Post on 03-Apr-2018
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From StrategicManagement to the
Balanced Scorecard
Measuring Success
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Strategic Management starts early
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Where do you see
yourself in five
years?Hi sweetie!!!
She is socute!!
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Whatever your business is
Organization (people)Learning and growth
Product (Processes)Internal perspective
Market (Customer)Customer perspective
FinanceFinancial perspectivewww.diahome.org 3
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The four dimensions of the BalancedScorecard address vision & strategy
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Robert S. Kaplan&
David P. Norton
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So lets start building together
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Organization: European EDM DIAConference
Management: Programme Committee Goal: Build a Strategy Map leading the organization
through the next five years to achieve the aspiration
of participants and stakeholders. Build the BalancedScorecard to set objectives and targets, follow up
progress and align the organization for the journey
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1. Internal & External Factors (trends)
Interest for EDM and e-Submissions remains strong in the industry New regulations add topics for presentations and education (e.g.
EVMPD)
New technologies offer new solutions to be explored (e.g. eTMF,Structured Content Authoring)
Financial crisis limits participants budget The number ofcompeting conferences is increasing The EDM conference has been managed by the same committee
for many years
The cooperation with other parts of DIA (SIACs, AnnualConference Committees) is limited
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Where will your strategy take you?
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2. The Destination Statement
In the next five years, the European EDM DIAConference will become the leading conference
in Europe for DIA with more participants and
vendors than the US Conference on the same
theme
EDM will be recognized as the fastest growingtopic among the ones covered by DIA and wewill surpass all other conferences on related
subjects in Europe doubling the current revenuefor DIA
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The Strategy Map
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3. The DIA EDM Strategy Map
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Learning
Perspective L1. Broaden thecompetencies
L2. Enhance
cooperation withSIACs
ProcessesPerspective
P1. Regularly
renew the
committee
P2. Identify
new topics
P3. Cross alignwith other DIA
conferences
CustomerPerspective
C1. Improve
coverage ofparticipants learning
objectives
C2. Improveparticipants
perception
FinancialPerspective
F1. Grow
revenue withmore participants
F2. Reduce
cost/participant
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Building the BSC
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Why a dashboard?
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1. Strategic Objectives
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Strategic Objectives arecommon to all
They remain unchanged over aperiod of time (e.g. 5 years)
They are directly derived fromthe situation analysis and the
strategy map
They will guide the organizationtowards the ultimate goals of the
destination statement
PEOPLE Become a Diverse group
L1 Broaden the Competencies
L2 Enhance Cooperation with SIACs
PROCESSES Deliver Superior Content
P1 Regularly Renew the Committee
P2 Develop New topics
P3 Align with other DIA conferences
CUSTOMERS Address Attendees Expectations
C1Improve coverage of participants learning
objectives
C2 Improve participants perception
FINANCIAL Grow Conference Value
F1 Grow revenue with more participants
F2 Reduce cost/participant
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2. Measures
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Measures are business specific They can vary over time depending on the use of the BSC
(performance versus strategic) Clearly defined, there are the KPIs that will be used to measure
progress and communicate to the organization
PEOPLE Become a Diverse group Measure
L1 Broaden the CompetenciesL1.1 Specialty Diversity (areas of interest)
L1.2 Industry versus Vendors
L2 Enhance Cooperation with SIACs L2.1 Number of presenters f rom SIACs
PROCESSES Deliver Superior Content Measure
P1 Regularly Renew the Committee P1.1 New members per year
P2 Develop New topics P2.1 Number of new topics (not present before)
P3 Align with o ther DIA conferences P3.1 Topics common with o ther conferences
CUSTOMERS Address At tendees Expectat ions Measure
C1Improve coverage of participants learning
objectives
C1.1 Approvals on time within target label (%)
C2 Improve participants perception C2.1 Feedback survey positive results (%)
FINANCIAL Grow Conference Value Measure
F1 Grow revenue with more part ic ipants F1.1 Annual growth in total revenues (%)
F2 Reduce cost/participant F2.1 Increase in number of paying participants
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L1 Broaden the Competencies
L1.2 Industry versus Vendors/Consultants
Measure concept Measures the expansion of competencies within the Programme participants
Units / Period / Weight Units Period Weight
% End of Year (EOY) 10%
Technical definition Average percent of industry presenters versus vendors/consultants
Inclusion criteria Includes all presenters, co-presenters and tutorial leaders. Does not include keynote speakers
Min / Target / Max 40% 50% 60%
Strategic drivers Industry presenters are of more interest to the public as carrying practical experience Vendors and Consultants are of interest as well and should be represented
Notes / comments
Further information (owner,system)
S. Gsponer, DIA files
Measure Example
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PEOPLE Become a Diverse group Measure Min Target Max Weight
L1 Broaden the CompetenciesL1.1 Specialty Diversity (areas of interest) 3 4 5 5%
L1.2 Industry versus Vendors 40% 50% 60% 10%
L2 Enhance Cooperation with SIACs L2.1 Number of presenters from SIACs 2 3 4 10%
PROCESSES Deliver Superior Content Measure Min Target Max Weight
P1 Regularly Renew the Committee P1.1 New members per year 1 2 2 10 %
P2 Develop New topics P2.1 Number of new topics (not present before) 2 3 4 10%
P3 Align with other DIA conferences P3.1 Topics common with other conferences 3 2 1 5%
CUSTOMERS Address Attendees Expectations Measure Min Target Max Weight
C1Improve coverage of participants learning
objectivesC1.1 Approvals on time within target label (%) 60% 80% 100% 10%
C2 Improve participants perception C2.1 Feedback survey positive results (%) 60% 80% 100% 15%
FINANCIAL Grow Conference Value Measure Min Target Max Weight
F1 Grow revenue with more part ic ipants F1.1 Annual growth in total revenues (%) 15% 20% 25% 15%
F2 Reduce cost/participant F2.1 Increase in number of paying participants 20 30 40 10%
3. Targets and thresholds
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The DIA EU EDM Balanced Scorecard
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PEOPLE Become a Diverse group Measure Min Target Max WeightL1 Broaden the Competencies
L1.1 Specialty Diversity (areas of interest) 3 4 5 5%
L1.2 Industry versus Vendors 40% 50% 60% 10%
L2 Enhance Cooperation with SIACs L2.1 Number of presenters from SIACs 2 3 4 10%
PROCESSES Deliver Superior Content Measure Min Target Max WeightP1 Regularly Renew the Committee P1.1 New members per year 1 2 2 10 %
P2 Develop New topics P2.1 Number of new topics (not present before) 2 3 4 10%
P3 Align with other DIA conferences P3.1 Topics common with other conferences 3 2 1 5%
CUSTOMERS Address Attendees Expectations Measure Min Target Max WeightC1 Improve coverage of participants learning
objectivesC1.1 Approvals on time within target label (%) 60% 80% 100% 10%
C2 Improve participants perception C2.1 Feedback survey positive results (%) 60% 80% 100% 15%
FINANCIAL Grow Conference Value Measure Min Target Max WeightF1 Grow revenue with more participants F1.1 Annual growth in total revenues (%) 15% 20% 25% 15%F2 Reduce cost/participant F2.1 Increase in number of paying participants 20 30 40 10%
2013 - 2018
25%
25%25%
25% LearningProcesses
Customer
Financial
5%
10%
10%
10%
10%
5%10%
15%
15%
10%
Specialty Diversity (areasof interest)
Industry versusVendors
Number of presenters from SIACs
New members per year
Number of new topics(not present before)
Topicscommon wi th ot her conferences
Approvalson time within target label (%)
Feedback survey positive results (%)
Annual growth in total revenues(%)
Increase in number of paying participants
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4. Action Plan and Strategic Initiatives
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Map initiatives to Strategic Objectives
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Balanced Scorecard
Strategic Categories
Strategic Objectives
Strategic Initiatives
Attractbestpeople;
haverightskillsat
righttime
Ensureemployee
learning&
development
Ensureemployee
engagement
Developabalanced
pipelineof
innovativeproducts
Supplyourproducts
efficientlytothe
markets
Complywithall
currentstandards&
regulations
Getrapidapproval
forthebestlabels
Ensurepayersand
providers
reimbursement
Bringsuperior
treatmentstomore
patients
Growsalesand
revenue
Increasereturnon
sales(ROS)
Contributefreecash
flow
Total
Drug delivery systems & devices 2
Leadership in MS 3
Rheumatology pipeline 3
Erbitux in-market & additional indications (incl. NSCLC) 3
Launch of Stimuvax & Cilengitide 2
Building US Oncology 2
External opportunities for US po rtfolio 2
Business Development for CMCare & GM in Growth Markets 1
Operational Excellence 3
TechOps site network & overcapacity 2
R&D hub concept 3
Discovery and Development Efficiency gains 2
CMCare & GM profitability in Europe 2
HTA and PR 4
Build-up of TA NDD 2
Build-up of TA AIID (Rheumatology) 2
High-priority projects 1
Biomarkers strategy & technology 1
Pipeline risk management 1Partnering our core development assets 2
External innovation and expertise 1
FDA Top Outcomes / EU Regulatory Key Stakeholders 2
R&D Sourcing 1
People, Practices and Processes 2
US organization & capabilities 2
Performance Driven Organization (incl. Best People in R&D) 1
Enhance Leadership & Performance
FINANCIAL
Grow ShareholderValue
Drive Organic Topline Growth
Increase Profitability & Efficiency
Re-balance & De-risk the Pipeline
PEOPLE
Become BestPlace to Work
PRODUCTS
Deliver SuperiorProducts
CUSTOMERS
AddressCustomer Needs
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Reporting and Performance
There are several solutions for BSC reportingranging from simple email to sophisticated
software tools
Whatever the method, three things are ofimportance:
Timing: reporting must be done at the agreed time Ownership: Only the owner can report Source identification: Only data from the agreed
source are acceptable
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Example performance calculation
Actual
60%
Min Perform.Weight
Products Category
Weight Perform.
100%
Max
Feedback survey
positive results (%)
Measure
80%
TargetObjective
Performance calculated on the min -target-max range
Performance x Weight
92.6%
Actual
60%
Min
19.7%
Perform.Weight
CUSTOMER Category
15%
Weight
131.5%
Perform.
100%
MaxMeasure
80%Improve participantsperception
TargetObjective
Performance calculated on the min -target-max range
Performance x Weight
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Performance on each measure is calculated by comparing
actual results against Min-Target-Max benchmarks
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Example:
Actual
betweenTarget
and Max:Superior
performance
Actual between
Min and Target:Performance is
at acceptable level
but the target is
not achieved
0.0%
50.0%
100.0%
150.0%
Performance
Targets and Actual Results
Min Target Max
Actual below
Min targetred flag
zone needs
corrective
action
Cap at maximumperformance
Targets mayhave
been set too low
or exceptional
circumstances
Actual
ActualPerformance
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Timing: The BSC process can link to the
quarterly results calendar
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Presentation and Communication
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Success Stories
US Government Agencies Defense Financial Accounting Service (DFAS) Federal Aviation Administration Logistics
Center
Department of Energy Federal ProcurementSystem
Department of Energy Federal PersonalProperty Management
Commercial Industries Airline industry Credit card companies
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Questions
Dr Dimitri Stamatiadis
dimitri@maiaconsulting.eu