Organizational Alignment using Strategy Maps and Balanced Scorecard
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This document discusses organizational alignment using strategy maps and the balanced scorecard. It begins by providing examples of misalignments between what organizations say their strategies and priorities are versus how goals and targets are actually set. It then discusses how strategy maps and the balanced scorecard can be used to clarify strategies, explain how initiatives are interlinked, align investments and priorities, and improve communication. The balanced scorecard approach involves developing a strategy map that links objectives across financial, customer, internal process, and learning & growth perspectives to describe the strategy and causal relationships. Key performance indicators with targets are then defined for each objective.
Organizational Alignment using Strategy Maps and Balanced Scorecard
- 1. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 1 Organizational Alignment Using Strategy Maps & Balanced Scorecard Presented by Rajesh Naik
- 2. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 2 Do these sound familiar? • The organization says it will do business only with Fortune 500 companies – But keeps signing small projects from small customers • Cost reduction is a focus – But you are asked to travel by train, spend billable time and stay in hotels (costlier than airfare!) • New skills are a must for promotion and growth – But the best people are busy (fire fighting) with existing projects and the mediocre folks get trained on new technologies
- 3. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 3 Do these sound familiar? • CEO says low cycle-time, low-cost and feature-richness are critical to their success – But the project and process goals are schedule variance, effort variance and defect density – do these match with the critical success factors? • CEO says we MUST grow in new products – But the sales targets (for salespersons) are based on total order value – there are no product line specific targets
- 4. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 4 Initiatives – What Direction? Organization
- 5. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 5 How Do They All Tie Together? • Employees – Do not know why they are doing something – Do not understand how various initiatives are interlinked • Management – Often starts new initiatives without fitting into a bigger picture – Does not explain relationship between initiatives and overall objectives
- 6. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 6 We Need to Execute Strategy (not just formulate it…) Of the strategies effectively formulated, less than 10% are effectively executed” Fortune “It better to effectively implement a mediocre strategy, than to ineffectively implement a great strategy”
- 7. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 7 But what is strategy? The art or skill of careful planning towards an advantage or a desired end ‘Oxford English Dictionary’
- 8. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 8 Key Elements of Effective Strategy Implementation • Clarify strategies • Understand and explain inter-linkages • Resolve conflicts of alignment • Communicate to employees • Relate internal process goals to organizational strategic goals • Align investments in people, technology and organizational capital for greatest impact on strategic objectives • Prioritize initiatives based on potential impact
- 9. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 9 How do we get Breakthrough Results? World Class Strategy Implementation = Describe the Strategy Measure the Strategy Manage the Strategy+ + Strategy Maps Balanced Scorecard
- 10. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 10 A Software Products/ Services Org Revenue Profits EPS Financial (Shareholder/ Owner) Perspective
- 11. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 11 … A Software Products/ Services Org Revenue Profits EPS …… High Speed Implementation Cost-Effective Services High Quality Solutions Fortune 500 Customers Single Point for Insurance Industry Customer Perspective
- 12. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 12 Large Scale Implementations A Software Products/ Services Org Revenue Profits EPS …… Program Management Hi Fidelity Processes Software Products High Speed Implementation Cost-Effective Prod/ Svcs High Quality Solutions Fo 500 C Single Point for Insurance Industry Brand Building in Insurance Industry Reuse Large Acco Managem Cross Selling Internal Perspective Cost Effective Infrastructure Cost Effectiv Financing Regulatory Complianc
- 13. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 13 A Software Products/ Services Org Large Scale Implementations Revenue Profits EPS …… Program Management Hi Fidelity Processes Software Products High Speed Implementation Cost-Effective Prod/ Svcs High Quality Solutions Fortune 500 Customers Single Point for Insurance Industry Brand Building in Insurance Industry Reuse Large Account Management Cross Selling Insurance COE Knowledge Management IP Creation Automation Of Processes Employee Engagement Innovation Tech/ Domain Competency Development Cost Effective Infrastructure Cost Effective Financing Regulatory Compliance Continuous Improvement People, knowledge, systems, innovation and improvement perspective
- 14. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 14 Vision & Strategy Financial/ Owners/ Shareholders Customers Business Processes Learning & Growth People, Systems & Technology The Concept
- 15. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 15 FINANCIAL PERSPECTIVE How should we appear to our Owners/ shareholders?” LEARNING PERSPECTIVE What do we need to change, learn, innovate and improve? What business processes must we excel in? INTERNAL PERSPECTIVE How should we appear to our customers? • What products/ services? • What markets? CUSTOMER PERSPECTIVE The Four Perspectives
- 16. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 16 Learning & Growth Business Processes Customer Financial Cause & Effect Relationship ROCE Customer Loyalty On Time Delivery Process Quality Process Cycle Time Employee Skills
- 17. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 17 Successful Balanced Scorecards start with a strategy map Example Mobil (US Marketing & Refining) Growth Theme Improve quality of revenue by understanding customer needs and differentiating ourselves accordingly. Productivity Theme Maximize utilization of existing assets and integrate the business to reduce total delivered cost. Financial Perspective Return on Capital Increased from 6% to 16% Competitive Position (profitability) From last (1993) to first (95, 96, 97, 98) Volume Growth Exceeds industry by 2-2.5% annually Reduce Cash Expenses Down by 20% Improve Cash Flow From -$500 M/Yr to +$700 M/Yr Customer Perspective Internal Perspective Customer Satisfaction Continuous improvement for 3 consecutive years Speedpass Active Increasing at rate of 1M per year Dealer Quality Perfect Orders Continuous improvement for 4 consecutive years Learning & Growth Perspective Quality Capacity Utilization Safety Lost work incidents down from 150 to 30 per year Environmental Number of incidents reduced by 63% Continuous improvement for 4 consecutive years Annual value of lost yield reduced from $175m to $50m Product Innovation Customer Management Operational Excellence Good Neighbor Motivated & Prepared Workforce Continuous improvement for 4 consecutive years Strategic Awareness Annual employee survey shows awareness of strategy increased from 20% to 80% Source: The Balanced Scorecard D. Norton & R. Kaplan
- 18. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 18 Cascading and Layering of Goals Delivery Group HR Group Organization
- 19. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 19 Purpose of Strategic Measures –Convert a strategic objective (stated in English) into a measurable target (stated in numbers)
- 20. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 20 Objectives • Fast ground turnaround Statement of the strategy Target • 30 Minutes • 90% Performance Needed • Cycle time optimization Key action programs InitiativeMeasurement • On Ground Time • On-Time Departure How success will be measured Strategic Theme: Operating Efficiency Profitability Financial Learning More customers Ground crew alignment Lowest prices Fewer planes Customer Internal Fast ground turnaround Strategy Map: Cause-and-effect between strategic objectives Flight Is on time Balanced Scorecard: Airline example
- 21. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 21 Objectives • Fast ground turnaround Statement of the strategy Target • 30 Minutes • 90% Performance Needed • Cycle time optimization Key action programs InitiativeMeasurement • On Ground Time • On-Time Departure How success will be measured Strategic Theme: Operating Efficiency Profitability Financial Learning More customers Ground crew alignment Lowest prices Fewer planes Customer Internal Fast ground turnaround Strategy Map: Cause-and-effect between strategic objectives Flight Is on time Balanced Scorecard: Airline example INITIATIVE LEAD MEASURE LAG MEASURE
- 22. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license • % Ground crew trained • % Ground crew stockholders Objectives Measurement • Market Value • Seat Revenue • Plane Lease Cost • FAA On Time Arrival Rating • Customer Ranking (Market Survey) • On Ground Time • On-Time Departure Strategic Theme: Operating Efficiency Initiative • Cycle time optimization program • ESOP • Ground crew training • Quality management • Customer loyalty program Target • 30% CAGR • 20% CAGR • 5% CAGR • #1 • #1 • 30 Minutes • 90% • yr. 1 70% yr. 3 90% yr. 5 100% Profitability Financial Learning More Customers Ground Crew Alignment Lowest Prices Fewer Planes Customer Internal Fast Ground Turnaround Flight Is on Time • Profitability • More Customers • Fewer planes • Flight is on -time • Lowest prices • Fast ground turnaround • Ground crew alignment Balanced Scorecard: Airline Example
- 23. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 23 The Balanced Scorecard Measures Lag Measures Eg : Year-end-sales, Market Share Strategic Objective Outcome Measures At the end of a time period Lead Measures Eg : Hours spent, Product Mix Performance Drivers Intermediate Processes Hours Studied for Entrance Exam Marks/ Rank in Entrance Exam College Admitted to Efforts in College Marks/ Rank in College Category Of Hiring Company Preparation For Job Interview
- 24. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 24 Selecting BSC Measures •Caution •Do not select what can be measured: select what “should” be measured •Ensure balance between lead and lag measures •Have a practical number of measures
- 25. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 25 Attributes of Measures in BSC • Identify measure(s) for each goal • Each measure will have the following elements – The corresponding goal/ objective in the strategy – The measure – The operational definition of the measure – Type (Lead or Lag) – Past values for measure (for defined time period) – Target (values and time periods they correspond to) • For different periods (1 year, 2 year, 5 year) – Reporting Vehicle and Frequency – Person responsible for measuring and reporting – Person responsible for meeting target
- 26. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 26 A completed Balanced Scorecard example Obj No. Objective Measure Type Unit Frq. Obj. Resp. Data Resp. Actual Target Initiatives PBT Lag RsCr m TS RevenueMarketShare Lag % q TS Revenue Lag RsCr m TS P1 MonthlyChurn Lag nos m MK Subscriberbase Lag nos m OM F3 Manageriskeffectively Averagecollections/billcycleafter25days Lag % m TA AR P5 Averagecollections/billcycleafter60days Lag % m SNK BadDebt Lag % 1/2y CP Acquisitioncostpersubscriber Lag Rs 1/2y KS P4 Costtoservepersubscriber Lag Rs 1/2y KS Costoffunds Lag % q KS C1 OfferVFM&rewardloyalty Averagecustomerlifetime Lag Months q MI DS P2 Callsper1500subscribers Lead nos m GA Complaintsper1500subscribers Lead nos m GA Customersurveyindex Lag Index q GA Averageacquisitions/dealer Lead nos m GA P11 Averageactivations&recharges/distributor Lead nos m GA C4 Receivesuperior trainingfor team DealerSatisfactionIndex Lag Index q AA CR P10,P6 C5 GetHRsupportforidentification&recruitmentofsalesexecutives DealerSatisfactionIndex Lag Index q CS BB P9,P11 C6 ReceiveadequateROIopportunity AverageROIfordealers Lag % q RN KSK P22 I1 Significantlyreduce churn MonthlyChurn YK P14,15 #salesexecutivesperdealer Lag % q VS #outletsperdistributor Lag % q VS %penetrationofnewproducts,services Lag % q DS Averagechannelcost/acquisition Lag Rs q KSK Advtg&promocostas%ofsalesrevenue Lead % q KSK I4 Targetproducttoappropriatesegments Penetrationintargetedsegment Lag % q TK RD Customerservicedeliveryindex Lead Index q ON Networkservicedeliveryindex Lead Index q MK I6 Improvecollection processes Averagecollectionperiod IM Subscribers/employee Lag nos q RCX Revenue/employee Lag Rs. q RC EmployeeSatisfactionSurveyRating Lead Index 1/2y RC L2 Closeskillgapsbyregulartraining Skillgapsclosed Lead % q OR RC L3 Rationalize organizationalstructure KMSachieved Lead % q MK RF L4 Buildstrongsystemssupport&knowledge-base ITDeliveryIndex Lag Index 1/2y SR PP L5 Improvecoordinationbetweenalldepartments # forummeetingsheld Lead nos q OJ KK AR RJ GS KD PL C3 Receivesustaineddemand Ensuresuperiorservicedeliverylevelsatcontactpoints MRD AS UP LK F1 I3 Createandexecuteacoordinatedsales&marketingplanbykeysegments F4 Achievesustainedprofitability(PBT) fromMarch2000 Improveoperatingefficiency C2 Getreliable&consistent service Meetvolume&revenuetargetsbysignificantlyincreasing subscriberbaseF2 L1 Improveemployeemotivation&productivity I2 Growdealersalesforcetoincreasecustomerreach;andincreasewidthinretail I5 Illustrative
- 27. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 27 Initiatives and the Strategy • We need initiatives to achieve the objectives • Initiatives may impact different objectives in different ways – Strongly or weakly – Directly or indirectly – Positive or negatively – In the short-term and the long- term • We must evaluate each proposed initiative, and prioritize and select Lean Lean
- 28. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 28 Where do Strategy Maps and BSC fit in the overall scheme of things? Individual Performance Goals (What I need to do) Values (What is important to us) Vision (What we want to be) Strategy (Our Game Plan) Strategy Maps (How the strategy translates) Balanced Scorecard (Measure and Focus) Initiatives (What we need to do and change) Mission (Why we exist) Adapted from Strategy Maps by Kaplan and Norton
- 29. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 29 BSC and Individual Performance Goals Individual Performance Goals For Shredni Vashtaar BNS LOB Goals 1. Revenue 2. Profits 3. New Orders 4. Repeat Orders 5. Order of New Services 6. Compliance to Statutory .. 7. Productivity 8. Cycle Time 9. Customer Satisfaction 10. Attrition 11. Employee Engagement 12. Competency Growth 13. Ready Successors 14. Patents Registered Shared Goals 1. Company Revenue 2. Company Profits 3. Success of eMAGE project 4. Making Shegdeng facility operational Additional Goals 1. Learning and Developing … • % Ground crew trained • % Ground crew stockholders Objectives Measurement • Market Value • Seat Revenue • Plane Lease Cost • FAA On Time Arrival Rating • Customer Ranking (Market Survey) • On Ground Time • On-Time Departure Strategic Theme: Operating Efficiency Initiative • Cycle time optimization program • ESOP • Ground crew training • Quality management • Customer loyalty program Target • 30% CAGR • 20% CAGR • 5% CAGR • #1 • #1 • 30 Minutes • 90% • yr. 1 70% yr. 3 90% yr. 5 100% Profitability Financial Learning More Customers Ground Crew Alignment Lowest Prices Fewer Planes Custome r Interna l Fast Ground Turnaround Flight Is on Time • Profitability • More Customers • Fewer planes • Flight is on -time • Lowest prices • Fast ground turnaround • Ground crew alignment • % Ground crew trained • % Ground crew stockholders Objectives Measurement • Market Value • Seat Revenue • Plane Lease Cost • FAA On Time Arrival Rating • Customer Ranking (Market Survey) • On Ground Time • On-Time Departure Strategic Theme: Operating Efficiency Initiative • Cycle time optimization program • ESOP • Ground crew training • Quality management • Customer loyalty program Target • 30% CAGR • 20% CAGR • 5% CAGR • #1 • #1 • 30 Minutes • 90% • yr. 1 70% yr. 3 90% yr. 5 100% Profitability Financial Learning More Customers Ground Crew Alignment Lowest Prices Fewer Planes Custome r Interna l Fast Ground Turnaround Flight Is on Time • Profitability • More Customers • Fewer planes • Flight is on -time • Lowest prices • Fast ground turnaround • Ground crew alignment LOB BSC • % Ground crew trained • % Ground crew stockholders Objectives Measurement • Market Value • Seat Revenue • Plane Lease Cost • FAA On Time Arrival Rating • Customer Ranking (Market Survey) • On Ground Time • On-Time Departure Strategic Theme: Operating Efficiency Initiative • Cycle time optimization program • ESOP • Ground crew training • Quality management • Customer loyalty program Target • 30% CAGR • 20% CAGR • 5% CAGR • #1 • #1 • 30 Minutes • 90% • yr. 1 70% yr. 3 90% yr. 5 100% Profitability Financial Learning More Customers Ground Crew Alignment Lowest Prices Fewer Planes Custome r Interna l Fast Ground Turnaround Flight Is on Time • Profitability • More Customers • Fewer planes • Flight is on -time • Lowest prices • Fast ground turnaround • Ground crew alignment • % Ground crew trained • % Ground crew stockholders Objectives Measurement • Market Value • Seat Revenue • Plane Lease Cost • FAA On Time Arrival Rating • Customer Ranking (Market Survey) • On Ground Time • On-Time Departure Strategic Theme: Operating Efficiency Initiative • Cycle time optimization program • ESOP • Ground crew training • Quality management • Customer loyalty program Target • 30% CAGR • 20% CAGR • 5% CAGR • #1 • #1 • 30 Minutes • 90% • yr. 1 70% yr. 3 90% yr. 5 100% Profitability Financial Learning More Customers Ground Crew Alignment Lowest Prices Fewer Planes Custome r Interna l Fast Ground Turnaround Flight Is on Time • Profitability • More Customers • Fewer planes • Flight is on -time • Lowest prices • Fast ground turnaround • Ground crew alignment Org BSC eMAGE Scorecard Shengdeng Scorecard • % Ground crew trained • % Ground crew stockholders Objectives Measurement • Market Value • Seat Revenue • Plane Lease Cost • FAA On Time Arrival Rating • Customer Ranking (Market Survey) • On Ground Time • On-Time Departure Strategic Theme: Operating Efficiency Initiative • Cycle time optimization program • ESOP • Ground crew training • Quality management • Customer loyalty program Target • 30% CAGR • 20% CAGR • 5% CAGR • #1 • #1 • 30 Minutes • 90% • yr. 1 70% yr. 3 90% yr. 5 100% Profitability Financial Learning More Customers Ground Crew Alignment Lowest Prices Fewer Planes Custome r Interna l Fast Ground Turnaround Flight Is on Time • Profitability • More Customers • Fewer planes • Flight is on -time • Lowest prices • Fast ground turnaround • Ground crew alignment • % Ground crew trained • % Ground crew stockholders Objectives Measurement • Market Value • Seat Revenue • Plane Lease Cost • FAA On Time Arrival Rating • Customer Ranking (Market Survey) • On Ground Time • On-Time Departure Strategic Theme: Operating Efficiency Initiative • Cycle time optimization program • ESOP • Ground crew training • Quality management • Customer loyalty program Target • 30% CAGR • 20% CAGR • 5% CAGR • #1 • #1 • 30 Minutes • 90% • yr. 1 70% yr. 3 90% yr. 5 100% Profitability Financial Learning More Customers Ground Crew Alignment Lowest Prices Fewer Planes Custome r Interna l Fast Ground Turnaround Flight Is on Time • Profitability • More Customers • Fewer planes • Flight is on -time • Lowest prices • Fast ground turnaround • Ground crew alignment • % Ground crew trained • % Ground crew stockholders Objectives Measurement • Market Value • Seat Revenue • Plane Lease Cost • FAA On Time Arrival Rating • Customer Ranking (Market Survey) • On Ground Time • On-Time Departure Strategic Theme: Operating Efficiency Initiative • Cycle time optimization program • ESOP • Ground crew training • Quality management • Customer loyalty program Target • 30% CAGR • 20% CAGR • 5% CAGR • #1 • #1 • 30 Minutes • 90% • yr. 1 70% yr. 3 90% yr. 5 100% Profitability Financial Learning More Customers Ground Crew Alignment Lowest Prices Fewer Planes Custome r Interna l Fast Ground Turnaround Flight Is on Time • Profitability • More Customers • Fewer planes • Flight is on -time • Lowest prices • Fast ground turnaround • Ground crew alignment • % Ground crew trained • % Ground crew stockholders Objectives Measurement • Market Value • Seat Revenue • Plane Lease Cost • FAA On Time Arrival Rating • Customer Ranking (Market Survey) • On Ground Time • On-Time Departure Strategic Theme: Operating Efficiency Initiative • Cycle time optimization program • ESOP • Ground crew training • Quality management • Customer loyalty program Target • 30% CAGR • 20% CAGR • 5% CAGR • #1 • #1 • 30 Minutes • 90% • yr. 1 70% yr. 3 90% yr. 5 100% Profitability Financial Learning More Customers Ground Crew Alignment Lowest Prices Fewer Planes Custome r Interna l Fast Ground Turnaround Flight Is on Time • Profitability • More Customers • Fewer planes • Flight is on -time • Lowest prices • Fast ground turnaround • Ground crew alignment Personal development Other Scorecards An individual’s performance targets should be derived from all relevant scorecards. Depends on •roles and responsibilities, •initiatives involved in
- 30. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 30 Elements to Balance and Align • Align objectives across multiple perspectives (financial, customer,…) • Align measures to the objectives • Ensure balance between lead and lag measures • Align initiatives to the objectives • Maintain alignment while cascading – Org division/ dept projects individuals
- 31. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 31 Success Factors for Strategy Implementation • Roll–out needs to be driven as a “Project” • Initial co-ordination • Integration amongst the individual objectives, measures & initiatives • Senior level Strategy Implementation Project Leader • A Strategy Implementation Core Team
- 32. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 32 Common Pitfalls • Middle Management Team: Lack of Senior Management Commitment • Done by One or Two Individuals • Held at the Top: For Senior Management Only • Too Long a Development Process: “Best Becomes the Enemy of the Good” • Done Only for Compensation • Ignoring the aspect of Change Management • Lack of communication & awareness
- 33. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 33 Communication and Awareness • Every employee should be able to related his/ her goal to a higher level goal • Every action by the management is a communication – many actions need explicit communication to provide a perspective – Why did we take up the retail supply chain management project when we said we are specializing in the insurance domain? – Why are we hiring so many senior level managers when we said that we will promote internal talent? – Why have we signed up many projects with small customers when we said we will focus on Fortune 500 companies?
- 34. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 34 The Journey - How Balanced Scorecard has evolved Measurem ent System Strategy Implementat ion Total Strategy Management Articles in Harvard Business Review: “The Balanced Scorecard — Measures that Drive Performance” January - February 1992 “Putting the Balanced Scorecard to Work” September - October 1993 “Using the Balanced Scorecard as Strategic Management System” January - February 1996 1996 2000 2004 1992 1996 2000 2004 Managing Alignment 2006 2006 Note: Concepts in this presentation have been sourced from these books
- 35. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 35 About this Presentation More resources on the subject are available from the creator of this presentation at: http://www.rajeshnaik.com © Rajesh Naik, 2009 This work is released under a Creative Commons Attribution- NonCommercial-ShareAlike 3.0 Unported License license. This means you can use it for non-commercial purposes so long as you include the copyright line “© Rajesh Naik, 2009". If you create derivative works using this work, they should also be made available under a similar license. For further information go to http://creativecommons.org/licenses/by-nc-sa/3.0/ For uses outside the scope of the license, contact Rajesh Naik at naik.rajeshnaik@gmail.com Author: Rajesh Naik Consulting Partner QAI India Limited rajesh.naik@qaiglobal.com naik.rajeshnaik@gmail.com +91 9845488767
- 36. © Rajesh Naik, 2009 Released under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License license 36 Thank You Rajesh Naik Founding Partner QAI India Limited Email naik.rajeshnaik@gmail.com Mobile +91 9845488767 Website www.rajeshnaik.com Also, have a look at the latest “business novel”: Aligning Ferret: How an Organization Meets Extraordinary Challenges By Swapna Kishore & Rajesh Naik Available at Amazon: http://www.amazon.com/dp/B00CZA94XC