Académique Documents
Professionnel Documents
Culture Documents
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2006 The Senalosa Group, Inc. All Rights Reserved
Agenda
Introductions
Performance Measurement Background What led us to the BSC?
The Balanced Scorecard
Success Stories
Strategy Maps
Essentials of Implementing the Balanced Scorecard
Questions & Answers
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2006 The Senalosa Group, Inc. All Rights Reserved
Introduction to Paul
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2006 The Senalosa Group, Inc. All Rights Reserved
Released June,
2003
Released April,
2005
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2006 The Senalosa Group, Inc. All Rights Reserved
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2006 The Senalosa Group, Inc. All Rights Reserved
Three Challenges
Riseof
of
Rise
Intangible
Intangible
Assets
Assets
Over-reliance
Over-reliance
onFinancial
Financial
on
Measures
Measures
Prominence of
the Balanced
Scorecard
Difficulty
Difficulty
Executing
Executing
Strategy
Strategy
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2006 The Senalosa Group, Inc. All Rights Reserved
1982
The increasing
value of
intangible assets
in organizations
1992
Today
75%
62%
38%
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2006 The Senalosa Group, Inc. All Rights Reserved
The Alto
2006 The Senalosa Group, Inc. All Rights Reserved
Only 10% of
organizations
execute their
strategy
Vision Barrier
People Barrier
Only 5% of the
workforce
understands the
strategy
Only 25% of
managers have
incentives linked
to strategy
Management
Barrier
85% of executive
teams spend less
than one hour per
month discussing
strategy
Chart adapted from material developed by Robert S. Kaplan and David P. Norton
2006 The Senalosa Group, Inc. All Rights Reserved
Resource Barrier
60% of
organizations
dont link budgets
to strategy
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Intangible Assets
Strategy
Financial Measures
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2006 The Senalosa Group, Inc. All Rights Reserved
Customer
"To achieve our Objectives
vision, how should
we appear to our
customers?"
Vision
and
Strategy
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Financial Perspective
"To succeed
Objectives Measures Targets Initiatives
financially, how
should we appear
to our
shareholders?"
Customer
"To achieve our Objectives Measures Targets Initiatives
vision, how should
we appear to our
customers?"
Vision
and
Strategy
Example Measures:
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2006 The Senalosa Group, Inc. All Rights Reserved
Customer Perspective
Should answer three questions:
Who are our customers?
What is our value proposition in
serving them?
Financial
"To succeed
Objectives Measures Targets Initiatives
financially, how
should we appear
to our
shareholders?"
Customer
"To achieve our Objectives Measures Targets Initiatives
vision, how should
we appear to our
customers?"
Vision
and
Strategy
Operational Excellence
Internal Business Process
Product Leadership
Customer Intimacy
What do customers expect or
demand?
Example Measures:
Customer Loyalty
Market Share
Customer Retention
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Nordstrom
Mobil (Early BSC adopter)
Best Solution
Costco
McDonalds
Dell Computer
The first three value propositions are based on Treacy & Wiersema, The Discipline of Market Leaders,
Addison Wesley, 1995
System Lock In
Lock in companies provide the best
platform for buyers and sellers to
meet
E-Bay
Microsoft
Yellow Pages
Best Exchange
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"To succeed
Objectives Measures Targets Initiatives
financially, how
should we appear
to our
shareholders?"
Customer
"To achieve our Objectives Measures Targets Initiatives
vision, how should
we appear to our
customers?"
Vision
and
Strategy
On-time delivery
Product development cycle time
Customer response time
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2006 The Senalosa Group, Inc. All Rights Reserved
Often overlooked
Represent the enablers of the
other
three perspectives
Financial
"To succeed
Objectives Measures Targets Initiatives
financially, how
should we appear
to our
shareholders?"
Customer
"To achieve our Objectives Measures Targets Initiatives
vision, how should
we appear to our
customers?"
Vision
and
Strategy
Example Measures:
Employee satisfaction
Strategic job coverage ratio
Internal communication rating
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2006 The Senalosa Group, Inc. All Rights Reserved
Information Capital
Understand the IT applications
and infrastructure we need to
support the strategy
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2006 The Senalosa Group, Inc. All Rights Reserved
Everybody!
Can you guess the
country represented by
this flag???
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2006 The Senalosa Group, Inc. All Rights Reserved
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2006 The Senalosa Group, Inc. All Rights Reserved
Strategy Maps
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2006 The Senalosa Group, Inc. All Rights Reserved
Sydney
Antigonish
Truro
Halifax
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2006 The Senalosa Group, Inc. All Rights Reserved
Landmark 2
Successfully
Executed
Strategy
Landmark 1
Formation of a
Strategy
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2006 The Senalosa Group, Inc. All Rights Reserved
Increase Profitability
Attract More
customers
Ensure Lowest
prices
Internal
Maintain Fast
ground
turnaround
Learning
Align
ground
crew
operations
Maximize
Sustainable Value for
Our Shareowners
Profitable Growth
Operational Productivity
Financial Perspective
Achieve optimal
ROIC levels
Customer Perspective
Exceed customer
expectations in service
delivery
Offer superior
value in distribution and supply
chain services
Exercise
and outwardly communicate
business practices that drive
channel integrity
Introduce/enhance
Products and services
Provide
simple, consistent and
reliable processes
Internal Process
Perspective
Hire, develop,
and retain the
best performers
Leverage technology
to improve productivity
and drive customer
results
Foster a culture
that rewards
teamwork and
promotes
balance
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2005 The Senalosa Group, Inc. All Rights Reserved
Customer
Internal
Understand and
anticipate
customers business
needs
Continuously improve
and simplify
customer experience
Participate
knowledgably and
contribute to
meeting needs
Proactively provide
effective and
innovative solutions
Efficient delivery
through consensus
Proof of concept
Get off the 3rd floor
Explore alternatives
and anticipate use
of new technology
Continuously review
and simplify internal
practices and
procedures
Culture:
Financial
Customer Focus
Work Smarter
Always On
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Grow Aliant
Profitably
Customer
Everything Begins With The Customer
Internal Process
Innovate, Collaborate,and Allocate
Continuously Improve and
Simplify End to End Customer
Experiences
Employee Learning
& Growth
Create a Workforce that
is Informed, Developed,
Engaged and Inspired
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2005 The Senalosa Group, Inc. All Rights Reserved
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2005 The Senalosa Group, Inc. All Rights Reserved
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2005 The Senalosa Group, Inc. All Rights Reserved
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2006 The Senalosa Group, Inc. All Rights Reserved
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2006 The Senalosa Group, Inc. All Rights Reserved
Executive Sponsorship
To make initiatives work it took passionate, allconsuming commitment from the topEvery
leadership action must demonstrate total
commitment to the initiative.
-Jack Welch, Jack: Straight From the Gut
No BSC initiative will survive without
active executive sponsorship
Executives hold key knowledge for BSC
success
Everyone watches what the boss
watches
You can influence executive sponsorship
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2006 The Senalosa Group, Inc. All Rights Reserved
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2006 The Senalosa Group, Inc. All Rights Reserved
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2006 The Senalosa Group, Inc. All Rights Reserved
Customer
Financial
Objectives
Objectives
Objectives
Objectives
Objectives
Objectives
Emp. L. & G.
Objectives
Objectives
Objectives
Emp. L. & G.
Objectives
Internal Processes
Customer
Financial
Internal Processes
Customer
Financial
Objectives
Emp. L. & G.
Objectives
Allows everyone
to demonstrate
how they
contribute to
overall goals
Creates a
consistent
language through
measurement
Achieves a laserlike focus on
strategy
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2006 The Senalosa Group, Inc. All Rights Reserved
Cascading Example
City Scorecard
Perspective
Objective
Customer
Provide safe,
convenient
transportation
Measure
Increase in average
ridership of public
transportation
Target
10%
Objective
Customer
Provide safe,
convenient
transportation
Measure
Percentage of fleet
available
Target
90%
Objective
Measure
Target
Customer
Provide safe,
convenient
transportation
Percentage of
vehicle repairs
completed within
24 hours
75%
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2006 The Senalosa Group, Inc. All Rights Reserved
Questions???
Thank you for your time. If you have any other questions, please feel
free to contact me at: (760) 789-2449 or pniven@senalosa.com
www.senalosa.com
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2006 The Senalosa Group, Inc. All Rights Reserved