The document summarizes Sears' transformation journey from the late 1980s to early 2000s in response to declining performance. Key points:
1) Sears lost its dominant retail position in the US due to becoming inward-focused and ignoring new competitors like Walmart.
2) In 1992, a new CEO embarked on a turnaround focusing on customers, local markets, and organizational renewal.
3) Sears rediscovered its core customer as middle-aged women and refined its value proposition around their needs.
4) Transformation efforts included restructuring, investing in employees, and aligning performance management with the new strategy.
This presentation takes you through the theory and setting up a Balanced Scorecard for your organisation. This presentation also discusses the linkages between the Balanced Scorecard and the value chain (Optimise-GB, creating operational efficiencies)
Sales Excellence does not describe a state, but rather a continuous process. The Kienbaum Sales Excellence Model provides guidance in this process. It serves on a theoretical, as well as practical level, as it guides through the ten fundamental components of sales. It has proven itself in practice as an analytical and optimization tool used in various industries and sales segments.
Tracking Towards Success: Strategy Mapping and Balanced Scorecard for Higher EdJMH Consulting
Continuing Education faces pressure to grow, increase profitability, and reach new markets. However, many departments do not have clear goals and are unsure of which key performance indicators are most effective to measure progress. This presentation examines how to choose the most critical measurements, tie those measurements to efforts within your unit and link metrics with goals.
During this presentation we will review several important data points for CE units. We will look at data that can be easily pulled together and we will separate data into data that can be leveraged as a leading indicator and as a lagging indicator. During this presentation we will look at how data can be combined to paint a picture of what’s happening with your program and your unit. Finally, we will also look at ways in which different activities, such as marketing, admissions, and improvements to the overall curriculum can impact what you’re measuring and how.
This presentation takes you through the theory and setting up a Balanced Scorecard for your organisation. This presentation also discusses the linkages between the Balanced Scorecard and the value chain (Optimise-GB, creating operational efficiencies)
Sales Excellence does not describe a state, but rather a continuous process. The Kienbaum Sales Excellence Model provides guidance in this process. It serves on a theoretical, as well as practical level, as it guides through the ten fundamental components of sales. It has proven itself in practice as an analytical and optimization tool used in various industries and sales segments.
Tracking Towards Success: Strategy Mapping and Balanced Scorecard for Higher EdJMH Consulting
Continuing Education faces pressure to grow, increase profitability, and reach new markets. However, many departments do not have clear goals and are unsure of which key performance indicators are most effective to measure progress. This presentation examines how to choose the most critical measurements, tie those measurements to efforts within your unit and link metrics with goals.
During this presentation we will review several important data points for CE units. We will look at data that can be easily pulled together and we will separate data into data that can be leveraged as a leading indicator and as a lagging indicator. During this presentation we will look at how data can be combined to paint a picture of what’s happening with your program and your unit. Finally, we will also look at ways in which different activities, such as marketing, admissions, and improvements to the overall curriculum can impact what you’re measuring and how.
Prepared for our fictional wine business South Oz Wines.
Features a Gantt Chart to show how South Oz Wines will implement their Strategic Marketing Plan.
Prepared for our fictional wine business South Oz Wines.
Features a Gantt Chart to show how South Oz Wines will implement their Strategic Marketing Plan.
This is part 2 in a 2 part foundational portion for the course Strategic HRM. The course is aimed at working professionals pursuing an Executive MBA. This part is intended to provide a grounding in Strategy to enable a smooth segue to the second part of the Strategic HRM program. It does not therefore dive into the HR aspect specifically but focuses on establishing the foundation of Strategy and its linkage to HR
Retail ManagementTEST 21. Need Recognition2. Info Sear.docxjoellemurphey
Retail Management
TEST 2
1. Need Recognition
2. Info Search
3. Alternative Evaluation
4. Choice
5. Outcomes
Need Recognition
A. Functional Needs: needs directly related to performance of product/ retailers.
B. Psychological Needs: needs associated with personal gratification and enhancement of self-esteem.
Ex. Stimulation, social experience, learning new trends, status and power, self-reward
needs can conflict
strategies to encourage need recognition
Information Search
economics of information approach dominates
Diminishing marginal returns. Later bits of info contribute less and less to our knowledge.
Most knowledge is learned at first.
internal VS external search
retailers wish to limit search to their stores
Factors Affected Amount of Information Search
Characteristics of the Product
Complexity-more complex the product the more you search because there’s a lot to learn.
Cost-more money more search
Characteristics of Customer
Past Experience-internally VS externally
Perceived risk-info search is a risk-reduction strategy.
Time pressure
Market Characteristics
Number of alternative brands
Reducing Information Search
Extensive merchandise Assortment
Assistance in location alternatives
Everyday low pricing
Credit-diff methods of payment
Information from sales associates
Alternative Evaluation
Different methods can be used to evaluate alternatives.
A multi-attribute attitude model may be particularly helpful in planning retail strategy because it helps to predict consumers' evaluation of store alternatives and choice.
Ao= the sum of ∑^n Bi Ii i=1
Where
Ao= attitude towards anything ( for this case it will be store)
N=the number of salient attributes
Bn=beliefs that the store possesses a given attribute I
Ii=importance of a given attribute I to the consumer
Consumer Female 40's income >$60000 working professional status orient
Ii
4=most important
1=least important
Bi
NMacy’s Express TJmaxx
2 Knowledgeable helpful salespeople4(8) 3(16) 1(2)
4 Good quality merchandise 5(20) 3(12) 3(12)
3 Good atmosphere 4(12) 3(9) 1(3)
1 Low prices 1(1) 3(3) 5(5)
Ao= 41 30 22
Retailing Strategy and Multi-attribute attitude models
To enhance like hood that consumers will visit store, retailers can
A. ΔBi
For the retailer( increase performance rating on important attributes)
For the retailers competition (decrease performance ratings of competitors)
B. ΔIi
Convince consumers that an attribute is more/less important than previously thought. (ie. High price is a good thing)
Difficult to do.
C. Add a new attribute N
Post-Purchase Evaluation
Satisfaction: post-purchase evaluation of how well a store meets or exceeds consumers’ expectations.
To enhance satisfaction (and reduce negative word-of-mouth) retailers can -
provide accurate information (don’t over-promise)
offer quality merchandise
have liberal guarantee and return polices
follow-up after a sales
Customer Relationship Management (crm)
Set of strategies, program ...
Sales is all about listening to people and prescribing a solution. In every job you'll come across sales moments, whether you're selling yourself in a job interview or selling products to customers - it's an essential skill in all career paths. This course is available now so you can start your sales career and your sales potential in just a few minutes - if you're already working in sales, or looking for a lucrative and enjoyable future career, this class is a valuable skill that you definitely need to master.
Juan Sebastian Garcia is been teaching Sales skills to different companies and sales teams for over 20 years. He's taught all over the world, as well as online, and has an entertaining and practical teaching style. This course covers everything you need to know about Sales Fundamentals: from preparing and planning, relationship building, objection handling techniques, and closing the deal at a brilliant price. This training is the first step to start developing your sales skills as a sales professional.
Sales Fundamentals overview includes:
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Also if you want to learn advanced selling techniques. Check out our Target Account Selling Class : https://www.udemy.com/course/target-account-selling/
Product Management Principles in a Services Company (or how to sell brains!)Berenice Mann
Selling and marketing services is not easy and differs from product marketing, but it also has much in common. Cliff and Berenice discussed this at the Cambridge Product Managers Network on 29 September 2014.
Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
Structural Design Process: Step-by-Step Guide for BuildingsChandresh Chudasama
The structural design process is explained: Follow our step-by-step guide to understand building design intricacies and ensure structural integrity. Learn how to build wonderful buildings with the help of our detailed information. Learn how to create structures with durability and reliability and also gain insights on ways of managing structures.
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
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FIA officials brutally tortured innocent and snatched 200 Bitcoins of worth 4...jamalseoexpert1978
Farman Ayaz Khattak and Ehtesham Matloob are government officials in CTW Counter terrorism wing Islamabad, in Federal Investigation Agency FIA Headquarters. CTW and FIA kidnapped crypto currency owner from Islamabad and snatched 200 Bitcoins those worth of 4 billion rupees in Pakistan currency. There is not Cryptocurrency Regulations in Pakistan & CTW is official dacoit and stealing digital assets from the innocent crypto holders and making fake cases of terrorism to keep them silent.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
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3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
Best practices for project execution and deliveryCLIVE MINCHIN
A select set of project management best practices to keep your project on-track, on-cost and aligned to scope. Many firms have don't have the necessary skills, diligence, methods and oversight of their projects; this leads to slippage, higher costs and longer timeframes. Often firms have a history of projects that simply failed to move the needle. These best practices will help your firm avoid these pitfalls but they require fortitude to apply.
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LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
LA HUG - Video Testimonials with Chynna Morgan - June 2024
01706 14 2002 Qms 74 E
1. Building an Adaptive Enterprise through Customer Focus A New Business Framework and Approach October 27, 1999
2. Contents I. The Sears Story II. Business Imperatives in the Connected Society III. The New Business Paradigm IV. Gap Analysis V. Actions and Implementation Plan VI. Key Success Factors
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6. Consequently, by the Early 90’s, Sears Had Lost Its Historically Dominant Position *S&P Retail Index CAGR from 1990-1992 Source: Dow Jones, Bloomberg ($ Billions) Profit Revenue Indexed Stock Price ($ Billions) CAGR 89-92 23% 43% -1% -2% N/A Sears Wal-mart JC Penney K-mart Dayton- Hudson CAGR 89-92 29% -0.4% 4% 3% 10% Sears Wal-mart JC Penney K-mart Dayton- Hudson CAGR 89-92 42% 16%* 12% 6% 6% 2% Sears Wal-Mart JC Penney K-mart D-H S&P Retail Index In 1992, Sears Hired a New CEO, Arthur Martinez, To Turn Around the Company
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8. The Transformation Began With a New Vision: A Compelling Place to Shop, Work, and Invest C ompelling Place to Shop C ompelling Place to Work C ompelling Place to Invest Satisfied employees influence the shopping experience Loyal customers increase top line growth Employees rewarded for performance P assion for the customer Source: EY Analysis P eople add value P erformance leadership 3 C s and 3 P s Employees Financial Results Customer
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15. This Intense Effort Has Dramatically Improved Results for Employees, Customers, and Investors Sears Wal-mart JC Penney K-mart Dayton Hudson Scores Total Performance Indicators Employee Scores 2 Share Price Market Share S&P Retail Index 1992 = 1
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17. The Sears Story: Redefinition of Core Business Vision Strategy Go-to-Market Strategy Value Propositions Customer Performance Management Performance Management Employee Training & Empowerment Processes Knowledge Management Communication Communication
18. Key Success Factors Leadership Complete Internal Alignment Around Strategy Tireless Execution Measurement System Brand Power Long-Term Perspective Customer Focus SEARS
19. Contents I. The Sears Story II. Business Imperatives in the Connected Society III. The New Business Paradigm IV. Gap Analysis V. Actions and Implementation Plan VI. Key Success Factors
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22. Fundamental Changes Occurring in the Marketplace Are Requiring Samsung to Redefine its Basis for Competition Time ? Birth Renewal Growth Leadership Decline Value New Business Model Globalization Example: GE 80-81 86/87 91/92 99/00 Market Share Leadership Productivity Services and Solutions Digital Inflection Pt Business Model Active Inertia Value Convergence Internet Digital Virtual Community eCommerce Open Standard
23. The Connected Society Marks the Transition To a New Era of Human History Industrial Revolution (Age of Civilization) Transportation Revolution (Age of National Scale Transportation) Information Processing Revolution (Data Processing Age) Connected Society Revolution (Networked Society Age) STEAM ENGINE URBANIZED AND INDUSTRIAL SOCIETY LINEARITY & LIFE CYCLEs TRANSNATIONAL RAILROAD BLURRING INTEGRATED CIRCUIT ACCELERATION AND COMPRESSION INTERNET AND DIGITAL COMMUNICATION GLOBALLY CONNECTED SOCIETY AND ECONOMY SYNCHRONICITY “ We are in for a revolution” Source: E&Y The Leadership Connection TM Interviews REGIONAL SPECIALIZATION AND INTER-REGIONAL TRAVEL KNOWLEDGE WORKER-BASED ECONOMY Evolution of Business Social Implication Defining Application 2000 1950 1860 1750
24. The Connected Economy Is Characterized by Three Key Forces Intangibles Services Products Customer Speed Connection Source: Blur, 1998
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26. . . . Leading to Six Rules for Success in the Connected Society. 1 Source: E&Y Analysis Focus on desired customers 2 Focus on competencies 3 Leverage partnerships 4 Identify differentiators 5 Create hybrid models 6 Be flexible and agile
27. The New Organizational Premise is “Sense-and-Respond.” Source: Hackel, Stephen, Adaptive Enterprises , Boston:Havard Business School Press, 1999. MAKE-AND-SELL Assumption: Predictable change Goal: Become an Efficient Enterprise Mission and Policy Strategy - objective - plan Structure functional hierarchy Command and Control management system A Closed System SENSE-AND-RESPOND Assumption: Unpredictable change Goal: Become an Adaptive Enterprise Context - purpose and bounds - adptative structure Coordination of Capabilities - commitment management An Open System Internal Feedback External Signals Adapting
28. Transitioning to a Sense-and-Respond Organization Requires a Fundamental Shift Source: Hackel, Stephen, Adaptive Enterprises , Boston:Havard Business School Press, 1999. Make-and-Sell Sense-and-Respond Continuum Mindset behind Strategic Intent Know-How Process Organizational Priority Profit Focus Operational Concept and Governance Mechanism Information Architecture Information Technology Architecture Market Leader Criteria Articulation of Strategy Business as an efficient mechanism for making and selling offers to defined market segments with predictable needs Embedded in products Mass Production Efficiency and predictability Profit margins on products and economies of scale Functional and sequential activity Functionally managed and optimized Host-centric: hierarachical top-down command and control mgmt system Share of products and services Strategy as plan Business as an adaptive system for responding to unanticipated requests in unpredictable environments Embedded in people and processes Modular customization Invested in capailities and system Return on investmens and economies of scope Networked and paralleled activity and teams Enterprise management of essential information Network-centric: shadowing the dynamic network of people and teams Share of customer spending Strategy as adaptive business design
29. Contents I. The Sears Story II. Business Imperatives in the Connected Society III. The New Business Paradigm IV. Gap Analysis V. Actions and Implementation Plan VI. Key Success Factors
30. The Primary Business Objective for Samsung Is to Increase the Ultimate Value of the Company Market Value Multiple ($) Time Full Potential Typical Financial Performance Non-financial Performance
31. The Challenge is to Determine How to Manage Company Resources to Create Maximum Financial Outcomes = Earnings Revenues Revenues Invested Capital Market Value Earnings x x (Profit Margin) (Capital Efficiency) (Growth / Reliability) Financial Performance Market Value Multiple ($) Time Full Potential Typical Non-Financial
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33. Non-Financial Data Have a Direct Impact on Valuation A one unit improvement in the perception of quality of management could represent a 13.2% price premium on share value Source: Ernst & Young’s Measures That Matter , 1997 Computer Industry Pharmaceuticals Food Industry Oil and Gas Non-Financial Criteria Quality of Management Quality of Products and Services Level of Customer Satisfaction Strength of Corporate Culture Quality of Investor Communications Effectiveness of Executive Compensation Policies Effectiveness of New Product Development Strength of Market Position 1.4% 1.4% 0.0% 0.0% 1.3% 0.3% 1.3% 0.0% 7.6% 13.2% 2.4% 9.6% 0.0% 4.8% 0.0% 2.1% 0.8% 1.8% 0.9% 2.5% 0.0% 3.2% 3.1% 7.1% 2.6% 4.9% 0.9% 3.9% 0.0% 0.0% 3.0% 0.5% 2.8% 0.6% 2.9% 0.3% 4.2% 8.8% 5.8% 7.2% 0.0% 1.3% 0.0% 0.9% 1.1% 2.5% 5.3% 7.3% 3.1% 2.5% 2.7% 1.5% 0.4% 1.2% 0.9% 1.8% 1.2% 6.1% 4.6% 4.4% 1.6% 4.1% 7.3% 9.3% % Increase in P/E Ratio given a one-unit change in…. Influence On Price Short Term Long Term 15% 0% 15% 0% 15% 0% 15% 0%
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37. A Customer Driven Organization Performs Six Key Customer Processes Identify Target Customers Develop Offerings Define go-to-market strategy Fulfill Promises Determine Customer Lifetime Value Manage customer relationship Customer Strategy Customer Behaviors Customer Economics Outcome Measures Delivery Strategy Know Who Are Your Customers Know What Your Customers Do Know What Your Customers Are Worth Know What You Can Get Back Decide What to Give Your Customers Determine How to Deliver Understand Your Relationship with the Customer Exchange Value with Your Customers Capability Specifications Opportunity Design Opportunity Identification
38. Customer Driven Business Framework Vision Business Strategy Offer Development Communication Service & Support Customer Strategy Competencies Go-to-Market Strategy Pricing Channel Promotion Product Design Brand Strategy SCM NPD Customer Care Salesforce Ad Campaign Field Services Processes Organization Design Customer Knowledge Management Performance Metrics Value Proposition Development CRM Op Model
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41. Measuring Customer Focus in the New Environment Adapted from: The Balanced Scorecard , Kaplan & Norton, 1996 Leading Indicators (Drivers): Customer Value Proposition Customer Acquisition Customer Profitability Customer Retention Customer Satisfaction Market and/or Wallet Share Lagging Indicators (Outcomes): Customer Response Lead To Value to Customer Product/Service Attributes Image Relationship = + + Functionality Price Time Brand Quality (Examples of measures:) (Examples of measures:) (Brand survey rating) (Share points) (% new customers in target segments) (Fully-costed margin in target segments) (# of repeat sales in target segments) (CSI) (Back order rate) (Relative price ratio) (Warranty) claims After-Sales Service Examples of attributes: (External product ratings) (Response time, problem resolution rate)
42. Contents I. The Sears Story II. Business Imperatives in the Connected Society III. The New Business Paradigm IV. Gap Analysis V. Actions and Implementation Plan VI. Key Success Factors
43. Marketing IQ Test 1. Businesses in America were reasonably successful during the 1980s, enjoying real growth in sales of 2 percent or more per year. 2. During the coming decade, marketers will earn more profits from new brands than from existing ones. 3. A high share of market in a product category generally leads to economies of scale that result in a high level of profitability. 4. There is little agreement among marketers about what the hot new concept “brand equity” means. 5, A reasonable way to set the marketing budget is to take last year’s figure and adjust for inflation. 6. Line extensions are a very risky way to introduce new products. 7. Focus group interviews are a serious marketing research tool that a manager can safely use to help make serious marketing decisions. 8. Business today invest more money in finding new customers than in further developing current customers. 9. The most profitable customers of a firm are usually its biggest customers. 10. Big companies generally make their marketing decisions after evaluating many alternatives in terms of profitability. True False Don’t Know
44. Marketing IQ Test (Cont’d) 11. The more appealing a new product concept is to prospective buyers, the more likely it is it will be a success. 12. Every company should strive to hold on to all of its customers. 13. Location is the most important determinant of success for a new retail business. 14. One-hundred percent customer satisfaction is not an intelligent business objectives. 15. Media planners at major advertising agencies know a great deal about the relative effectiveness of print, television, and radio advertising. 16. Because pricing is such an important component in the marketing mix, most big companies have a serious pricing strategy based on pricing research. 17. Nielsen’s television rating service--especially the new “people meter”--provides valid information about the number of people watching a particular television program. 18. Consumer and trade promotional programs tend to be more profitable than advertising. 19. Companies cannot quantify the effects of public relations programs. That's one reason why PR is a less valuable components of the marketing mix than advertising or the sales force. 20. Most marketing and advertising programs usually are measured in terms of their profitability. True False Don’t Know Total:
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46. Contents I. The Sears Story II. Business Imperatives in the Connected Society III. The New Business Paradigm IV. Gap Analysis V. Actions and Implementation Plan VI. Key Success Factors
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50. Operating Model Development: Business System Competencies (Staffing, Training, Development) Performance Management Business Processes Knowledge Management & Information Systems Change Management Business Processes
51. Operating Model Development Competencies (Staffing, Training, Development) Performance Management Business Processes Knowledge Management & Information Systems Change Management Business Processes
52. Competency Modeling and Assessment Methodology Universal Competency Modeling Process Job/Role Assessment Gap Analysis HR Link Tactical Organizational Design Stage 1 Stage 2 Stage 3 Stage 4 Documentation Review/ Current State Understanding LINKAGE Succession/ Career Planning Selection Training and Development Performance Appraisal Compensation Recruitment Validation
53. Operating Model Development Competencies (Staffing, Training, Development) Performance Management Business Processes Knowledge Management & Information Systems Change Management Business Processes
54. Operating Model Development Competencies (Staffing, Training, Development) Performance Management Business Processes Knowledge Management & Information Systems Change Management Business Processes
55. Performance Management is the Vital Link Between a Company’s Ability to Define its Strategy and Implement It. Strategy Vision Performance Management Execution Concrete initiatives to operationalize a firm’s strategy Execution at all levels consistent with strategy Measurement Motives What you measure is what you get. It’s not what you expect … it’s what you inspect. If you can measure it, you can manage it.
56. Effective Performance Measurement Systems Capture Both Financial and Non-Financial Value Creation Strategic Decisions Financial Markets Investor Estimates of Future Cash Flows Strategy Execution Capital Allocations Share Price Financial Performance Measurement Non-Financial Performance Measurement Company Market Feedback Loop: Measuring Value Value Creation
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60. At a Personal Level, Understand How Their Actions Impact Economic Value ILLUSTRATIVE Capital Expense Production Expense Raw Materials Ordering Costs Errors Clerical Errors Revenue Ability Administration Expense Facilities Rents/Occupancy Expense Expensed Capital Transportation People Expense Confidence NOPAT Sales Marketing New Product Development Inputs EDI Inventory Spoilage Bad Data Errors Staffing Constraints Equipment Technical Errors Education Intellectual Aptitude Reporting Warehousing Cost Of Capital EVA
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62. The BSC Links Strategic Objectives to Measurements Across Four Perspectives Business Process To satisfy our customers, in which internal business processes must we excel? Customer To satisfy our shareholders, what financial objectives must we accomplish? The Strategy Financial To achieve our strategy, which customer needs must we satisfy? People To achieve our strategy, how must the people learn and innovate? The Balanced Scorecard translates the strategy of a firm into statements of “things the firm needs to do well to be successful.” In its standard form, the Balanced Scorecard defines success across at least four perspectives: Financial, Customer, Business Process, and People. Most Scorecards also seek a balance between indicators of current growth (often financial and business measures) and indicators of future growth (typically in the “customer” and “people” perspectives) *Based on the original concepts proposed by David Norton and Robert Kaplan in their 1992 Harvard Business Review article
63. The Balanced Scorecard Defines Strategy As a Set of Hypotheses About Cause and Effect Increase Customer Confidence in Our Financial Advice Broaden Revenue Mix Improve Returns Understand Customer Segments Cross-Sell the Product Line Develop the Offering Achieve Employee Satisfaction Improve Customer Information Broaden Skills (Financial Planner) Align Reward System Partial Revenue Strategy Illustrative
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65. For example, a Large Beverage Company People Continue to Attract and Retain Highly-Effective Workforce Continue to Attract and Retain Highly-Effective Workforce Foster Culture of Innovation and Risk Taking Foster Culture of Innovation and Risk Taking Eliminate Silos and Ceilings Eliminate Silos and Ceilings Provide Challenging and Rewarding Work Provide Challenging and Rewarding Work Create a Work Environment of Trust, Teamwork, and Integrity Create a Work Environment of Trust, Teamwork, and Integrity Financial Customer Business Process Retailer Push Consumer Pull “ Profitable Share Growth” “ Be Consumer Brand-of-Choice and Retailer Preferred Supplier” “ Provide High Quality, Enhanced Margin” “ New Ideas, Good Team Work” Maximize Total Return to Shareholders Strategically Manage Market Share Strategically Manage Market Share Meet or Exceed Long-Term Corporate Earnings Goals Meet or Exceed Long-Term Corporate Earnings Goals Achieve Productivity and Cost Advantage Achieve Productivity and Cost Advantage Enhance Profitability of Business Partners (Wholesaler, Retailer) Enhance Profitability of Business Partners (Wholesaler, Retailer) Be Perceived by Consumers as Having the Best Value Be Perceived by Consumers as Having the Best Value Enhance Brand Equity, esp. Budweiser Trademark Enhance Brand Equity, esp. XXX Trademark Ensure and Promote High Product Quality and Freshness as a Competitive Advantage Ensure and Promote High Product Quality and Freshness as a Competitive Advantage Help Partners Manage Product Mix and Availability Help Partners Manage Product Mix and Availability Partner with Retailers to Execute Win/Win/Win Activities Partner with Retailers to Execute Win/Win/Win Activities Strengthen use of information across the extended supply chain, including 2nd and 3rd tier Strengthen use of information across the extended supply chain, including 2nd and 3rd tier Understand Customer Trends to Design Targeted Pricing, Packaging, and Advertising/Merchandising Understand Customer Trends to Design Targeted Pricing, Packaging, and Advertising/Merchandising Maintain Best-in-Class Master Scheduling and Distribution Capability Maintain Best-in-Class Master Scheduling and Distribution Capability Maintain Consistency in Production and Procurement Processes Maintain Consistency in Production and Procurement Processes Develop Creative Production Innovations Develop Creative Production Innovations Maintain Best-in-Class Innovative Marketing Capability Maintain Best-in-Class Innovative Marketing Capability “ Manage and Measure Across Value Chain” Incorporate Leading Edge Decision Support Systems into Effective Decision Making Incorporate Leading Edge Decision Support Systems into Effective Decision Making Provide Right Product/ Package at Right Place, at Right Time, at Right Price and Margin
66. A XXX Cause-and-Effect Model Should Show How its Strategic Objectives in All Four Perspectives Business Processes People Growth Customer/ Consumer Understand & respond to customer needs Create a knowledge- sharing culture Reduce inventory & current assets Increase unit volume Maximize shareholder value Hire & develop customer-focused employees Make what you sell, don’t sell what you make Empower employees to make decisions closer to the customer Increase EVA Increase price relative to market leader Increase customer acquisition & share of wallet Increase customer retention & lifetime value Build brand equity Target key customer segments Develop customer knowledge management infrastructure Increase sales-to-asset ratio Illustrative XXX Cause-&-Effect Model Increase customer profitability Measure & reward customer-focused behavior Organize around the customer Leverage R&D to develop innovative digital products that ad- dress customer needs
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70. The Balanced Scorecard’s Metrics and Supporting Processes Are Cascaded Down Through The Organization As Far As Needed, Often to the Individual Hourly Worker Design Scorecard Implement Scorecard Cascade Level n: Dept. or Team Design Scorecard Implement Scorecard Cascade Level I: Corporate Design Scorecard Implement Scorecard Cascade Level II: Business Unit Design Scorecard Implement Scorecard Cascade Level n+1: Individual
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74. Operating Model Development Competencies (Staffing, Training, Development) Performance Management Business Processes Knowledge Management & Information Systems Change Management Business Processes
75. Contents I. The Sears Story II. Business Imperatives in the Connected Society III. The New Business Paradigm IV. Gap Analysis V. Actions and Implementation Plan VI. Key Success Factors