Linda Bounds Vice President – Financial Services Focus on Results Balanced Scorecards.
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Transcript of Linda Bounds Vice President – Financial Services Focus on Results Balanced Scorecards.
Linda BoundsVice President – Financial Services
Focus on Results Balanced Scorecards
Focus on Results
What approach do you use to achieve and maintain excellent results? -- Results that create loyalty customers and value for your employees, vendors/partners and shareholders.
The Question
Focus on Results – Balanced Scorecard
• Learning Objectives– Approach to Focus on Results
• Identify key stakeholders and requirements• Alignment of requirements and strategies• Systematic review through Balanced Scorecard
– Approach to Creating Value • Process improvement actions• Innovation
– Key to Achievement• Leadership System• Results - Sustainability
Focus on Results – Creating Value
A Balanced Scorecard is simply: • Your key stakeholders • Their key requirements• Indicators of your performance• Displays your goals • All of your important results on one
page
Balanced Scorecard
Key Elements - Performance Measurement System Set the Direction
• Align with Key Stakeholder Requirements
Key Elements - Performance Measurement System Set the Direction
• Linked to Organizational Goals
Key Elements - Performance Measurement System Set the Direction
• Align with SWOTS, Core Competencies and Company Strategies
MidwayUSA Company SWOT Analysis Reviewed 1/26/2012, Revised 1/26/2012
Weaknesses 1. Business Administration 1. Process Management2. Strategic Planning (Expertise, Speed and Agil ity) 2. Workforce Training and Development3. Customer Focus/Dedication to Customer Satisfaction 3. Capacity/Capability Planning
4. Product Selection (Just About Everything Concept) 4.Recruiting High-Performing Employees who Share Values w/Passion for Industry
5. New Product Acquisition 5. Website Management (Features and Speed)6. Promotional Business Model 6. Customer Complaint Management7. Inventory Management 7. Project Management8. Order Fulfillment Capabilities (Nitro Express) 8. Business Intell igence (Information Management and Analysis)
9.Larry Positioned as Face and Voice of Midway Representing our Brand
9. Market Research, Analysis and Benchmarking
10. Vendor Relationship Management 10. Succession Planning11. Key Conservation Group Strategic All iances 11. Long-Term Planning12. Culture of Continuous Improvement and Innovation
13.Loyal Employees with a High Level of Industry Knowledge and Passion
14. High Performing Employees15. Internal Information Systems Capabilities16. In-House Video Production Capability (GunTec)
Threats1. Entering New Markets and Growing Market Share 1. MAP Programs Limiting Promotional Opportunities2. Becoming an Internet-Only Retailer 2. Competition from Websites Doing Fulfillment Only 3. Internet Advertising and Marketing 3. Increasing/Changing or Unknown Regulations on Products4. Social Marketing and Monitoring 4. Business Downturn due to Market Conditions5. Sourcing MidwayUSA Branded Products 5. Vendors Restricting Exports
6.Knowledge Content & Product Information Creation, Management and Distribution
6. Computer Viruses, Malware, Phishing and Hacking
7. Leveraging Potterfield Donations to Key Conservation Groups 7. Legislation Affecting the Shooting/Hunting Industry
8. Customer Relationship Management 8. Limited Supply of Qualified IT and Web Professionals9. User-Generated Web Content and Community Features 9. Internet Sales Tax
10. International Business Model Expansion 10. Non-Endemic Companies Competing in our Industry (Amazon)11. Mobile Device Capabilities12. Expanding Repack/Bulk Component Business13. Negotiating Improved Freight Programs14. Improving Customer Satisfaction by Revising PH&I
15. Employee Satisfaction and Engagement (Great Place to Work)
16. Risk Management (Legal & Regulatory Compliance)
Strengths - Allow us to Deliver Exceptional Results
Opportunities - Increases Satisfaction of our Stakeholders
Key Elements - Performance Measurement System Establish the Measures
• Align with performance and process areas
Key Elements – Performance Measurement System - Link Goals and Requirements to Department and Individual Scorecards
Company Goals
Customer Satisfaction
Company Requirements
Product Availability
Accurate, Intact
Shipments
Easy to do business with
Department Scorecard
In-stock Rate
Shipping package quality
Fast Delivery
Abandoned Calls
Individual Scorecard
• In-stock rate by product line
• Package quality rate
• Picking error rate
• Ship QC invoices per hour
Key Elements - Performance Measurement System Establish the Measures • Integrate stakeholder requirement, process, measure and value
Key Elements - Performance Measurement SystemBalanced Scorecards
- Measures provide depth and breadth for fact-based decision making
Company Key Measures*2011 YTD
Actual2011 YTD
GoalApril/Q2
ActualApril/Q2 Goal 1 2 3 4 Benchmark source
Customer Satisfaction - Overall1 93.0% 92.0% 93.0% 92.6% Crutchfield, Orvis
Employee Satisfaction and Engagement 78% 84% 78% 84% N/A N/A N/A Hewitt & NBRI
Vendor Satisfaction 94% 92% 94% 92% N/A N/A N/A Cabela's, Bass Pro, Brownells
Gross Sales - Overall 100,000$ $92,000 50,000$ $50,000 Cabela's (rate of growth)
Net Income % of Net Sales 10.0% 9.9% 10.0% 9.9% Cabela's
Timely Payment of Earnings 100% 100% 100% 100% N/A
Inventory Turns (Paid) 10.6 10.0 10.5 10.0 2 Cabela's
% of Customer Orders with NRA Round-Up 64% 62% 64% 62% N/A
Receive Malcolm Baldrige National Quality Award 100% 100% 100% 100% N/A
Legal, Ethical and Regulatory Compliance 92% 100% N/A 100% N/A N/A N/A N/A
Strategic Plan Execution 17% 17% 17% 17% N/A
Continuous Improvement in Productivity 100% 100% 99% 100% N/A
MidwayUSA CEO/President Scorecard
* Not actual numbers. Numbers are for illustration purposes only.
Customer Satisfaction
* Not actual numbers. Numbers are for illustration purposes only.
Customer SatisfactionDetail
* Not actual numbers. Numbers are for illustration purposes only.
7.1 Customer Satisfaction Detail 2011 April/Q2
Measure 2009 2010 Actual Goal Actual Goal7.1.3 Fast shipping and delivery 94.0% 94.0% 94% 93% 94.0% 95%
7.1.4.1 Customer Satisfaction Survey Question #13 94.0% 94.0% 94.0% 93% 94.0% 95%
7.1.4.2 Same Day Shipping (all orders) 98.9% 95.0% 88.4% 99.0% 92.0% 99.0%
7.1.4.3 Same Day Shipping (Pick-up orders) Coming Coming Coming Coming Coming Coming
7.1.8 Friendly, courteous, respectful, ethical service 93.0% 94.0% 93.0% 92.6% 93.0% 92.5%
7.1.8.1 Customer Satisfaction Survey Question #1 94.0% 94.0% 94.0% 93% 94.0% 93%
7.1.8.2 Customer Satisfaction Survey Question #15 92.0% 93.0% 92.0% 92% 92.0% 92%
7.1.8.3 After Call CSR survey N/A 92.0% 93.8% 92.0% 94.4% 92.0%
7.1.8.4 Time Service Factor 69.3% 75.2% 83.2% 75-85% 84.1% 75-85%
7.1.8.5 Abandoned Calls 2.6% 2.5% 2.0% 3.0% 1.4% 3.0%
Logistics Department Scorecard
2009 2010 April AprilEOY EOY Actual Goal Actual Goal
Stocking Cost per Invoice - Stocking $0.25 $0.22 $0.18 $0.25 $0.27 $0.30Cost per Line - Stocking $1.31 $0.90 $0.92 $1.00 $1.45 $1.50Dock to Stock: Total Cycle Time Average n/a 12.8 16.1 17.0 29.5 61.0
Repack Cost per Invoice - Repack ($0.05) $0.02 $0.01 +/- $0.02 $0.01 +/- $0.02Repack Labor Variance 22.4% -12.2% -1.0% +/- 10% -1.0% +/- 10%
Receiving Cost per Invoice - Receiving $0.37 $0.33 $0.30 $0.31 $0.20 $0.35Cost per Line - Receiving $1.77 $1.55 $1.44 $1.46 $1.40 $1.46Receiving Same Day 99.4% 97.6% 90.5% 95.0% 83.8% 99.0%
Product Control Inventory Adjustments $7,953 ($2,000) ($7,000) ($7,000) ($4,000) ($4,000)
Shipping & Picking Same Day Shipping 98.9% 95.0% 87.4% 99.0% 86.8% 99.0%Shipping Package Quality 99.7% 99.9% 99.9% 99.8% 99.5% 99.8%Picking Scans per Hour 163 144 162 160 168 160Ship QC Invoices per hour 57 51 51 50 53 50Cost per Invoice - Shipping $1.62 $1.66 $1.20 $1.32 $1.00 $1.24
Warehouse Cost per Invoice - Warehouse $0.28 $0.23 $0.07 $0.08 $0.06 $0.08Cost per Line - Warehouse $2.89 $2.36 $2.30 $2.70 $2.00 $2.70
Returns Cost per Return $2.48 $1.87 $1.37 $1.87 $1.06 $1.87Same Day Returns 80.6% 100.0% 87.0% 99.0% 99.0% 99.0%
Training & ERG Reliability 99.1% 97.7% 92.9% 90.0% 92.0% 90.0%Conduct DKS to Schedule 100.0% 100.0% 100.0% 100.0% Quarterly Quarterly NA NA NADept - Direct Training Expenditures as % of Payroll2.7% 2.1% 3.5% 3.0% Quarterly Quarterly NA NA NA
Process Management ISO Corrective Action 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Results Management Performance to Budget $20,000 $20,000 $20,000 $25,000 $4,000 $5,000Productivity: Profit $ per Employee Cost $ $4.98 $4.51 $5.80 $5.73 $5.80 $4.44
History
4321
LO Process Scorecard
Area Process Section Process Measures2011 YTD
* Not actual numbers. Numbers are for illustration purposes only.
Employee Performance Shipping & Picking Productivity: 6/10/11 through 6/17/2011
Employee IDNameHome Dept
Packages Shipped
Shipping Hours
Packages per Hour
Picking Scans
Picking Hours
Scans/Hr
11111 Stan Frink Shipping 202 4.5 44.9 364 2.2 165.522222 John Doe Picking 678 10.3 65.8 2196 15.1 145.433333 Jane Doe Shipping 472 6.6 71.5 891 4.4 202.544444 Jim Smith Shipping 392 5.3 74.0 1548 9.9 156.455555 Jill Smith Picking 187 4.2 44.5 1447 10.6 136.5
* Not actual numbers. Numbers are for illustration purposes only.
Daily Dashboard - Company Level
Date Range: 6/ 10/ 2011 thru 6/ 16/ 2011 11:59 PM
Date Invoices Gross Sales (Actual)
Gross Sales (Goal)
Gross Sales % of Goal
Margin %
Inventory Inventory Goal
Inventory % of Goal
In Stock Rate
(Goal = 85% )
Same Day Shipping*(Goal = 99% )
6/16/2011 1,000 $100,111 $119,265 84% 36% $153,000 $150,000 102% 79.3% 97.0%
6/15/2011 1,200 $98,148 $108,675 90% 32% $150,000 $150,000 100% 79.2% 96.8%
6/14/2011 1,300 $81,136 $78,434 103% 36% $124,000 $150,000 83% 78.8% 96.1%
6/13/2011 1,400 $75,247 $78,061 96% 32% $115,000 $150,000 77% 78.7% 97.1%
6/12/2011 1,500 $73,284 $70,591 104% 35% $112,000 $150,000 75% 77.7% 95.7%
6/11/2011 1,600 $79,173 $87,145 91% 34% $121,000 $150,000 81% 78.3% Saturday
6/10/2011 1,700 $100,765 $105,536 95% 34% $154,000 $150,000 103% 79.0% 95.7%
84.2%
Time Service Factor
(Goal = 75 -85% )
76.2%
85.4%
63.8%
80.1%
71.8%
83.8%
Company Daily Dashboard
* Not actual numbers. Numbers are for illustration purposes only.
CompanyScorecardCompanyScorecard
Employee Performance
Employee Performance
Area Process Measures
Area Process Measures
Department Scorecard
Department Scorecard
Monthly SLT Review
Monthly SLT Review
Supervisor Daily ReviewSupervisor
Daily Review
Monthly DLT Review
Monthly DLT Review
Monthly Review with
President
Monthly Review with
President
Key Elements – Performance Measurement SystemSystematic Review Process
Key Elements – Performance Measurement SystemTake Action – Value Creation
Creating Value
Key Elements of Performance Measurement System Take Action - Value Creation
• Review of results generate process improvement and innovation• Three categories at Midway:
– Corrective Actions from review of process measures– Innovation from continuous improvement ideas– “Bucket List” for strategically significant ideas
Key Elements – Performance Measurement SystemTake Action - Value Creation
- Results not meeting goal for three months - establish Action Plan
* Not actual numbers. Numbers are for illustration purposes only.
Key Elements – Performance Measurement System Take Action – Company Action Plans (CAPs) Department Action Plans (DAPs)
- Track Action Plan Results through integration into the process.
2012 MidwayUSA Strategic Plan Execution Measure
% Complete 16%% Goal 16%
Initiative (1) Status (2) Start (2) Complete (2) Proj Compl Date (2)VAT Redesign In progress 4/1/2012 10/30/2012 10/30/2012UPC Acquisition* Completed 2/1/2012 5/31/2012 5/31/2012Slotting (2-Year Plan)* In progress 1/3/2011 11/7/2012 11/7/2012Sitka Niche Marketing Campaign* Completed 1/23/2012 12/31/2012 12/31/2012Reward and Recognition Process Re-engineering In progress 1/3/2012 9/30/2012 9/30/2012Relocate Support Departments to Roosevelt Building In progress 11/15/2011 10/31/2012 10/31/2012Receiving Rewrite (2-Year Plan) In progress 7/1/2011 11/19/2012 11/13/2012Product Recommendations In progress 2/1/2012 8/31/2012 8/31/2012Product Page Improvement In progress 2/6/2012 10/31/2012 10/31/2012
Product Center Re-engineering to Support Merchandising Work System (2011-13) In progress 10/1/2012 12/31/2013 12/31/2013
Key Elements – Performance Measurement SystemCommunicate
• Communicate Improvements – SOTB and Qtrly DKS– Monthly DLT and staff review– Daily dashboard review
• Celebrate Improvements – Formal/informal R & R – Engages Employees
Key Elements – Performance Measurement SystemValue Creation – Repeat the Process
Creating Value
Value Creation – Driven through Leadership System
“Results” of Excellent Performance Measurement System-- Value Creation and Performance Excellence
1. Deliver every improving value to customers and stakeholders – Loyalty– Growth– Sustainability
2. Improves overall organizational
effectiveness and capabilities – Continuous Innovation
3. Organizational and personal learning– Engagement– Organizational DNA
Questions?