Excellent presentation slides on how to design corporate and department scorecard

1. Balanced Scorecard Creating Strategy Map to Drive Corporate Performance

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4. Corporate Performance Management

5. Performance Management Framework Identifying Defining Measuring Monitoring Reporting Key Performance Indicators Company strategy Vision Mission Strategy Strategy Map

6. Three critical components for effective process of performance management Performance Management Infrastructure Performance Management Culture Performance management cycle is continuous and consistent Culture that is based on performance accountability Logistic support and performance management administration Performance Management Component Performance Management Process

7. STRATEGY Plan and Execute Monitor and Evaluate Reward and Coach Set Measures and Target Performance Management Cycle

8. Managing Performance with Balanced Scorecard Balanced Scorecard is a management tool that provides stakeholders with a comprehensive measure of how the organization is progressing towards the achievement of its strategic goals.

10. 4 Perspectives in Balanced Scorecard If we succeed, how will we look to our shareholders? Financial Perspective To achieve our vision, how must we look to our customers? Customer Perspective To satisfy our customers, which processes must we excel at? Internal Perspective To achieve our vision, how must our organization learn and improve? Learning & Growth Perspective The Strategy

11. Strategy and Balanced Scorecard Mission – Why We Exist Vision – What We Want to Be Values – What’s Important to Us Strategy : Our Game Plan Strategy Map : Translate the Strategy Balanced Scorecard : Measure and Focus Strategic Outcomes Satisfied Shareholders Delighted Customers Excellent Processes Motivated Workforce

13. Cost Efficiency Long-term Shareholder Value Revenue Growth Price Availability Brand Service Quality Operations Management Processes Human Capital Customer Management Processes Innovation Processes Regulatory and Social Processes Organization Capital Information Capital Strategy Map Framework Financial Customer Internal Process Learning & Growth

15. Long-term Shareholder Value Revenue Growth Improve Cost Structure Increase Asset Utilization Cost Efficiency Strategic Objectives in Financial Expand Revenue Opportunities Enhance Customer Value

17. Price Availability Brand Service Quality Customer Acquisition Customer Satisfaction Customer Retention Customer Profitability Market Share Strategic Objectives in Customer

23. Improve Cost Efficiency Enhance Long-term Shareholder Value Increase Revenue Growth Enhance Brand Image Build High Performance Products Achieve Operational Excellence Develop Strategic Competencies Drive Demand through Customer Relation Management Manage Dramatic Growth through Innovation Implement Good Environmental Policy Build Learning Culture Expand Capabilities with Technology Strategy Map Template Financial Customer Internal Process Learning & Growth Expand Market Share

24. Identifying Key Performance Indicators (KPI)

25. Vision Mission and Values Strategy Finance Customer Internal Business Process HR Development Key Performance Indicators Key Performance Indicators Key Performance Indicators Strategic Objectives KPI = Measurement or indicator that provides information on how far we have succeeded in achieving the strategic objectives Key Performance Indicators (KPI)

27. Relevant to the Strategic Objective Does KPI have a linkage with the strategic objectives? Controllable Are the KPI achievements still under control? Actionable Can any action be taken to improve the performance? Simple Is the KPI easy to explain? Credible Is the KPI not easy to manipulate? KPI Guidelines

28. KPI Family Dimension Productivity Measures employee output (units/ transactions/ dollars), the uptime levels and how employees use their time (sales-to-assets ratio, dollar revenue from new customers, sales pipeline). Measures the ability to meet and/or exceed the requirements and expectations of the customer (customer complaints, percent returns, DPMO -- defects per million opportunities). Quality

29. KPI Family Dimension Profitability Measures the overall effectiveness of the management organization in generating profits (profit contribution by segment/customer, margin spreads). Measures the point in time (day/week/ month) when management and employee tasks are completed (on-time delivery, percent of late orders). Timeliness

30. KPI Family Dimension Process Efficiency Measures how effectively the management organization incorporates quality control, Six Sigma and best practices to streamline operational processes (yield percentage, process uptime, capacity utilization). Measures how effectively the management organization leverages existing business resources such as assets, bricks and mortar, investments (sales per total assets, sales per channel, win rate). Resource Utilization

31. KPI Family Dimension Cost Savings Measures how successfully the management organization achieves economies of scale and scope of work with its people, staff and practices to control operational and overhead costs (cost per unit, inventory turns, cost of goods). Measures the ability of the management organization to maintain competitive economic position in the growth of the economy and industry (market share, customer acquisition/retention, account penetration). Growth

32. KPI Category Dimension Direct The actual raw data value as measured (e.g., sales volume ). Percent The comparison of the changes in performance of one value relative to the same value at a different time, geography, etc. (e.g., percentage change in sales vs. last year).

33. KPI Category Dimension Simple Ratio The comparison of one value relative to another to provide a benchmark for comparison of performance (e.g., average sales per day). Index A combination of several separate measures added together that result in an overall indicator of performance (e.g., (company sales growth)/(industry sales growth) for a specific geography).

34. KPI Category Dimension Composite Average The addition of the weighted averages of several similar measures that result in an overall composite indicator of performance (e.g., customer satisfaction composite is mixture of results from surveys, focus groups and product returns). Statistics Multiple measures such as mean, variance, standard deviation and variance that capture the spread and distribution of the performance measures (e.g., sales distribution by demographics, geography, channel).

35. Strategy Map for Corporate Functions (HR, IT, Finance and Marketing)

36. Vision Mission Strategy Integration between Corporate and Division/Department Corporate Scorecard Division Scorecard The Division Scorecard is built by referring to the corporate scorecard

37. Financial Customer Internal Process Learning & Growth Corporate Finance Corporate Marketing Production Supply Chain R & D Corporate HR Info Technology Corporate and Division Scorecard

39. Corporate and Division Scorecard Sample from GE Lighting Business Group The above example shows how the scorecard at corporate level is cascaded to division level, and further to plant level and employee level.

41. Optimize HR Efficiency Drive Long term Shareholder Value Enhance People & Organizational Effectiveness Achieve HR Process Excellence Develop Strategic & Functional HR Competencies Build Strategic Employee Competencies Drive Organizational Performance Enhance Technology for HR Create Climate for HR Action HR Strategy Map Template Financial Customer HR Internal Process Learning & Growth Create Positive Work Environment Provide Quality HR Service Provide High Performance People

42. Optimize IT Efficiency Drive Long term Shareholder Value Enhance IT Impact on Enterprise Outcome Maintain a Reliable IT Infrastructure Develop Strategic & Functional IT Competencies Develop Effective Decision Support System Propose and Deliver Transformational Applications Enhance IT Tools that Enhance the IT Function Promote Customer-focused Culture IT Strategy Map Template Financial Customer IT Internal Process Learning & Growth Deliver Consistent, High Quality IT Service Provide Business Units with Innovative IT Solutions

43. Optimize Financial Efficiency Drive Long term Shareholder Value Enhance Finance Effectiveness on Enterprise Outcome Achieve Finance Process Excellence Develop Strategic & Functional Finance Competencies Develop Financial Information to Improve Decision Making Ensure Compliance with Regulatory Requirements Use Technology to Improve Financial Information Delivery Finance Strategy Map Template Financial Customer Finance Internal Process Learning & Growth Deliver Responsive & Efficient Finance Operations Provide Clear & Reliable Required Disclosure Promote Customer-focused Culture

44. Optimize Marketing Efficiency Drive Long term Shareholder Value Increase Sales Revenue Develop Innovative Marketing Communication Program Develop Strategic & Functional Marketing Competencies Develop Marketing Business Intelligence Accelerate New Product Development Ideas Enhance Technology for Marketing Foster Creative Thinking & Innovative Solutions Marketing Strategy Map Template Financial Customer Internal Process Learning & Growth Create Satisfied and Loyal Customers Enhance Brand Image Develop Effective Customer Relation Management

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