0
Siakos & Penny
Strategy - Development - Risk
The Importance of Managing Strategy
How Balanced Scorecard puts you in contro...
Siakos & Penny
Nigel Penny Vassilis Siakos
• Global 30 years expertise in Strategy and
Performance issues
• Ex partner in ...
Our Agenda
• How our current management approaches have failed us
• What is the Balanced Scorecard?
• Getting the content ...
Siakos & Penny
Strategy - Development - Risk
How our current management approaches have failed us
The Global Financial Cri...
Siakos & Penny
Strategy - Development - Risk
How our current management approaches have failed us
Our prime focus as execu...
Siakos & Penny
Strategy - Development - Risk
How our current management approaches have failed us
The end to end strategy ...
Siakos & Penny
Strategy - Development - Risk
How our current management approaches have failed us
Management surveys conti...
Siakos & Penny
Strategy - Development - Risk
How our current management approaches have failed us
There can be many reason...
Siakos & Penny
Strategy - Development - Risk
How our current management approaches have failed us
Spreadsheet-based budget...
Siakos & Penny
Strategy - Development - Risk
What is the Balanced Scorecard?
A budget (or ‘beyond budget’) is useful, but ...
Siakos & Penny
Strategy - Development - Risk
What is the Balanced Scorecard?
Balanced Scorecard ‘describes’ our chosen str...
Siakos & Penny
Strategy - Development - Risk
What is the Balanced Scorecard?
Balanced Scorecard starts with a strategy map...
Siakos & Penny
Strategy - Development - Risk
What is the Balanced Scorecard?
With our strategy map in place we develop mea...
Siakos & Penny
Strategy - Development - Risk
What is the Balanced Scorecard?
We complete the full definition for each obje...
Siakos & Penny
Strategy - Development - Risk
What is the Balanced Scorecard?
Balanced Scorecards are developed at differen...
Siakos & Penny
Strategy - Development - Risk
Getting the right content
Describing strategies in ways that highlight each m...
Siakos & Penny
Strategy - Development - Risk
Getting the right content
Strategy waves are a key interface between strategy...
Siakos & Penny
Strategy - Development - Risk
Getting the right content
An example of strategy waves at a USD 2billion Chin...
Siakos & Penny
Strategy - Development - Risk
Focusing on improving management reviews
The way we conduct monthly business ...
Siakos & Penny
Strategy - Development - Risk
Focusing on improving management reviews
The new management review uses the b...
Siakos & Penny
Strategy - Development - Risk
How do we handle risk?
Too often, risk management is seen as a separate proce...
Siakos & Penny
Strategy - Development - Risk
How do we handle risk?
New developments in balanced scorecard thinking can
in...
Siakos & Penny
Strategy - Development - Risk
How do we handle risk?
Risk threats and risk opportunities can be built as st...
Siakos & Penny
Strategy - Development - Risk
In conclusion
Balanced Scorecard puts you in control of strategy management
F...
Contact info:
Vassilis Siakos Nigel Penny
Athens: +30 6944 77 97 03
Singapore: +65 9815 7830
Australia: +61413 177380
v.si...
Upcoming SlideShare
Loading in...5
×

Siakos penny athens_20101026_v2

705

Published on

Presentation of integrated strategy development, balanced scorecard and risk management approaches

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

  • Be the first to like this

No Downloads
Views
Total Views
705
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
7
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "Siakos penny athens_20101026_v2"

  1. 1. Siakos & Penny Strategy - Development - Risk The Importance of Managing Strategy How Balanced Scorecard puts you in control of business results Hotel Grande Bretagne, November 11th , 2010 Confidential – For Internal Use Only
  2. 2. Siakos & Penny Nigel Penny Vassilis Siakos • Global 30 years expertise in Strategy and Performance issues • Ex partner in KPMG management consulting firm • Ex Vice President in Norton and Kaplan’s Balanced Scorecard Collaborative • Operates extensively with the largest companies in the world’s powerhouse new economies • Appointed by Government Ministers to advise on public sector strategy issues • 21 years of professional experience, including 11 years of international Strategy & Organisational Development consulting • 10 years of commercial experience with Johnson & Johnson, Diageo and Walt Disney • Ex Principal in Hay Group (SEE), member of the international BEO R&D team developing global methodologies for Strategic Performance Management / Balanced Scorecard. • Private and Public sector consulting experience including Athens 2004, Greek Ministry of Development, Greek Municipalities, Citadel Capital and others A new force in strategy consulting in the region Siakos & Penny Strategy - Development - Risk
  3. 3. Our Agenda • How our current management approaches have failed us • What is the Balanced Scorecard? • Getting the content right • Focusing on improving management reviews • How do we handle Risk? • Questions
  4. 4. Siakos & Penny Strategy - Development - Risk How our current management approaches have failed us The Global Financial Crisis has highlighted how ineffective our current management systems really are
  5. 5. Siakos & Penny Strategy - Development - Risk How our current management approaches have failed us Our prime focus as executives is to develop and implement strategies that meet our stakeholders expectations
  6. 6. Siakos & Penny Strategy - Development - Risk How our current management approaches have failed us The end to end strategy process divides into elements of strategy development and strategy implementation ExecutingDeveloping
  7. 7. Siakos & Penny Strategy - Development - Risk How our current management approaches have failed us Management surveys continue to show that strategy implementation issues are the prime cause of failure to achieve goals. “Less than 10% of strategies effectively formulated are effectively executed” Fortune
  8. 8. Siakos & Penny Strategy - Development - Risk How our current management approaches have failed us There can be many reasons for this failure,…… but one is undoubtedly our reliance on ‘budget based’ reporting tools to provide the core of our feedback on business performance
  9. 9. Siakos & Penny Strategy - Development - Risk How our current management approaches have failed us Spreadsheet-based budget reporting is neither intuitive nor informative about the issues that matter Focus on historical, financial numbers not strategic objectives Micro level detail on cost management Obsession with budget variances
  10. 10. Siakos & Penny Strategy - Development - Risk What is the Balanced Scorecard? A budget (or ‘beyond budget’) is useful, but we need different tools to effectively track our strategy management Balanced Scorecard provides a framework to translate strategy into operational terms
  11. 11. Siakos & Penny Strategy - Development - Risk What is the Balanced Scorecard? Balanced Scorecard ‘describes’ our chosen strategy in ways that allow us to track progress against objectives not budgets Four perspectives to describe strategy Key performance indicators to measure each perspective Cause and effect as a key differentiating concept
  12. 12. Siakos & Penny Strategy - Development - Risk What is the Balanced Scorecard? Balanced Scorecard starts with a strategy map that describes the different elements of our strategy e.g. a call center business Financial Clients Internal – Customer Acquisition F1 Achieve Profitable Revenue Growth F3 Grow International Client Revenue in Voice & Data F4. Incubation through Domestic Clients Retail, Automobile & Consumer Durable F5. Secure all In-house Voice & Data Outsource Business F6 Establish Consulting & ASP Revenue Stream F9 Improve Profitability per seat F7. Reduce Total Cost per Transaction C1. International Clients – Operational Excellence through Value for Money C2. Domestic Clients Product Leadership Trusted Brand Customers C5. Delight Customers Product & Process Behavior Channel Partners C3. Trusted Relationship Influencers & Analysts C4. Credible Information F2. Pursue Inorganic Growth P2. Build Domain Specialization P3. Effective New Client acquisition P1. Brand Building P4. Create Sales & Marketing Team Service Delivery Leadership P11. Achieve World Class Results On Key Process Measures P10.Exceed Client SLAs P12.Effective Process Documentation L1. Build Knowledge Management System L2. Build Selected Client Service IT Applications L4. Drive Business Excellence L5. Build Our Desired Environment in Culture & Values L3. Move to 100% Automated Process Cost Leadership P13. Minimize Manpower Cost as % of Revenue P14. Reduce Agent Breakeven Time P15. Reduce the Capital Cost per Seat P16. Ensure Process Profitability P17. Optimize Bandwidth Costs F8. Identify & Mitigate risk Vaidya Customer Client Relationship P6. Increase Perception P5. Provide Value Added Information & Service Build Capacity P7. Increase Employee Engagement Level P9. Meet the CCEs Requirement (quality) on time P8. Achieve Just in Time Infrastructure Internal Learning& Growth Clients
  13. 13. Siakos & Penny Strategy - Development - Risk What is the Balanced Scorecard? With our strategy map in place we develop measures, targets and initiatives to support each objective
  14. 14. Siakos & Penny Strategy - Development - Risk What is the Balanced Scorecard? We complete the full definition for each objective to arrive with our final balanced scorecard
  15. 15. Siakos & Penny Strategy - Development - Risk What is the Balanced Scorecard? Balanced Scorecards are developed at different levels within an organisation. This ensures alignment to organisational strategies
  16. 16. Siakos & Penny Strategy - Development - Risk Getting the right content Describing strategies in ways that highlight each major component of our thinking is key to strategy management. We call this ‘strategy waves’
  17. 17. Siakos & Penny Strategy - Development - Risk Getting the right content Strategy waves are a key interface between strategy development and the creation of the balanced scorecard Strategies are expressed as a series of waves, developing in parallel over time Strategic waves provide a base to structure strategic thinking into ‘boxes’ of activity They allow management thinking to transcend typical ‘lists of projects’ which are common in traditional approaches to strategy development They enable management to construct a clear mental picture of different components within the strategy They aid in resource allocation They aid in developing performance measurement as they can be incorporated as ‘waves’ within a balanced scorecard strategy map
  18. 18. Siakos & Penny Strategy - Development - Risk Getting the right content An example of strategy waves at a USD 2billion Chinese company • This strategy map clearly identifies 3 strategy waves • Monthly performance reviews highlight progress in each wave • Reviews are carried out dynamically by reference to the strategy map, not traditional financial budget reports • Each SBU carries out a similar management review based on its own aligned strategy map Strategy waves form the basis for strategy map design
  19. 19. Siakos & Penny Strategy - Development - Risk Focusing on improving management reviews The way we conduct monthly business reviews is still one of the biggest hurdles to achieving effective strategy management Little preparation amongst participants – not coming ‘armed’ with a clear understanding of the issues to be discussed Presentational in style – each attendee makes a presentation about their part of the business, usually highlighting the ‘good bits’ Little shared responsibility for problems Limited time spent on identifying solutions No process for follow through
  20. 20. Siakos & Penny Strategy - Development - Risk Focusing on improving management reviews The new management review uses the balanced scorecard to identify problems in advance of the meeting. Attendees arrive prepared and document actions decided. An Office of Strategy Management oversees the process Ref (REFERS TO RELEVANT REPORT PAGE) Strategy Map objective( s) impacted Key Issues (1) (INDICATIVE) Analysis Impact (2) Proposed actions (3) Due Date for resolut ion Responsi bility YTD sales performance adversely impacted by failure to grow business from XXXXXXX key account Growth from XXXXXXX is expected to continue below forecast for current year. Other key accounts are on target, but offer little further scope for expansion beyond existing targets - USD 10m revenue impact on current year results Sales team requested to identify other short term opportunities in existing Tier 2 accounts; regional sales heads to review opportunity for fast track sales closing based on existing opportunity lists; regional çlose teams established to facilitate fast track close at identified accounts (1) Refers to any performance issue adversely impacting , or likely to impact, the achievement of highest level business results (2) Quantified year end sales and/or profit impact where available if problem is not resolved or continues at current levels (3) Initial proposed actions from responsible executive (to be debated at review meeting)
  21. 21. Siakos & Penny Strategy - Development - Risk How do we handle risk? Too often, risk management is seen as a separate process from ongoing strategic performance reviews
  22. 22. Siakos & Penny Strategy - Development - Risk How do we handle risk? New developments in balanced scorecard thinking can incorporate risk into mainstream business management processes
  23. 23. Siakos & Penny Strategy - Development - Risk How do we handle risk? Risk threats and risk opportunities can be built as strategy waves within an expanded strategy map
  24. 24. Siakos & Penny Strategy - Development - Risk In conclusion Balanced Scorecard puts you in control of strategy management Focuses on strategic objectives not just budgets Highlights key elements of the strategy allowing each one to be discretely analysed and reviewed Creates a framework for improved management review meetings leading to faster identification and resolution of emerging problems Can be extended to incorporate risk and opportunity management
  25. 25. Contact info: Vassilis Siakos Nigel Penny Athens: +30 6944 77 97 03 Singapore: +65 9815 7830 Australia: +61413 177380 v.siakos@alumni.alba.edu.gr nspenny@pacific.net.sg Siakos & Penny Strategy - Development - Risk
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×