Professional Documents
Culture Documents
Adani Presentation
Adani Presentation
Adani Presentation
Email: muneer@customerlab.biz
Appendix
Strategy Map and Balanced Scorecard
>
Alignment
Harvard Business Review:
“The Balanced
Scorecard —
Measures that Drive
Performance”
January - February Worldwide Acceptance and Acclaim:
1992
“Putting the Balanced Scorecard to Work” > “The Balanced Scorecard” is translated into
September - October 1993 21 languages
“Using the Balanced Scorecard as a Strategic > Selected by Harvard Business Review as
Management System” January - February 1996 one of the “most important management
practices of the past 75 years.“
“Having Trouble With Your Strategy? Then
Map It” September - October 2000
“Measuring the Strategic Readiness of
Intangible Assets” March 2004
4 ©2004 Balanced Scorecard Collaborative, Inc. • bscol.com
The Balanced Scorecard Collaborative helps organizations achieve
dramatic results.
BSCol Facts
BSCol Events and Publications
Financial Services
Engineering Polymers
Information and
Communication Mobile
Commercial Vehicle Business Unit
+ $7b value
Customer satisfaction = 70%
5 years
Public Official award
3 years
#1 in customer satisfaction
+ $3b value 33% reduction in cost/case
2-5 years 3 years
Saatchi & Saatchi
+ $2b value
Last to first in profits
3 years
$1.2b increase in cash flow
100% increase in ROI
2-5 years 9% increase in revenues Least cost producer
33% increase in net income 3-5 years
2 years
• “In more than 30 years, I've never come across a more powerful concept, so
rooted in common sense, beautiful in its simplicity, easy to administer, and
with such farreaching effect as the Balanced Scorecard”
Bill Cattucci, Former CEO, AT&T Canada
• “The results of the BSC at Saatchi & Saatchi are too numerous to name. One
key indicator: shareholder value increased from $500mm to $2.5b before we
were acquired”
Bill Cochrane, Chief Financial Officer, Saatchi & Saatchi
• What the Scorecard did was to clarify the agenda, focus and align the
organization around the priorities, and, basically, help make it happen”
Gerry Isom, President, Cigna Property & Casualty
• “In the fast paced world of Internet Banking, the Balanced Scorecard helped us
focus on the key drivers of strategic success. Its framework helped us select,
manage and implement a multiplicity of programs and initiatives and was
critical to our success”
Dudley Nigg, Executive Vice President, Wells Fargo Inc.
Appendix
Strategy Map and Balanced Scorecard
STRATEGY
Our game plan
RESULTS
Motivated & Efficient and Satisfied
Delighted
Prepared Effective SHAREHOLDERS
CUSTOMERS
WORKFORCE PROCESSES
1. TRANSLATE 5. EXECUTIVE
STRATEGY LEADERSHIP
❑ Mission / Vision ❑ CEO Sponsorship
❑ Strategy Maps ❑ Executive Team Engaged
❑ Balanced Scorecard ❑ “New Way of Managing”
❑ Targets ❑ Accountable for Strategy
❑ Initiatives ❑ A Performance Culture
BALANCED
SCORECARD
2. ORGANIZATION 4. CONTINUAL
ALIGNMENT PROCESS
❑ Corporate Role ❑ Linked to Budgeting
❑ Corporate - SBU ❑ Linked to Ops. Mgmt.
❑ SBU - Shared Services ❑ Management Meetings
❑ External Partners ❑ Feedback System
3. EVERYONE’S ❑ Learning Process
JOB
❑ Strategic Awareness
❑ Goal Alignment
❑ Linked Incentives
Internal Perspective
“To satisfy our • Cycle Time
customers, what • Productivity
management
processes must we • Cost
excel at?”
Drivers
Learning & Growth Perspective
The BSC is comprised of themes, “To achieve our • Market Innovation
vision, how must • Continuous
objectives, measures, targets, our organization
learn and Learning
and initiatives. improve?” • Intellectual Assets
BUSINESS UNITS SHARED SERVICE UNITS
CORPORATE SCORECARD
(Shared Strategic Agenda)
Theme Measure SBU SBU SBU SHARED SERVICE UNITS
1 2 3
4. Aggressive Growth xxx
• Finance
5. Customer Loyalty xxx xxx xxx • Marketing
xxx xxx • IT
6. Speed and Flexibility xxx
• Sales
7. Customer Intimacy xxx
• General Services
8. Operational Excellence xxx • Human Resources
10. Accountability Culture xxx
• EDUCATION
• BALANCED PAYCHECKS
STRATEGIC
PLANNING
BALANCED
SCORECARD
BUDGETING Governance
PROCESS
Management Control
Funding Loop
Reportin
g
PERFORMANCE
Appendix
Strategy Map and Balanced Scorecard
Success: Challenges:
> Global interests ranging from > Ensure timely execution and
Global trading , Edible oil, Agro profitability of new projects
products, Agri logistics, Retail,
Power, Coal, Oil and Gas > Need for performance
Exploration, Gas Distribution, Real management system that provides
Estate, Ports, Special Economic greater focus and alignment
Zones, IT enabled services etc.
> Need for clear framework that will
> Significant expertise in Global align and govern the entire
Trading organization
> Enable the Board and the Staff and to > Develop an internal “Strategic
clarify their strategic role, improve Management Office” where the
their own internal strategic alignment, organization develops and sustains
and define how they support each the internal capacity to develop,
other implement and sustain its strategic
management process using primarily
internal processes
> Establish a consistent framework for
defining and managing accountability,
key projects and resource allocation
Adani Group believes that the Balanced Scorecard approach can help provide these
benefits and is interested in partnering with CustomerLab to achieve them
20 ©2004 Balanced Scorecard Collaborative, Inc. • bscol.com
Objectives and Scope
BSCol will work with the Adani Enterprise leadership team to:
> Identify key drivers and potential barriers to successful strategy execution
> Develop a strategy map for the enterprise level of Adani Group
> Transfer BSC know-how and expertise to the Adani Group Core Team
Why CustomerLab?
Appendix
Strategy Map and Balanced Scorecard
BSCol
BSCol Breakthrough
Best Practice Survey Assessment Results Profile
Mobilize Change
Through Executive 3.9 4.0 4.1
Leadership
Key 5 = Best Practice; 4 = We’re OK; 3 = Moving Slowly; 2 = Thinking About it; 1 = Not at All Strength 2 Weakness 2
Strength 3 Weakness 3
Quote(s) Quote(s)
Drivers Barriers
F2: Grow new business: F3: Grow current business: F4: Drive margins
Increase revenue from new products, Increase revenue from existing Optimize resources and grow
customers, and markets customers EBITDA
Markets/Custom
C1: Make the testing C2: Present content in C3: Build trusted, C4: Make the testing C5: Develop mutually
process easy and new and innovative lasting partnerships administration profitable partnerships
secure ways throughout the world process easy and cost
effective
People
Perspective
People
P1: Rapidly integrate, develop or P2: Lead a rigorous employee P3: Build employee engagement
hire people with the right skills assessment and development with customers
process
Customer Perspective
M5 Candidate Satisfaction (Ease of Use) 4.0 on 5.0 scale
C1 Make the testing process easy and
secure
M6 Security-Related Incidents (#) 10% decrease on prior year
C2 Present
ways
content in new and innovative M7 Client Migration to MRB/GAR K2 TBD
K4 Channel Optimization
ID Strategic Initiative
F1
orpotC
rate
’s P
Gro erfo
wn rm a
ew nce
bus
Gro ines
wc s
urre
nt b
Driv usin
em ess
argi
ns
Eas
y&
sec
Clie ure
nt s test
atis ing
…and an Initiative Alignment Matrix.
fact
Qua io nw
lity ith c
of c onte
lien nt
Cos t rel
t eff a tion
ecti ship
ve d s
Mut
uall e liver
y pr y in
F2 F3 F4 C1 C2 C3 C4 C5
ofita cha
ble nne
Ant
icip cha l
ate nne
I1
/ un l pa
/ ex tom
ecu er n
te M eed
AC s
Imp o
I3
lem ppo
rtun
ent
new ities
cap
a
I4
Foc b
us c ilitie
omm s
Pro o n te
I5
fitab chn
olog
le c
usto y
mer
I6
Inve serv
st fo ice
EXAMPLE
r ef
Inte f ic ienc
grat
e th y
e rig
ht p
Deve eop
lop e le
mplo
y e es
P1 P2 P3
Buil
d en
gag
em e
nt
Together with an Effective plan to Implement the Balanced Scorecard
Across the Organization.
EXAMPLE
Program Schedule
KEY ACTIVITIES Q1 Q2 Q3 Q4 Q5
Mobilization Phase
Clear Direction & Priorities
Executive Sponsorship
Clear Case for Change
Engaged Leadership Team
New Way of Managing
Change Agent Identified
Alignment Phase
Clearly Articulated Strategy
Targets Established
Measures Developed
Clear Accountabilities
Initiatives rationalized
Strategy Refreshed Annually
Strategic Awareness
Supporting Communications
Personal Goals Aligned
Personal Incentives Aligned
Development Aligned
Accountability for Results
Sustainment Phase
Regular Strategy Review
Reporting System
Links to Budgets & Strategy
Links to Strategic Investments
Links to HR & IT Planning
Links to Governance Process
Strategic Management Capability
• Multimedia Content
Core Team:
> Participate in the all aspects of BSC project > Facilitate all aspects of the project
> Provide perspectives on the company strategy to support > Draft BSC architecture (themes) and Strategy Map
BSC development (objectives)
> Review and refine BSC objectives and themes > Draft BSC (objectives, KPI’s and initiatives)
> Review and refine KPI’s > Facilitate initiative mapping
> Drive initiative inventory > Draft implementation plan
> Assist in initiative mapping > Provide BSC expertise in the ongoing use of the BSC as
> Assist in developing the implementation plan a management tool
Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Step 0: Kick Off
Step 2: Training in
Strategy Mapping
Step 3: Develop
Corporate Strategy Map
/ BSC
Why CustomerLab
Appendix
Strategy Map and Balanced Scorecard
Why CustomerLab?
Appendix
Strategy Map and Balanced Scorecard
BSCol was founded and is led and managed by Drs Kaplan (Practice Development
Advisor) and Norton (President).
The CLab/BSCol Asia-Pacific team is the most experienced BSC team in the region
and have worked with Kaplan and Norton for many years
Unlike our would-be competition, CLab and BSCol are focused entirely on the BSC and
USES THE BSC TO MANAGE YOUR BUSINESS FROM TOP TO BOTTOM
CLab and BSCol have vast resources not available to other firms. Notwithstanding
exclusive access to Kaplan & Norton, we have best practice benchmarks for every
aspect of the strategic management process, unique tools and templates, and KPI
databases that can be leveraged to help our clients.
Given CLab’s access to BSCol’s knowledge resources, CLab consultants help
organizations achieve breakthrough results over an extended period of engagement
CLab as part of their methodology will transfer the consultant’s knowledge to a Centre
of Excellence within the organization, thus ensuring sustainability of results and
reducing dependence on consultants over a period of time
CLab / BSCol methodology can be tailored to suit the specific requirements of different
client engagements. We will therefore take an approach that will best suit the client’s
requirements
BSCol and CLab continues to invest in the development and enhancement of the
Balanced Scorecard framework
CLab has experience with unique Indian cultures and work ethics. Our consultants have
the breadth and depth of experience across industries and functions.
CustomerLab consultants provide world class consulting expertise at Indian rates
Last, but not the least, CLab believes in seeing through the logical results in any
engagement by handholding the client throughout the execution of strategy
37 ©2004 Balanced Scorecard Collaborative, Inc. • bscol.com
Today’s Agenda
Why CustomerLab?
Appendix
Strategy Map and Balanced Scorecard
Internal Perspective
“Build the
Brand”
“Make the
Sale”
“Deliver the
Product”
“Service
Exceptionally”
3
. The process-focused
view of the business
using the value chain
Customer
Increase Customer
To achieve our vision, how Confidence in Our
should we appear to our Advice
Customer
Increase Customer
Confidence in Our Advice
22
•Recommendations
•One week ago we launching a lean project
aimed at eliminating wasted time in material
20
planning and finishing room procedures.
18
FY 02 Q203 Q303
Actual Target
October 2003 Complete Held a kickoff meeting with materials planning and finished department to describe the project and generate a
benefits case
October 2003 Complete Identify the causal factors that lead to cycle time delays.
November In Process Conduct an impact assessment on each causal factor and develop quick-hit and longer term improvement
2003 recommendations.
November Not Started Implement quick-hit opportunities and communicate longer term improvement recommendations in the Q403
2003 Balanced Scorecard report
designed around a longer-term strategic view. strategic priorities. CORPORATE practice” sharing to create
synergies across SBUs.
Translate Executive
1 Translate 5 Executive
CORPORATE SCORECARD
Strategy
BUSINESS UNITS SHARED SERVICE UNITS
Strategy Leadership (Shared Strategic Agenda)
Leadership
Theme SBU SBU SBU
SHARED SERVICE UNITS
1 2 3
4. Aggressive Growth • Finance
5. Customer Loyalty xxx xxx • Marketing
• IT
Organization Continual
6. Speed and Flexibility xxx xxx The Strategy
2 Organization 4Process
Financial
Perspective
The
Perspective
• Organizational Reallocate
Loop
Performance
Operational
InitiativesControl Loop
& Programs
Competitive Supplier
Days Away from Work Rate
Laid Down Cost vs. Best
Loop Harvesting Team Problem
External
Priorities Competitive Ratable Supply Dialogue Solving
Development “Testing
10. Accountability Culture Good Neighbor Environmental Index
Everyone’s
3
Quality Index
Quality
Strategic Competency
Hypotheses and
Everyone’s Motivated & Prepared Availability
Capturing Learning”
Job
Job 2. Each SBU develops a
long-range plan and BSC consistent
with corporate strategic agenda.