凯捷—平衡计分卡—An Introduction to Balanced Socrecard.ppt

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1、Balanced Scorecard Background,Overview&Examples,The BSC concept,Measurement Motivates Behaviour,“What you measure is what you get”,“Its not what you expectits what you inspect”,“If you can measure it,you can manage it”,The Balanced Scorecards(BSC)fundamental premise is that measurement motivates beh

2、aviour,The scorecard differs substantially from traditional measurement approaches,The BSCs focus is on factors which create long-term economic value in an organisation,for example:Customer focus.Organisational learning.Business processes.Traditional accounting measures are by definition backward lo

3、oking:Financial measures only reflect the results of actions already taken.Do not provide an indication of future financial performance.Do not indicate desired performance.Do not provide a basis for planning and target setting.,Criteria For A Good Balanced Scorecard,A Good Balanced Scorecard will“Te

4、ll the story”of your strategy,Cause and Effect Relationships:Every measure should be part of a“cause and effect”chain to determine if the measures correctly represents and drives the strategy.Linked to Financials:Every measure selected should ultimately Drive Performance.Focus on factors that create

5、 long-term value.A balance of lead and lag indicators:Measures that Create Change:Measures must cause the organisation to change its behaviour in some way.,CompanyStrategy,As-Is,Vision,Clarifying and Translating the Vision and Strategy,Strategic Feedback and Learning,Planning and Target Setting,Comm

6、unication and Linking,Feedback system used to test the hypotheses on which strategy is based.Strategy development is a continuous process.,Stretch targets are agreed.Investments are determined by the strategy.Annual budgets are linked to long-range plans.,Goal alignment exists from top to bottom.Ope

7、n communication of strategy is basis for employee empowerment,BalancedScoreboard,The Balanced Scoreboard creates a strategic framework for action,The strategy is the reference point for the entire management process.The shared vision is the foundation for strategic learning.,The Balanced Scorecard t

8、ranslates vision and strategy into four dimensions of performance,“When we achieve our vision,how will our organisation learn and grow?”,“When we achieve our vision,how will we look to our business partners?”,“When we achieve our vision,how will our internal business processes operate?”,“When we ach

9、ieve our vision,how will we look to our shareholders?”,Vision,Customers and Partners,Financial/Shareholder,Internal Processes,Learning and Innovation,For each of the four dimensions,objectives,measures and targets are explicitly defined,Internal Processes,Objectives,Measures,Targets,Learning and Inn

10、ovation,Objectives,Measures,Targets,Vision,The linkage between the four dimensions is crucial in ensuring long-term success,Financial,Client satisfaction,efficient and effective delivery of services will deliver financial results.Excellent processes and people will deliver client satisfaction.Good p

11、eople in efficient processes support effectiveness.You need good people,people processes and structure to achieve high performance.,Shareholder Value,Partners/Customers,Internal Processes,Learning&Growth,Alignment through the organisation will be achieved by cascading the scorecard,High Level Scorec

12、ard,Business Unit or Departmental Scorecards,Individual Scorecards,Shareholder/Parent/Requirements,When implemented well,the benefits of Balanced Scorecard can be significant,Senior executives are focused and aligned around a small number of critical objectives and success measures.A simple,single m

13、anagement report makes progress towards financial,customer,internal processes and learning objectives clearly visible.The Plan-Do-Review principle establishes clear accountability for achieving objectives,for success and failureThe BSC implementation establishes a strategic feedback/monitoring syste

14、m that drives actions to excel in critical performance indicators,Focus,BalancedPerformance,Accountability,ContinuousImprovement,The BSC Process,Balanced Scorecard design is only a component of the overall process,Scorecard Design,Scorecard Implementation/Roll-out,Strategic Intent,Develop&finalise O

15、bjectives,Develop&finalise Measures,Determine baselines and set targets,Incorporate scorecard review as key item in business management meetings,Manage business according to scorecard,Review/refine score-card on a regular basis in conjunc-tion with strategy review process,Align/plan initiatives acco

16、rding to scorecard,Develop and implement BU and section scorecards,Ensure scorecard alignment,Review&refine onan ongoing basis,Manage BU,section etc.according to scorecard format,Feedback to high level scorecard to ensure alignment,Corporate/Shareholder input where relevant,Communicate Scorecard to

17、organisation,Cascade scorecard to individual level.To ensure individual focus and alignment.,Balanced Scorecard,Business Management Process,The Business Management Process(BMP)implements the Balanced Scorecard in a Plan-Do-Review Cycle,Link to Higher Level BSC,Measures,Targets,Objectives,Link to Low

18、er Level BSC,Link to Higher Level BMP/Report,Link to Lower Level BMP/Report,ReviewBSC,Take Action:InitiativesPlans Budgets,Measure Actuals against TargetsCompile Report,Plan-Do-Review sessionDetermine Root Causes for VariancesDefine Action Steps,PDR Session,What makes a good Objective or Measure,We

19、need to have clear and communicated definitions of the BSC components,Objective:Statement that defines what we must do to achieve the vision.Linked to our strategy.Measure:A numeric indicator that will indicate successful achievement of the objective.Lead indicator Indicates the likelihood of change

20、(forward looking).Lag indicator Indicate that change has occurred(backward looking).Target:Value of the measure that we would like to achieve in a given time frame.Must be achievable.,Perspective,A“Good”Balanced Scorecard includes objectives,measurements and targets that promote change,Example:,Fina

21、ncial,Customer,Internal,Learning,BusinessObjectives,Shareholder valueProfitNew revenue,DifferentiationStrategic alliancesCustomer service,ProductivityNew product developmentSegmentation,People policyAlliance managementCustomer focus,Measurements,%dividend growthOperating MarginRevenue from new servi

22、ces,Target market-shareProfits from alliancesCustomer satisfaction,Revenue/work hourProduct development cycle timeNumber of initiatives targeted at profitable segments,Management span of controlNumber of“learning”partnerships”%management time interfacing with customers,Targets,CPI+X%annuallyTop quar

23、tile25%in three years,Number one$M in five yearsNumber one customer rating,Best-in-class within five yearsReduced by 50%in two years60%within one year,Triple in three years10 in five years20%in two years,Accountabilities,Finance DirectorCEOBusiness Development Manager,Marketing DirectorBusiness Deve

24、lopment ManagerMarketing Director,COOResearch and Development ManagerMarketing Director,Human Resources DirectorBusiness Development ManagerCEO,.and clear accountabilities to ensure ownership.,The objectives define what the organisation must do to achieve the vision,Description of a good objective:L

25、inked to,and descriptive of a component of the vision/strategy.Relevant to what the organisation wants to achieve.Action orientated:Start statement with a verb.Measurable:there must be a manner in which we can determine success in achieving the objective:Clear and concise.Understandable to the whole

26、 organisation.Must be able to assign overall accountability to a single person.,Measures must be the key indicators that register achievement of the objective,The SMART criteria defines a good measure:S implerelatively easy to access,collate and calculate.M easurablee.g:number of hours worked,lines

27、installed,etc.A actionableability to take action on variances to plan.R elevantability to influence that which is being measured.T imeousmust be determined/measured as frequently aspossible,or when relevant.the longer the delay in measuring the less the chance to allow timeous/appropriate action.,Ta

28、rgets must be set for each measure,and define goals for the organisation to achieve,Criteria for a good target:Must be achievable.Provide some stretch for the organisation.Set for a good fixed time period.Determine intermediate values,to evaluate progress.Aligned with what the organisation wants to

29、achieve.Supported by and have buy-in of the executive team.,The objectives,measures,targets and accountabilities need to be defined at all levels of the organisation.,Priority:Effectively Manage Value Adding Processes,Formula:Weighted ranking of total unit cost of production+plant reliability index+

30、total staffing index+computerised instrumentation index+total maintenance+sustaining capital index.,Source:Site Leadership,For each objective and measure we will develop a precise definition.,Measure:Cost excellence rating,Formula Notes:A weighted index that gives a quartile performance cost excelle

31、nce position.Weightings to reflect their importance to each business.Categories are 1st to 4th quartileRankings,as defined by external consultants at least every other year,but done yearlyA comparative group is definedFormula to be defined by type of plant relevant to their business need and value p

32、roposition.Weightings may shift over time.,Update Frequency:Annual,Action to Implement:Use blend of industry studies(e.g.,Solomon,Mastio,Chem Systems,Townsend),and analysis of one-on-one comparisons vs.leaders.May also use simplified benchmarks and models,as appropriate.,Effectively Manage Value Add

33、ing Processes:Be the low cost provider of products and services by achieving competitive excellence in all our business processes.,EXAMPLE,Objective:,Perspective:Internal processesMeasure:Cost excellence rating,.and an approach to setting targets,Effectively Manage Value Adding Processes:Be the low

34、cost provider of products and services by achieving competitive excellence in all our business processes.,Objective:,Frequency of Meaningful UpdateMonthlyAnnuallyQuarterly,Measurement definition/formula(See also Measurement Profile):Weighted ranking of total unit cost of production+plant reliability

35、 index+total staffing index+computerised instrumentation index+total maintenance+sustaining capital index.,Approach to setting targets and/or developing measure If targets exist,identify source:Target is to be top quartile.Sites(types of plants)will need to select the key variables,weight them,and c

36、hoose a suitable external benchmarking methodology.Recommendations need to be agreed by business teams and leadership team,Target setting responsibility:Manufacturing leadership/SBU,Accountability for results:Manufacturing leadership,Tracking/reporting responsibility:Site leadership,Completion date:

37、1995(some could be ready by January),Linkage to Businesses:Through business teams,aligned with SBU strategy,Linkage to BT Streams/Initiatives:ManufacturingCapital investment excellenceSupply chain,EXAMPLE,Example Objectives and Measures,Generally,BSC objectives focus around key themes in each of the

38、 four areas,Financial/Shareholder Themes,Shareholder value.ROI.Profitability.Turnover/Revenue.,Learning&Innovation Themes,Attract,retain and motivate employees.Clarify and communicate Roles and Responsibility.Building skills.Manage resources(leadership).Knowledge management.,Internal Process Themes,

39、Low costs.Production efficiency.Quality:ISO compliance.Safety.Production volume.Environment.Process effectiveness.,Customers&Partners Themes,Retention.Satisfaction.Value-added to customers.,Vision,The Balanced Scorecard should contain a balance of lead and lag indicators,F1Meet shareholder expectati

40、onsF2Improve operating performanceF3Achieve profitable growth,Return on EquityCombined RatioBusiness Mix,C1Improve agency performanceC2Satisfy target policyholders,Acquisition/Retention(vs.plan)Acquisition/Retention(by segment),Agency Performance(vs.plan)Policyholder Satisfaction Survey,I1Develop ta

41、rget marketsI2Underwrite profitablyI3Align Claims with businessI4Improved productivity,Business Mix(by segment)Loss RatioClaims FrequencyClaims SeverityExpense Ratio,Business Development(vs.plan)Underwriting Quality AuditClaims Quality AuditHeadcount MovementManaged Spending Movement,L1Upgrade staff

42、 competenciesL2Access to strategic information,Staff Productivity,Staff Development(vs.plan)Strategic I/T Availability(vs.plan),Objectives,Measures,Lead Indicators(Performance Drivers),Lag Indicators(Core Outcome Measures),Learning,Internal,Customer,Financial,DIRECTOR,TEAM LEADER,Quarterly Time Wind

43、ow Target,Objectives,measures and targets at each level have to be aligned top-down and bottom-up,Example:CarManufacturer,Measures should be cascaded as with this railway utility,Managing Director,Functional Managers,Area Managers,Department Managers,Section Managers,Work Group,Supervisors and Staff

44、,Business objective:“92%of trains toarrive within 5minutes of publishedtime”,Punctuality,%leave on time,Maintainschedule,Crewavailable,%trainsavailable,Trains inwronglocation,Trainsrejected byoperations,%trainsavailableright formed,%trainsoperational,%trainspendingwheel sets,%wheel setsto plan,Wheel

45、 lathedowntime,Example BSC:TelcoSupp.,Client,Key Issues,TelcoSupps vision is to be the most successful local telecommunications solutions provider,Producer and supplier of products in the telecommunications industry.Vision is to be the most successful locally.,Alignment of leadership to meet long-te

46、rm goals.Increasing customer demands.,The TelcoSupps BSC objectives were designed to support the Vision,Financial/Shareholder,Deliver sustainable growth in profitability.Maximise shareholder value.Ensure financial independence by funding future growth and initiatives internally.,Organisational Learn

47、ing,Attract and retain appropriate skills.Develop a learning culture.Communicate effectively.Apply employment equity principals.Empower our employees.Develop a company team spirit.Define,communicate and live the values.,Internal,Be the industry benchmark by any measure.Invest in the right projects t

48、o ensure our futureBecome a centre of competence.Develop a balanced relationship with the parent company.,Business Partners,Customer:Increase market share.Broaden customer base.Improve service quality to exceed customer expectations.Build long term customer partnerships.Alliances:Pursue alliances to

49、 enable us in our marketSuppliers:Build long term supplier relationshipsCommunity:Actively support Southern African development,A measurement system will assess progress towards the objectives.,Benefits,Concerns,Comments on TelcoSupps BSC,Cascaded into the organisation to create focus.Parent company

50、 has adopted BSC concept and suggested BSC development and implementation for other divisions.Strong business partner and organisational learning focus.,High number of objectives(21).Accountabilities rest with a few individuals.,Balanced Scorecard Comments,TelcoSupps BSC measures and accountabilitie