to the organization. For example, budgets are not linked to strategy, resulting in wasted resources. 4. Management Barrier – Management spends too little time on strategy and too much time on short-term tactical decision-making.
  7. 7. 12 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecards – Vertical & Horizontal Linkage Organization’s Strategic & Operational Plan and Key Performance Indicators Functional or Work Groups’ Key Process Measures Customers’ Requirements & Satisfaction Suppliers’ Capabilities & Performance Organization’s Balanced Scorecards Balanced Scorecards are not just translating an organization’s strategic initiatives into measurable objectives and goals (vertical linkage), they are also linked and align horizontally to other balanced scorecards in an organization.
  8. 8. 14 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecard – History  The first Balanced Scorecard was created by Art Schneiderman in 1987 at Analog Devices.  In 1990, Art Schneiderman participated in an unrelated research study by Robert S. Kaplan and David P. Norton, and during this study described his work on Balanced Scorecard. Subsequently, Kaplan and Norton included anonymous details of this use of Balanced Scorecard in their 1992 article "The Balanced Scorecard - Measures that Drive Performance", Harvard Business Review, February 1992. The paper was a popular success and led to the book “The Balanced Scorecard” published by Kaplan & Nolan in 1996.  The article and the first book spread knowledge of the concept of Balanced Scorecard widely, but perhaps wrongly have lead to Kaplan & Norton being seen as the creators of the Balanced Scorecard concept.
  9. 9. 16 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecard – Benefits The implementation and ongoing refinement of the Balanced Scorecard Development & Deployment Process described in the course will  Help the management team focus on the execution of their business strategy  Focus and align an organization towards common goals and objectives  Enable an organization to understand the relationship between measures and performance  Improve communication of organizational priorities across an organization  Help employees to understand and focus on organizational priorities and realize relevant results  Reduce the number of metrics to the few vital key performance indicators  Strengthen and formalizing the project selection process to focus on key capabilities and enablers
  10. 10. 18 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecard vs. Dashboards  Purpose: Dashboards are about helping you navigate the journey. Scorecards are about how successful the journey was.  Type of Indicators: Scorecards generally contain outcome results, Dashboards are usually comprised of leading or predictive indicators.  Timeframe: Scorecards are periodic and longer term (weekly, monthly, annual trends) in the review horizon, while Dashboards are shorter term and can even be real time.  Reaction: Scorecards should provoke next steps that involve introspection and analysis (drill downs, mining insights, etc.) where dashboards usually are designed to “signal” or “provoke” immediate actions or course corrections.  Targets: Scorecards usually report against a target, threshold or benchmark as a percentage gap and trend. Dashboards generally report metrics within or against tolerance ranges, outside of which signal a required change.
  11. 11. 20 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecard – Terminology Part I Strategy: An expression of what the organization intents to do to get from a current state to a desired state. Strategy is often expressed in terms of a mission statement, vision, goals, and objectives. Strategy is usually developed at the top levels of the organization, but executed by lower levels within the organization. Vision or Intent: An overall statement of how the organization wants to be perceived by it’s stakeholders over the long-term (3 to 5 years). Goal: An overall achievement that is considered critical to the future success of the organization and to achieve its vision. Goals express broadly where the organization wants to be. Strategic Focus Area or Objective: What specifically must be done to execute the strategy; i.e. what is critical to the future success of our strategy? What the organization must do to reach its goals! Strategic Model: The combination of all objectives over a strategic grid, well connected and complete, providing one single model or structure for managing the strategic objective or focus area.
  12. 12. 22 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecard – Terminology Part II Strategic Grid - Strategy Map: A logical framework for organizing a collection of strategic objectives over four or more dimensions. Everything is linked to capture a cause and effect relationship. Strategic grids are the foundation for building the Balanced Scorecard. Dimensions or Perspectives: Four or more different views of what drives the organization. Perspectives provide a framework for measurement. The four most common perspectives are: Financials (final outcomes), Customers, “Internal” Processes, and Learning & Growth. Cause & Effect Relationship: The natural flow of business performance from a lower level to an upper level within or between dimensions. For example, training employees on customer relation’s leads to better customer service which in turn leads to improved financial results. One side is the leader or driver, producing an end result or effect on the other side. Measurement or Metrics: A way of monitoring and tracking the progress of strategic objectives. Measurements can be leading indicators of performance (leads to an end result) or lagging indicators (the end results). Target: An expected level of performance or improvement required in the future. Initiatives, Programs & Projects: Major initiatives, programs or projects that must be undertaken in order to meet one or more strategic objectives.
  13. 13. 24 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecard – Development & Deployment Process Phase I - Strategic Foundation Step 1: Strategic Alignment Step 2: Key Strategic Focus Areas & Objectives Step 3: Strategic Grid & Model Phase II - Three Critical Components Step 4: Key Performance Indicators Step 5: Goals & Targets Step 6: Initiatives & Programs Phase III – Deployment Process Step 7: Integrate Step 8: Cascade Step 9: Manage
  14. 14. 26 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecard – Development Process Phase II - Three Critical Components Step 4: Key Performance Indicators: For each strategic initiative on each strategic grid, there needs to be at least one measurement. Measurements provide the feedback on whether or not an organization meets its objective for this strategic initiative. Step 5: Goals & Targets: For each measurement in an organization’s scorecard, establish a corresponding baseline, target and stretch goal. Step 6: Initiatives, Programs & Projects: Things will not happen unless the organization undertakes formal programs, initiatives or projects. Identifying, defining and launching strategic initiatives, programs and projects effectively closes the loop and links the process back to where it started – driving the strategy formulated and mapped in Phase I.
  15. 15. 28 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecard – Phase I: Strategic Foundation Inputs: • Organization’s Vision • Organization’s Strategic Focus Areas and Breakthrough Objectives • Organization’s existing Key Performance Indicators (KPI), Baseline and Goals • Customer Expectations & Feedback • Supplier Requirements & Capabilities • Competitor Analysis • High-Level Process Flow for Core Processes (e.g. Enterprise Process Model) • Organization’s SWOT Analysis Activities: • Build the Strategic Grids & Model • Define Organization’s Strategic Initiatives & Tactics • Prepare Communication Material • Organize Functional “Catchball” and Alignment Workshops Outputs: • Strategic Grids & Model • Organization’s Strategic Initiatives & Tactics • Strategy Communication Plan Preparation Phase Strategic Foundation Step 1: Strategic Alignment Step 2: Strategic Focus Areas & Objectives Step 3: Strategic Grids & Model
  16. 16. 30 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecard – Four Perspectives or Dimensions FINANCIALS How do you want to look to your shareholders? - Indicators focus on whether your strategic and operational plan contributes to your top-line, bottom-line and/or market share. CUSTOMERS How do you want to look to your Customers? - Indicators focus on the specific measures that matter the most to your Customers. INTERNAL BUSINESS PROCESSES At which internal processes and capabilities do you want to excel? - Indicators focus on internal operations that enable Customer satisfaction, growth and profitability. LEARNING AND GROWTH What skills and competencies do you need to implement your strategic and operational plan? - Indicators focus on your organization’s ability to innovate, improve and execute. Objectives Indicators Targets Projects Objectives Indicators Targets Projects Objectives Indicators Targets Projects Objectives Indicators Targets Projects Vision & Strategy
  17. 17. 32 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecard – Strategic Grid & Model Basic Flow of a Strategic Focus Area within the “Financials” Dimension We will flow our strategic objectives down each balanced scorecard perspective within a grid of boxes, making sure everything is linked. This grid will serve as the foundation for constructing the Balanced Scorecard. Strategic Focus Area: Increase Shareholder Value Financials Revenue Growth of 20% by 2014 Operating Cost Improvements of 15% by 2014 New Sources of Revenue Increase Customer Profitability Lower Operating Costs High Utilization of Assets
  18. 18. 34 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecard – Strategic Grid & Model Strategic Objectives defined for all Four Balanced Scorecard Dimensions Strategic Focus Area: Increase Shareholder Value Financials Revenue Growth of 20% by 2014 Customers Acquire More Customers Become the Price Leader “Internal” Processes Improve Operational Efficiency Cost Reduction Program Knowledge Based System Reduce Non-Core Activities Learning & Growth Training – Lean Six Sigma Program Database Network on Operational Performance Re-Align Organization with Core Competencies Once you have completed the strategic grid, go back and make sure everything fits with your overall strategy. A set of strategic grids should provide the strategic model for running the business, outlining the specifics of the strategy. All stakeholders should be able to look at the grids and follow the flow of the organization’s strategy. DimensionsorPerspectives
  19. 19. 36 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecard – Basic Communication Plan Stakeholder Group Form of Communication  Senior Management Team  Presentation during next Monthly Meeting  Department Management Teams  One Day Off-site with Presentation and Action Planning  Operation Staff  Presentation during next Monthly Communication Meeting & Communication Boards  Customers  Personal Contact & Mailing  Suppliers  Personal Contact & Quarterly Business Reviews
  20. 20. 38 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecard & Strategic Grids - Feedback State of Michigan Department of Management and Budget (DMB) initiated the Strategy Mapping and Balanced Scorecard concepts in the late 1990's. Coordinator Kathe Carter: "Our management team evaluates potential new programs/initiatives by seeing how they fit in with our strategy. In the past we would continue stacking new projects on everyone's plates, but now if it doesn't fit with our strategy we don't do it." Just as important for the DMB is that "whenever a new project or initiative is proposed, our people ask 'how does this fit in with our strategy map /scorecard?' They feel that this connection attaches a higher level of importance to the initiative."
  21. 21. 40 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Why do we measure Performance? The reason why we measure performance in organizations is often reduced to simple homilies, such as ‘you can’t manage anything unless you measure it’ or ‘what gets measured gets done’. The three main reasons for measuring performance are:  To learn and improve  To report externally and demonstrate compliance  To control and monitor people Of these three the first is the most important, the second is something organizations just have to do and the third one can cause major problems. Learning & Performance Improvement External Reporting & Compliance Controlling & Monitoring People
  22. 22. 42 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Where do we measure Performance? Input Process Output Outcome Input – Information & Resources Process – Activities & Workflow Output – Products & Services Outcome – Results & Impact Performance Indicators Are we Doing the Things Right? Execution Planning – How? Are we Doing the Right Things? Strategic Planning – What?
  23. 23. 44 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Leading Indicators
  24. 24. 46 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Some Best-in-Class Criteria for Performance Metrics An Organization’s Performance Indicators need to be:  Robust  Stable  Understandable  Accurate  Cannot be manipulated  Must be “intelligence”  Have drill-down capability  Know cause and effect (drivers)  Must be accessible  Metric guru not necessary to obtain data  Reports developed and published with pertinent information  Frequency of reporting must be balanced with effort  Single point of responsibility  Don’t have to chase people to get information  Direct access to data and reports
  25. 25. 48 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecard – Software Application 1/2 Should you consider investing in a Balanced Scorecard software application, we suggest considering at a minimum the following five selection criteria: 1. Total Cost of Ownership - that would be the costs ($) and work volume (e.g. in man-days) required to configure the software, not just at the beginning, but along the following years. Of such costs and work volume, how much would be required by (a) external IT consultants and (b) your own IT department? 2. Ease of Use for your entire Organization - More than 2/3 of both initial Balanced Scorecard implementation work volume and of the adaptation work during each yearly cycle afterwards is taken by the alignment of the organizational Balanced Scorecard at divisional and individual level. Is your software environment going to facilitate this, or hinder it? 3. Integrated Software Environment - Integrated, from the point of view of what is called 'the single version of truth' (central database vs. the same data in multiple places), as well as regarding the ETL (Extract-Transform-Load) integration with other IT systems supplying your Balanced Scorecard data.
  26. 26. 50 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecard – A Template From: January 2010 ORGANIZATION: TBD Until: December 2010 Current Month: TBD 2010 KPI KPI Name (Unit) KPI First Name Champion Last Name 10 STRETCH 9 8 7 GOAL 6 5 4 3 BASE 2 1 0 ZERO WEIGHT 0 2010 TOTAL SCORE JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER CURRENT SCORE 3 4 7 2 3 5 6 9 Stretch 2010 1000 Goal 2010 700 Base 2009 300 Actual 0 ORGANIZATION OPERATIONAL EXCELLENCE BALANCED SCORECARD FINANCIALS CUSTOMERS PROCESSES RESULTS 1 2 5 7 4 12 11 8 9 3 6 10
  27. 27. 52 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecard – A Template 12 11 9 10 Define KPI Performance Levels for the levels 0 - 2, 4 - 6, and 8 – 9, so that each level represents an improvement in the KPI. Track monthly performance for each Balanced Scorecard KPI and record actual performance. Enter the current Performance Level (0 to 10) for each KPI, based on last month’s performance. Use the colors “red”, “yellow”, and “green” to visualize if the performance improvement for the specific KPI is on track or not. Use the Markers (circles) to visualize current performance level for each KPI in . Automatic calculation of overall scorecard score for the current month, e.g. All KPIs perform at Baseline Level -> Total Score 300 Points All KPIs perform at Target Level -> Total Score 700 Points All KPIs perform at Stretch Goal Level -> Total Score 1000 Points Track Monthly Total Score, as calculated in . Use the colors “red”, “yellow”, and “green” to visualize if overall performance improvements are on track. 8 8 11
  28. 28. 54 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecard – Project Selection Matrix Balanced Scorecard Project Selection Matrix KPI#1 KPI#2 KPI#3 KPI#4 KPI#5 KPI#6 KPI#7 KPI#8 Weights 20 10 15 10 5 20 10 10 100 50 30 20 100 70 30 100 Project Definition 1 Project #1 10 0 5 0 0 3 0 0 3.4 5 0 5 3.5 0 5 1.5 2 Project #2 0 3 0 5 0 0 0 0 0.8 0 5 0 1.5 3 0 2.1 3 Project #3 5 5 10 10 3 3 8 8 6.4 3 8 5 4.9 5 8 5.9 4 Project #4 0 0 10 5 0 0 5 0 2.5 0 0 10 2.0 3 3 3.0 5 Project #5 5 10 0 0 1 0 0 3 2.4 10 5 3 7.1 3 5 3.6 Ranking 0 = none Not Started 3 = low On Track 5 = medium At Risk 8= high Behind Schedule 10= very high CORRELATION MATRIX MANAGEMENTRISK TOTALRISK PROJECTSTATUS CAPITALRESOURCES DURATIONOFPROJECT TOTALEFFORT TECHNICALRISK EFFORT RISK PEOPLERESOURCES IMPACT FINANCIALS CUSTOMERS PROCESSES LEARNING& GROWTH TOTALIMPACT
  29. 29. 56 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecard – Phase III: Deployment Process Inputs:  Initial Draft of Organization’s Balanced Scorecard including KPI Name, Definition, Business Leaders, Measurement Frequency, Data Source, Baseline, Target, Stretch Goal, and Weight  Definition & Launch of Strategic Initiatives, Programs and Projects Key Activities:  Perform monthly Reviews.  Validate and verify that KPIs are relevant and Targets are challenging, but achievable. Modify if necessary.  Develop Balanced Scorecard for each Department (next level)  Establish and Verify Linkage between Scorecards (KPIs and Targets) at each Level of the Organization  Integrate Balanced Scorecard into Incentive Programs  Manage Strategy Deployment Outputs:  Minutes and Action Plan from monthly Balanced Scorecard & Strategy Deployment Review Meetings  Updated Project Selection Matrix and prioritized Improvement Opportunities Deployment Phase Deployment Process Step 7: Integrate Step 8: Cascade Step 9: Manage
  30. 30. 58 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecard – Vertical Linkage of Performance Indicators Organization’s Customer Satisfaction measured through the Net Promoter Score Order Management Customer Satisfaction measured through Order Confirmation Lead Time Customer Service Customer Satisfaction measured through First Call Resolution Production Customer Satisfaction measured through Order Fulfillment Lead Time Purchasing Performance measured through Material Replenishment Lead Time Sales & Marketing Performance measured through 90-Days Forecast Accuracy
  31. 31. 60 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecards – Table of Content  Strategy Deployment & Balanced Scorecards  The History & Benefits of a Balanced Scorecard  Terminology & Definitions  The Balanced Scorecard Development Process  Balanced Scorecard Deployment Challenges & Solutions  Final Multiple Choice Questions & Answers
  32. 32. 62 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecard Deployment Challenges – 2/6 Finger Pointing • Symptoms: Individuals are blaming other departments for their ability to reach the target • Strategies: Focus on understanding the processes that impact performance indicator results – Provide training in process mapping, problem solving, and root cause analysis - Have departments present their scorecards to each other asking for support where needed - ... Overreacting • Symptoms: Individuals are acting on normal day-to-day or month-to-month variation without understanding random variation, creating an unproductive spiral of actions, investigation, and process tempering • Strategies: Provide training in statistical thinking and the concept of assignable causes – Define control limits and patterns that require investigations versus patter that may just be caused by random variation - ...
  33. 33. 64 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecard Deployment Challenges – 4/6 Panacea Syndrome • Symptoms: Individuals believe that measuring alone will ensure that things get done and goals will be achieved, without analysis, planning and execution • Strategies: Perform at least monthly scorecard reviews – Implement a well defined Performance Management Process - ... Big Stick Syndrome • Symptoms: Individuals are using performance indicators to “beat up” on poorly performing managers, instead of focusing on the underlying processes, systems and policies that need to be improved • Strategies: Focus on understanding the processes that impact performance indicator results – Provide training in process mapping, problem solving, and root cause analysis - ...
  34. 34. 66 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecard Deployment Challenges – 6/6 Fuzz Factor • Symptoms: Measures are so complicated that no one actual understands what is being measured and what causes results • Strategies: Keep it Simple - Use performance indicators that are industry standards, as this also enables you to benchmark your performance against other companies - Explain that an indicator that is not understood cannot be act upon and thus not be improved - ... Measure Mania • Symptoms: Individuals are measuring too many things, just in case, and are unable to determine or focus on the vital few performance indicators • Strategies: Reiterate business objectives and goals – Keep the number of performance indicators to vital 6-10, eliminating irrelevant indicators – Question how a specific indicator will support achieving the business objectives - Implement a well defined Performance Management Process, focusing on the business objectives and goals - ...
  35. 35. 68 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecard Process – Review Question #1 In order to get the most out of the Balanced Scorecard, it should not be thought of as a: a. Stand alone performance measurement program. b. Framework for communicating and executing strategy. c. Tool for shifting emphasis from short term thinking to strategic thinking. d. Strategic management system. Note: Answers will be available at the end of this section.
  36. 36. 70 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecard Process – Review Question #3 Balanced scorecards consist of four inter-related perspectives. Which perspective or layer will be the main driver or enabler for outcomes within the financial perspective? a. Learning & Growth b. Customer c. Programs d. Templates
  37. 37. 72 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecard Process – Review Question #5 Mason Corporation has developed the following three strategic objectives for its balanced scorecard: A = Employee involvement will be enhanced through a new matrix realignment of the organization. B = Customer confidence will be expanded through more personal approaches to service. C = The product delivery system will be expanded to include all new product lines. Where should Mason Corporation place these three objectives within its strategic grid? Customer Internal Processes Learning & Growth a. A C B b. C B A c. B C A d. B A C
  38. 38. 74 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecard Process – Review Question #7 The very bottom dimension of the Balanced Scorecard is the ultimate "enabler" for the three top layers. This bottom perspective is called: a. Internal Processes b. Market Share c. Learning & Growth d. Shareholder Value
  39. 39. 76 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. Balanced Scorecard Process – Review Question #9 Balanced scorecards are appropriate for which type of organization? a. Private sector businesses. b. Non-profit organizations. c. Government agencies. d. Any organization concerned about the execution of its strategy.
  40. 40. 78 2/11/2013 v8.0 This is a partial view only. Please, visit our website www.oec-us.com to review the complete presentation. The End … “Perfection is not attainable, but if we chase perfection we can catch excellence.” - Vince Lombardi

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