LINKING FINANCE FUNCTIONS WITH SALES AND MARKETING TO ACHIEVE IMPROVED PERFORMANCECase Studies, Concepts and Debatable Ideas
Kenny OngCNI Holdings Berhad
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Intro: CNI
1. 19 years old
2. Core Business: MLM
3. Others: Contract Manufacturing, Export/Trading, eCommerce, F&B Retail
4. Malaysia, Singapore, Brunei, Indonesia, India, China, Hong Kong, Philippines, Italy, Taiwan
5. Staff force: ± 500
6. Distributors: 200,000
7. Products: Consumer Goods and Services
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• How to fail without trying
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The Roadmap to Failure
Fred Wiersema and Mike TreacyP
erf
orm
ance
Time
Clear Sailing
Today’s performance
Ad-hoc Tactics
Denial & Defense
Doom Projections
Overdue Failure
The Moment of Truth
X
Performance Freefall
Tomorrow’s actual
performance
Downpresure of Unclear Strategy
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Denial and Defense
• “It’s not really good value our competitor is offering, because it doesn’t include a lot of our features.” - ABC vs Air Asia
• “It’s good value but not in our preferred customer market.” - ABC vs Toyota
• “Sure they’re hurting us, but with their unfair advantage, what can we do?” – ABC vs MILO
• “The rules we are playing by have always worked before” – AMEX vs VISA
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The Roadmap to Failure
Fred Wiersema and Mike TreacyP
erf
orm
ance
Time
Clear Sailing
Today’s performance
Ad-hoc Tactics
Denial & Defense
Doom Projections
Overdue Failure
The Moment of Truth
X
Performance Freefall
Tomorrow’s actual
performance
Downpresure of Unclear Strategy
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Ad Hoc Tactics• Selectively hold discounts to hold business that has
started to go elsewhere• Introduce new promotions, terms, conditions, and offers to
confuse and cloud the market• Beef up customer service by adding people to fix mess-
ups and quicken delayed shipments• Delay capital investments and adjust accounting methods
to portray quarterly financial results more favorably• Introduce “new and improved” products that are new in
form, but not in substantive ways that are of consequence to purchasers
• Introduce Balanced Scorecards and Performance Management Systems
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The Roadmap to Failure
Fred Wiersema and Mike TreacyP
erf
orm
ance
Time
Clear Sailing
Today’s performance
Ad-hoc Tactics
Denial & Defense
Doom Projections
Overdue Failure
The Moment of Truth
X
Performance Freefall
Tomorrow’s actual
performance
Downpresure of Unclear Strategy
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“What is the moral of the story?”
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Understanding the perspectives of Sales & Marketing vs. Finance
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Typical Corporate Planning Scenario?
1. Budget ‘top down’ – no questions asked2. Only two budget goals – revenue, expenses3. The only planning we needed to do was “do better than
last year”4. Planning was ‘bottom up’ - compilation of plans within
set budget5. No one knew what the other was planning6. FAC’s role was only to compile budget for approval7. KPIs were not used8. Sales was resource priority, everything else not
important9. Assumed no major changes in market10. R&D was ‘bottom up’
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Problems from the start (1/2)
1. No money
2. Split Objectives: Sales? Share Price? Image?
3. Independent entities
4. FAC controlling schedule
5. S&M always running over budget
6. Compounding activities
7. BOD expectations too high without proper explanation nor justification
8. Lack of Market research
9. Expenses not spent gets punishedwww.myCNI.com.my www.OOBEY.com
Problems from the start (2/2)
10.Budgeting for known, consistent, and predictable business conditions
11.Never learn from past mistakes, usually in under-budgeting (e.g. staff and PCs)
12.Wrong Business Model – blame Budgeting & Planning. Having a good planning process cannot correct a bad business model
13.Focusing on the Process (KPIs), instead of “Business”
14.Planning & budgeting treated as separate processes by businesses/functions
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At the Table
Sales and Marketing
Finance and Accounts
1. Field Intelligence
2. CRM
3. Growth (organic)
4. Lagging KPIs
5. Adaptability
6. Channels
7. 1st Level Branding
8. Stakeholder Interest: Customers
9. Gut Feel/Instincts
1. External Intelligence
2. Ratios
3. Leading KPIs
4. Control/ Constraints
5. Resource Mgmt
6. Stability & Systems
7. Pyramid roles
8. Containment
9. Shareholder Interest: Shareholder
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Linking the Roles
Sales and Marketing
Finance and Accounts
Five Links:
1.Philosophy
2.Business Model
3.KPIs
4.Resource Allocation
5.Performance Management System
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Link #1: Philosophy
The anchor for all decisions
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Philosophy:
Goods Return Policy“I don’t care if they return a
Goodyear tire. If they said they paid $200, pay them $200.”
Nordstrom does not sell tires
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Philosophy
“In business after business, 60% to 80% of lost customers reported on a survey just prior to defecting that they were satisfied or very satisfied.”
HBR March/April 1996
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Philosophy
“CNI is more than business.
We strongly believe that every individual has the opportunity to
attain a better living through CNI.”
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Philosophy
Ultimate Objective of Marketing: “Get more people, to buy more things, more frequently, at higher prices.”
Sergio Zyman
“Retention and Loyalty useless if No Conversion is happening.”
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Philosophy
Loyalty is Useless…
• Virtual Consumption vs. Real Consumption
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Philosophy
Loyalty is misleading…
• Heavy Consumption ≠ Loyalty
• Loyalty ≠ Heavy Consumption
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Philosophy
1.Loyalty = Relationship (something like Dating)
2.Loyalty ≠ Points3.Loyalty ≠ Redemption4.Loyalty = Get more people, to buy
more, more frequently, at higher prices
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Link #2: Business Model
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What is the Business Model?
USP
Market Discipline
Profit Model
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Intro: Market Discipline
• Mamak stall
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Intro: Market Discipline
"They are the most innovative"
"Constantly renewing and creative"
"Always on the leading edge"
"A great deal!"
Excellent/attractive price
Minimal acquisition cost and hassle
Lowest overall cost of ownership
"A no-hassles firm"
Convenience and speed
Reliable product and service
"Exactly what I need"
Customized products
Personalized communications
"They're very responsive"
Preferential service and flexibility
Recommends what I need
"I'm very loyal to them"
Helps us to be a success
Product Leadership
OperationalExcellence
CustomerIntimacy
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Operational Excellence(low cost producer)
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
Product Leadership(best product)
Customer Intimacy(best total solution)
Strategy: Disciplines
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Intro: Market Discipline
* Treacy & Wiersema, The Discipline of Market Leaders, 1995
Product/Service Attributes Relationship Image
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Intro: Market Discipline
* Treacy & Wiersema, The Discipline of Market Leaders, 1995
Product/Service Attributes
Price
Quality
Time
Selection
√
√
Smart Shopper
Relationship Image
Operational Excellence: Quality and selection in key categories with unbeatable prices
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Intro: Market Discipline
* Treacy & Wiersema, The Discipline of Market Leaders, 1995
Product/Service Attributes
√
Brand
Time
Function
√
√
Best Product
Relationship Image
Product Leadership: Unique products and services that push the standards
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Intro: Market Discipline
* Treacy & Wiersema, The Discipline of Market Leaders, 1995
Product/Service Attributes
√
√
√
√
Service Trusted Brand
Relationship Image
Customer Intimacy: Personal service tailored to produce results for customer and build long-term relationships
Relations
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Operational Excellence(low cost producer)
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
Product Leadership(best product)
Customer Intimacy(best total solution)
Strategy: Disciplines
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The McPlaybook*
Make it easy to eat• 50% drive-thru• Meals held in one
hand
Make it easy to prepare• High Turnover• Tasks simple to learn
& repeat
Make it quick• “Fast Food”• Tests new products
for Cooking Times
Make what customers want• Prowls market for new
products• Monitored field tests
*Adapted from: Businessweek , Februrary 5th 2007
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Operational Excellence
• Competitive price
• Error free, reliable
• Fast (on demand)
• Simple
• Responsive
• Consistent information for all
• Transactional
• 'Once and Done'
Operational Excellence
• Competitive price
• Error free, reliable
• Fast (on demand)
• Simple
• Responsive
• Consistent information for all
• Transactional
• 'Once and Done'
Customer Intimacy
• Management by Fact
• Easy to do business with
• Have it your way (customization)
• Market segments of one
• Proactive, flexible
• Relationship and consultative selling
• Cross selling
Customer Intimacy
• Management by Fact
• Easy to do business with
• Have it your way (customization)
• Market segments of one
• Proactive, flexible
• Relationship and consultative selling
• Cross selling
Product Leadership
• New, state of the art products or services
• Risk takers
• Meet volatile customer needs
• Fast concept-to- counter
• Never satisfied - obsolete own and competitors' products
• Learning organization
Product Leadership
• New, state of the art products or services
• Risk takers
• Meet volatile customer needs
• Fast concept-to- counter
• Never satisfied - obsolete own and competitors' products
• Learning organization
Strategy: Disciplines, Priorities, and KPIs
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• Operational Excellence• Move know-how from top performing
units to others• Benchmark against best in class• Ensure operations training for all
employees• Use disciplines like TQM for continuous
learning to reduce costs and improve quality
Strategy: Value Disciplines
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Strategy: Value Disciplines
• Customer Intimacy• Capture knowledge about customers• Understand customer needs• Empower front line employees• Ensure that everyone knows the
customer• Make company knowledge available to
customers
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• Product Leadership• Reduce time to market• Commercialize new products fast• Ensure that ideas flow• Reuse what other parts of the company
have already learned• Ensure there are multiple sources of
funding
Strategy: Value Disciplines
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Operational Excellence(low cost producer)
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
Product Leadership(best product)
Customer Intimacy(best total solution)
Strategy: Value Disciplines
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Operational Excellence(low cost producer)
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
Product Leadership(best product)
Customer Intimacy(best total solution)
Strategy: Value Disciplines
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Link #3: KPIs
Dangers of BSC, KPIs and other evils sold by Consultants
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“…in the past 18 months, we have heard that profit is more important than revenue,
quality is more important that profit, people are more important than profit,
customers are more important than our people, big customers are more important than small customers, and that growth is the key to our success. No wonder our
performance is inconsistent"CEO, Anonymous
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Before we start…
In the old days of HR…• Average training hours per staff• % of staff attending training• # of training programs• % of training programs conducted• Training needs analysis conducted• Competency models developed• Training budget as % of payroll
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Before we start…
Moral of the story…
1. Innovation:– Business models– Products– Services
2. Market Leadership
3. Competitive differentiation
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“What is the moral of the story?”
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What is Strategic Planning?
Strategic
Planning
Variables:
Research
Growth
Risks
Stakeholders
Constraints
SWOT
Misc.
Output:
Plans
Priorities
KPIs
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Before we start…
Which comes first?
1. Strategies -> KPI?
2. KPI -> Strategies?
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Financial
“To satisfy our stakeholders, what Financial objectives must we accomplish?”
Internal Process
“To satisfy our customers, in which internal business processes must we excel?"
Customer
“Who are our target customers?
What is our value proposition?”
Learning & Growth
“What capabilities and tools do our employees require to help them execute our strategy?
Focus: Corporate Alignment
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Revenue Growth
Base Retention
Share Gain Positioning Adjacent Market
New Business
Operational Excellence
Product Leadership
Customer Intimacy
Competencies Information Systems
Motivation, empowerment,
alignment
Financial
Learning & Growth
Internal Process
Customers
Investment Strategy
Productivity Market Value
Linking BSC to Strategy
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Financial
Learning & Growth
Internal Process
Customers / Distributors
Revenue Growth
ProductivityMarket Value
Department Operations
Supplier & Alliances
External Involvement
Target Markets
Products/ Services
Channel Strategies
Human Resources
Technology
Information & IntelligenceSystems &
Processes
Focus: Corporate Alignment
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Example: Selection of KPIs for BSC
•Customer satisfactionCustomer loyaltyMarket shareCustomer complaintsComplaints resolved on first contactReturn ratesResponse time per customer requestPrice relative to competitionTotal cost to customerAverage duration of customer relationshipCustomers lostCustomer retentionCustomer acquisition ratesPercentage of revenue form new customersNumber of customersAnnual sales per turnover
•Win rate (sales closed/sales contact)•Customer visits to the companyHours spent with customersMarketing cost as a percentage of salesNumber of ads placedNumber of proposals madeBrand recognitionResponse rateNumber of trade shows attendedSales volumeShare of target customer spendingSales per channelAverage customer sizeCustomers per employeeCustomer service expense per customerCustomer profitabilityFrequency (number of sales transactions)
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Financial
Learning & Growth
Internal Process
Customers / Distributors
Example: 1st Level BSC & KPIs
Profit after Tax. Revenue. Cash-to-cash cycle. Operating cash flow
Customer Complaints. Customer Acquisition Rate. Product Availability. Product Quality & Service. Renewal Annual Subscription. Distributor Rank Achievement. No. of Active Distributor. No. DC/Regional Sales. Distributor with commission
Customer Database Availability. Accuracy of Forecast Planning. Continuous Improvement. Response Time to Customer Needs. Perfect Order Fulfillment. Inventory Turnover. Number of Effective Sponsoring Program. On Time Delivery. No. of Effective Training. Number of Effective A&P
% of staff evaluated on Core Competency Framework. % of staff with Career Development Plans. No. of training hours completed per staff. % of staff with access to strategic information. Q12 Index. % staff evaluated on Culture alignment
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Sample: Other 1st Level KPIs across industries…
Financial Services Retail Telecommunications
•Maximize ARPU•Minimize Churn•Mutichannel customer service
•Understand customer behavior related to customer conversion, acquisition, and retention•Single view of customer•Multichannel customer experience•Personalized customer experience
•Anticipate and prevent churn despite compensation•Increase number of products per customer•Turn call center information opportunity to up-sell and cross-sell•Increase customer satisfaction and loyalty
Hospitality Travel & Leisure Manufacturing
•Personalized customer experience•Maximize share of wallet•Player/customer loyalty•Multichannel customer service
•Increase customer loyalty and preference•Maximize customer revenue•Improve service quality and efficiency•Capture and close sales opportunities
•Single view of customers across supply chain•Zero-error order capture•Streamline opportunity to cash processes•Leverage investment in ERP and backoffice systems
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Lagging and Leading KPIs
Lagging
Leading
Historical, Outcome, Results, 1st Level, Usually Financial or tangible, Quarterly and Annually
Current, Indicators, Drivers, 2nd Level onwards, usually non-financial or intangible, Weekly, Monthly and Quarterly
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Developing ‘Driver’ KPIs
Customer Retention % Lagging, 1st Level
Customer Satisfaction Index
Leading, 2nd Level
On time delivery
Time to market for new products
TNA %
Defect levels, warranty claims
Leading, 3rd Level onwards
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What is the Objective?
‘Do-or-Die’ KPIs for CNI• Revenue• ARPU
• Sponsoring• Retention
• Commission Plan (BDP)• Product• Corporate Image
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Operational Excellence(low cost producer)
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
Product Leadership(best product)
Customer Intimacy(best total solution)
Strategy: Disciplines, Priorities, and KPIs
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Sample KPIs for Each Discipline
Operational Excellence
• Price• Selection• Convenience• Zero Defects• Growth
Operational Excellence
• Price• Selection• Convenience• Zero Defects• Growth
Customer Intimacy
• Customer Knowledge
• Solutions Offered• Penetration• Customer Data• Customer-success
focus
Customer Intimacy
• Customer Knowledge
• Solutions Offered• Penetration• Customer Data• Customer-success
focus
Product Leadership
• Marketing• Functionality• # of Successes• # of Failures• Learn from key
users• Interdisciplinary
teams• Pipeline
Product Leadership
• Marketing• Functionality• # of Successes• # of Failures• Learn from key
users• Interdisciplinary
teams• Pipeline
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MBO – Sources of KRAs and KPIs, Targets
1. Department Scorecard [E3],
2. Employee’s Job Description,
3. Department SOP,
4. Department Quality Objectives,
5. Corrective Action Requests (CAR),
6. Preventive Action Requests (PAR), or
7. Special Projects relevant to the employee.
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Link #4: Resource Allocation
a.k.a. Budgeting and Planning
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Summary: Planning & Budgeting
Long-term Plans
Objectives
Strategies
Enablers
Resources
Also known as L.O.S.E.R.
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Budgeting: Some thoughts…
Two major roles of Budgeting:
1. Provide real-life CONSTRAINTS to strategic planning
2. Provide RESOURCES to realize strategic plans
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Operational Excellence
Operational Excellence
Customer Intimacy
Customer Intimacy
Product Leadership
Product Leadership
Organization, jobs,skills
Management systems
Information and systems
Culture, values,norms
Each Discipline Requires Different Priorities & Resources
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Operational Excellence
•Central authority, low level of empowerment•High skills at the core of the organization
•Disciplined Teamwork•Process, product- driven•Conformance, 'one size fits all' mindset
• Integrated, low cost transaction systems•The system is the process
•Command and control•Quality management
Operational Excellence
•Central authority, low level of empowerment•High skills at the core of the organization
•Disciplined Teamwork•Process, product- driven•Conformance, 'one size fits all' mindset
• Integrated, low cost transaction systems•The system is the process
•Command and control•Quality management
Organization, jobs, skills
Management systems
Information and systems
Culture, values,norms
Each Discipline Requires Different Priorities & Resources
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Organization, jobs,skills
Management systems
Information and systems
Culture, values,norms
Product Leadership
•Ad hoc, organic and cellular•High skills abound in loose-knit structures
•Concept, future-driven•Experimentation and 'out of the box' mindset
•Person-to-person communications systems•Technologies enabling cooperation
•Rewarding individuals' innovative capacity•Risk and exposure management•Product Life Cycle profitability
Product Leadership
•Ad hoc, organic and cellular•High skills abound in loose-knit structures
•Concept, future-driven•Experimentation and 'out of the box' mindset
•Person-to-person communications systems•Technologies enabling cooperation
•Rewarding individuals' innovative capacity•Risk and exposure management•Product Life Cycle profitability
Each Discipline Requires Different Priorities & Resources
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Organization, jobs,skills
Management systems
Information and systems
Culture, values,norms
Customer Intimacy
•Empowerment close to point of customer contact•High skills in the field and front-line
•Customer-driven•Variation and 'have it your way' mindset
•Strong customer databases, linking internal and external information
•Strong analytical tools
•Customer equity measures like life time value•Satisfaction and share management•Focus on ‘Share of Wallet’
Customer Intimacy
•Empowerment close to point of customer contact•High skills in the field and front-line
•Customer-driven•Variation and 'have it your way' mindset
•Strong customer databases, linking internal and external information
•Strong analytical tools
•Customer equity measures like life time value•Satisfaction and share management•Focus on ‘Share of Wallet’
Each Discipline Requires Different Priorities & Resources
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Managing Gaps between actual and planned budgets
1. Budgeting vs. Priorities
2. Basic Budgeting policies
3. Activity Grid to determine budget priorities
4. Budgeting for Investments based on the ‘BCG Matrix’ principles
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Budgeting vs. Priorities
Priority = Time + Money
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Business Situation vs. Organization Focus
Upturn Flat Downturn
Fight Complacency
Sharpen Edge
Keep Momentum
Conquer
‘Change’ mgmt
Reduce Fat
Continuity
Everyone Happy
Innovation
Acquire
Profits
Build momentum
Sales
Cash Flow
Talent Mgmt
Innovation/R&D
Early wins
Slow Down HR Costs
Top Talent focus
Sales, Sales, Sales
Increase attrition
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Basic Budgeting policies
• Flexibility to switch between line items• Reserve Funds• Loans/External Funding
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Activity Grid to determine budget priorities
Increase (↑)What are features/
activities/services to increase?
Create (+)What are features/
activities/services to introduce?
Reduce (↓) What are features/
activities/services to reduce?
Eliminate (-)What are features/
activities/services to eliminate?
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E3 – Department BSC
Financial Perspective
Goals Measures Targets CAPEX OPEX
Quality
Innovation
On Time Delivery
Budgeting
Way back in 2004…
• Thomas Cup, Indonesia
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Now in 2007…
CNI ‘Beemax’ Factory Visit, China
1. Top Leaders
2. Product Development
3. Media
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Link #5: Performance Management Systems
The ultimate link
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As an Appraisee
As an Appraisor
Complaints about Performance Appraisals
Mgmt/HR
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As an Appraisee
Complaints about Performance Appraisals
• Bias• Different Standards• Surprise• Subjective• No linkage*• No differentiation• Secretive• No follow up• No control
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As an Appraiser
Complaints about Performance Appraisals
• Cannot remember• Tedious• Subjective• Right targets• Scoring Competencies*• Defensive staff• No $$ to differentiate• Prejudices• Results or Activities
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Complaints about Performance Appraisals
• Flexible or Control?• MBO or Character?• Best Practice or Fit Culture?• Backward or Forward?• Quarterly Results or Long-term?• No $$ to differentiate*• Perfect System, Bad performance• Recency and Halo effects• Untrained Appraisers
Mgmt/HR
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Complaints about Performance Appraisals - Summary
1. Process problem
2. Form problem
3. People problem
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What is Performance Appraisal used for?
Reward?
Discipline?
Development?
Motivation?
Promotion?
Monitor?
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Performance Management
Performance Appraisal
Performance Development
Performance Measurement
Common terms and definitions
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What is the OBJECTIVE?
• What is the ultimate objective of a Performance Management System?
• ‘Performance’ – achievement, • ‘Management’ – controllable, improvement• ‘System’ – predictable outcome, autorun
Summary?• A Predictable process to Improve Controllable
Achievements
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What is the OBJECTIVE?
Succession Planning (Business Continuity)
Talent Management
Differentiation
Performance Management System
Budgeting + Planning
KPIs
BSC
Business Model
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What is the OBJECTIVE?
Succession Planning (Business Continuity)
Talent Management
Differentiation
Performance Management System
Budgeting + Planning
KPIs
BSC
Business Model
Business Plan Implementation
Talent Management
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Behavior-based
Knowledge/Skill based
Results-based
Trait-based
Which system should we use?
Managing Performance = Managing Expectations
What’s YOUR expectation?
Activity based
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Dangers of Best Practice and Benchmarking…
“Abraham Wald’s Work on Aircraft Survivability”, M. Mangel and F.J. Samaniego
Where would you focus reinforcement?
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Dangers of Best Practice and Benchmarking…
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Company Performance
high
low
‘Best Practice’ theories
low high
zero Performance
Trend line
“Selection Bias and the Perils of Benchmarking”, Jerker Denrell, Harvard Business Review 2005
Dangers of Best Practice and Benchmarking…
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Company Performance
high
low
‘Best Practice’ theories
low high
zero Performance
Trend line
“Selection Bias and the Perils of Benchmarking”, Jerker Denrell, Harvard Business Review 2005
Dangers of Best Practice and Benchmarking…
Selection Bias:
1. Success Traits = Failure Traits
2. Successful Cases + Failure Cases
3. Worst effects in ‘Old’ industries
4. Overvalue ‘best practice’ theories
5. Current accomplishments unfairly magnified by past achievements
6. Reverse Causal
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Dangers of Best Practice and Benchmarking…
Also known as ‘Beware of Consultants’:
1. Selection Bias
2. Big vs. Small company
3. Selective success stories
4. Correlation vs. Causal
5. Survey problems
6. Practical vs. Glamour-to-have
7. Leaders who benchmark
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MBO Standards
A Excellent
B Good
C Average
D Poor
E Useless
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MBO Standards
A Excellent
B Good
C Average Good
D Poor
E Useless
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MBO Standards
A Excellent Excellent
B Good Very Good
C Average Good
D Poor Not Good
E Useless Commit Suicide
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MBO Standards
A Excellent Consistently achieved 4 for 3 quarters
B Very Good Higher than planned results
C Good Achieved Planned Results
D Not Good Did not fully meet planned results
E Commit Suicide
Unacceptable performance
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Competency Target Setting
1. Initiative
2. Teamwork
3. Problem Solving
4. Leadership
5. Integrity
What’s the problem here?
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Competency Standards
3 Meets behavioral standards consistently. Is a good role model for others.
2 Meets behavioral standards some of the time. Needs improvement.
1 Does not meet behavioral standards. Require counseling or disciplinary actions.
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The Planning & Budgeting ProcessStages Output Month
1. Pre-Planning Analysis & Brainstorming
•Current ½ yr budget & revision•Next yr options and budgets required
July - Sep
2. High-level Group Strategy and Targets
•High-level strategy of Group Corp Plan. •Circulation of Main Budget simulation to all departments
Sep
3. Functional Strategy and Budgets
•BSC & Budget preparation by HODs to HODivs
Sep - Oct
4. Formal Results Planning
•BSC & Budget to CEOs, followed by BOD•Revised and Finalized Plans and Budgets
Oct-Nov
5. Communication and Cascading
•Presentation of Group Budget and Planning summary & distribution•Communication of Highlights to the field and staff
Nov-Jan
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Coaching & Counseling
Month 1
Performance Planning
Month 12
Performance Appraisal
Month 2-11
?
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Review processes
1. Result Planning schedule inc. BSC, Budget2. Quarterly Performance Appraisals3. EMC – sales performance4. QMS – non-sales performance5. Divisional meetings6. Annual Appraisals7. Specialized KPI committees8. CAR, PAR, SCAR KPI improvements9. Internal Audit & MSD – process problems10. HRM & TND – people problems11. Supervisor Induction – PM training12. Talent Management
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End Notes
Problems, Teamwork, and everything else in between
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Problems still existing
1. No serious budget to tackle key risks2. Too much optimism or pessimism3. Innovation vs. Results vs. Baseline4. Investment ≠ Portfolio Management5. Top down vs. Bottom up6. Good to have vs. Need to have7. Line Manager not thinking like Investors8. Too focused on KPI and BSC9. Budget allocation seen as ‘popularity’ vote10.Public Listing -> pressure for short-term
budgets and results vs. long-term innovationwww.myCNI.com.my www.OOBEY.com
TEAM levers
C.O.R.E.
÷
W.L.
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Don’t forget…
“The business of business is Business, not Sales, not Marketing, not Finance”
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Thank You.
soft copy of slides: www.totallyunrelatedrandomanddebatable.
blogspot.com
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