facilitators’ training program
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FACILITATORS’ TRAINING PROGRAM
14-16 JANUARY, 2003
GRAND BLUEWAVE HOTEL,
SHAH ALAM
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PURPOSE OF THIS PROGRAM
• TO DEVELOP THE SKILLS AND ABILITIES TO MOVE A BSC INITIATIVE.
• EMPHASIS IS ON DEVELOPING ABILITY TO DEVELOP OTHERS IN DEVELOPING AND IMPLEMENTING THE BSC.
• FOCUS OF PROGRAM IS TRAINING FACILITATORS WHO CAN ASSIST IN THE ROLLOUT AND IMPLEMENTATION OF THE BSC.
• EXPECTATION IS THAT PARTICIPANTS OF THIS PROGRAM WILL BECOME THE INTERNAL BSC EXPERTS.
• SOME MAYBE EXPECTED TO LEAD THE INITIATIVE IN VARIOUS CAPACITIES.
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WHAT MAKES A GOOD BSC INTERNAL FACILITATOR?
• GOOD UNDERSTANDING OF THE BSCCONCEPTUAL AND OPERATIONAL LEVEL.
• WILLINGNESS TO LISTEN.
• ABILITY TO USE QUESTIONING TECHNIQUE.
• ABILITY TO PERFORM CRITICAL SCRUTINY.
• POSSESS FACILITATION SKILL.
• HAS A DECENT LEVEL OF CREDIBILITY AND RESPECT.
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HOW THE FACILITATOR PROVIDES VALUE ADD?
• IMPART WORKING UNDERSTANDING OF THE BSC AND PRACTICAL SKILLS RELATED TO ITS USE.
• ASSIST TRAINEES EXPLORE THE ISSUES RELATING TO THEIR STRATEGY.
• STIMULATE TRAINEES TO CRITICALLY EXAMINE THEIR STRATEGY.
• GENERATE REFINEMENT OF THE STRATEGY
WHAT? WHY?
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ESSENCE OF STRATEGY
• DEFINES HOW THE ORGANIZATION INTENDS TO COMPETE.
• DEPICTS THE CAUSAL RELATIONSHIP BETWEEN OUTCOME AND ACTIONS.
• PRESENTS A MODEL OF HOW INTERNAL CAPABILITIES SHOULD BE ARRANGED.
• HOW ORGANIZATION INTENDS TO GENERATE PROFIT.
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MANAGING STRATEGY
STRATEGIC OUTCOME
STRATEGY FORMULATION
STRATEGY IMPLEMENTATION
B.S.C
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STRATEGY FORMULATIONSTRATEGY FORMULATION
• STRATEGY FORMULATION INVOLVES ANALYSIS.• OUTCOME OF ANALYSIS SHOULD BE THE
SYNTHESIS OF THE ORGANIZATION’S BUSINESS HYPOTHESIS.
• THE PROCESS OF FORMULATION MUST MOVE FROM GENERAL TO SPECIFIC.
• CULMINATION IS THE CREATION OF ORGANIZATION’S BUSINESS MODEL THAT DEFINES:
WHERE TO GO FROM WHERE WE ARE?WHAT TO DO TO GET THERE?HOW TO DO IT?
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STRATEGY FORMULATION TOOLS
BUSINESS MODEL FORMULATION
STRATEGIC PRIORITY MATRIX
SWOT
ANALYSIS
STRATEGIC POSITION ANALYSIS
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STRATEGIC POSITIONING MAP
• STRATEGIC ANALYSIS CANNOT IGNORE THE CONTEXT AN ORGANIZATION IS OPERATING.
• ANALYSIS HAS TO EXAMINE ORGANIZATION’S RELATIVE PERFORMANCE.
• NEED TO COMPARE WITH COMPETITORS.
• STRATEGIC POSITIONG MAP HELPS PREVENT ANALYSIS FROM DEVIATING FROM NON-CRITICAL ISSUES.
• HELPS TO EXAMINE FUTURE DIRECTION.
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DEVELOPING THE STRATEGIC POSITIONING MAP
• IDENTIFY AT LEAST TWO PERFORMANCE ISSUES IN INDUSTRY.
• LIST OUT MAIN COMPETITORS.
• USE A SIMPLE GRAPH TO CHART RELATIVE POSITION WITH COMPETITORS.
• DECIDE WHERE ORGANIZATION WANTS TO GO NEXT.
• USE MAP AS BASIS FOR SWOT ANALYSIS.
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USING STRATEGIC POSITIONING MAP
SERVICE
FUNCTIONALITY
?
?
?
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FACILITATOR’S NOTE:PRACTICAL FACILITATOR’S NOTE:PRACTICAL ISSUE IN THE USE OF POSITIONING ISSUE IN THE USE OF POSITIONING
MAPMAP• A QUESTION THAT MAY ARISE REGARDING THE USE OF
THE POSITIONING MAP IS WHERE DO YOU OBTAIN THE INFORMATION NEEDED TO DEVELOP A POSITIONING MAP?
• EXPLAIN THAT IN MOST SITUATIONS COMPLETE AND PERFECT INFORMATION WILL NOT BE AVAILABLE.
• ORGANIZATIONS NEED TO BE PRAGMATIC AND RESORUCEFUL IN GETTING THE NEEDED INFORMATION.
• EXPLAIN ALSO THAT THE STRATEGIC POSITIONING MAP IS MEANT TO BE AN APPROXIMATE RATHER THAN AN EXACT TOOL.
• ALSO POINT OUT THAT THE USEFULNESS OF A POSITIONING MAP DEPENDS ON HONESTY.
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GUIDELINES IN USING STRATEGIC POSITIONING MAP
• QUALITY AND ACCURACY OF INFORMATION AFFECTS QUALITY OF ANALYSIS.
• HONESTY NEEDED TO LEARN OF RELATIVE POSITION.
• TRY TO LIMIT NUMBER OF DIMENSIONS USED.
• REMEMBER THAT COMPETITIVE POSITION IS DYNAMIC AND ALWAYS CHANGING. NEED TO ALSO FORECAST FUTURE TREND.
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SWOT ANALYSIS
• ON THE BASIS OF INSIGHTS FROM STRATEGIC POSITIONING MAP PERFORM S.W.O.T ANALYSIS.
• STRENGTH: WHAT ORGANIZATION IS GOOD AT?
• WEAKNESSES:
WHAT ORGANIZATION IS WEAK AT? • OPPORTUNITIES
WHAT OPPORTUNITIES EMERGING?
• THREAT:WHAT ARE THE THREATS AND HOW WILL IT AFFECT PERFORMANCE?
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FACILITATOR’S NOTE: MAKING SWOT FACILITATOR’S NOTE: MAKING SWOT ANALYSIS EFFECTIVEANALYSIS EFFECTIVE
• SWOT ANALYSIS CAN BE CONFUSING AND GENERATE A LOT OF INFORMATION THAT IS NOT ALWAYS USEFUL.
• TRAINERS NEED TO STEER THE DISCUSSION BY HIGHLIGHTING A NUMBER OF POINTS.
1. STRENGTH AND WEAKNESSES ARE INTERNAL CONDITIIONS OF THE ORGANIZATION.
2. OPPORTUNITIES AND THREATS ARE CONDITIONS EXTERNAL TO THE ORGANIZATION.
3. SCRUTINIZE THE TRAINEES’ INPUT BY EXAMINING WHETHER THEY’VE GOT THIS RIGHT.
4. ALSO POINT OUT THAT STRENGTH IS NOT JUST WHAT YOU HAVE BUT, MORE IMPORTANT, WHAT YOU ARE GOOD AT.
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PROBLEM WITH SWOT ANALYSIS
• SELECTIVE PERCEPTION.
• CONFUSION BETWEEN WHAT YOU HAVE AND WHAT YOU ARE GOOD AT.
• GENERATES TOO MUCH INFORMATION.
• UNABLE TO PROVIDE FOCUS.
• UNACTIONABLE.
• ABOVE PROBLEMS CAN BE REDUCED USING STRATEGIC PRIORITY MATRIX.
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STRATEGIC PRIORITY MATRIX
NOT
IMPORTANTTAKE
NOTE
SECONDARY
LO HI
HI
LO
STRATEGIC
ISSUE
STRATEGIC IMPACT
URGENCY
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FACILITATOR’S NOTE: WHY FACILITATOR’S NOTE: WHY PRIORITIZATION IS NECESSARY?PRIORITIZATION IS NECESSARY?
• AN ADVANTAGE OF PARTICIPATION IN STRATEGY FORMULATION IS THE RICH GENERATION OF IDEAS.
• HOWEVER, NOT EVERYONE IS PRIVY TO INFORMATION ESP. ON CONSTRAINS ON ORGANIZATIONS.
• A STRATEGY IS IMPLEMENTED WITHIN THE CONSTRAINS OF LIMITED RESOURCE.
• FORCING THE DISCUSSION TO NARROW DOWN PRIORITIES USING THE STRATEGI PRIORITY MATRIX HELPS ORGANIZATIONS FOCUS OF THE IMPORTANT ISSUES.
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SYNTHESIZING STRATEGY: THE BUSINESS MODEL
• IDENTIFY CUSTOMER BASE.WHO’S YOUR CUSTOMER?
• VALUE DELIVERY.WHAT VALUE TO DELIVER AND HOW TO DO IT?
• STRATEGIC CONTROL.HOW TO DEFEND POSITION?
• BUSINESS SCOPE.WHAT SHOULD BE INTERNALIZED?
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SWOT MATRIX
STRENGTH WEAKNESS
OPPORTUNITIES MATCH STRENGTH WITH OPPORTUNITIES.
WHICH WEAKNESS AN IMPEDIMENT?
THREAT HOW TO RESPOND AND PROTECT BUSINESS?
WHICH WEAKNESS CAN CAUSE ADVERSE IMPACT?
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DEVELOPING THE BSC:THE FOUR PERSPECTIVES
DEVELOPING THE BSC:THE FOUR PERSPECTIVES
FINANCIAL/
STAKEHOLDER PERSPECTIVE
CUSTOMER PERSPECTIVE
INTERNAL PROCESS PERSPECTIVE
LEARNING AND GROWTH PERSPECTIVE
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BSC TOOLS
• STRATEGY MAPA GRAPHIC PRESENTATION OF CAUSAL MODEL OF STRATEGYDEPICTS LINK BETWEEN PERSPECTIVES AND BETWEEN GOALS AND INTERNAL ARRANGEMENT.
• SCORECARDPRESENTS LINK BETWEEN SHORT-TERM AND LONG-TERM ISSUES.DEPICTS TEMPORAL LINK OF STRATEGY.PRESENTS SEQUENCES OF CAUSE-EFFECT RELATIONSHIPS.PROVIDES BASIS FOR PERFORMANCE MONITORING.
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DEVELOPING A STRATEGY MAP
• IDENTIFY STRATEGIC ISSUES IN FINANCIAL/STAKEHOLDER PERSPECTIVE.
• IDENTIFY CRITICAL FACTORS FOR SUCCESS.
• CRITICAL FACTORS FOR SUCCESS IN FINANCIAL/STAKEHOLDER PERSPECTIVE USED AS BASIS FOR DETERMINING STRATEGIC ISSUES FOR CUSTOMER PERSPECTIVE.
• REPEAT PROCESS FOR INTERNAL PROCESS AND LEARNING PERSPECTIVES.
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STRATEGY MAP PLANNING LADDER
FINANCIAL CUSTOMER INTERNAL PROCESS
LEARNING
STRATEGIC ISSUES
C.F.S
STRATEGIC MEASURES STRATEGIC
ISSUES
STRATEGIC ISSUES
STRATEGIC ISSUES
C.F.S
C.F.S
C.F.S
STRATEGIC MEASURES
STRATEGIC MEASURES
STRATEGIC MEASURES
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EXAMPLE STRATEGY MAP PLANNING LADDER
FINANCIAL CUSTOMER INTERNAL PROCESS
LEARNING
ATTAIN PRFT
SALES AS BDGTD
QTRLY SALESDVLP
TRBLSHTG CMPTNCY
STSFY CUSTOMER
INSTALL QLTY SYSTEM
PCT TRAINED
ESTBLSH QLTY TEAMS
DLVR QLTY
INCDNCS OF COMPLAIN
QLTY TEAMS OPRTNL PCT CRTFD
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F1: Reduce Total Cost By 6%
F2: Produce At Budgeted Target F3: Attain Sales At
Budgeted Level
C2: Satisfy Customer By Delivering Quality
C1: Increase Value Add To Customer By Providing Technical Assistance
IP1: Reduce Plant Turnaround Time
IP2: Improve Hr Morale & Productivity
IP3: Improve Logistic Cost
IP4: Create Technical Support Team
IP5: Install Quality Mgt System
L1: Improve Skills Related To Plant Turnaround
L3: Acquire Knowledge On Customers’ Technologies
L4: Dvlp Quality Troubleshooting Skills
L2: Improve Supervisory Skills
ACHIEVEPROFITABILITY
Financial
Customer
Internal Process
Learning
INNOVATIVE CHEMICALS STRATEGY MAPINNOVATIVE CHEMICALS STRATEGY MAP
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FACILITATOR’SFACILITATOR’S NOTE: HOW TO NOTE: HOW TO EVALUATE THE STRATEGY MAP?EVALUATE THE STRATEGY MAP?
• ITEMS IN THE FINANCIAL/STAKEHOLDER PERSPECTIVE SHOULD BE STATEMENTS OF OUTCOME DESIRED BY THE ORGANIZATION.
• ITEMS IN THE INTERNAL PROCESS AND LEARNING PERSPECTIVE SHOULD BE STATEMENTS OF ACTIONS TAKEN TO DELIVER THE OUTCOME.
• ENCOURAGE TRAINEES TO BE SPECIFIC ABOUT THE ITEMS IN EACH NODE. AVOID GENERALITIES AND CLICHE.
• EMPHASIZE ALSO THE NEED TO BE SELECTIVE.• THE ARROWS FROM EACH NODE MUST BE SPECIFICALLY
CONNECTED TO SPECIFIC NODE/S.• EMPHASIZE TO TRAINEES THAT HAVING A STRATEGY MAP
DOES MEAN THE STRATEGY IS GOOD OR RIGHT.
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CHARACTERISTICS OF GOOD STRATEGY MAP
• ISSUES SPELLED OUT IN TANGIBLE AND ACTIONABLE TERMS.
• IDENTIFIES THE CRITICAL AND NOT JUST THE COMMON.
• SHOWS CLEAR CAUSAL LINKAGE.
• COMMUNICATES IN AN EASILY UNDERSTOOD MANNER.
• PRODUCT OF A PROCESS OF ITERATIVE DISCUSSION.
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PROBLEMS IN DEVELOPING STRATEGY MAP
• LACK OF CONSENSUS ON CAUSAL MODEL.CAN BE DUE TO HASTINESS AND LACK OF PARTICIPATION.
• MODEL DEVELOPED MORE OF FASHION THAN FIT.
MORE CLICHÉ THAN SUBSTANCE.
• ISSUES IDENTIFIED ABSTRACT AND AMBIGUOS.
• SINK HOLE ANALYSIS.
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S1.GNRT RM650K/YR PROFIT AFTER 4 YEARS
S2. ATTAIN BEST COLLEGE POSITION
STAKEHOLDER
CUSTOMER C1. DLVR QUALITY
TEACHING
IP6. IMPROVE FACILITIES
IP7. EXPAND COMPUTING
FCLTS
IP8. EXPAND HOSTEL FCLTS
IP10. EXPAND ENGNRG LAB
FCLTS
C2. PROVIDE QUALITY FCLTS
IP1. USE LATEST TCHNG METHDLGY
& CRCLM
INTERNAL PROCESS
IP3. REDUCE TURNOVER
IP5. IMPRV SALARY
IP2. RCRT QLFD TEACHERS
IP4. MONITOR JOB STSFCTN
L1. DVLP CMPTNCY ON LATEST TCHG
MTHD
L3. ACQUIRE BNCHMRKG INFO ON FCLTS QLTY
L2. MONITOR TRENDS IN
CRCLM DVLPMNT
IP9. FCLTS MNTNC
S3. ATTAIN 6,000 (60:40) STDNT’S ENROLLMENT
PG. 23A
IP11. AGRSV CMPGN
IP11. OFFFER DEGREE
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SNAPPLE STRATEGY MAP
INCREASE PRFTBLTY
INCREASE MRKT SIZE
IMPROVE PRFT MARGIN
OFFER UPSCALE IMAGE
FULFILL HEALTH CONCERN
MORE FLAVOURS
MRKT TO UPSCALE RSTRNTS AND HOTEL
CHAINMRKT THRU HEALTH
FOOD STORES & PHRMCIES
IMPRV RATE OF NEW PRDCT DVLPMNT
TRAIN SALESFORCE ON CRPRT ACCOUNT
SALES
ACQUIRE MRKT INTLGNC
CREATE PREMIUM BRND
IMAGE
ENFORCE QLTY & PRDCTVTY STD
ON MNFCTRS
TRAIN MNFCTRS ON QLTY AND PRDCTVTY
SYSTEM
FINANCIAL
CUSTOMER
INTERNAL PROCESS
LEARNING
PG. 25B
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FACILITATOR’S NOTE: COMMON FACILITATOR’S NOTE: COMMON MISTAKES IN DVLPG STRATEGY MAPMISTAKES IN DVLPG STRATEGY MAP
• A MAJOR PROBLEM IS USUALLY IN MIXING UP THE INTERNAL PROCESS AND CUSTOMER PERSPECTIVE.
• ANOTHER MAJOR PROBLEM IS THE LACK OF CAUSAL LINK BETWEEN NODES.
• USUALLY THIS IS A REFLECTION OF A POORLY THOUGHT OUT STRATEGY.
• A MINOR PROBLEM IS USUALLY IN MIXING UP THE LEARNING AND INTERNAL PROCESS PERSPRECTIVE.
• USUALLY DIFFERENCE OF INTERPRETATION AND THE IMPACT OF SUCH A CONFUSION DOES NOT IMPEDE IMPLEMENTATION OF THE STRATEGY.
• TRAINER TO NEED TO QUESTION AND GET TRAINEE TO EXPLAIN AND JUSTIFY THEIR STRATEGY MAP.
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CASCADING THE STRATEGY MAP
• STRATEGY MAP SHOULD BE DEVELOPED FOR DEPARTMENTS/DIVISIONS TO HELP CASCADING THE SCORECARD LATER ON.
IDENTIFY PROCESS OWNERS IN CORPORATE STRATEGY MAP.USE INFO AS BASIS FOR FUNCTIONAL MAP.
• SUPPORT FUNCTION STRATEGY MAP SHOULD USE OTHER FUNCTIONS AS THEIR INTERNAL CUSTOMER.
EXAMINE INTERNAL PROCESS PERSPECTIVE OF FUNCTIONAL AND CORPORATE MAP.
• STRATEGY MAP SHOULD BE DEVELOPED UP TO THE ORGANIZATIONAL LEVEL WHERE THE APROACH TO ACTIVITIES CAN STILL BE SEEN IN TERMS OF PERSPECTIVES USED.
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IC1: Reduce plant turnaround time
IC2: Improve HR morale and productivity
IC4: Create technical support
team
IC5: Install qlty mgt system
INTERNAL CUSTOMER
HRM PROCESS
HP1: Ensure adequateand qlfd
staffing of turnaround team
HP3: Recruit exprncd engineeers
HP4: Train sprvsrs to imprv
skills
HP5: Intrdc stress mgt prog
HP6: Rcrt or redeploy ppl for technical
support team
HP7: Crtfy qlty teams
HP8: Train qlty teams
HRM STRATEGY
HS2: Monitor job climate
HS1: Idntfy best practice in plant
turnaround
HS3: Revamp recruitmnt approach
HS4: Identify and benchmark against
relevant quality practice
HP2. Train in plant tunraround
SUPPORT FUNCTION STRATEGY MAP: INNOVATIVE CHEMICAL HRM DEPT
PG. 26A
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ELEMENTS OF THE SCORECARD
• CAUSE-EFFECT RELATIONSHIP.MEASURES DVLPD SHOULD BE PART OF CHAIN IN CAUSE-EFFECT RELATIONSHIP.
• OUTCOMES AND PERFORMANCE DRIVERS.OUTCOMES ARE GENERIC AND PERFORMANCE DRIVERS UNIQUE TO ORGANIZATION.PERFORMANCE DRIVERS COMMUNICATE HOW OUTCOME TO BE ACHIEVED.BASIS FOR DEVELOPING LEAD AND LAGGARD MEASURES.
• LINK TO FINANCIALS.WHAT RETURNS EXPECTED FROM STRATEGY?
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DEVELOPING THE CORPORATE SCORECARD
• DEVELOP SELECTIVE MEASURES OF PERFORMANCE.DATA CAN BE COLLECTED ACCURATELYRELEVANT FOR C.F.S.CAN HAVE POSITIVE IMPACT ON BEHAVIOURTHOSE ACCOUNTABLE CAN INFLUENCE.
• KEY MEASURES ARE IDENTIFIED FROM STRATEGY MAP AND STRATEGY MAP PLANNING LADDER:DATA INFORMATION KNOWLEDGE.
• MEASURES USED SHOULD INVOLVE LEAD AND LAGGARD MEASURES.
LEAD MEASURES DERIVED FROM INTERNAL PROCESS PERSPECTIVE
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FACILITATOR’S NOTE: ROLE OF THE FACILITATOR’S NOTE: ROLE OF THE SCORECARDSCORECARD
• EMPHASIZE THAT THE MEASURES IN THE SCORECARD I.E. THE DRIVER AND OUTCOME MEASURES ARE RESULTS THAT ARE RELATED OVER TIME.
THEY ARE CAUSALLY RELATED AND OCCUR AT DIFFERENT POINTS IN TIME.
• THE REASON FOR HAVING BOTH MEASURES IS TO ENABLE DETECTION OF EARLY DEVIATIONS OR CONFORMANCE WITH PLAN.
• THE DRIVER OUTCOMES BECOMES THE PRIMARY FOCUS IN MONITORING PERFORMANCE.
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EXAMPLE
INCREASE PROFIT BY
20%
INCREASE SALES FROM
NEW PRODUCTS BY 15%
REDUCE COST BY 10%
NEW PRODUCTS LAUNCHED
PROMOTIONAL CAMPAIGN
OUTCOMEPERFORMANCE DRIVERS
REDUCE PRODUCTION COST BY 15%
REDUCE WARRANTY CLAIM BY 40%
PRODUCT LAUNCHED PER
QRTR
PROMOTIONAL EXPENDITURE
PER NEW PRDCT
LEAD MEASURES
COST PER UNIT
REDUCTION
WARRANTY CLAIM
WITHIN 6 MONTH OF PURCHASE
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FACILITATOR’S NOTE: TYPICAL FACILITATOR’S NOTE: TYPICAL MISTAKES IN DVLPG THE SCORECARDMISTAKES IN DVLPG THE SCORECARD
• TRAINEES SOMETIMES GET CARRIED AWAY WITH THE THINKING ABOUT STRATEGY MAP WHERE THE APPROACH TO CAUSAL RELATIONSHIP IS SPATIAL.
• TRAINERS NEED TO EMPHASIZE THAT THE SCORECARD IS ABOUT TEMPORAL CAUSAL RELATIONSHIP.
• SOMETIMES TRAINEES TEND TO CHOSE TOO MANY MEASURES AND SOMETIMES MEASURES THAT ARE DIFFICULT TO BE CAPTURED. TRAINERS NEED TO ENCOURAGE TRAINEES TO BE SELECTIVE.
• AS IN THE STRATEGY MAP, A KEY TASK FOR TRAINERS IS TO GET TRAINEES TO EXPLAIN AND JUSTIFY THE MEASURES THEY HAVE CHOSEN. OF PARTICULAR CONCERN IS TO GET THEM TO DEFEND THE VALIDITY OF THE CAUSAL RELATIONSHIP.
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CASCADING THE SCORECARD
• WHERE AVAILABLE, REFER TO FUNCTIONAL STRATEGY MAP TO DEVELOP FUNCTIONAL SCORECARD.
CORPORATE PERFORMANCE DRIVERS USUALLY FUNCTIONAL OUTCOME MEASURE.
• FOR PERSONAL SCORECARD, IDENTIFY PROCESS OWNER OF ACTIVITIES.
• AS BEFORE, IDENTIFY THE DRIVERS OF EACH OUTCOME.
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CASCADING THE SCORECARD
PRFRMNCE DRIVER
PRFMRNC DRIVER
PRFMNC DRIVER
OUTCOME MEASURES
OUTCOME MEASURES
OUTCOME MEASURES
CORPORATE LEVEL
FUNCTIONAL LEVEL
OPERATIONAL LEVEL
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EXAMPLEFUNCTIONAL OUTCOME
FUNCTIONAL PERFORMANCE
DRIVERS
FUNCTIONAL LEAD MEASURES
PRDCT DVLPMNT: NEW PRODUCT PER QUARTER
NEW PRODUCT
LAUNCHED
MKTG:TIMELY MARKET RESEARCH
PRDCT DVLPMNT: TIME FROM DESIGN TO CMRCLZD PRODUCT
MKTG: MARKET RESEARCH
PERFORM AS PER CALENDAR
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SCORECARD CASCADING TABLE
FINANCIAL CUSTOMER INTERNAL PROCESS
LEARNING
GM MARKETING Generate 40% of profit from products less than 2 years old.
Offer new products with better features and quality than competitors.
Reduce product dvlpmnt time.
Develop know-how on latest product and production technology
SNR MNGR
Product Dvlpmnt
Introduce 2 new products/qrtr with profit margin of at least 35%.
First in market to offer customers with latest technology.
Reduce design- to-comrclztn cycle to 5 months.
Enhance product design and design-to-prdctn transfer competency.
MANAGER
Wireless technology
Dvlp new prdcts fulfilling financial criteria
Design qlty prdcts with features wanted by mrkt.
Imprv technology/
expertise sharing among prdct dvlpmnt teams.
Train team members in creative problem solving.
SNR MNGR
Market Research
Perform market research within calendar and budget given
Assist Prdct Dvlpmnt identify viable product.
Expand method for mrkt research.
Acquire knowledge on tchnlgy future and use of Delphi tchnq.
MANAGER
Technology forecasting
Dvlp 3 year technology forecast.
Estblsh business intelligence processes.
Dvlp corporate memory on new technology.
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GUIDELINES ON DEVELOPING THE SCORECARD
• DEVELOPING AND CASCADING THE SCORECARD IS THE MOST DIFFICULT AND MESSY PART OF THE BSC.
• IT IS AN EXERCISE IN JUDGEMENTKAPLAN AND NORTON CAUTION AGAINST IMITATION.
THEY ALSO EMPHASIZED THE IMPORTANCE OF PARTICIPATION OF THOSE INVOLVED.
• ALWAYS ENSURE THAT MEASURES DEVELOPED HAVE CAUSAL RELATIONSHIP.
• EXTENT OF SCORECARD CASCADE DEPENDS ON SCOPE OF TASK AND DEGREE OF CONTROL OF INDIVIDUAL HAS.
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FACILITATOR’SFACILITATOR’S NOTE: SCORECARD NOTE: SCORECARD EXERCISEEXERCISE
• DEVELOPING AND CASCADING THE SOCRECARD IS THE MOST DIFFICULT PART OF THE BSC.
• WHERE TIME PERMITS, TRY TO HAVE MORE EXERCISES TO SHARPEN THE SKILLS OF THE TRAINEES.
• WHEN POSSIBLE, CHOSE A REAL ORGANIZATIONAL EXAMPLE AND GO THROUGH THE EXERCISE OF DEVELOPING AND CASCADING THE SCORECARD.
• ADVANCED PREPARATION IS NEEDED TO DO THIS.
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MANAGING CHANGE IN BSC IMPLEMENTATION
MANAGING CHANGE IN BSC IMPLEMENTATION
• BSC IMPLEMENTATION IS PROCEDURAL AND BEHAVIOURAL CHANGE.
• VERY IMPORTANT TO GET MEMBERS ON BOARD.
• NEED TO RECOGNIZE LIMITATION OF INDIVIDUAL KNOWLEDGE.
• ROLLOUT REQUIRES TIME AND PARTICIPATION.
• STRENGTH OF BSC IS IN THE EMPHASIS ON PARTICIPATION
GET PARTICIPATION ESPECIALLY ON KEY ISSUES
START AT STRATEGY FORMULATION ITSELF.
ALSO IMPORTANT IN DVLPNG STRATEGY MAP AND SCORECARD.
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STEPS TO DEVELOP MEANINGFUL PARTICIPATION
• ESTABLISH DIALOGUE AND NOT JUST 2-WAY MONOLOGUE.
• MANAGEMENT, ESPECIALLY HIGHER UPS, NEED TO STEP BACK.
• CREATE CLIMATE FOR OPEN DISCUSSIONNOTHING MAN-MADE IS SACRED.DON’T BE HASTY SHOOTING DOWN SEEMINGLY UNWORKABLE IDEAS.APPOINT NEUTRAL, RESPECTED AND SKILLFUL PERSON TO CHAIR DISCUSSION.DE-EMPHASIZE STATUS AND HIERARCHY.
• LISTEN AND SEEK TO UNDERSTAND THOSE WITH THE MOST CRITICAL VIEWS.
THEY MAY HAVE MORE INSIGHT THAN THE “YES MEN”
DON’T KILL HANG NADIM
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FACILITATOR’S NOTE: SIGNIFICANCE FACILITATOR’S NOTE: SIGNIFICANCE OF PARTICIPATIONOF PARTICIPATION
• FACILITATORS NEED TO POINT OUT THAT DEVELOPING THE BSC IS A COGNITIVE AND SOCIAL PROCESS.
• DEVELOPING MEANINGFUL PARTICIPATION IS A VERY IMPORTANT PART OF THE PROCESS.
• FAILURE TO DEVELOP MEANINGFUL PARTICIPATION RENDERS THE BSC IMPLEMENTATION PROCESS AN AUTOCRATIC AND MECHANISTIC PROCESS.
• POINT OUT THAT PARTICIPATION IS THE PROCESS THAT MAKES BSC TOOLS EFFECTIVE.
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GUIDELINE IN BSC ROLLOUT PROCESS
• ESTABLISH A STEERING COMMITTEE OR PROJECT MANAGEMENT TEAM.
• DO NOT DELEGATE TO MIDDLE LEVEL. MUST BE LEAD FROM THE TOP.
• REQUIRES ACTIVE INVOLVEMENT AND LEADERSHIP FROM THE TOP.
• SET A ROLLOUT CALENDAR.
• TIE SCORECARD MEASURES TO PERFORMANCE APPRAISAL.
• MAKE MONITORING SCORECARD A KEY AND REGULAR MANAGEMENT AGENDA.
• MAY NEED TO START WITH A PILOT PROJECT.
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KEY CHANGE AGENTS
• BSC ARCHITECTCHARTS OUT OVERALL INITIATIVESECURES BUY-IN AT HIGHEST LEVELPOSSIBLE LEADER OF STEERING COMMITTEE.
• CHANGE AGENTRESPONSIBLE FOR TROUBLE-SHOOTING AND INITIATING NEEDED TRANSFORMATIONREQUIRES A PERSON WITH BROAD KNOWLEDGE AND GOOD INTERPERSONAL SKILLS.
• COMMUNICATOREDUCATES, TRAIN AND DEVELOP UNDERSTANDING OF OTHERS.MUST BE GIVEN TIME AND RESOURCES.CHOSE SOMEONE GENUINELY INTERESTED AND COMMITED TO BSC INITIATIVE.
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FACILITATOR’S NOTE: IDENTIFYING FACILITATOR’S NOTE: IDENTIFYING CHANGE AGENTSCHANGE AGENTS
• DIFFERENT ORGANIZATIONS MAY USE DIFFERENT TITLES AND DESIGNATION FOR THOSE RESPONSIBLE IN IMPLEMENTING BSC.
• GET THE TRAINEES TO DISCUSS AND IDENTIFY WHO IS PLAYING WHAT ROLE IN THEIR ORGANIZATION.
• WHAT SHORTCOMINGS ARE THERE IN THE PRESENT ARRANGEMENT?
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BSC ROLLOUT
• MEASUREMENT ARCHITECUTRE.UNIT SELECTION
IDENTIFY LINKAGE BETWEEN UNIT AND CORPORATE
• DEFINE STRATEGIC OBJECTIVES.EXAMINE MISSION AND COLLECT AND SYNTHESIZE INPUT ON OBJECTIVES
EXAMINE CAUSE-EFFECT RELATIONSHIP OF OBCJTVS
PRESENT BACK TO TOP MGT AND BUILD CONSENSUS ON STRATEGIC THEME AND OBJECTIVES.
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• SELECT STRATEGIC MEASURESSUBGROUP MEETINGS TO REFINE OBJECTIVES
WORKSHOP 2 TO GET FEEDBACK AND OWNERSHIP
• BUILD IMPLEMENTATION PLANHOW TO CAPTURE DATA AND LINK WITH INFO SYSTEM
WORKSHOP 3 TO GAIN FINAL CONSENSUS.
SET CALENDAR AND FINAL EXECUTION.
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FACILITATORS’ ROLE AS INTERNAL EXPERTS
• UNDERTAKE ADVANCED PREPARATION.
• CONSIDER DVLPG PRO FORMA STRATEGY MAP.
• DVLP STRATEGY MAP OF CURRENT STRATEGY AND DISCUSS HOW FUTURE SHOULD BE.
• HANDLE STATUS DIFFERENCES IN DISCUSSION WISELY.
• MANAGE DISCUSSION AND KEEP IT PRODUCTIVE.
• FACILITATORS MUST REMAIN NEUTRAL.
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HOW THE BSC INITIATIVE CAN FAIL?
• STRATEGY FORMULATION POORLY DONE.• LACK OF PARTICIPATION.• LACK OF OWNERSHIP.• CYNICISM.• PERSONAL FEAR AND DISCOMFORT.• LACK OF MGT COMMITMENT.• FAILURE TO ALIGN ORGANIZATIONAL PROCESSES.• FAILURE TO ALLOCATE RESOURCES.• IGNORE SOCIO-PSYCHO ASPECT OF
IMPLEMENTATION.
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HOW TO PREVENT FAILURE?
• IDENTIFY STRATEGIC CHANGE SET.
• IDENTIFY POSSIBLE PROBLEMS AND SOURCES OF RESISTANCE.
• RECOGNIZE AND ADDRESS GRIEVANCES.
• CHART OUT CHANGE MANAGEMENT PROCESS.
• BE REALISTIC ABOUT THE CHANGE MANAGEMENT PROCESS.
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ALTERNATIVE APPROACHES IN ROLLOUT
• PIONEER INITIATIVE.
• READY SYSTEM INTERVENTION.
• HURTING SYSTEM INTERVENTION.
• BUILD CRITICAL MASS SUPPORT.
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FINAL NOTEFINAL NOTE
• IMPLEMENTING THE BSC IS NOT EASY AND REQUIRES TIME.• THE BSC CONSISTS TOOLS AND PROCESSES.• DO IT WELL, DO IT RIGHT THE FIRST TIME.• TAKE INTO CONSIDERATION ORGANIZATIONAL HISTORY.• CUSTOMIZE AND ADAPT TO ORGANIZATIONAL NEEDS AND
CONDITIONS.• DON’T LET THE BSC BECOME A STRAIGHTJACKET.• DEVELOP INTERNAL EXPERTISE TO ENSURE SUSTAINABILITY.• BSC IS NOT LOWER LEVEL RESPONSIBILITY.• DON’T LET BUREACRACY DISTRACT FROM STRATEGY.• LEADERSHIP FROM THE TOP, LEADERSHIP FROM THE TOP,
LEADERSHIP FROM THE TOP…