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NHRDN Virtual Learning Session on Integrating Balanced Scorecard and HR Scorecard
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Speaker: Mr.Ravi Parthasarthy, Sr VP-HR, Karle Group
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NHRDN Virtual Learning Session on Integrating Balanced Scorecard and HR Scorecard
1.
An Introduction to
the BALANCED SCORECARD Ravi Parthasarathy BSc., MHR., MBA (USA) BSC & OD Expert ©Peopleplus 2010
2.
Objectives of this
Session • Recap of Strategic Planning Process • Birth of BSC and what is BSC • Barriers to Strategy Execution • Cause and Effect Relationship Model • Balance in the Balanced Scorecard • Balance Scorecard and the HR Scorecard ©Peopleplus 2010
3.
Strategic Planning Process FUTURE
Vision Mission Objectives Key Result Areas Performance Indicators PRESENT Strategies Action Program Activities Tasks Resources S W O SWOT Analysis T PAST ©Peopleplus 2010
4.
Problems of Strategy
The Balanced Implementation Scorecard is: You can’t measure A MEASUREMENT what you cannot Measurement describe System + Alignment You can’t manage A Strategic MANAGEMENT what you cannot Management measure System Focus + You can’t A COMMUNICATION communicate what Communication you cannot describe Tool “Measurement is the foundation of management.” ©Peopleplus 2010
5.
Who are the
different STAKEHOLDERS of an Organization and What are they Interested in? ©Peopleplus 2010
6.
What is the
Balanced Scorecard? PROFITABLE The BSC GROWTH Retains the Financial traditional Perspective financial New Revenue Current Business Productivity Use of Assets measures Customer Value Proposition Customer Best in Best Total Best Total Cost Perspective Product/Service Solution The BSC links the financial Internal Product Customer Operational measures with Perspective Innovation Intimacy Excellence the drivers of future performance Learning Skills Technology Environment and Growth ©Peopleplus 2010
7.
Vision-Mission Barrier
Only 5% of the work force understands the strategy People Barrier One of 4 managers have BARRIERS incentives linked to strategy STRATEGY TO EXECUTION Management Barrier Strategy is not regularly discussed and prioritized Resource Barrier Budgets not linked to strategy Source: Kaplan & Norton ©Peopleplus 2010
8.
Vision-Mission Barrier
Only 5% of the work force understands the strategy People Barrier One of 4 managers have BARRIERS incentives linked to strategy STRATEGY TO EXECUTION Management Barrier Strategy is not regularly discussed and prioritized Resource Barrier Budgets not linked to strategy Source: Kaplan & Norton ©Peopleplus 2010
9.
Vision-Mission Barrier
Only 5% of the work force understands the strategy People Barrier One of 4 managers have BARRIERS incentives linked to strategy STRATEGY TO EXECUTION Management Barrier Strategy is not regularly discussed and prioritized Resource Barrier Budgets not linked to strategy Source: Kaplan & Norton ©Peopleplus 2010
10.
Vision-Mission Barrier
The BSC overcomes Vision- Only 5% of the work force Mission Barrier through the understands the strategy translation of strategy The BSC is a shared understanding of the Vision-Mission strategy translated into: Financial Customer Internal Learning&Growth ©Peopleplus 2010
11.
Vision-Mission Barrier
Only 5% of the work force understands the strategy People Barrier One of 4 managers have BARRIERS incentives linked to strategy STRATEGY TO EXECUTION Management Barrier Strategy is not regularly discussed and prioritized Resource Barrier Budgets not linked to strategy Source: Kaplan & Norton ©Peopleplus 2010
12.
People Barrier
„cascading‟ the scorecard One of 4 managers have overcomes the People Barrier incentives linked to strategy STRATEGY TOP-DOWN BOTTOM-UP Profitable Growth employee Financial New Increase Efficie Expand Sources in nt Use of Revenue Current Business Productivi ty of Assets driving the sees his/her strategy to contribution to Customer Value Proposition customer all the strategy Product Service Image Customer scorecard employees at all levels “line of sight” Understand Total Efficient Use New Products the Customers Solutions Homebuilder CRM. Productivity . of Assets process Internal scorecard Increase Employee Competence • Employee • Revenue per Satisfaction Employee personal Learning& scorecard Skills Systems Align Personal Goals Growth alignment and focus ©Peopleplus 2010
13.
Vision-Mission Barrier
Only 5% of the work force understands the strategy People Barrier One of 4 managers have BARRIERS incentives linked to strategy STRATEGY TO EXECUTION Management Barrier Strategy is not regularly discussed and prioritized Resource Barrier Budgets not linked to strategy Source: Kaplan & Norton ©Peopleplus 2010
14.
Management Barrier
strategic learning overcomes the Strategy is not regularly Management Barrier discussed and prioritized The Balanced Scorecard translates the vision and strategy into a coherent set of measures in four balanced perspectives Strategy Map Objective Measure Target Initiative • Grow • Annual • Marketing Financial Revenue Revenue Gross +30% program Growth from new Sales products The Balanced Customer New Products • Satisfy • Customer • CRM Scorecard Customer Profitability +20% Program Needs describes how Internal World-Class • Fast Time to • Time to from 9 • Cycle Time the strategy will Product Market Market down to Reengineering Development 6 months be executed Learning & • Acquire, • Staff • Skills Growth Highly Skilled Develop Competence 90% Development Workforce Skills Program ©Peopleplus 2010
15.
Vision-Mission Barrier
Only 5% of the work force understands the strategy People Barrier One of 4 managers have BARRIERS incentives linked to strategy STRATEGY TO EXECUTION Management Barrier Strategy is not regularly discussed and prioritized Resource Barrier Budgets not linked to strategy Source: Kaplan & Norton ©Peopleplus 2010
16.
Resource Barrier
Strategic Resource Allocation Budgets not linked to strategy overcomes the Resource Barrier Financial Customer Internal Learning&Growth Budget linked to the strategy ©Peopleplus 2010
17.
Resource Barrier
Strategic Resource Allocation Budgets not linked to strategy overcomes the Resource Barrier Selecting and Managing Initiatives 1 Other CRM SCM projects On-going & proposed SRM CSR strategic initiatives re- TQM examined JIT,QDP Marketing Projects 2 Screen, assess, and identify “Linked and Strategic” CRITERIA: initiatives Balanced Scorecard strategies should be linked to the 3 overall strategic Select strategic initiative that goals will grow the enterprise List of Priorities ©Peopleplus 2010
18.
Thank You !!! Email:
pravi202@gmail.com Mobile: +91 9705124824
19.
Magazine partner
©Peopleplus 2010
20.
Engagement partner
©Peopleplus 2010
21.
Learning Associate
©Peopleplus 2010