casestudy.ppt

1、Balanced Scorecard,An Introduction to Balanced Scorecard Singapore March 2002,Agenda,Balanced Scorecard Concepts Balanced Scorecard Decision BAX Global Case Study BAX Corporate Overview IT Strategy BSC Process ASPAC IT Scorecard BSC Experiences Benefits & Outcomes BSC Templates BSC Automation Tool,B

2、alanced Scorecard Concepts,The Origins of the BSC - first introduced in 1992 by Kaplan & Norton in an article in the Harvard Business Review discussed in their book The Balanced Scorecard - Translating Strategy into Action 1996 the BSC is built on the findings of a year-long research programme suppo

3、rted by a dozen multi-national companies (e.g. HP, EDS, Mobil & Shell) the BSC is a flexible & informative approach to strategic business performance measurement,Balanced Scorecard Concepts,The BSC - retains an emphasis on financial goals includes non-financial performance drivers Measures organisat

4、ional performance from four perspectives - financial customers internal business processes learning & growth,Balanced Scorecard Concepts,Financial measures - summarise the economic consequences of actions already taken indicate if actions are translating into bottom-line improvement typically relate

5、 to profitability or broader measures Customer measures - identify the targeted customers and markets core outcomes of: customer satisfaction, retention & acquisition, profitability & market share,Balanced Scorecard Concepts,Internal Business Process measures - need to identify which internal proces

6、ses are critical to enable the business unit to - deliver a product that will attract & retain customers satisfy shareholders expectations of superior financial returns focus on critical processes includes those that the company may not be performing today - new processes for new business units crit

7、ical for the successful profitability & performance management of those business units,Balanced Scorecard Concepts,Learning & Growth measures - infrastructure that the company requires to build to create long-term growth and improvement the need to improve capabilities so that it can continue to be

8、competitive and as such continue to deliver value to customers and shareholders to close the gap between existing capabilities of people, systems and processes and those required to achieve breakthrough performance the investment includes reskilling employees, enhancing systems and business processe

9、s,Balanced Scorecard Concepts,Quote - “The Balanced Scorecard translates an organisations mission and strategy into a comprehensive set of performance measures that provides the framework for a strategic measurement and management system.” The Balance Scorecard - Translating Strategy into Action RS

10、Kaplan & DP Norton Harvard Business School Press 1996 Other references - Balance Scorecard Collaborative () The Strategy-Focused Organisation RS Kaplan & DP Norton Harvard Business School Press 2001,Balanced Scorecard Concepts,Vision and Strategy,Financial “To succeed financially, how should we appe

11、ar to our shareholders?”,Internal Business Process “To satisfy our shareholders and customers, what business processes must we excel at?”,Learning & Growth “To achieve our vision, how will we sustain our ability to change and improve?”,Customer “To achieve our vision, how should we appear to our cus

12、tomers?”,Balanced Scorecard Concepts,Vision,Strategy,Strategic Objective,Stretch Targets,Initiatives,Linkages,Lead,Lag,Measures,Customer Objectives,Process Objectives,Learning & Growth Objectives,Financial Objectives,Where we want to be?,How to reach there?,Top-to-Bottom Approach,Cause & Effect,Bala

13、nced Scorecard Concepts,Cause / Effect Relationship Effective strategies can be made up of a series of cause and effect relationships between outcome measures and performance drivers example - customer satisfaction drives sales, sales drive revenues and revenues are a factor driving profitability A

14、well constructed BSC should in a sense tell a story about what you want to achieve and how you expect to achieve it,Balanced Scorecard Decision,Concerns of the Business To synchronize IT & business Setting the same priorities Needs of the business Needs of customers Competitive pressures Resource an

15、d investment management,Balanced Scorecard Decision,IT Strategy Meeting needs of business and customers Ability to prioritize Perception of success IT Logical Starting Point Investment versus outcomes gap,Balanced Scorecard Decision,Quote The BSC approach lends itself especially well to one of the f

16、undamental challenges facing CEOs and IT executives - namely, how to measure, improve and understand the value that information technology delivers to the business. The BSC can help managers identify opportunities for improvement in IT, and track the impact of improvement initiatives through a wide

17、range if performance indicators The Balanced Scorecard and IT Management Compass White Paper Robert S. Gold,BAX Global Case Study,BAX Corporate Overview US$2.1 billion global transportation and supply chain management company Multi-modal freight forwarding for B2B customers world wide Headquartered

18、- Irvine, California USA Approximately 500 offices across 123 countries with some 10,100 employees Part of the Pittston Group of Companies with total revenues of US$4.1 billion,BAX Global Case Study,Revenue Growth,BAX Global Case Study,Asia Pacific Region,China,India,Thailand,Malaysia,Singapore,Phil

19、ippines,Taiwan,Hong Kong,Australia,Japan,Korea,New Zealand,55 offices in 12 countries,BAX Global Case Study,Pharmaceutical/ Chemical Becton Dickinson Glaxo Wellcome Retail Christian Dior Fragrances Esprit Levis Strauss Liz Claiborne Tommy Hilfiger,High Tech Apple Cisco Compaq DELL Epson Gateway HP I

20、BM Maxtor Microsoft Motorola Philips,Aerospace Allied Signal Boeing Bombardier Rockwell Collins Automotive Ford GM,Markets & Partners,BAX Global Case Study,Published Strategy Document detailing - The IT Strategy The Business Model The IT Action Plan The Region The IT Organisation refer ,ASPAC IT Str

21、ategy,BAX Global Case Study,Leadership,Partnership,Integration,“Leverage IT to create value-adding business change”,“Build Strategic Alliance and Collaborative Partnership”,“Integrate and Standardize IT systems to improve efficiency and to reduce support cost”,ASPAC IT Strategy,BAX Global Case Study

22、,Process - Executive Sponsorship Selecting Partner Senior executive meeting to ascertain Corporate Vision and Strategy Relate IT Strategy to Corporate Vision Build straw man Linkage Model Build Objectives and Measures for straw man Model,BAX Global Case Study,Process (cont.) - Series of iterations F

23、inalise the Linkage Model, Objectives and Measures Identify Initiatives Develop manual Scorecard Automating the Scorecard Cascading the Scorecard,BAX Global Case Study,Perspectives Shareholder Customer Internal Learning,Corporate Vision,IT,IT Strategy & Strategic Issues,Phases of Linkage Model,Objec

24、tives and Measures,Manual Scorecard,Cascade Scorecard,Automate Scorecard,Objectives,Measures,Targets,Initiatives,BSC Process,BAX Global Case Study,BAX Global Case Study,Experiences - Locking in Executive sponsorship Understanding the concepts Translating strategy into objectives Questions about meas

25、uring the benefits Building the linkage model Multiple Iterations Changes in understanding Objectives versus initiatives,BAX Global Case Study,Experiences (cont.) - Building the measures Lead (Drivers) Lag (Outcomes) Maintaining momentum Time to develop Time for result,BAX Global Case Study,Benefits & Outcomes - Developing an IT strategy that complies with the Corporate vision Change How we measure IT Creat