BalancedScorecardpresented by Mariam Khan

Vision statement

outlines what a company wants to be

To achieve our vision, how will we sustain our ability to change and improve?

A map is handy to communicate

(=Strategy map)

how you plan to get(=Strategy)

from where you are(=Mission)

to where you want to be(=Vision)

Strategy

is a long term plan of action designed to achieve a particular goal, most often "winning"

Capitalizing on Capabilities Comes in ..

Our only limitations are those which we set up in our minds or permit others to establish

for us."

– Elizabeth Arden

insert

¥€$

:-)

Learningperspective

Processperspective

Customerperspective

Financialperspective

Acquiring knowledge

Summarizing knowledge

Customer satisfaction

Profitable growth

Capability defined .

Capability represents the identity of your firm as perceived by both your employees and your customers. It is your ability to perform better than competitors using a distinctive and difficult to replicate set of business attributes. Capability is a capacity for a set of resources to integratively perform a stretch task

Organizational capabilities X Individual Organization

alTechnical

An individual’s functional competence

An organizations core -competence

Social An individuals leadership ability

An organizational capabilities

Organizational Capability Explanation

Ways to evaluate/track this capability

1 Talent Talent is the organizational capability that attracts, motivates and retains competent and committed people.  

Productivity measures, retention statistics, employee surveys, and direct observation.  

2 Speed This is the ability to recognize opportunities and to act immediately.  

How long it takes to go from concept to commercialization, or from the collection of customer data to changes in customer relations;

3 Shared Mind-Set & Coherent Brand Identity

This is the organizational capability that ensures that employees and customers have positive and consistent images of and experiences with an organization.  

Measuring the degree of consensus among employees when they are all asked what the top three things are that the company wants to be known for in the future.

4 Accountability This is being good at obtaining high performance from employees. Performance accountability becomes an organizational capability when employees realize that failure to meet their goals would be unacceptable to the company.  

Examine the tools you use to manage performance (i.e., appraisal forms, variance in compensation based on employee performance, etc.)

5 Collaboration This is working across boundaries, ensuring efficiency and leverage.  

Calculate a company’s break-up value; Compare the break-up value to the current market value of the assets.

6 Learning This is generating and generalizing ideas with impact. New ideas can be generated by benchmarking, experimenting, continuously improving, etc.    

Look at what other companies are doing; Hire or develop people with new skills and ideas.

7 Leadership

Being good at embedding leaders throughout the organization. Consistently producing effective leaders is generally an indication of a clear leadership brand.  

You can track your organization’s leadership brand by monitoring the pool of future leaders.

8 Customer Connectivity

Building long-lasting relationships of trust with certain customers. When a large number of employees have meaningful exposure to or interaction with customers, connectivity is enhanced 

Identify your key accounts and track the share of those important customers over time; Frequent customer-service surveys may also offer insight into how customers perceive your connectivity.

9 Strategic Unity

Articulating and sharing a strategic point of view. There are three levels of strategic unity: intellectual, behavioral and procedural 

Note how consistently employees respond when asked about the company’s strategy.

10

Innovation

Doing something new in both content and process.  

A vitality index (for instance, one that records revenues or profits from products or services created in the last three years)

11

Efficiency

Being good at managing costs. Inventories, direct and indirect labor, capital employed, and costs of goods sold can all be viewed on balance sheets and income statements

insert

¥€$

:-)

Learningperspective

Processperspective

Customerperspective

Financialperspective

How will we sustain our ability to change and improve?

What business processes must we excel at?

How should we appear to our customers?

How should we appear to our shareholders?

Internal Gurantee helps.. • Commitment by one part of an organization to another

• To deliver its product or service to the complete satisfaction of the internal customer.

• If it fails to do so, it will incur a meaningful penalty, monetary or otherwise.

• Moreover, it is the employees involved--not management--who devise the commitment.

• The result?

• And an environment of blameless error takes hold in which employees are rewarded, not punished, for identifying problems instead of sweeping them under the rug.

• How to achieve this ?

1. A department must first identify its mission in the organization.

2. The ability to state exactly who its internal customers are.

3. Third, the department should identify what its internal customers need.

4. Fourth, drawing on their input, the department should design a guarantee that reflects those needs

5. Finally, those involved must decide on a penalty that is meaningful to the internal customer as well as to the supplier

Thank you ..