B ROBERT S. KAPLAN AND DAVID P. NORTON
Transcript of B ROBERT S. KAPLAN AND DAVID P. NORTON
STRATEGY MAPS
CONVERTING INTANGIBLE ASSETS
INTO TANGIBLE OUTCOMES
BY ROBERT S. KAPLAN AND
DAVID P. NORTON
Contents
Figure 1-1 6
Figure 1-2 7
Figure 1-3 8
Figure 1-4 9
Figure 1-5 10
Figure 2-1 11
Figure 2-2 12
Figure 2-3 13
Figure 2-4 14
Figure 2-5 15
Figure 2-6 16
Figure 2-7 17
Figure 2-8 18
Figure 2-9 19
Figure 2-10 20
Figure 2-11 21
Figure 3-1 22
Figure 3-2 23
Figure 3-3 24
Figure 3-4 25
Figure 3-5 26
Figure 3-6 27
Figure 4-1 28
Figure 4-2 29
Figure 4-3 30
Figure 4-4 31
Figure 4-5 32
Figure 4-6 33
Figure 4-7 34
Figure 4-8 35
Figure 5-1 36
Figure 5-2 37
Figure 5-3 38
Figure 5-4 39
Figure 5-5 40
Figure 5-6 41
Figure 5-7 42
Figure 5-8 43
Figure 6-1 44
Figure 6-2 45
Figure 6-3 46
Figure 6-4 47
Figure 6-5 48
Figure 6-6 49
Figure 6-7 50
Statistics Reported by Hewlett-Packard 51
Figure 6-8 52
Figure 6-9 53
Figure 7-1 54
Figure 7-2 55
Figure 7-3 56
Figure 7-4 57
Figure 7-5 58
Figure 7-6 59
Figure 7-7 60
Figure 7-8 61
Figure 7-9 62
Figure 7-10 63
Figure 8-1 64
Figure 8-2 65
Figure 8-3 66
Figure 8-4 67
Figure 8-5 68
Figure 8-6 69
Figure 8-7 70
Figure 8-8 71
Figure 8-9 72
Figure 8-10 73
Figure 8-11 74
Figure 9-1 75
Figure 9-2 76
Figure 9-3 77
Figure 9-4 78
Figure 9-5 79
Figure 9-6 80
Figure 9-7 81
Figure 9-8 82
Figure 9-9 83
Figure 9-10 84
Figure 9-11 85
Figure 10-1 86
Figure 10-2 87
Figure 10-3 88
Figure 10-4 89
Figure 10-5 90
Figure 10-6 91
Figure 10-7 92
Figure 10-8 93
Figure 10-9 94
Figure 10-10 95
Figure 10-11 96
Figure 10-12 97
Figure 10-13 98
Figure 10-14 99
Figure 10-15 100
Figure 10-16 101
Figure 10-17 102
Figure 11-1 103
Figure 11-2 104
Figure 11-3 105
Figure 11-4 106
Figure 11-5 107
Figure 11-6 108
Figure 11-7 109
Figure 11-8 110
Figure 11-9 111
Figure 11-10 112
Figure 11-11 113
Figure 12-1 114
Figure 12-2 115
Figure 12-3 116
Figure 12-4 117
Figure 12-5 118
Figure 12-6 119
Figure 12-7 120
Figure 12-8 121
Figure 12-9 122
Figure 12-10 123
Figure 12-11 124
Figure 12-12 125
Figure 13-1 126
Figure 13-2 127
Figure 13-3 128
Figure 14-1 129
Figure 14-2 130
Figure 14-3 131
Figure 14-4 132
Figure 15-1 133
Figure 15-2 134
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%1982 1992 1997 2002
Inta
ng
ible
Ass
ets/
Mar
ket
Cap
ital
izat
ion
Year
Figure 1-1 The Increasing Importance of Intangible Assets
HBSQ13_CH1_ 11/5/03 4:46 PM Page 4
6
Pu
blic
-Sec
tor
and
No
np
rofi
t O
rgan
izat
ion
s
Th
e M
issi
on
Fid
uci
ary
Per
spec
tive
“If
we
succ
eed
, ho
w w
ill w
elo
ok
to o
ur
taxp
ayer
s(o
r d
on
ors
)?”
Cu
sto
mer
Per
spec
tive
“To
ach
ieve
ou
r vi
sio
n, h
ow
mu
st w
e lo
ok
to o
ur
cust
om
ers?
”
Inte
rnal
Per
spec
tive
“To
sat
isfy
ou
r cu
sto
mer
s an
dfi
nan
cial
do
no
rs, w
hic
hbu
sin
ess
pro
cess
es m
ust
we
exce
l at?
”
Lea
rnin
g a
nd
Gro
wth
Per
spec
tive
“To
ach
ieve
ou
r vi
sio
n, h
ow
mu
st o
ur
org
aniz
atio
nle
arn
an
d im
pro
ve?
”
Pri
vate
-Sec
tor
Org
aniz
atio
ns
Th
e S
trat
egy
Fin
anci
al P
ersp
ecti
ve
“If
we
succ
eed
, ho
w w
illw
e lo
ok
to o
ur
shar
eho
lder
s?”
Cu
sto
mer
Per
spec
tive
“To
ach
ieve
ou
r vi
sio
n,
ho
w m
ust
we
loo
k to
ou
rcu
sto
mer
s?”
Inte
rnal
Per
spec
tive
“To
sat
isfy
ou
r cu
sto
mer
s,w
hic
h p
roce
sses
mu
stw
e ex
cel a
t?”
Lea
rnin
g a
nd
Gro
wth
Per
spec
tive
“To
ach
ieve
ou
r vi
sio
n,
ho
w m
ust
ou
r o
rgan
izat
ion
lear
n a
nd
imp
rove
?”
Figu
re 1
-2St
rate
gy M
aps:
The
Sim
ple
Mod
el o
f Val
ue C
reat
ion
HBSQ13_CH1_ 11/5/03 4:46 PM Page 8
7
Fin
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HBSQ13_CH1_ 11/5/03 4:46 PM Page 11
8
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9
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HBSQ13_CH1_ 11/5/03 4:46 PM Page 26
10
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man
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HBSQ13_CH2_ 11/5/03 4:47 PM Page 31
11
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HBSQ13_CH2_ 11/5/03 4:47 PM Page 33
12
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HBSQ13_CH2_ 11/5/03 4:47 PM Page 37
13
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HBSQ13_CH2_ 11/5/03 4:47 PM Page 39
14
Bes
t To
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Pro
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on
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Ser
vice
s T
hat
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and
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to t
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r C
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HBSQ13_CH2_ 11/5/03 4:47 PM Page 41
15
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HBSQ13_CH2_ 11/5/03 4:47 PM Page 48
17
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HBSQ13_CH2_ 11/5/03 4:47 PM Page 50
18
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HBSQ13_CH2_ 11/5/03 4:47 PM Page 51
19
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HBSQ13_CH2_ 11/5/03 4:47 PM Page 53
20
Fin
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HBSQ13_CH2_ 11/5/03 4:47 PM Page 59
21
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HBSQ13_CH3_ 11/5/03 4:48 PM Page 66
22
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HBSQ13_CH3_ 11/5/03 4:48 PM Page 67
23
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HBSQ13_CH3_ 11/5/03 4:48 PM Page 74
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HBSQ13_CH3_ 11/5/03 4:48 PM Page 96
Figure 3-5 Business Excellence in Two Steps: Combining Business Excellence
26
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HBSQ13_ch4_ 11/5/03 4:49 PM Page 127
34
Figu
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-8Ha
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HBSQ13_ch4_ 11/5/03 4:49 PM Page 130
35
Figu
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-1M
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HBSQ13_ch5_ 11/5/03 4:49 PM Page 136
36
Figu
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-2In
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ap T
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HBSQ13_ch5_ 11/5/03 4:49 PM Page 137
37
Figure 5-3 The Product Development Funnel
CustomerNeeds
ConceptGenerationandSelection
Product DesignPrototypingand Testing
PilotProduction
ManufacturingRamp-up andRelease
TechnologicalPossibilities
HBSQ13_ch5_ 11/5/03 4:49 PM Page 143
38
Figure 5-4 The Stage-Gate Model of New Product Development
InitialGate
SecondGate
DecisionBusinessCase
Post-developmentReview
Pre-launchBusinessAnalysis
Post-implementation
Review
Ideation PreliminaryInvestigation
DetailedInvestigation(Build theBusinessCase)
Development Testing andValidation
FullProduction andMarket Launch
PIRS5G5S4S3 G4G3S2G2S1G1Idea
HBSQ13_ch5_ 11/5/03 4:49 PM Page 144
39
Figure 5-5 The Waterfall Model of Development
Concept Design
Product and Feature Specification
CodingIntegrationand Testing
HBSQ13_ch5_ 11/5/03 4:49 PM Page 145
40
Figure 5-6 The Milestone Process
Vision Statement
Product Specification (Evolves)
Feature Specification
Coding
Testing
StabilizationFeature Set 3Feature Set 2Feature Set 1
HBSQ13_ch5_ 11/5/03 4:49 PM Page 146
41
Figure 5-7 The Milestone Process with Daily Build
Vision Statement
Product Specification (Evolves)
Feature Specification
Coding
Testing
StabilizationFeature Set 3Feature Set 2Feature Set 1
42
Figu
re 5
-8Sa
atch
i & S
aatc
hi S
trate
gy M
ap
Ach
ievi
ng
Ou
r Vis
ion
:B
e R
ever
ed a
s th
e H
oth
ou
se fo
r Wo
rld
-Ch
ang
ing
Cre
ativ
e Id
eas
Th
atTr
ansf
orm
Ou
r C
lien
ts’ B
usi
nes
ses,
Bra
nd
s, a
nd
Rep
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tio
ns
Fin
anci
al
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nt
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ctan
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PS
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even
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aatc
hi &
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tch
i Bra
nd
Eq
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man
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fatu
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Clie
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(P
ICs)
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anci
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isci
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fici
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rk S
mar
ter
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HBSQ13_ch5_ 11/5/03 4:50 PM Page 159
43
Figu
re 6
-1Re
gula
tory
and
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roce
sses
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alP
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HBSQ13_ch6_ 11/5/03 4:50 PM Page 164
44
Figu
re 6
-2Re
gula
tory
and
Soc
ial S
trate
gy M
ap T
empl
ate
Fin
anci
alP
ersp
ecti
ve
Cu
sto
mer
Per
spec
tive
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rnal
Per
spec
tive
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rnin
g a
nd
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wth
Per
spec
tive
Pro
du
ctiv
ity
Str
ateg
yG
row
th S
trat
egy
Lo
ng
-Ter
mS
har
eho
lder
Val
ue
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iro
nm
ent
�E
nerg
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d re
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nsum
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er a
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issi
ons
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olid
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te d
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sal
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rodu
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with
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ech
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uce
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ly C
on
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d In
vest
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tner
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he
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mm
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ity
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po
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izen
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ltu
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oci
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HBSQ13_ch6_ 11/5/03 4:50 PM Page 166
45
Figure 6-3 Bristol-Myers Squibb Energy Consumption, 1999–2001
Electricity Use(Millions of joules per$1,000 worldwide sales)
1999 2000 2001
200
150
100
50
0
Electricity Use(Trillion joules)
1999 2000 2001
4,000
3,000
2,000
1,000
0
Fuel Consumption(Millions of joules per$1,000 worldwide sales)
1999 2000 2001
500
400
300
200
0
100
Fuel Consumption(Trillion joules)
1999 2000 2001
12,000
8,000
6,000
4,000
0
2,000
Source: Briston-Myers Squibb 2001 Sustainability Report.
HBSQ13_ch6_ 11/5/03 4:50 PM Page 169
46
Water Emissions 2001 2000 Change
Effluent discharge (thousand 2,100 1,960 7%cubic meters)
Suspended solids 627 609 3%Chemical oxygen demand 4,220 4,110 3%Total nitrogen 403 505 �20%Phosphate 61.4 97.0 �37%Soluble salts 20,200 20,800 �3%Sum of heavy metals 0.46 0.32 43%
Figure 6-4 Novartis 2001/2002 Corporate Citizenship Report
HBSQ13_ch6_ 11/5/03 4:50 PM Page 170
47
48
U.S. Toxics Release Inventory Waste and Emissions1987 1991 1995 1997 1998 1999 2000
890 639 542 619 673 550Total waste —
as generated
Deepwell 237 187 61 50 45 38 38
disposal of
hazardous
waste
Figure 6-5 Dupont Annual Report (Air Discharge Data)
Releases to 71 57 41 34 37 41 37
air, water,
and land
Millions of pounds. Data as reported to the U.S. EPA. 286 new chemicals added in
1995. Total waste as generated first reported in 1991. Reflects 38% reduction in
total waste as generated, 84% reduction in deepwell disposal, and 48% reduction in
releases to air, water, and land. Increase in total waste as generated in 1998 and
1999 reflects 143 MM lbs./yr. recycled on-site by two newly acquired facilities.
Global Air Toxics and Carcinogenic Air Emissions1987 1991 1992 1993 1995 1997 1998 1999 2000
Air toxics 68 53 41 29 32 26 24.5 18.8 16.1
Air carcinogens 9.1 5.7 4.7 3.6 2.0 1.6 1.2 1.4 1.2
Figure 6-6 Bristol-Myers Squibb Materials Report
Nonhazardous Waste Disposal(Kilograms per $1,000 worldwide sales)
1997 1998 1999
2.0
1.5
1.0
0.5
20000.0
Nonhazardous Waste Disposal(Millions of kilograms)
1997 1998 1999
40
30
20
10
20000
Nonhazardous Waste Recycled(Kilograms per $1,000 worldwide sales)
1997 1998 1999
1.0
0.8
0.6
0.4
0.02000
0.2
Nonhazardous Waste Recycled(Millions of kilograms)
1997 1998 1999
20
15
10
5
20000
Nonproduct Output Returned to Process or MarketEach of our facilities worldwide is required to track its recycling of nonhazardous waste. We trackdata on plastic, cardboard, paper, and aluminum. As the chart indicates, nonhazardous wasterecycling decreased 37 percent since 1997, with a significant drop in 2000 due primarily toincreasing costs of recycling versus disposal. Bristol-Myers Squibb continues to promote recyclingas a preferred alternative to disposal, although our ultimate goal is to reduce nonhazardous wastegeneration through source reduction. One of our Sustainability 2010 goals is to decrease non-hazardous waste generation, which should help drive change and increase our nonhazardouswaste recycling.
Nonhazardous waste disposal includes plastic, cardboard, paper, aluminum, off-specification orout-of-date product, chemicals not regulated as hazardous waste, general trash, and medicalwaste. Nonhazardous waste disposal has decreased 20 percent since 1997, in large measuredue to source reduction.
Nonproduct Output to Land
Hazardous Waste Disposal(Kilograms per $1,000 worldwide sales)
1997 1998 1999
2.0
1.5
1.0
0.5
20000.0
Hazardous Waste Disposal(Millions of kilograms)
1997 1998 1999
40
30
20
10
20000
We track hazardous waste sent off-site from our facilities worldwide. The chart shows the amount of hazardous waste (as defined by local requirements) sent off-site for disposal. The data do notinclude hazardous waste generated as a result of on-site remediation activities. The vast majorityof hazardous waste is incinerated, with only the residual ash land disposed. As the chart indicates,hazardous waste disposal decreased 30 percent since 1997. The decrease from 1999 to 2000was due, in part, to eliminating a process at one facility that had generated significant amountsof hazardous waste as well as increased treatment of waste on-site.
Hazardous Waste
HBSQ13_ch6_ 11/5/03 4:50 PM Page 172
49
Figu
re 6
-7So
ny G
roup
’s To
tal E
nviro
nmen
tal I
mpa
ct
Ren
ewab
le E
ner
gy,
etc
.In
pu
tO
utp
ut
Rec
ycle
d M
ater
ials
, etc
.
Fo
ssil
Fu
elR
eso
urc
es
Dis
po
sal
Pro
du
ctR
ecyc
ling
Rec
yclin
g
Tota
lR
eso
urc
esIn
pu
tR
eso
urc
es(1
.33
mill
ion
to
ns)
Pro
du
cts/
En
erg
yC
on
sum
pti
on
in U
se
En
erg
y C
on
sum
pti
on
in M
anu
fact
uri
ng
1.7
mill
ion
ton
s-C
O2
(17%
)
8.1
mill
ion
ton
s-C
O2
(20%
)
Car
bo
n D
ioxi
de
(9.8
mill
ion
to
ns-
CO
2)
Sh
ipm
ent
as P
rod
uct
s1.
05 m
illio
n t
on
s(7
9%)
Was
te f
rom
Sit
es0.
28 m
illio
n t
on
s(2
1%)
HBSQ13_ch6_ 11/5/03 4:50 PM Page 174
50
Incidence Rate Lost Workday
(OSHA recordable Case Rate
Region cases per 100 employees) (cases per 100 employees)
1999 2000 2001 1999 2000 2001
United States 2.53 1.71 1.54 0.47 0.25 0.24
EMEA 0.61 0.67 ** 0.42 0.41 **
Asia Pacific 0.36 0.37 0.1 0.23 0.14 0.06
Canada 1.36 1.41 2.19 0.16 0.41 0.51
Latin America 0.26 0.11 0.23 0.17 0.09 0.16
** 2001 EMEA data not yet available.
51
Statistics Reported by Hewlett-Packard
Figure 6-8 DuPont Total Recordable Injuries and Illnesses (per 200,000 Hours Worked)
14
12
10
8
6
4
2
0 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01E
Manufacturing Industry Average
Chemical Industry Average
DuPont
DuPont (Includes event-related injuriesand illnesses)
HBSQ13_ch6_ 11/5/03 4:50 PM Page 181
52
Figu
re 6
-9Am
anco
Trip
le B
otto
m-L
ine
Stra
tegy
Map
To C
reat
e E
con
om
ic V
alu
eS
ust
ain
ably
in t
he
Lo
ng
Ru
nTo
Gen
erat
e V
alu
e T
hro
ug
h a
Sys
tem
of
Co
rpo
rate
So
cial
Res
po
nsi
bili
ty
To G
ener
ate
Val
ue
Th
rou
gh
Env
iro
nm
enta
l Man
agem
ent
Su
stai
nab
leP
rofi
tab
le G
row
th(1
0% S
ales
An
nu
ally
)Im
pro
ve O
per
atin
gE
ffic
ien
cy
Rei
nfo
rce
Bra
nd
Imag
e
Inn
ovat
ion
an
dH
igh
-Mar
gin
Pro
du
cts
Cu
sto
mer
Sat
isfa
ctio
n (
95%
Sat
isfi
ed)
Eff
ecti
veC
om
mu
nic
atio
n t
oS
elec
ted
Tar
get
s
Eff
ecti
ve R
esea
rch
and
Intr
od
uct
ion
of
New
Pro
du
cts
To Im
ple
men
t C
RM
and
e-B
usi
nes
sIn
itia
tive
s
To Im
pro
veS
up
ply
-Ch
ain
Pro
cess
es
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k M
anag
emen
t
Op
tim
alTr
ansf
orm
atio
nP
roce
sses
So
cial
Imp
acts
Man
agem
ent
Sys
tem
s
Min
imal
Env
iro
nm
enta
lIm
pac
t Th
rou
gh
Eco
-eff
icie
ncy
Co
nce
pts
To C
om
ply
wit
h t
he
Hig
hes
t Q
ual
ity,
Hea
lth
,an
d S
afet
y S
tan
dar
ds
To C
on
solid
ate
an In
tern
alC
ult
ure
Bas
ed o
n C
om
pan
y’s
Val
ues
To D
evel
op
Em
plo
yees
Bas
ed o
n S
trat
egic
Co
mp
eten
cies
Sco
reca
rd D
eplo
ymen
t
Trip
le B
ott
om
Lin
e
Fin
anci
alD
imen
sio
n
Cu
sto
mer
Dim
ensi
on
Pro
cess
an
dTe
chn
olo
gy
Dim
ensi
on
Env
iro
nm
enta
lan
d S
oci
alD
imen
sio
n
Hu
man
Res
ou
rces
Dim
ensi
on
“To
Be
the
Bes
t P
urc
has
ing
Op
tio
n fo
r O
ur
Cu
sto
mer
s”
HBSQ13_ch6_ 11/5/03 4:50 PM Page 194
53
Figu
re 7
-1In
tang
ible
Ass
ets
Mus
t Be
Alig
ned
with
the
Stra
tegy
to C
reat
e Va
lue
Fin
anci
alP
ersp
ecti
ve
Cu
sto
mer
Per
spec
tive
Inte
rnal
Per
spec
tive
Lea
rnin
g a
nd
Gro
wth
Per
spec
tive
Cre
atin
gA
lign
men
t
Lo
ng
-Ter
m S
har
eho
lder
Val
ue
Imp
rove
Co
stS
tru
ctu
reIn
crea
se A
sset
Uti
lizat
ion
En
han
ceC
ust
om
er V
alu
e
Pro
du
ctiv
ity
Str
ateg
yR
even
ue
Gro
wth
Str
ateg
y
Pri
ceQ
ual
ity
Ava
ilab
ility
Sel
ecti
on
Fu
nct
ion
alit
yS
ervi
ceP
artn
ersh
ipB
ran
d
Imag
eR
elat
ion
ship
Pro
du
ct/S
ervi
ce A
ttri
bute
s
Cu
sto
mer
Val
ue
Pro
po
siti
on
�S
kills
�K
now
ledg
e�
Val
ues
Op
erat
ion
s M
anag
emen
tP
roce
sses
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cess
es th
at p
rodu
cean
d de
liver
pro
duct
san
d se
rvic
es
Cu
sto
mer
Man
agem
ent
Pro
cess
es
Pro
cess
es th
at e
nhan
cecu
stom
er v
alue
�S
yste
ms
�D
atab
ases
�N
etw
orks
�C
ultu
re�
Lead
ersh
ip
Inn
ovat
ion
Pro
cess
es
Pro
cess
es th
at c
reat
ene
w p
rodu
cts
and
serv
ices
Reg
ula
tory
an
d S
oci
alP
roce
sses
Pro
cess
es th
at im
prov
eco
mm
uniti
es a
ndth
e en
viro
nmen
t
�A
lignm
ent
�Te
amw
ork
Exp
and
Rev
enu
eO
pp
ort
un
itie
s
Str
ateg
ic J
ob
Fam
ilies
Str
ateg
ic IT
Po
rtfo
lioO
rgan
izat
ion
Ch
ang
e A
gen
da
Cre
atin
gR
ead
ines
s
++
Hu
man
Cap
ital
Info
rmat
ion
Cap
ital
Org
aniz
atio
n C
apit
al
HBSQ13_ch7_ 11/5/03 4:51 PM Page 200
54
Figure 7-2 Summary of Alignment Practices of HR and IT Groups
Survey Says . . . About the HR/IT Alignment with Enterprise Strategy
IT Survey1 HR Survey2
About Alignment Techniques
1 Alignment of functional priorities to enterprise strategy2 Viewed as a “strategic partner”
3 Integrated planning process used to determinestrategic priorities of HR/IT
4 Relationship managers assigned to business unit5 Alignment of functional priorities to budget
34%28%
33%34%
32%
33%29%
23%
43%17%
1Conducted by Balanced Scorecard Collaborative and CIO Insight, 2002 (634 participants)
2Conducted by Balanced Scorecard Collaborative and Society for HR Management (1,266 participants)
HBSQ13_ch7_ 11/5/03 4:51 PM Page 202
55
Figu
re 7
-3Da
tex-
Ohm
eda
Stra
tegy
Map
F3—
Gro
w T
hro
ug
hE
nh
ance
d C
urr
ent
Cu
sto
mer
Val
ue
F4—
Red
uce
th
e C
ash
-to
-Cas
hC
ycle
(M
anu
fact
uri
ng
, Su
pp
lyC
hai
n, C
apit
al)
F5—
Incr
ease
Pro
du
ctiv
ity
of
Ind
irec
t C
ost
sF
2—G
row
Th
rou
gh
New
Cu
sto
mer
s
Fin
anci
al P
ersp
ecti
ve
Cu
sto
mer
Per
spec
tive
So
luti
on
s V
alu
eR
elat
ion
ship
Val
ue
Eco
no
mic
Val
ue
So
luti
on
s In
nov
atio
nC
ust
om
er R
elat
ion
ship
Op
erat
ion
al E
xcel
len
ceN
etw
ork
ed P
roce
sses
Rev
enu
e/G
row
thP
rod
uct
ivit
y/E
xpen
se
Reg
ula
tory
an
d S
oci
al
Co
nti
nu
ou
s L
earn
ing
an
d Im
pro
vem
ent
P4—
Dev
elo
p a
nd
Man
age
Pla
tfo
rm-B
ased
So
luti
on
sT
hro
ug
ho
ut T
hei
r L
ife
Cyc
les
P5—
En
sure
Tim
ely
Pro
du
ct L
aun
ches
Man
aged
an
d “
Ow
ned
”A
cro
ss D
-O
P3—
Gen
erat
e an
d S
elec
tE
xtra
ord
inar
y V
alu
e-B
ased
Idea
s(B
A/C
han
nel
/Su
pp
ort
)
P9—
Dem
on
stra
teA
ckn
ow
led
ged
Exp
erti
sein
Car
e Te
am S
olu
tio
ns
Acr
oss
D-O
an
d w
ith
Ou
rC
han
nel
Par
tner
s
P6—
Pro
vid
eA
ctiv
e In
stal
led
Bas
e S
up
po
rt
P7—
Act
ivel
y Im
pro
veQ
ual
ity
to E
nh
ance
Cu
sto
mer
Sat
isfa
ctio
nan
d R
edu
ce O
vera
ll C
ost
s
P1—
Inve
st in
Dee
p U
nd
erst
and
ing
of
Sel
ecte
d C
are
Are
as, G
eog
rap
hie
s,an
d S
egm
ents
P2—
Iden
tify
an
d S
po
nso
r P
roce
ssIm
pro
vem
ent
Acr
oss
D-O
P8—
Red
uce
Tim
e fr
om
Pu
rch
ase
toP
aym
ent T
hro
ug
hP
roce
ss Im
pro
vem
ent
Org
aniz
atio
nC
om
pet
enci
esIn
form
atio
n/T
ech
no
log
y/To
ols
F1
Ach
ieve
Do
ub
le-D
igit
Gro
wth
in B
oth
Rev
enu
es a
nd
Ear
nin
gs
Bef
ore
Tax
es
C1—
Car
eTe
am-D
esig
ned
So
luti
on
s
C2—
Co
mp
reh
ensi
veC
are
Inte
llig
ence
C3—
Lis
ten
an
dP
rovi
de
the
Rig
ht
So
luti
on
C4—
Bes
tO
ng
oin
g S
up
po
rt
C5—
Eas
y an
dE
ffic
ien
t to
Do
Bu
sin
ess
Wit
h
C6—
Bes
tL
on
g-T
erm
Inve
stm
ent
L1—
Exh
ibit
a C
on
sist
ent
Dec
isio
n-M
akin
g P
roce
ssan
d F
ollo
w-T
hro
ug
h B
ased
on
th
e D
-O C
orp
ora
teS
trat
egy
P11
—M
anag
eO
wn
ersh
ip a
nd
Use
of
Inte
llect
ual
Pro
per
ty
P10
—S
up
po
rtS
trat
egic
Invo
lvem
ent
in S
elec
ted
Hea
lth
-Car
eO
rgan
izat
ion
s
L2—
Win
th
e B
usi
nes
sfo
r D
-O b
y Te
amin
g U
pA
cro
ss t
he
Org
aniz
atio
n(B
A/C
han
nel
/Su
pp
ort
)
L3—
Set
an
d A
chie
ve C
lear
and
Alig
ned
Go
als
and
Rec
og
niz
e A
chie
vem
ents
Th
rou
gh
Per
form
ance
Man
agem
ent
L4—
En
sure
Dev
elo
pm
ent
of
Ou
rIn
div
idu
als,
Tea
ms,
an
dG
lob
al L
ead
ers
(Rig
ht
Ski
lls, R
igh
t P
lace
,R
igh
t Tim
e)
L5—
Cre
ate
and
Lev
erag
e D
-O G
lob
alIn
fras
tru
ctu
re a
nd
Kn
ow
led
ge
Bas
es
L6—
Inte
gra
teK
no
wle
dg
e M
anag
emen
tTo
ols
into
th
e W
ay W
eD
o B
usi
nes
s
HBSQ13_ch7_ 11/5/03 4:51 PM Page 204
56
Figu
re 7
-4Li
nkin
g In
tang
ible
Ass
ets
to th
e St
rate
gy a
t Con
sum
er B
ank
Cu
sto
mer
Val
ue
Pro
po
siti
on
Pro
du
ctiv
ity
Gro
wth
Op
erat
ion
al E
xcel
len
ceC
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59
Figure 7-7 Measuring the Strategic Readiness of Human Capital
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61
Figu
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65
Figu
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HBSQ13_ch8_ 11/5/03 4:51 PM Page 229
66
Figure 8-4 Competency Profile Model Used at Chemico, Inc.
The job-specific skillsrequired to perform the roleeffectively
The job-specific knowledgerequired to perform the roleeffectively
The general values andbehaviors required toperform the role effectively
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HBSQ13_ch8_ 11/5/03 4:51 PM Page 232
67
Figu
re 8
-5St
rate
gic
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HBSQ13_ch8_ 11/5/03 4:51 PM Page 233
68
Figure 8-6 Models for Strategic Human Capital Development
A. The StrategicJob Family Model
B. The StrategicValues Model
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ow
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HBSQ13_ch8_ 11/5/03 4:51 PM Page 235
69
Figu
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Figu
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Figu
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Figu
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Figure 9-2 Describing Information Capital
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HBSQ13_ch9_ 11/5/03 5:31 PM Page 251
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Figure 9-4 Components of IT Infrastructure: The Weill/Broadbent Model
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HBSQ13_ch9_ 11/5/03 5:31 PM Page 265
83
Figu
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84
Figu
re 9
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HBSQ13_ch9_ 11/5/03 5:31 PM Page 272
85
Figu
re 1
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Fram
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man
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HBSQ13_ch10_ 11/5/03 5:30 PM Page 276
86
Figu
re 1
0-2
The
Orga
niza
tion
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ge A
gend
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ltu
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ehav
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; sol
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man
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HBSQ13_ch10_ 11/5/03 5:30 PM Page 278
87
Figu
re 1
0-3
Profi
les
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ypic
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rgan
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ur
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terp
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itiz
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ip
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aniz
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apit
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um
an C
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igh
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ital
HBSQ13_ch10_ 11/5/03 5:30 PM Page 280
88
Figure 10-4 Changes Required by the IMS Strategy
ChangingMarkets
Deregulation
Mainframe
Commodity
Technology
Technology
Overhead Role
Employee
Necessary Evil
Management
Desktop, Networks, Internet
Value-Added Partner
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� Technology
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From To
1. Customer-Focused:Be viewed by the customer as a knowledgeable partner who understandstechnology and the customer’s business.
2. Innovative/Risk-Taking:Be an entrepreneur who proposes new ways to the customer and is capable ofacting fast.
3. Deliver Results:Deliver solutions to the customer’s problems that create high value atcompetitive prices.
IMS Organization Change Agenda
HBSQ13_ch10_ 11/5/03 5:30 PM Page 283
89
Figu
re 1
0-5
Defin
ing
and
Mea
surin
g Cu
ltura
l Val
ues:
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isk-
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cco
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ate
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ultu
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sto
mer
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ter
cust
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lture
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ontin
uous
impr
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reat
ivity
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imat
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that
all
empl
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thro
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tant
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lth c
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l ser
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s
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lth c
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ufac
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Executing StrategyCreating Value
HBSQ13_ch10_ 11/5/03 5:30 PM Page 284
90
Str
ateg
ic O
bjec
tive
Str
ateg
ic M
easu
reO
rgan
izat
ion
(A)
Dev
elop
lead
ersh
ip d
epth
(B)
Dev
elop
our
uni
que
lead
ersh
ip p
rofil
e
(C)
Dev
elop
lead
ers
(D)
Mak
e le
ader
ship
apa
rtic
ipat
ive
proc
ess
(E)
Dev
elop
effe
ctiv
e le
ader
ship
(F)
Fos
ter
an e
nviro
nmen
t of
lead
ersh
ip a
t eve
ry le
vel
(G)
Incr
ease
sen
ior
man
agem
ent
lead
ersh
ip s
kills
(H)
Take
ow
ners
hip
and
exec
ute
stra
tegy
�P
erce
nt o
f key
pos
ition
s w
ithou
t ide
ntifi
ed s
ucce
ssor
�P
rogr
ess
vers
us le
ader
ship
dev
elop
men
t pla
n
�In
tern
al v
ersu
s ex
tern
al m
anag
emen
t hire
s
�P
erce
nt o
f per
sonn
el a
dher
ence
to le
ader
dev
elop
men
t life
cyc
le
�N
umbe
r of
pro
ject
s ru
n by
sel
f-di
rect
ed w
ork
team
s
�V
acan
cy r
ate
�E
mpl
oyee
sur
vey
�N
umbe
r of
app
rova
ls n
eede
d fo
r de
cisi
ons
�P
erce
nt o
f fav
orab
le le
ader
ship
sco
re o
n st
aff s
urve
y
�Le
ader
ship
dev
elop
men
t rat
ing
(360
° fe
edba
ck)
Reg
iona
l ban
k
Man
ufac
turin
g
Mili
tary
hea
lth c
are
Pha
rmac
eutic
als
Hea
lth c
are
Hea
lth c
are
Tele
com
m
Reg
iona
l ban
k
Figu
re 1
0-6
Lead
ersh
ip M
odel
: Pro
cess
Foc
us
HBSQ13_ch10_ 11/5/03 5:30 PM Page 290
91
Figu
re 1
0-7
Lead
ersh
ip M
odel
: Com
pete
ncy
Focu
s
Gen
eral
Att
ribu
tes
Des
crip
tio
nR
ole
�C
ust
om
er-F
ocu
sed
�In
nov
atio
n/R
isk
Taki
ng
�D
eliv
erin
g R
esu
lts
Cre
atin
g V
alu
e
�U
nder
stan
ds th
e cu
stom
er; s
olve
s th
e cu
stom
er’s
pro
blem
s�
Cha
lleng
es a
ssum
ptio
ns; p
ropo
ses
new
way
s�
Pro
duce
s re
sults
for
cust
omer
s an
d sh
areh
olde
rs
Exe
cuti
ng
Str
ateg
y
�U
nd
erst
and
ing
Str
ateg
y�
Acc
ou
nta
bili
ty�
Co
mm
un
icat
ion
s�
Team
wo
rk
�C
lear
ly d
efin
es m
issi
on, v
isio
n, v
alue
s, a
nd s
trat
egy
�S
ets
dire
ctio
n, ta
rget
s; e
stab
lishe
s ac
coun
tabi
lity
�C
omm
unic
ates
ope
nly;
pro
vide
s fe
edba
ck�
Wor
ks a
cros
s bo
unda
ries;
sha
res
know
ledg
e
�Le
arns
from
oth
ers;
lear
ns fr
om s
elf
�In
vest
s tim
e in
the
deve
lopm
ent o
f oth
ers
�Le
ads
by e
xam
ple;
set
s hi
gh p
erso
nal s
tand
ards
�L
earn
ing
�C
oac
hin
g/D
evel
op
ing
�P
erso
nal
Co
ntr
ibu
tio
n
Dev
elo
pin
g H
um
an C
apit
al
Cre
ates
Org
aniz
atio
nR
ead
ines
s
Cre
ates
Hu
man
Cap
ital
Rea
din
ess
HBSQ13_ch10_ 11/5/03 5:30 PM Page 292
92
Figu
re 1
0-8
Lead
ersh
ip C
ompe
tenc
y Pr
ofile
: Hi-T
ek (M
anuf
actu
ring/
Serv
ice
Busi
ness
)
Gen
eral
Att
ribu
tes
Lea
der
ship
Co
mp
eten
cies
at
Hi-
Tek
Cre
atin
g V
alu
e�
Cu
sto
mer
-Fo
cuse
d
�In
nov
atio
n/R
isk
Taki
ng
�D
eliv
erin
g R
esu
lts
�C
ust
om
er In
sig
ht:
Out
stan
ding
lead
ers
unde
rsta
nd th
eir
cust
omer
s. T
hey
plac
e th
emse
lves
in th
e m
inds
of t
heir
cust
omer
s an
d sp
end
time
with
them
to u
nder
stan
d th
eir
curr
ent a
nd fu
ture
und
erly
ing
need
s an
d to
ant
icip
ate
solu
tions
.�
Bre
akth
rou
gh
Th
inki
ng
: O
utst
andi
ng le
ader
s ch
alle
nge
conv
entio
nal t
hink
ing
and
focu
s on
pos
sibi
litie
s. T
hey
thriv
e on
com
plex
ity, i
dent
ify a
nd d
evel
op n
ew s
olut
ions
, and
fost
er c
reat
ivity
and
inno
vatio
n.�
Dri
ve t
o A
chie
ve:
Out
stan
ding
lead
ers
look
for
way
s to
acc
ompl
ish
wor
k fa
ster
, at l
ower
cos
ts, a
nd w
ith h
ighe
r qu
ality
.T
hey
set c
halle
ngin
g go
als
for
them
selv
es a
nd o
ther
s, a
nd ta
ke c
alcu
late
d ris
ks to
impr
ove
perf
orm
ance
.
Exe
cuti
ng
Str
ateg
y�
Un
der
stan
din
g S
trat
egy
�A
cco
un
tab
ility
�C
om
mu
nic
atio
ns
�Te
amw
ork
�Te
am L
ead
ersh
ip:
Out
stan
ding
lead
ers
link
thei
r vi
sion
to th
e co
mpa
ny. T
hey
lead
cha
nge
and
crea
te a
sen
se o
f urg
ency
to m
eet c
halle
nges
and
impl
emen
t str
ateg
ies.
The
y se
t dire
ctio
n, e
stab
lishi
ng g
oals
and
mai
ntai
ning
acc
ount
abili
ty.
�O
pen
Co
mm
un
icat
ion
s: O
utst
andi
ng le
ader
s te
ll th
e tr
uth.
The
y op
enly
sha
re in
form
atio
n w
ith p
eers
, man
ager
s, a
ndsu
bord
inat
es a
nd te
ll th
e “w
hole
” sto
ry, n
ot ju
st th
eir
posi
tion.
The
y ar
e ro
le m
odel
s fo
r do
ing
wha
t is
right
.�
Team
wo
rk: O
utst
andi
ng le
ader
s w
ork
colla
bora
tivel
y w
ith th
eir
own
team
s an
d ac
ross
org
aniz
atio
nal a
ndge
ogra
phic
bou
ndar
ies.
The
y em
pow
er th
eir
team
s to
ach
ieve
exc
elle
nce.
Dev
elo
pin
g H
um
an C
apit
al�
Lea
rnin
g
�C
oac
hin
g/D
evel
op
ing
�P
erso
nal
Co
ntr
ibu
tio
n
�B
uild
ing
Cap
abili
ties
: O
utst
andi
ng le
ader
s ac
t to
build
the
orga
niza
tion’
s lo
ng-t
erm
cap
abili
ty to
pro
duce
and
sus
tain
exce
llent
res
ults
. The
y fo
cus
on le
arni
ng.
�C
oac
hin
g/D
evel
op
ing
Tal
ent:
Out
stan
ding
lead
ers
activ
ely
deve
lop
othe
rs to
bui
ld a
str
ong
team
now
and
for
the
futu
re.
The
y co
ach
by e
xpre
ssin
g ex
pect
atio
ns, p
rovi
ding
feed
back
, and
see
king
lear
ning
opp
ortu
nitie
s.�
Per
son
al D
edic
atio
n:
Out
stan
ding
lead
ers
act i
n w
ays
that
sup
port
com
pany
goa
ls a
nd s
trat
egie
s. T
hey
alig
n th
eir
pers
onal
nee
ds w
ith c
ompa
ny n
eeds
and
sup
port
toug
h de
cisi
ons
mad
e fo
r th
e ov
eral
l ben
efit
of th
e co
mpa
ny.
�D
ecis
iven
ess:
Out
stan
ding
lead
ers
mak
e an
d ac
t on
toug
h de
cisi
ons
with
spe
ed, a
sen
se o
f urg
ency
, and
tena
city
. The
yse
ek in
put t
o th
e de
cisi
on-m
akin
g pr
oces
s as
nee
ded
to m
ake
exce
llent
dec
isio
ns.
�P
assi
on
for
the
Bu
sin
ess:
Out
stan
ding
lead
ers
are
outw
ardl
y pa
ssio
nate
abo
ut o
ur b
usin
ess,
win
ning
in th
e m
arke
tpla
ce,
and
wha
t tec
hnol
ogie
s an
d se
rvic
es c
an d
o fo
r th
e w
orld
.
HBSQ13_ch10_ 11/5/03 5:30 PM Page 293
93
Figu
re 1
0-9
Lead
ersh
ip C
ompe
tenc
y Pr
ofile
: Fin
co (F
inan
cial
Ser
vice
s)
Gen
eral
Att
ribu
tes
Lea
der
ship
Co
mp
eten
cies
at
Fin
co
Cre
atin
g V
alu
e�
Cu
sto
mer
-Fo
cuse
d
�In
nov
atio
n/R
isk
Taki
ng
�D
eliv
erin
g R
esu
lts
Exe
cuti
ng
Str
ageg
y
�F
ocu
sin
g o
n C
lien
t Val
ue:
Del
iver
s hi
gh-q
ualit
y so
lutio
ns th
at m
eet c
lient
s’ b
usin
ess
need
s; m
aint
ains
str
ong
clie
nt r
elat
ions
hips
.�
Cu
ltiv
atin
g K
ey R
elat
ion
ship
s: B
uild
s an
d m
aint
ains
rel
atio
nshi
ps w
hich
pro
mot
e F
inco
’s m
arke
tpr
esen
ce a
nd im
pact
.�
Dri
vin
g In
nov
atio
n:
Pro
mot
es in
nova
tions
—is
ope
n to
cha
nge
�D
eliv
erin
g R
esu
lts:
Pro
duce
s an
d de
liver
s su
perio
r re
sults
to a
ll st
akeh
olde
rs.
�G
lob
al V
isio
n:
Has
a b
road
vie
w o
f Fin
co’s
bus
ines
s en
viro
nmen
t and
is u
p-to
-dat
e on
glo
bal
deve
lopm
ents
in o
wn
area
of e
xper
tise.
�S
hap
ing
Str
ateg
y: U
nder
stan
ds h
ow v
isio
n is
impl
emen
ted
thro
ugh
func
tion-
rela
ted
stra
tegi
es a
nd a
ctio
npl
ans
that
ach
ieve
sus
tain
able
com
petit
ive
adva
ntag
e.�
Insp
irin
g a
nd
Bu
ildin
g C
om
mit
men
t: C
omm
unic
ates
ope
nly
and
effe
ctiv
ely,
gai
ning
sup
port
of o
ther
s to
shar
e an
d su
ppor
t Fin
co’s
vis
ion
and
core
val
ues.
�F
ost
erin
g In
teg
rati
on
an
d T
eam
wo
rk:
Is e
ffect
ive
in te
amw
ork
acro
ss in
divi
dual
s, o
rgan
izat
ions
, and
cultu
res—
dem
onst
rate
s in
terc
ultu
ral c
ompe
tenc
y.
�F
ost
erin
g O
rgan
izat
ion
al L
earn
ing
: E
nsur
es c
ontin
uity
of t
he b
usin
ess
thro
ugh
know
ledg
e tr
ansf
er a
ndin
crea
se o
f int
elle
ctua
l cap
ital.
�F
inan
cial
an
d B
usi
nes
s A
cum
en:
Und
erst
ands
the
fact
ors
unde
rlyin
g th
e fin
anci
al p
erfo
rman
ce o
f the
ir ow
nbu
sine
ss a
rea—
focu
ses
on c
reat
ing
valu
e fo
r F
inco
.
�U
nd
erst
and
ing
Str
ateg
y
�A
cco
un
tab
ility
�C
om
mu
nic
atio
ns
�Te
amw
ork
Dev
elo
pin
g H
um
an C
apit
al�
Lea
rnin
g
�C
oac
hin
g/D
evel
op
ing
�P
erso
nal
Co
ntr
ibu
tio
n
HBSQ13_ch10_ 11/5/03 5:30 PM Page 294
94
Figu
re 1
0-10
Lead
ersh
ip C
ompe
tenc
y Pr
ofile
: Ris
k M
anag
emen
t, In
c. (R
MI)
(Pro
perty
and
Cas
ualty
Insu
ranc
e)
Gen
eral
Att
ribu
tes
Lea
der
ship
Co
mp
eten
cies
at
RM
IC
reat
ing
Val
ue
�C
ust
om
er-F
ocu
sed
�In
nov
atio
n/R
isk
Taki
ng
�D
eliv
erin
g R
esu
lts
�T
hin
kin
g S
trat
egic
ally
in a
Ch
ang
ing
Mar
ketp
lace
: A
ntic
ipat
es a
nd r
ecog
nize
s op
port
uniti
es a
nd k
eym
arke
tpla
ce tr
ends
that
wou
ld c
ontr
ibut
e to
RM
I’s b
usin
ess
goal
s. C
reat
es a
futu
re c
ours
e of
act
ion,
und
erco
nditi
ons
of u
ncer
tain
ty, t
hat a
ligns
with
the
orga
niza
tion’
s vi
sion
and
goa
ls.
�C
hal
len
gin
g a
nd
Tak
ing
Ris
ks: D
irect
ly c
halle
nges
ass
umpt
ions
and
bel
iefs
of p
eopl
e at
all
leve
ls. W
illin
g to
take
a st
and
that
may
cre
ate
a co
nflic
t or
be u
npop
ular
. Enc
oura
ges
thes
e be
havi
ors
in o
ther
s.�
Lea
din
g C
han
ge
and
Inn
ovat
ion
: Le
ads
chan
ge in
peo
ple,
str
uctu
res,
and
pro
cess
es th
at m
oves
the
orga
niza
tion
from
whe
re w
e ar
e no
w to
whe
re w
e w
ant t
o be
. Ant
icip
ates
and
res
pond
s to
opp
ortu
nitie
s cr
eate
d by
cha
nge.
Pro
duce
s ex
cept
iona
l res
ults
by
seek
ing,
gen
erat
ing,
and
enc
oura
ging
new
way
s of
doi
ng th
ings
.
Exe
cuti
ng
Str
ateg
y�
Un
der
stan
din
g S
trat
egy
�A
cco
un
tab
ility
�C
om
mu
nic
atio
ns
�Te
amw
ork
�E
stab
lish
ing
a H
igh
-Per
form
ance
Env
iro
nm
ent:
Cre
ates
an
envi
ronm
ent w
here
vis
ion
and
mis
sion
are
cle
arly
defin
ed, w
here
targ
ets
for
perf
orm
ance
are
agg
ress
ive,
whe
re fe
edba
ck is
exp
ecte
d an
d ut
ilize
d to
impr
ove
perf
orm
ance
, and
whe
re r
ewar
ds fo
r hi
gh p
erfo
rmer
s an
d co
nseq
uenc
es fo
r lo
w p
erfo
rmer
s ar
e vi
sibl
e an
d re
al.
�H
old
ing
Sel
f an
d O
ther
s A
cco
un
tab
le t
o D
eliv
er o
n C
om
mit
men
ts:
Ste
ps u
p an
d ta
kes
resp
onsi
bilit
y fo
rin
itiat
ives
that
hav
e si
gnifi
cant
cor
pora
te im
pact
. Mak
es s
peci
fic c
omm
itmen
ts a
nd fo
llow
s th
roug
h fo
r fu
llim
plem
enta
tion.
Ens
ures
that
dire
ct r
epor
ts d
eliv
er o
n co
mm
itmen
ts. C
larif
ies
role
s fo
r se
lf an
d ot
hers
.�
Wo
rkin
g A
cro
ss B
ou
nd
arie
s: E
stab
lishe
s pa
rtne
rshi
ps a
t all
leve
ls a
nd a
cros
s de
part
men
t and
func
tiona
l lin
es to
achi
eve
optim
um b
usin
ess
resu
lts.
Dev
elo
pin
g H
um
an C
apit
al�
Lea
rnin
g
�C
oac
hin
g/D
evel
op
ing
�P
erso
nal
Co
ntr
ibu
tio
n
�B
ench
mar
kin
g In
tern
ally
an
d E
xter
nal
ly:
Mea
sure
s an
d co
mpa
res
prod
ucts
, ser
vice
s, s
trat
egie
s, a
nd p
roce
sses
agai
nst o
ther
ext
erna
l org
aniz
atio
ns o
r un
its w
ithin
RM
I pra
ctic
es.
�D
evel
op
ing
Sel
f an
d O
ther
s: C
reat
es a
n en
viro
nmen
t tha
t fos
ters
and
rei
nfor
ces
the
impo
rtan
ce o
f dev
elop
men
tan
d le
arni
ng a
s a
busi
ness
prio
rity.
Is a
rol
e m
odel
for
cont
inuo
us s
elf-
asse
ssm
ent a
nd im
prov
emen
t. P
roac
tivel
yse
eks
chal
leng
ing
oppo
rtun
ities
to d
evel
op a
nd g
row
. Sup
port
s di
rect
rep
orts
in th
is p
roce
ss.
HBSQ13_ch10_ 11/5/03 5:30 PM Page 295
95
Figu
re 1
0-11
Lead
ersh
ip C
ompe
tenc
y Pr
ofile
: Bon
nevi
lle P
ower
Adm
inis
tratio
n (B
PA)
Str
ateg
ic O
bje
ctiv
es:
Lead
ersh
ip d
eman
ds s
ettin
g a
clea
r di
rect
ion,
focu
sing
em
ploy
ees'
effo
rts,
and
mod
elin
g hi
gh-p
erfo
rman
ce b
ehav
iors
.O
rgan
izat
iona
l suc
cess
dep
ends
on
lead
ersh
ip e
xhib
ited
at a
ll le
vels
. BPA
lead
ers
mus
t pro
vide
bot
h st
rate
gic
awar
enes
s an
d al
ignm
ent s
o th
atB
PA is
wel
l pos
ition
ed fo
r th
e fu
ture
; BPA
lead
ers
link
peop
le w
ith b
usin
ess
stra
tegy
, bot
h in
side
and
out
side
the
agen
cy. B
PA's
lead
ers
also
are
expe
cted
to p
rodu
ce a
genc
y an
d w
orkg
roup
res
ults
.M
easu
rem
ent
Inte
nt:
Det
erm
ine
the
exte
nt to
whi
ch c
usto
mer
s, c
onst
ituen
ts, a
nd e
mpl
oyee
s un
ders
tand
the
mis
sion
and
dire
ctio
n of
the
agen
cy.
Det
erm
ine
the
exte
nt to
whi
ch B
PA's
lead
ers
are
succ
essf
ul in
pro
duci
ng n
eede
d bu
sine
ss r
esul
ts.
Res
ult
s:O
AS
Lea
der
ship
an
d Q
ual
ity
Ind
ex
Key
que
stio
ns fr
om th
e O
AS
sur
vey:
�“E
mpl
oyee
s ha
ve a
n un
ders
tand
ing
of th
e or
gani
zatio
n’s
mis
sion
, vis
ion,
and
valu
es.”
77%
favo
rabl
e�
“Man
ager
s le
t em
ploy
ees
know
how
thei
r w
ork
cont
ribut
es to
the
orga
niza
tion’
sm
issi
on a
nd g
oals
.” 66
% fa
vora
ble
Key
que
stio
ns fr
om th
e G
PT
W s
urve
y (A
genc
y S
core
s):
Q.7
“Man
agem
ent m
akes
its
expe
ctat
ions
cle
ar.”
52%
favo
rabl
e in
200
2 (v
s. 4
2% in
200
1)Q
.20
“Man
agem
ent h
as a
cle
ar v
iew
of w
here
the
orga
niza
tion
is g
oing
and
how
to g
et th
ere.
”49
% fa
vora
ble
in 2
002
(vs.
41%
in 2
001)
Key
que
stio
ns fr
om th
e an
nual
cus
tom
er a
nd c
onst
ituen
t sur
veys
:
Q.5
“[T
he P
BL/
TB
L] c
omm
unic
ates
with
you
in a
fort
hrig
ht m
anne
r.”7.
5 P
BL;
7.6
TB
L in
200
2Q
.8“B
PA c
lear
ly c
omm
unic
ates
its
mis
sion
and
pol
icie
s.”
7.0
in 2
002
vs. 6
.5 in
200
1
75 50 25
64 61 34
BPA
- 6
4
Hig
h B
ench
mar
k
Low
Ben
chm
ark
100 80 60 40 20 0
Q.7
Q.2
0
2000
2001
2002
100
Bes
t B
ench
mar
k
10 8 6 4 2 0
Gre
at P
lace
to
Wo
rk S
urv
ey
Cu
sto
mer
an
d C
on
stit
uen
t S
atis
fact
ion
Su
rvey
s
1999
2000
2001
2002
PB
LC
ust
om
ers
TB
LC
ust
om
ers
Co
nst
itu
ents
Ave
rage
acc
ompl
ishm
ent o
f Age
ncy
Suc
cess
Sha
re ta
rget
s in
200
1:75
%A
vera
ge a
ccom
plis
hmen
t of T
eam
Sha
re ta
rget
s in
200
1:88
% o
f bas
e, 6
7% o
f str
etch
Acc
om
plis
hm
ent
of
Res
ult
s:
HBSQ13_ch10_ 11/5/03 5:30 PM Page 298
96
Figu
re 1
0-12
Defin
ing
and
Mea
surin
g St
rate
gic
Awar
enes
s an
d Al
ignm
ent
(A)
Rei
nfor
ce s
trat
egic
dire
ctio
n an
dst
reng
then
sen
se o
f urg
ency
and
purp
ose
(B)
Alig
n ef
fort
s th
roug
hm
easu
rem
ent a
nd r
ewar
d
(C)
Cre
ate
a m
otiv
ated
and
pre
pare
dw
orkf
orce
(D)
Alig
n pe
rson
al g
oals
(E)
Em
pow
er e
mpl
oyee
s
�P
erce
nt o
f sta
ff w
ith o
bjec
tives
tied
to B
SC
�P
erce
nt o
f em
ploy
ees
(dire
ctor
and
abo
ve)
with
goa
ls m
appe
d to
str
ateg
y
�P
erce
nt o
f sta
ff w
ith p
erso
nal B
SC
�P
erce
nt o
f sta
ff w
ith g
oals
link
ed to
BS
C
�P
erce
nt o
f sta
ff w
ith tr
aini
ng a
ndde
velo
pmen
t lin
ked
to B
SC
Hea
lth c
are
Mut
ual f
unds
Hea
lth c
are
Pro
cess
sec
tor
Nat
iona
l ban
k
City
gov
ernm
ent
(tra
nspo
rtat
ion)
Att
ribu
teS
trat
egic
Ob
ject
ive
Str
ateg
ic M
easu
reO
rgan
izat
ion
Str
ateg
icA
war
enes
s
Str
ateg
icA
lign
men
t
(A)
Ens
ure
that
all
empl
oyee
sun
ders
tand
the
stra
tegy
�P
erce
nt o
f em
ploy
ees
who
can
iden
tify
orga
niza
tion'
s st
rate
gic
prio
ritie
s(s
urve
y)
HBSQ13_ch10_ 11/5/03 5:30 PM Page 301
97
Figu
re 1
0-13
Mea
surin
g St
rate
gic
Awar
enes
s an
d Al
ignm
ent a
t Firs
t Com
mun
ity B
ank
(FCB
)
FC
B S
trat
egy
Map
Lea
rnin
g a
nd
Gro
wth
Per
spec
tive
Hu
man
Cap
ital
Org
aniz
atio
nIn
form
atio
n(L
4)W
e ha
ve th
e in
form
atio
n an
dto
ols
we
need
to d
o ou
r jo
bs.
(L3)
We
unde
rsta
nd th
e st
rate
gy a
ndkn
ow w
hat w
e ne
ed to
do.
(L2)
I’m d
evel
opin
g th
e sk
ills
I nee
d to
suc
ceed
.
(L1)
We
deve
lop,
rec
ogni
ze,
reta
in, a
nd h
ire g
reat
peo
ple.
L3
We
unde
rsta
nd th
est
rate
gy a
nd k
now
wha
t we
need
to d
o.
FC
B w
ill c
omm
unic
ate
its s
trat
egy
thro
ugh
the
Bal
ance
d S
core
card
and
cas
cade
it to
the
appr
opria
te le
vels
with
in th
e or
gani
zatio
n ov
er ti
me.
Thi
s w
ill e
nsur
e th
at e
very
one
know
s w
hat t
he F
CB
str
ateg
y is
, how
it r
elat
es to
the
big
pict
ure
at F
CB
, and
how
it c
anbe
use
d to
prio
ritiz
e da
y-to
-day
act
iviti
es. F
CB
lead
ersh
ip w
ill w
ork
to m
ake
sure
that
stra
tegi
c co
mm
unic
atio
ns a
re o
pen,
cle
ar, a
nd c
onsi
sten
t.
Mea
sure
s
�S
trat
egic
Un
der
stan
din
g�
Org
aniz
atio
n A
lign
men
t�
Per
son
al A
lign
men
t
Str
ateg
ic U
nd
erst
and
ing
Q1
I und
erst
and
the
corp
orat
e st
rate
gy.
Q2
I am
reg
ular
ly in
form
ed o
f the
FC
Bst
rate
gy.
Q3
I und
erst
and
the
FC
B s
trat
egy.
Q4
I und
erst
and
the
goal
s of
my
divi
sion
.Q
5I u
nder
stan
d ho
w m
y di
visi
onhe
lps
FC
B a
chie
ve it
s st
rate
gy.
Org
aniz
atio
n A
lign
men
t
Q6
The
goa
ls o
f FC
B a
re w
ell a
ligne
d w
ith th
e co
rpor
ate
stra
tegy
.Q
7T
he g
oals
of m
y di
visi
on a
re w
ell a
ligne
d w
ith th
e F
CB
str
ateg
y.Q
8T
he g
oals
of m
y di
visi
on a
re w
ell a
ligne
d w
ith o
ther
FC
Bdi
visi
ons.
Q9
My
divi
sion
wor
ks e
ffect
ivel
y w
ith o
ther
FC
B d
ivis
ions
tom
eet c
usto
mer
nee
ds.
Q10
It’s
easy
to g
et h
elp
from
oth
er F
CB
div
isio
ns to
mee
tcu
stom
er n
eeds
.Q
11Im
prov
ing
the
degr
ee o
f alig
nmen
t and
syn
ergy
bet
wee
nF
CB
div
isio
ns is
a h
igh
prio
rity.
Per
son
al A
lign
men
t
Q12
I und
erst
and
how
wel
l cor
pora
te is
doi
ng in
ach
ievi
ng it
sst
rate
gy.
Q13
I und
erst
and
how
wel
l FC
B is
doi
ng in
ach
ievi
ng it
s st
rate
gy.
Q14
I und
erst
and
how
wel
l my
divi
sion
is d
oing
in a
chie
ving
its
stra
tegy
.Q
15I u
nder
stan
d ho
w m
y da
y-to
-day
job
help
s ac
hiev
e th
e F
CB
stra
tegy
.Q
16I u
nder
stan
d ho
w m
y da
y-to
-day
job
help
s ac
hiev
eth
e go
als
of m
y di
visi
on.
Q17
My
pers
onal
goa
ls a
re s
et w
ith th
e F
CB
str
ateg
y an
d m
ydi
visi
onal
goa
ls in
min
d.
HBSQ13_ch10_ 11/5/03 5:30 PM Page 302
98
Figu
re 1
0-14
Defin
ing
and
Mea
surin
g Te
amw
ork
and
Know
ledg
e Sh
arin
g
Att
ribu
te
Che
mic
als
Inte
rnat
iona
l ins
uran
ce
Fin
anci
al s
ervi
ces
Pha
rmac
eutic
als
Sof
twar
e
Fin
anci
al s
ervi
ces
Man
ufac
turin
g
Kn
ow
led
ge
Sh
arin
g
Org
aniz
atio
nIn
teg
rati
on
Str
ateg
ic O
bje
ctiv
e
(A)
Dev
elop
a le
arni
ng o
rgan
izat
ion
(B)
Con
tinua
lly d
evel
op a
nd tr
ansf
erkn
owle
dge
(C)
Ens
ure
com
mun
icat
ion
of b
est-
prac
tice
idea
s
(D)
Impr
ove
cros
s-co
mpa
ny c
omm
unic
atio
n
(E)
Cre
ate
and
utili
ze a
com
mon
glo
bal
syst
em a
nd p
roce
ss fo
r sh
arin
gkn
owle
dge
(F)
Ens
ure
avai
labi
lity
of a
ccur
ate,
cons
iste
nt in
form
atio
n ac
ross
the
orga
niza
tion
(G)
Inte
grat
e em
ploy
ees
�N
umbe
r of
bes
t pra
ctic
es id
entif
ied
�O
utpu
t per
em
ploy
ee
�H
ours
of t
rain
ing
per
pers
on
�P
erce
nt o
f em
ploy
ees
part
icip
atin
g in
the
wor
kout
pro
cess
�P
erce
nt o
f sta
ff us
ing
know
ledg
e-sh
arin
gch
anne
ls
�C
urre
ncy
of p
roje
cts
in k
now
ledg
e ba
nk (
KB
)�
Num
ber
of h
its to
KB
�P
erce
nt o
f tar
gete
d m
easu
res,
dat
a, a
ndst
atis
tics
acce
ssib
le a
cros
s or
gani
zatio
n
�N
umbe
r of
cro
ss-d
ivis
ion
mov
emen
ts
Str
ateg
ic M
easu
reO
rgan
izat
ion
HBSQ13_ch10_ 11/5/03 5:30 PM Page 305
99
Figu
re 1
0-15
Orga
niza
tion
Capi
tal R
eadi
ness
Rep
ort
Att
ribu
teS
trat
egic
Ob
ject
ive
Str
ateg
ic M
easu
reTa
rget
Act
ual
Lea
der
ship
Cu
ltu
re
Alig
nm
ent
Team
wo
rk
To d
evel
op th
e av
aila
bilit
y of
lead
ers
at a
llle
vels
to m
obili
ze th
e or
gani
zatio
n to
war
d its
stra
tegy
To d
evel
op a
war
enes
s an
d in
tern
aliz
atio
n of
the
mis
sion
, vis
ion,
and
cor
e va
lues
nee
ded
to e
xecu
te th
e st
rate
gy
To e
nsur
e al
ignm
ent o
f goa
ls a
nd in
cent
ives
with
the
stra
tegy
at a
ll le
vels
of t
heor
gani
zatio
n
To e
nsur
e th
e sh
arin
g of
kno
wle
dge
and
staf
fas
sets
with
str
ateg
ic p
oten
tial
�Le
ader
ship
gap
(Per
cent
of k
ey a
ttrib
utes
in c
ompe
tenc
ym
odel
rat
ed a
bove
thre
shol
d)
�C
usto
mer
-focu
sed
(Cus
tom
er s
urve
y; p
erce
nt w
houn
ders
tand
our
mis
sion
)�
Oth
er c
ore
valu
es(E
mpl
oyee
cha
nge
read
ines
ssu
rvey
)
�S
trat
egic
aw
aren
ess
(Per
cent
of s
taff
who
can
iden
tify
orga
niza
tion’
s st
rate
gic
prio
ritie
s)�
Str
ateg
ic a
lignm
ent
(Per
cent
of s
taff
with
obj
ectiv
es a
ndin
cent
ives
link
ed to
Bal
ance
d S
core
card
)
�B
est-
prac
tice
shar
ing
(Num
ber
of K
MS
hits
/em
ploy
ee)
90%
92%
G
80%
68%
R
80%
52%
R
80%
75%
R
100%
60%
R
5.0
6.1
G
HBSQ13_ch10_ 11/5/03 5:30 PM Page 307
100
Figu
re 1
0-16
A St
rate
gic
Prog
ram
to D
evel
op O
rgan
izatio
n Ca
pita
l Rea
dine
ss
Att
ribu
te
Lea
der
ship
Cu
ltu
re
Alig
nm
ent
Team
wo
rk
Mea
sure
of
Str
ateg
ic R
ead
ines
sTa
rget
s(S
amp
le)
Str
ateg
ic In
itia
tive
sL
ead
Ind
icat
ors
Str
ateg
icP
rog
ram
Bu
dg
et
�L
ead
ersh
ip G
ap(K
ey A
ttri
bute
s)
�C
ust
om
er-F
ocu
sed
�C
ore
Val
ues
�S
trat
egic
Aw
aren
ess
�S
trat
egic
Alig
nm
ent
�B
est
Pra
ctic
es�
Key
Peo
ple
�Te
ams
�R
ewar
ds
�S
har
ing
Acr
oss
Bo
un
dar
ies
Org
aniz
atio
n C
apit
alR
ead
ines
s R
epo
rt
90%
80%
80%
80%
100%
100%
(ver
sus
pla
n)Org
aniz
atio
n C
apit
al D
evel
op
men
t P
rog
ram
�L
ead
ersh
ip D
evel
op
men
t�
Su
cces
sio
n P
lan
nin
g�
Gov
ern
ance
Pro
cess
�S
trat
egy
Man
agem
ent
�C
om
mu
nic
atio
ns
�C
han
ge
Man
agem
ent
�L
ead
ersh
ip D
evel
op
men
t
�P
erfo
rman
ceM
anag
emen
t�
Tota
l Co
mp
ensa
tio
n a
nd
Rew
ard
�P
osi
tive
Wo
rkE
nvir
on
men
t
�K
no
wle
dg
emen
tM
anag
emen
t�
Org
aniz
atio
nE
ffec
tive
nes
s�
Sta
ff R
ota
tio
n
$XX
X
$XX
X
$XX
X
$XX
X
�P
erce
nt
of
Inte
rnal
Ver
sus
Ext
ern
al H
ires
�P
erce
nt
of
Par
tici
pat
ion
in L
ead
ersh
ip C
ou
rses
�P
erce
nt
of
Em
plo
yees
Reg
ula
rly
Su
rvey
ed�
Cu
ltu
re A
sses
smen
t
�P
erso
nal
Go
als
Lin
ked
to B
SC
(p
erce
nt)
�P
erce
nt
Rec
eivi
ng
Ince
nti
veC
om
pen
sati
on
�P
erce
nt
Usi
ng
Kn
ow
led
ge-
Sh
arin
gC
han
nel
s
HBSQ13_ch10_ 11/5/03 5:30 PM Page 309
101
Figu
re 1
0-17
Inge
rsol
l-Ran
d St
rate
gy M
ap
�M
anag
e th
e P
rod
uct
Po
rtfo
lio fo
rC
om
pet
itiv
e A
dva
nta
ge
�R
estr
uct
ure
Bu
sin
esse
s an
dM
arke
ts t
o D
rive
Gro
wth
an
dP
rofi
tab
ility
�Id
enti
fy, A
cqu
ire,
an
d A
ssim
ilate
Co
mp
lem
enta
ry S
olu
tio
ns
�D
evel
op
Inn
ovat
ive,
Dif
fere
nti
atin
gA
pp
licat
ion
s an
d S
olu
tio
ns
�Id
enti
fy a
nd
Tar
get
Gro
wth
Mar
kets
and
Seg
men
ts
�L
ever
age
IR C
han
nel
an
dC
ust
om
er N
etw
ork
�D
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HBSQ13_ch10_ 11/5/03 5:30 PM Page 314
102
Figure 11-1 Creating Value Across the Supply Chain
CustomerWillingnessto Pay
Price
Cost: AmountPaid to Employeesand Suppliers
TotalValueCreated
ValueCaptured byCustomers
ValueCaptured byCompany
ValueCaptured bySuppliers
Suppliers' Cost (orOpportunity Cost)
HBSQ13_ch11_ 11/5/03 5:32 PM Page 321
103
Figu
re 1
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HBSQ13_ch11_ 11/5/03 5:32 PM Page 324
104
Figu
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HBSQ13_ch11_ 11/5/03 5:32 PM Page 327
105
Figu
re 1
1-4
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Tem
plat
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ompl
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HBSQ13_ch11_ 11/5/03 5:33 PM Page 331
106
Figu
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1-5
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HBSQ13_ch11_ 11/5/03 5:33 PM Page 337
107
Figu
re 1
1-6
Tata
Aut
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astic
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tem
s St
rate
gy M
ap
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HBSQ13_ch11_ 11/5/03 5:33 PM Page 348
108
Figu
re 1
1-7
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HBSQ13_ch11_ 11/5/03 5:33 PM Page 350
109
Figu
re 1
1-8
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HBSQ13_ch11_ 11/5/03 5:33 PM Page 353
110
Figu
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1-9
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HBSQ13_ch11_ 11/5/03 5:33 PM Page 357
111
Figu
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1-10
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HBSQ13_ch11_ 11/5/03 5:33 PM Page 358
112
Figu
re 1
1-11
Thom
son
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l Stra
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Inte
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HBSQ13_ch11_ 11/5/03 5:33 PM Page 363
113
Figu
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2-1
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HBSQ13_ch12_ 11/5/03 5:34 PM Page 368
115
Figu
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HBSQ13_ch12_ 11/5/03 5:34 PM Page 372
117
Figure 12-5 Case Study: Defining the Value Gap at Consumer Bank
DramaticallyIncrease
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Customer
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Target: Increasenet income by$100M in 5 Years
GrowthStrategy
Target: Reduceannual customer costfrom $100 to $75
Target: Increase annualrevenue per customerfrom $200 to $300
Target: Increase thenumber of high-valuecustomers from200,000 to 600,000
HBSQ13_ch12_ 11/5/03 5:34 PM Page 374
118
Figu
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HBSQ13_ch12_ 11/5/03 5:34 PM Page 376
119
Figu
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2-7
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Stu
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t Con
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ank
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HBSQ13_ch12_ 11/5/03 5:34 PM Page 378
120
Figu
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2-8
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121
Figu
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2-9
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122
Figu
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2-10
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HBSQ13_ch12_ 11/5/03 5:34 PM Page 385
123
Figu
re 1
2-11
Case
Stu
dy: A
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tegi
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tion
Plan
at C
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mer
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k
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HBSQ13_ch14_ 11/5/03 5:37 PM Page 425
132
Figu
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135