implementing  -  bsc
Communicating And Linking Strategic  Feedback and Learning Planning and Target Setting Clarifying and Translating the Visi...
Launching The  Balance Scorecard  Programme Obtain Clarity and Consensus about Strategy Achieve Focus Leadership Developme...
The Dynamics: Mobilizing the Organisation <ul><li>1 Clarify the Vision </li></ul><ul><li>Team formed </li></ul><ul><li>At ...
The Dynamics: Mobilizing the Organisation <ul><li>2 Communicate to Middle Managers </li></ul><ul><li>Top 3 layers brought ...
The Dynamics: Mobilizing the Organisation <ul><li>2B Develop Business unit Scorecards </li></ul><ul><li>6-9months (three m...
The Dynamics: Mobilizing the Organisation <ul><li>3A Eliminate Nonstrategic Investments </li></ul><ul><li>Corporate Scorec...
The Dynamics: Mobilizing the Organisation <ul><li>3B Launch Corporate Change Program </li></ul><ul><li>Need for  change pr...
The Dynamics: Mobilizing the Organisation <ul><li>4 Review Business Unit Scorecard </li></ul><ul><li>Review by Executive t...
The Dynamics: Mobilizing the Organisation <ul><li>5 Refine the Vision </li></ul><ul><li>Review brings out cross  </li></ul...
The Dynamics: Mobilizing the Organisation <ul><li>6A communicate the Balance Scorecard </li></ul><ul><li>Let the Entire Or...
The Dynamics: Mobilizing the Organisation <ul><li>6B Establish Individual Performance Objectives </li></ul><ul><li>Top 3 l...
The Dynamics: Mobilizing the Organisation <ul><li>7 Update Long Range Plan and Budget </li></ul><ul><li>5 years goals are ...
The Dynamics: Mobilizing the Organisation <ul><li>8 Conduct Monthly and Quarterly Review </li></ul><ul><li>Monthly review ...
The Dynamics: Mobilizing the Organisation <ul><li>9 Conduct Annual Strategy Review </li></ul><ul><li>Beginning of 3 rd  ye...
The Dynamics: Mobilizing the Organisation 10 Link Every one’s performance to balance scorecard
Building An Integrated Management System 1 Strategy formulation & Strategic issue update 2 Link to personal Objectives and...
Building An Integrated Management System <ul><li>1 Strategy formulation & Strategic issue update </li></ul><ul><li>Outlini...
Building An Integrated Management System 2 Link to personal Objectives and Rewards Linking strategies to personal obj & Re...
Building An Integrated Management System 3 Link to planning, Resource allocation & Annual Budgets
Building An Integrated Management System 4 Feedback and Strategic Learning Periodic Strategic Review
Some Cautions Structural Defects Duplication of efforts Defects in non financial measures Reporting Problems Communication...
Managing Ongoing Strategic Management System Communicating And Linking Strategic  Feedback and Learning Planning and Targe...
<ul><li>Vision & Strategies not actionable </li></ul><ul><li>Strategies not linked to departmental and </li></ul><ul><li>I...
Barriers to effective Implementation of  BSC Strategy & Vision Financial Plan & Capital Allocation Personal MBO & Incentiv...
<ul><li>Cant be translated into action </li></ul><ul><li>Cant be acted Upon </li></ul><ul><li>Cant be understood </li></ul...
<ul><li>Not translated into Department/ </li></ul><ul><li>individual Goals </li></ul><ul><li>Different Priorities </li></u...
<ul><li>Separate Processes for Long term & </li></ul><ul><li>Short term Strategic planning </li></ul><ul><li>Funding to un...
Different Management System for Strategic Implementation Clarifying & Translating The Strategy & Vision Planning & Target ...
thanks
Upcoming SlideShare
Loading in...5
×

5032772 Implementation Of Balanced Scorecard

1,299

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,299
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
103
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

5032772 Implementation Of Balanced Scorecard

  1. 1. implementing - bsc
  2. 2. Communicating And Linking Strategic Feedback and Learning Planning and Target Setting Clarifying and Translating the Vision and Strategy Balance Scorecard Using BSC as Strategic Framework For Action
  3. 3. Launching The Balance Scorecard Programme Obtain Clarity and Consensus about Strategy Achieve Focus Leadership Development Strategic Intervention Educate the Organisation Set Strategic Targets Align Programmes and Investments Build a feed back system Build a Balanced Scorecard Build a new Management System
  4. 4. The Dynamics: Mobilizing the Organisation <ul><li>1 Clarify the Vision </li></ul><ul><li>Team formed </li></ul><ul><li>At least 3 months </li></ul><ul><li>Developing BSC </li></ul><ul><li>Translate vision to strategy </li></ul><ul><li>Clarity and Understanding </li></ul><ul><li>Building Consensus </li></ul><ul><li>Commitment to strategy </li></ul>
  5. 5. The Dynamics: Mobilizing the Organisation <ul><li>2 Communicate to Middle Managers </li></ul><ul><li>Top 3 layers brought together </li></ul><ul><li>Learning and discussing </li></ul><ul><li>New Strategy </li></ul><ul><li>BSC as communication vehicle </li></ul><ul><li>4-5 months taken </li></ul>
  6. 6. The Dynamics: Mobilizing the Organisation <ul><li>2B Develop Business unit Scorecards </li></ul><ul><li>6-9months (three months) </li></ul><ul><li>Each SBU Having strategy </li></ul><ul><li>Translating strategy into scorecard </li></ul>
  7. 7. The Dynamics: Mobilizing the Organisation <ul><li>3A Eliminate Nonstrategic Investments </li></ul><ul><li>Corporate Scorecard </li></ul><ul><li>Clarifying Strategic Priorities </li></ul><ul><li>Identify non contributing factors </li></ul><ul><li>Eliminate them </li></ul><ul><li>6 th month(1 month) </li></ul>
  8. 8. The Dynamics: Mobilizing the Organisation <ul><li>3B Launch Corporate Change Program </li></ul><ul><li>Need for change programme </li></ul><ul><li>Launched </li></ul><ul><li>When SBU ‘s prepare scorecards </li></ul><ul><li>6 th Month (1 month) </li></ul>
  9. 9. The Dynamics: Mobilizing the Organisation <ul><li>4 Review Business Unit Scorecard </li></ul><ul><li>Review by Executive team </li></ul><ul><li>Shaping Strategy if needed </li></ul><ul><li>9-11 months </li></ul><ul><li>3 months </li></ul>
  10. 10. The Dynamics: Mobilizing the Organisation <ul><li>5 Refine the Vision </li></ul><ul><li>Review brings out cross </li></ul><ul><li>business issues </li></ul><ul><li>Not initially included in corporate strategy </li></ul><ul><li>Corporate scorecard is updated </li></ul><ul><li>12 month </li></ul><ul><li>1 month </li></ul>
  11. 11. The Dynamics: Mobilizing the Organisation <ul><li>6A communicate the Balance Scorecard </li></ul><ul><li>Let the Entire Organisation be communicated </li></ul><ul><li>When Management team is comfortable </li></ul><ul><li>Disseminated to entire Organisation </li></ul><ul><li>12 th month </li></ul><ul><li>1 month </li></ul>
  12. 12. The Dynamics: Mobilizing the Organisation <ul><li>6B Establish Individual Performance Objectives </li></ul><ul><li>Top 3 layers of Management link individual </li></ul><ul><li>Objectives and performance incentives </li></ul><ul><li>Compensation to their scorecards </li></ul><ul><li>Months 13-14 </li></ul><ul><li>2 months </li></ul>
  13. 13. The Dynamics: Mobilizing the Organisation <ul><li>7 Update Long Range Plan and Budget </li></ul><ul><li>5 years goals are established for each measure </li></ul><ul><li>investments required are funded </li></ul><ul><li>1 st year requirement becomes annual budget </li></ul><ul><li>15-17 months </li></ul><ul><li>3 months </li></ul>
  14. 14. The Dynamics: Mobilizing the Organisation <ul><li>8 Conduct Monthly and Quarterly Review </li></ul><ul><li>Monthly review process </li></ul><ul><li>Supplementary quarterly review </li></ul><ul><li>On strategic issues </li></ul><ul><li>18 th month on going </li></ul>
  15. 15. The Dynamics: Mobilizing the Organisation <ul><li>9 Conduct Annual Strategy Review </li></ul><ul><li>Beginning of 3 rd year </li></ul><ul><li>Strategy may require review </li></ul><ul><li>Executive lists new(10) strategic issues </li></ul><ul><li>Each SBU is asked to develop strategy </li></ul><ul><li>On each issues </li></ul><ul><li>25-26 Months </li></ul><ul><li>2 Months </li></ul>
  16. 16. The Dynamics: Mobilizing the Organisation 10 Link Every one’s performance to balance scorecard
  17. 17. Building An Integrated Management System 1 Strategy formulation & Strategic issue update 2 Link to personal Objectives and Rewards 3 Link to planning, Resource allocation & Annual Budgets 4 Feedback and Strategic Learning
  18. 18. Building An Integrated Management System <ul><li>1 Strategy formulation & Strategic issue update </li></ul><ul><li>Outlining Strategic Issues </li></ul><ul><li>Implementation in each SBU’s </li></ul><ul><li>Linking Corporate/SBU strategies to Functional Strategies </li></ul>
  19. 19. Building An Integrated Management System 2 Link to personal Objectives and Rewards Linking strategies to personal obj & Rewards
  20. 20. Building An Integrated Management System 3 Link to planning, Resource allocation & Annual Budgets
  21. 21. Building An Integrated Management System 4 Feedback and Strategic Learning Periodic Strategic Review
  22. 22. Some Cautions Structural Defects Duplication of efforts Defects in non financial measures Reporting Problems Communication Problems Unsound Basis for Resource Allocation…. Organizational Defects Defective process of implementation Breakdown in performance More about Measure Imitation of good organizations Lack of information Delay in implementation of BSC
  23. 23. Managing Ongoing Strategic Management System Communicating And Linking Strategic Feedback and Learning Planning and Target Setting Clarifying and Translating the Vision and Strategy Balance Scorecard Director Of Strategic Planning Director of Human Resources Chief Financial Officer Chief Information Officer
  24. 24. <ul><li>Vision & Strategies not actionable </li></ul><ul><li>Strategies not linked to departmental and </li></ul><ul><li>Individual Goals </li></ul><ul><li>Strategies not linked to Long term/short term </li></ul><ul><li>Resource Allocation </li></ul><ul><li>Feedback that is tactical not strategic </li></ul>Barriers to effective Implementation of BSC
  25. 25. Barriers to effective Implementation of BSC Strategy & Vision Financial Plan & Capital Allocation Personal MBO & Incentives Monthly Review Budget 1 Vision & Strategy not Actionable 2 Strategy not Linked to Dept Team & Individual Goals 3 Strategy not Linked to Resource Allocation 4 feedback that is tactically not strategic
  26. 26. <ul><li>Cant be translated into action </li></ul><ul><li>Cant be acted Upon </li></ul><ul><li>Cant be understood </li></ul><ul><li>Fragmentation & Sub optimization </li></ul><ul><li>of efforts </li></ul><ul><li>Lacking consensus & Clarity </li></ul><ul><li>Different Agendas </li></ul><ul><li>No integration </li></ul><ul><li>Not linked coherently to overall strategy </li></ul>Barrier No 1: Vision and strategy not Actionable
  27. 27. <ul><li>Not translated into Department/ </li></ul><ul><li>individual Goals </li></ul><ul><li>Different Priorities </li></ul><ul><li>Failure of Human Resource Management </li></ul><ul><li>Disalignment in Goals </li></ul>Barrier No 2: Strategy not Linked to Goals
  28. 28. <ul><li>Separate Processes for Long term & </li></ul><ul><li>Short term Strategic planning </li></ul><ul><li>Funding to unrelated priorities </li></ul><ul><li>Poor Monthly Reviews </li></ul><ul><li>Unfocused New Mgt Techniques </li></ul><ul><li>Poor Integration </li></ul>Barrier No 3: Strategy not Linked to Resource Allocation
  29. 29. Different Management System for Strategic Implementation Clarifying & Translating The Strategy & Vision Planning & Target Setting Communicating And Linking Strategic Feedback & Learning Balance Scorecard <ul><li>Goal alignments from </li></ul><ul><li>top to bottom </li></ul><ul><li>Education and open communication about strategy </li></ul><ul><li>Compensation is linked </li></ul><ul><li>To Strategy </li></ul><ul><li>Stretch targets are established and accepted </li></ul><ul><li>Strategic initiatives are clearly identified </li></ul><ul><li>Investments are determined by strategy </li></ul><ul><li>Annual Budgets are linked to long term planning </li></ul><ul><li>The strategy is the reference point for the entire management process </li></ul><ul><li>The shared vision is the foundation for strategic planning </li></ul><ul><li>Feedback system used to test </li></ul><ul><li>The hypothesis on which strategy </li></ul><ul><li>Is based </li></ul><ul><li>Team problem solving </li></ul><ul><li>Strategy development is a </li></ul><ul><li>Continuous Process </li></ul>
  30. 30. thanks
  1. A particular slide catching your eye?

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

×