4. Good Governance 66.3% 46
Just In Time 13.9%
Balanced Scorecard 42.6% Six Sigma 13.9%
ISO 9000 42.6% 13.9%
Total Quality Mgt 33.7% Mgt by Objective 12.9%
Benchmarking 30.7% Kaizen 8.9%
ISO 14000 20.8% Others 6.9%
QC / QCC 20.8% Contingency Theory 2%
18.8% 2%
Empowerment 16.8% Z Theory 1%
Supply Chain Mgt 15.8% 1%
4
7. Balanced Scorecard Perspectives(D)
The Balanced Scorecard Model* provides a holistic approach to performance measurement by supplementing
the traditional financial measures with three additional perspectives: customer, internal business process, &
innovation and learning:
Financial
“To succeed financially, how should
LOOK BACK
we appear to our shareholders?”
Customer Vision Internal Business Process
“To achieve our vision, “To satisfy our shareholders &
and
LOOK INSIDE OUT
how should we appear to
our customers?” Strategy LOOK OUTSIDE IN
customers, what business
processes must we excel at?”
Innovation & Learning
“To achieve our vision,
LOOK AHEAD
how will we sustain our
ability to change & improve?”
* Source: Robert S. Kaplan and David P. Norton, “Using the Balanced
Scorecard as a Strategic Management System,” Harvard Business Review
(January-February 1996)*
7
9. Balanced Scorecard
Financial
Perspective Objective Measures Target Initiatives Long-Term
Shareholder Value
Productivity Strategy Growth Strateg
ImproveImprove Asset New Revenue
Cost Increase
Structure
Financial Utilization Sources
Customer Value
Perspective
C Price AvailabilityFunctionality Partner rand
Quality Selection Service B
Customer Value Proposition
u Product / Service Attributes
Relationship
Image
Operation Management
s Customer Management Regulatory & Socia
Innovation
t Processes Processes Processes Processes
Internal
Customer
Process Objective Measures
Perspective Objective Measures Target Initiatives Target Initiatives
Perspective
I
o • • • •
Vision and n
m Sup Sele Opp Envi
Strategy
t
e ply ction ortu ron
e
r Human Capital
• • nity men
L
r Information Capital
P Prod Acq ID t
e
n
e Organization Capital
Culture Leadership Alignment Teamwork
uctio uisiti • •
a
a
r n on R&D Safe
r
l
s • • Portf ty &
Learning
and
Objective Measures Target Initiatives n
P
p
Growth
Distr Rete olio Heal
Perspective i
e ibuti ntio • th
n
r
c on n Desi •
g
s
t • • gn / Emp
p
i Risk Gro Dev loym
&
e
v Man wth elop ent
G
c
e age • •
r
t men Laun Com
o
i t ch mun
w
v ity
t
e
h
P
e
9
12. (Strategic
Execution)
(Leadership) (Linkage to
action plan and
(Org. must budget)
focus on strategy)
(Translate and (Right Culture)
communicate)
(Right Processes)
(Alignment)
(Right People)
(Accountability of
strategic (Motivation)
performance at all
levels) 12
13. A Gap Exists Between Mission-Vision-Strategy
and Employees’ Everyday Actions
VISION
What we want to be
MISSION
Why we exist
VALUES
What’s important to us
STRATEGY
Our game plan
TOTAL QUALITY MANAGEMENT
What we must improve
EMPOWERMENT / PERSONAL OBJECTIVES
What I need to do
13
14. The Balanced Scorecard Links Vision and
Strategy to Employees’ Everyday Actions
VISION
What we want to be
MISSION
Why we exist
VALUES
What’s important to us
STRATEGY
Our game plan
BALANCED SCORECARD
Translate, Focus and Align
STRATEGIC INITIATIVES
What are the priorities
TOTAL QUALITY MANAGEMENT
What we must improve
EMPOWERMENT / PERSONAL OBJECTIVES
What I need to do
STRATEGIC OUTCOMES
Satisfied Delighted Efficient and Effective Motivated & Prepared
SHAREHOLDERS CUSTOMERS PROCESSES WORKFORCE
14
20. Putting It All
Together - Federal
Government
Logistics Center
Provide Logistics Support and Products
Mission
to Assure Safely For the Flying Public
World - class, Customer Driven; Providing
Vision Quality Services Worldwide
S1:Become more customer-driven
StrategyS1 S2
S2:Increase business opportunities
00 0 S1-01:Assure timely delivery (C
Objectives S2-02:Raise quality level (Cust
12 3 S1-03:Reduce cycle time (Inte
S1-01-M1:% on-time delive
MeasuresM MM
1 12
S2-02-M1:% defective prod
S1-03-M2:% defective ship
S1-01-M1-T1:100% in 20
Targets T TT S2-02-M1-T1:Zero in 200
1 11 S1-03-M2-T1:Zero in 200
S1-I1:Re-engineer deli
Initiatives I
1
I
1
process
S2-I1:Six Sigma trainin
20
30. Measurement / KPI Template
(Name of (Target
measure) setting)
(Definition) (Who
measures)
(Purpose) (Who is
the owner:
(Formula)
(Unit of
measures) (Who
is the supporter)
30
31. Measurement Template
Name
Definition
3
Purpose
Formula 3
X 100
Unit of measure
Frequency
Sources Log 4544
Target setting person
Who measures
Who is the owner
Who is the supporter 31
41. Strategy Map…..
Max. Profit
Inc. Rev. Reduce Cost
Financial
Perspective
Inc. rev New Cust Inc. rev per Cust
Cust Acquisition Cust Satisfaction
Customer
Perspective
On-time Delivery Fast Service Product Quality
Internal Process
Cust Mgt. Process Logistic Process Production Process
Perspective
Learning &
Motivated Culture Skill Personnel Excellent IT/IS
Growth
41
48. BSC: Hall of Fame Award
ABB Switzerland Royal Norwegian Air Force
AT&T Canada
Saatchi & Saatchi
BMW FINANCIAL SERVICES,
SIEMENS
BOREALIS
Brown & Root SKANDIA
City of Brisbane Southern Gardens Cirtus
City of Charlotte St. Mary’s/Dulth Clinic Heath
Chemical Bank Systems
CIGNA Property & Casualty Tata Motors CVBU
CROWN CASTLE INTERNATIONAL TENNESSEE VALLEY AUTHORITY
Duke Children’s Hospital Texaco Refining & Marketing
DuPont UPS
Fulton County School U.S. National Rconnaissance Office
GTE Human Resources UK Ministry of Defence
Hilton Hotels University of California, San Diego
Korea Telecom
U.S. Army
Mobil NAM&R
Volvofinans
Nova Scotia Power
Kinnarps AB Wells Fargo Online Financial
Services
PLIVA d.d.
Wendy’s International
48
49. BSC
Mobil: from last to first in Shin Corp
ind, ROCE 6% to 16% AIS
Wendy’s Int’l: Mkt Cap TA
$2.5 - $4b, stock price up
75%
Thai Acrylic Fibre
UPS: Rev up 9%, Net
Income Up 33% KBANK
Hilton Hotels: Cust AIG Finance
Loyalty up 5%, EBITDA PTTEP
margin 3% above
average
Duke Chuildren’s 49
50. Many Government and Not-for-pr
Successfully Implemented the B
Defense Logistics Australia Defense
Agency Force
U.S. Army Medical Royal Canadian
Department Mounted Police
Air Force Center of State of
Quality Washington
Arizona Game & Swedish Post
Fish U.S. Army
U.S. Dept. of U.S. Dept. of
Energy Transportation
U.S. Dept. of Veterans Benefits
Veteran Affairs Association
General Services Washtenaw 50
51. Balanced Scorecard
Balanced Scorecard
1999
Balanced Scorecard Hall of Fame 51
52. U.K. Ministry of Defense
Strategic Defense Review
Six Sigma
EFQM 52
53. U.K. Ministry of Defense
Output Deliverables („Are we delivering
what the government wants?‟)
Resource Management
Enabling Processes
Building for the Future
Workshop
17 82
15 42
“ 53
54. Improved
Better Use Of
Operational
BATTLE WINNING DEFENSE CAPABILITY Resources
Effectiveness
Output Operational Military Defense
Deliverables Success Effectiveness Policy
Perspective
Resource Manning Defense Annual
Management levels Reputation
Infrastructure Budget
Perspective
Enabling
Processes Training Acquisition Management
Perspective
Building for
Investing in Technology Modernizing
The Future People And Infrastructure
Perspective Equipment
54
55. Demo Defence Balanced Scorecard Database
DEFENCE Output/Deliverables
-3 -2 -1 0 +4 +8 Qtrs
BALANCED SCORECARD Operations
Effectiveness
Colours are Illustrative
Policy
Resource Management Process Improvement
-3 -2 -1 0 +4 +8 Qtrs
-3 -2 -1 0 +4 +8 Qtrs
Annual Budget
Training
Manning Levels
Acsquisition
Defence Infrastructure
Management
Reputation
key
Performance on target
Learning & Development
Small variation from target -3 -2 -1 0 +4 +8 Qtrs
Significant variation from target- Investing in People
Board action may be required
Modenising Infrastructure
Major variation from target-
Board action is required Technology & Equipment
55
56. Defence Balanced Scoreboard
Output
Deliverables
Operations
Military Capability
SDR Force Structure
Policy
Process
Resource Improvement
Management BATTLE-WINNING Joint Working
Forward Programme Defence Planning, Budgeting
Budget Management and Accounting
Equipment
Capability Business Improvement
Reputation Smart Procurement
Learning &
Development
Investing in our People
Strategic Assessment
Information Technology
56
57. The DPA is an integral part of MOD. The policies and strategic
direction set out in the MOD’s Departmental Plan determine
the Agency’s overall strategy.
Infrastructure: Management, Planning,
HR and Corporate Services
Ministers and Central MOD
Armed Forces – Training and
supporting Infrastrucure
Outcome:
Force Elements
at Readiness Military
Technology, research and development Effectiveness
Equipment procurement, update,
modification and logistic support
57
75. STAK
S2 S3
E Healthy Airmen
and Family (COUNTRY DEVELOPM
ER Medical
HOLD
Readiness
S1
INTERNAL
PROCESS P
P P
MILITARY SERVICE)REHABILITAITON
P
P P6
P
STRATEGIC PARTNER AND CIVIL SOCIETY
LEARNIN
L L
G Well being)
L
&
GROWTH L L
RESEARCH & DEVELOPMENT)
BUD
75
81. Name
Definition BMI BMI
Purpose BMI
Formula -
BMI
Unit of measure x
100
Frequency 3
Sources
Target setting person
Who measures
Who is the owner
Who is the supporter
Baseline
Target 20 % 81
82. Balanced Scorecard
(Tell the
story of your strategy)
(Strategi
c Help align all of the
organization resources to focus on
Impleme strategy
ntation)
(Use
of measurement to drive strategy)
(Measure (Measurement help people
Balanced Scorecard specific about strategy)
ment) to be more
BSC = Focus +
(Management Align
Systems) 82
83. BSC 1
Speed over Perfection
Something better than Nothing
Keep it Simple
83
86. Nation stability and sustainability
Output Economic Stability, well being of citizen, quality of life for sustainability Nation
Growth competitveness
Customer Market capital
International confidence Good quality of life
Value added
Nation competitiveness:
Quality of life, social Poverty reduction. Income
-7 industrial sectors,
Capital: Augmentation:
Process -Nation security
-innovation
-Equal opportunity, debt reduction,
-infrastructure,
-Cultural heritage expenditure reduction
-alliances
-Environment conservation -Grassroot economy, OTOP
-Bureaucratic reform
Learning
Knowledge based
& society
R&D Learning environment
Growth
86
88. Learning Retention Rates
Learning Mode Percentage of Retention
Listen 5%
Read 10%
See Visual Aids 20%
See a Demo 30%
Discuss 50%
Practice 75%
Teach Others 90%
Apply the Skill 90%
88
