Presentation by Drs. Robert S. Kaplan and Dr. David P. Norton, at Palladium Summit. XPP is the Execution Premium Process, the professional implementation blueprint of the Kaplan-Norton Balanced Scorecard framework. See the Palladium BSC Hall of Fame: https://www.slideshare.net/mihaione/palladium-kn-bsc-hall-of-fame

1. Introduction to The Execution Premium
Process
Dr. Robert S. Kaplan
Dr. David P. Norton
2010 Palladium EMEA Summit
Madrid, Spain
May 18-20, 2010

2. The New Strategy Management System
2
TRANSLATE THE STRATEGY DEVELOP THE STRATEGY
1
• Strategy Map / Themes
• Mission, Values, Vision
• Measures / Targets
• Strategic Analysis
• Initiative Portfolios
• Strategy Formulation
• Funding / Stratex
6
3 ALIGN THE ORGANIZATION TEST & ADAPT
Strategic Plan
• Business Units performance measures • Profitability Analysis
• Support Units • Strategy Map • Strategy Correlations
• Employees • Balanced Scorecard • Emerging Strategies
• Stratex
results
5
PLAN OPERATIONS Operating Plan MONITOR & LEARN
4 • Sales Forecast
performance measures
• Key process improvement
• Sales planning • Resource Requirements • Strategy Reviews
• Resource capacity plan • Dashboards • Operating Reviews
• Budgeting • Budgets
results
EXECUTION
Process
Initiative
100518_EMEA Madrid_Intro_dpn © 2010David Norton and Palladium Group, Inc. 2

3. 20 years of experience has created a rich knowledge base of management
best practices
2. TRANSLATE THE STRATEGY 1. DEVELOP THE STRATEGY
2.1 Design Strategy Map with Linked Strategic Objectives 1.1 Affirm Mission and Values & Quantify the Vision
2.2 Define Measures 1.2 Perform Strategic Analysis
2.3 Define Targets 1.3 Formulate Strategy
2.4 Prioritize Strategic Initiatives 1.4 Define Value Gap
2.5 Authorize & Protect Strategy Funding 1.5 Implement Planning Cycle
2.6 Assign Accountability 1.6 Enhance Vision with Themes
2.7 Identify Key Risk Indicators
3. ALIGN THE ORGANIZATION
3.1 Align Business Units to Corporate Strategic Priorities
3.2 Align Support Units 6.. TEST AND ADAPT
3.3 Communicate Strategy 6.1 Test the Strategy’s Cause and Effect Relationships
3.4 Align Individual Goals 6.2 Test Robustness of the Strategy
3.5 Define the Corporate Strategy Role 6.3 Use Decision Analytic Models
3.6 Align Key Customers
3.7 Align Key Suppliers
3.8 Align Board
3.9 Align Compensation
5.. MONITOR AND LEARN
4. PLAN OPERATIONS
5.1 Conduct Operational Review Meetings
4.1 Set Priorities for Strategic Processes 5.2 Conduct Strategy Review Meetings
4.2 Integrate Financial Planning and Resource Capacity Palladium Execution Premium Process™ (XPP) 5.3 Manage Initiatives
Planning with the Strategy 5.4 Review Risk Management Plans and Processes
4.3 Use Process Models
4.4 Perform HR Planning
4.5 Perform IT Planning
4.6 Develop Risk Mitigation Initiatives
4.7 Create Operational Dashboards
4.8 Use Process / Driver Models
4.9 Establish Cross Business Teams
A. LEAD THE CAMPAIGN B. BUILD TECHNOLOGY INFRASTRUCTURE C. CREATE OSM INFRASTRUCTURE
A.1 Drive the Strategy Execution Agenda B.1 Business Intelligence Strategy C.1 Establish OSM as Strategy Management System Designer
A.2 Define Strategic Change Agenda B.2 Information Management Delivery C.2 Make OSM the Process Owner
A.3 Align Executive Team Behavior with Strategy B.3 Data Governance C.3 Use OSM to Integrate Other Strategy Execution Processes
A.4 Establish the OSM C.4 Provide Staff Resources
C.5 Establish Senior Reporting Level
100518_EMEA Madrid_Intro_dpn © 2010David Norton and Palladium Group, Inc. 3