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1、BalancedScorecardBackgroundOverview&ExamplesTheBSCconcept- 3 -Capgemini Proprietary and ConfidentialMeasurement Motivates Behaviour“Whatyoumeasureiswhatyouget”“Itsnotwhatyouexpectitswhatyouinspect”“Ifyoucanmeasureit,youcanmanageit”TheBalancedScorecards(BSC)fundamentalpremiseisthatmeasurementmotivate
2、sbehaviour- 4 -Capgemini Proprietary and ConfidentialThescorecarddifferssubstantiallyfromtraditionalmeasurementapproachesTheBSCsfocusisonfactorswhichcreatelong-termeconomicvalueinanorganisation,forexample:Customer focus.Organisational learning.Business processes.Traditionalaccountingmeasuresarebydef
3、initionbackwardlooking:Financial measures only reflect the results of actions already taken.Do not provide an indication of future financial performance.Do not indicate desired performance.Do not provide a basis for planning and target setting.- 5 -Capgemini Proprietary and ConfidentialCriteria For
4、A Good Balanced ScorecardAGoodBalancedScorecardwill“Tellthestory”ofyourstrategy4CauseandEffectRelationships:Every measure should be part of a “cause and effect” chain to determine if the measures correctly represents and drives the strategy.4LinkedtoFinancials:Every measure selected should ultimatel
5、y Drive Performance.Focus on factors that create long-term value.A balance of lead and lag indicators:4MeasuresthatCreateChange:Measures must cause the organisation to change its behaviour in some way.CompanyStrategyAs-IsVision- 6 -Capgemini Proprietary and ConfidentialClarifyingandTranslatingtheVis
6、ionandStrategyStrategicFeedbackandLearningPlanningandTargetSettingCommunicationandLinkingFeedbacksystemusedtotestthehypothesesonwhichstrategyisbased.Strategydevelopmentisacontinuousprocess.Stretchtargetsareagreed.Investmentsaredeterminedbythestrategy.Annualbudgetsarelinkedtolong-rangeplans.Goalalign
7、mentexistsfromtoptobottom.OpencommunicationofstrategyisbasisforemployeeempowermentBalancedScoreboardTheBalancedScoreboardcreatesastrategicframeworkforactionThestrategyisthereferencepointfortheentiremanagementprocess.Thesharedvisionisthefoundationforstrategiclearning.- 7 -Capgemini Proprietary and Co
8、nfidentialTheBalancedScorecardtranslatesvisionandstrategyintofourdimensionsofperformance“Whenweachieveourvision,howwillourorganisationlearnandgrow?”“Whenweachieveourvision,howwillwelooktoourbusinesspartners?”“Whenweachieveourvision,howwillourinternalbusinessprocessesoperate?”“Whenweachieveourvision,
9、howwillwelooktoourshareholders?”VisionCustomers and PartnersFinancial/ShareholderInternal ProcessesLearning and Innovation- 8 -Capgemini Proprietary and ConfidentialForeachofthefourdimensions,objectives,measuresandtargetsareexplicitlydefinedFinancial / ShareholderObjectivesMeasuresTargetsCustomers a
10、nd PartnersObjectivesMeasuresTargetsInternal ProcessesObjectivesMeasuresTargetsLearning and InnovationObjectivesMeasuresTargetsVision- 9 -Capgemini Proprietary and ConfidentialThelinkagebetweenthefourdimensionsiscrucialinensuringlong-termsuccessFinancialClientsatisfaction,efficientandeffectivedelive
11、ryofserviceswilldeliverfinancialresults.Excellentprocessesandpeoplewilldeliverclientsatisfaction.Goodpeopleinefficientprocessessupporteffectiveness.Youneedgoodpeople,peopleprocessesandstructuretoachievehighperformance.Shareholder Value Partners/CustomersInternalProcessesLearning&Growth- 10 -Capgemin
12、i Proprietary and ConfidentialAlignmentthroughtheorganisationwillbeachievedbycascadingthescorecardHighLevelScorecardBusinessUnitorDepartmentalScorecardsIndividualScorecardsShareholder/Parent/RequirementsFinancialCustomers&PartnersInternalProcessesVisionLearning&InnovationFinancialCustomers&PartnersI
13、nternalProcessesVisionLearning&InnovationFinancialCustomers&PartnersInternalProcessesVisionLearning&InnovationFinancialCustomers&PartnersInternalProcessesVisionLearning&Innovation- 11 -Capgemini Proprietary and ConfidentialWhenimplementedwell,thebenefitsofBalancedScorecardcanbesignificantSeniorexecu
14、tivesarefocusedandalignedaroundasmallnumberofcriticalobjectivesandsuccessmeasures.Asimple,singlemanagementreportmakesprogresstowardsfinancial,customer,internalprocessesandlearningobjectivesclearlyvisible.ThePlan-Do-Reviewprincipleestablishesclearaccountabilityforachievingobjectives,forsuccessandfail
15、ureTheBSCimplementationestablishesastrategicfeedback/monitoringsystemthatdrivesactionstoexcelincriticalperformanceindicatorsFocusBalancedPerformanceAccountabilityContinuousImprovementTheBSCProcess- 13 -Capgemini Proprietary and ConfidentialBalancedScorecarddesignisonlyacomponentoftheoverallprocessSc
16、orecard DesignScorecard Implementation / Roll-outStrategicIntentDevelop&finaliseObjectivesDevelop&finaliseMeasuresDeterminebaselinesandsettargetsIncorporatescorecardreviewaskeyiteminbusinessmanagementmeetingsManagebusinessaccordingtoscorecardReview/refinescore-cardonaregularbasisinconjunc-tionwithst
17、rategyreviewprocessAlign/planinitiativesaccordingtoscorecardDevelopandimplementBUandsectionscorecardsEnsurescorecardalignmentReview&refineonanongoingbasisManageBU,sectionetc.accordingtoscorecardformatFeedback to high level scorecard to ensure alignmentCorporate/Shareholder input where relevantCommun
18、icateScorecardtoorganisationCascadescorecardtoindividuallevel.Toensureindividualfocusandalignment.Balanced ScorecardBusiness Management Process- 14 -Capgemini Proprietary and ConfidentialTheBusinessManagementProcess(BMP)implementstheBalancedScorecardinaPlan-Do-ReviewCycleLink to Higher Level BSCFina
19、ncialLearningandInnovationInternalProcessesCustomersandPartners MeasuresTargetsObjectivesLink to Lower Level BSCLink to Higher Level BMP / ReportLink to Lower Level BMP / ReportReviewBSCTakeAction:InitiativesPlans BudgetsMeasureActualsagainstTargetsCompileReportTargetPlan-Do-ReviewsessionDetermineRo
20、otCausesforVariancesDefineActionStepsPDRSessionWhatmakesagoodObjectiveorMeasure- 16 -Capgemini Proprietary and ConfidentialWeneedtohaveclearandcommunicateddefinitionsoftheBSCcomponentsObjective:Statement that defines what we must do to achieve the vision.Linked to our strategy.Measure:A numeric indi
21、cator that will indicate successful achievement of the objective. Lead indicator Indicates the likelihood of change (forward looking).Lag indicator Indicate that change has occurred (backward looking).Target:Value of the measure that we would like to achieve in a given time frame.Must be achievable.
22、- 17 -Capgemini Proprietary and ConfidentialPerspectiveA“Good”BalancedScorecardincludesobjectives,measurementsandtargetsthatpromotechangeExample:FinancialCustomerInternalLearningBusinessObjectives Shareholdervalue Profit Newrevenue DifferentiationStrategicalliancesCustomerservice Productivity Newpro
23、ductdevelopment Segmentation Peoplepolicy Alliancemanagement CustomerfocusMeasurements %dividendgrowth OperatingMargin Revenuefromnewservices Targetmarket-shareProfitsfromalliancesCustomersatisfaction Revenue/workhour Productdevelopmentcycletime Numberofinitiativestargetedatprofitablesegments Manage
24、mentspanofcontrol Numberof“learning”partnerships” %managementtimeinterfacingwithcustomersTargets CPI+X%annually Topquartile 25%inthreeyears Numberone $Minfiveyears Numberonecustomerrating Best-in-classwithinfiveyears Reducedby50%intwoyears 60%withinoneyear Tripleinthreeyears 10infiveyears 20%intwoye
25、arsAccountabilitiesFinanceDirectorCEOBusinessDevelopmentManagerMarketingDirectorBusinessDevelopmentManagerMarketingDirectorCOOResearchandDevelopmentManagerMarketingDirectorHumanResourcesDirectorBusinessDevelopmentManagerCEO. . . and clear accountabilities to ensure ownership.- 18 -Capgemini Propriet
26、ary and ConfidentialTheobjectivesdefinewhattheorganisationmustdotoachievethevisionDescription of a good objective:Linkedto,anddescriptiveofacomponentofthevision/strategy.Relevanttowhattheorganisationwantstoachieve.Actionorientated:Start statement with a verb.Measurable:there must be a manner in whic
27、h we can determine success in achieving the objective:Clearandconcise.Understandabletothewholeorganisation.Mustbeabletoassignoverallaccountabilitytoasingleperson.- 19 -Capgemini Proprietary and ConfidentialMeasuresmustbethekeyindicatorsthatregisterachievementoftheobjectiveThe SMART criteria defines
28、a good measure: S Simplerelativelyeasytoaccess,collateandcalculate. MMeasurablee.g:numberofhoursworked,linesinstalled,etc. A Aactionableabilitytotakeactiononvariancestoplan. R Relevantabilitytoinfluencethatwhichisbeingmeasured. T Timeousmustbedetermined/measuredasfrequentlyaspossible,orwhenrelevant.
29、thelongerthedelayinmeasuringthelessthechancetoallowtimeous/appropriateaction.- 20 -Capgemini Proprietary and ConfidentialTargetsmustbesetforeachmeasure,anddefinegoalsfortheorganisationtoachieveCriteria for a good target:Mustbeachievable.Providesomestretchfortheorganisation.Setforagoodfixedtimeperiod
30、.Determineintermediatevalues,toevaluateprogress.Alignedwithwhattheorganisationwantstoachieve.Supportedbyandhavebuy-inoftheexecutiveteam.The objectives, measures, targets and accountabilities need to be defined at all levels of the organisation.- 21 -Capgemini Proprietary and ConfidentialPriority: Ef
31、fectively Manage Value Adding ProcessesFormula:Weighted ranking of total unit cost of production + plant reliability index + total staffing index + computerised instrumentation index + total maintenance + sustaining capital index.Source:Site LeadershipForeachobjectiveandmeasurewewilldevelopaprecised
32、efinition.Measure:Cost excellence ratingFormula Notes:A weighted index that gives a quartile performance cost excellence position. Weightings to reflect their importance to each business.Categories are 1st to 4th quartileRankings, as defined by external consultants at least every other year, but don
33、e yearlyA comparative group is definedFormula to be defined by type of plant relevant to their business need and value proposition. Weightings may shift over time.Update Frequency:AnnualAction to Implement:Use blend of industry studies (e.g., Solomon, Mastio, Chem Systems, Townsend), and analysis of
34、 one-on-one comparisons vs. leaders.May also use simplified benchmarks and models, as appropriate.Effectively Manage Value Adding Processes: Be the low cost provider of products and services by achieving competitive excellence in all our business processes.EXAMPLEObjective:- 22 -Capgemini Proprietar
35、y and ConfidentialPerspective:Internal processesMeasure:Cost excellence rating.andanapproachtosettingtargetsEffectively Manage Value Adding Processes: Be the low cost provider of products and services by achieving competitive excellence in all our business processes.Objective:Frequency of Meaningful
36、 UpdateMonthlyAnnuallyQuarterlyMeasurement definition/formula (See also Measurement Profile):Weighted ranking of total unit cost of production + plant reliability index + total staffing index + computerised instrumentation index + total maintenance + sustaining capital index.Approach to setting targ
37、ets and/or developing measure If targets exist, identify source:Target is to be top quartile. Sites (types of plants) will need to select the key variables, weight them, and choose a suitable external benchmarking methodology. Recommendations need to be agreed by business teams and leadership teamTa
38、rget setting responsibility:Manufacturing leadership/SBUAccountability for results:Manufacturing leadershipTracking/reporting responsibility:Site leadershipCompletion date:1995 (some could be ready by January)Linkage to Businesses:Through business teams, aligned with SBU strategyLinkage to BT Stream
39、s / Initiatives:ManufacturingCapital investment excellenceSupply chainEXAMPLEExampleObjectivesandMeasures- 24 -Capgemini Proprietary and ConfidentialGenerally,BSCobjectivesfocusaroundkeythemesineachofthefourareasFinancial/Shareholder ThemesShareholdervalue.ROI.Profitability.Turnover/Revenue.Learning
40、 & Innovation ThemesAttract,retainandmotivateemployees.ClarifyandcommunicateRolesandResponsibility.Buildingskills.Manageresources(leadership).Knowledgemanagement.Internal Process ThemesLowcosts.Productionefficiency.Quality:ISO compliance.Safety.Productionvolume.Environment.Processeffectiveness.Custo
41、mers & Partners ThemesRetention.Satisfaction.Value-addedtocustomers.Vision- 25 -Capgemini Proprietary and ConfidentialTheBalancedScorecardshouldcontainabalanceofleadandlagindicatorsF1Meet shareholder expectationsF2Improve operating performanceF3Achieve profitable growthReturn on EquityCombined Ratio
42、Business MixC1 Improve agency performanceC2 Satisfy target policyholdersAcquisition/Retention(vs. plan)Acquisition/Retention(by segment)Agency Performance(vs. plan)Policyholder Satisfaction SurveyI1Develop target marketsI2Underwrite profitablyI3Align Claims with businessI4Improved productivityBusine
43、ss Mix (by segment)Loss RatioClaims FrequencyClaims SeverityExpense RatioBusiness Development (vs. plan)Underwriting Quality AuditClaims Quality AuditHeadcount MovementManaged Spending MovementL1Upgrade staff competenciesL2Access to strategic informationStaff ProductivityStaff Development (vs. plan)
44、Strategic I/T Availability(vs. plan)ObjectivesMeasuresLead Indicators(Performance Drivers)Lag Indicators(Core Outcome Measures)LearningInternalCustomerFinancial- 26 -Capgemini Proprietary and ConfidentialAREA PRODUCTION MANAGERDIRECTORZONE MANAGERTEAM LEADERSampleTargetforSpecificTimeWindow FromTo21
45、hours19hoursReduce area cycle time from 22 to 8 daysReduce overall cycle time from 73 to 28 daysStrategicBusinessObjectiveReduce zone cycle time from 7 to 3 daysReduce team cycle time from 30 to 11 hours5.1days4.6days17days15days48days44daysTop-Down and Bottom-Up LinkedPLANACTUALQuarterly Time Windo
46、w TargetPLANACTUALQuarterly Time Window TargetPLANACTUALQuarterly Time Window TargetPLANACTUALQuarterly Time Window TargetObjectives,measuresandtargetsateachlevelhavetobealignedtop-downandbottom-upExample: CarManufacturerReduce overall cycle time from 73 to 28 days- 27 -Capgemini Proprietary and Con
47、fidentialMeasuresshouldbecascadedaswiththisrailwayutilityManagingDirectorFunctionalManagersAreaManagersDepartmentManagersSectionManagersWorkGroup,SupervisorsandStaffBusinessobjective:“92% of trains toarrive within 5minutes of publishedtime”Punctuality%leaveontimeMaintainscheduleCrewavailable%trainsa
48、vailableTrainsinwronglocationTrainsrejectedbyoperations%trainsavailablerightformed%trainsoperational%trainspendingwheelsets%wheelsetstoplanWheellathedowntimeExampleBSC:TelcoSupp.- 29 -Capgemini Proprietary and ConfidentialClientKey IssuesTelcoSuppsvisionistobethemostsuccessfullocaltelecommunications
49、solutionsproviderProducerandsupplierofproductsinthetelecommunicationsindustry.Visionistobethemostsuccessfullocally.Alignmentofleadershiptomeetlong-termgoals.Increasingcustomerdemands.- 30 -Capgemini Proprietary and ConfidentialTheTelcoSuppsBSCobjectivesweredesignedtosupporttheVisionFinancial / Share
50、holderDeliver sustainable growth in profitability.Maximise shareholder value.Ensure financial independence by funding future growth and initiatives internally.Organisational LearningAttract and retain appropriate skills. Develop a learning culture.Communicate effectively.Apply employment equity prin
51、cipals.Empower our employees.Develop a company team spirit.Define, communicate and live the values.InternalBe the industry benchmark by any measure.Invest in the right projects to ensure our futureBecome a centre of competence.Develop a balanced relationship with the parent company.Business Partners
52、Customer:Increase market share.Broaden customer base.Improve service quality to exceed customer expectations.Build long term customer partnerships.Alliances:Pursue alliances to enable us in our marketSuppliers:Build long term supplier relationshipsCommunity:Actively support Southern African developm
53、entA measurement system will assess progress towards the objectives.Vision- 31 -Capgemini Proprietary and ConfidentialBenefitsConcernsCommentsonTelcoSuppsBSCCascadedintotheorganisationtocreatefocus.ParentcompanyhasadoptedBSCconceptandsuggestedBSCdevelopmentandimplementationforotherdivisions.Strongbu
54、sinesspartnerandorganisationallearningfocus.Highnumberofobjectives(21).Accountabilitiesrestwithafewindividuals.Balanced Scorecard Comments- 32 -Capgemini Proprietary and ConfidentialTelcoSuppsBSCmeasuresandaccountabilitiesObjectivesFinancialDeliversustainablegrowthinprofitabilityMaximiseshareholderv
55、alue.Agreed Measure(s)Operativeprofitonturnover.ROCE.EVA.Ensurefinancialindependencebyfundingfuturegrowthandinitiativesinternally.CashflowAccountabilityFinancialDirectorFinancialDirectorFinancialDirectorBusiness PartnersObjectivesMarketShareIndex(aggregatesegments)Customerssupplierevaluations.Custom
56、ersurveys(includesapreferredsupplierassessment.)Numberofcustomerscontributing5%ofturnoverovertotalcustomersIncreasemarketshare.Broadencustomerbase.Improveservicequalitytoexceedcustomerexpectations.Buildlongtermcustomerpartnerships.Pursuestrategicalliancestoenableusinourmarket.ActivelysupportSouthern
57、Africandevelopment.Marketshareinspecificbusinesssegments(asmeasuredintheMarketShareIndex)ValueofbusinessviaBlackEconomicEmpowermentcompanies.IPPcredits.%purchasevolumeviaframeagreementsBuildlongtermsupplierrelationshipsAgreed MeasureMarketingDirectorMarketingDirectorMarketingDirectorMarketingDirecto
58、rFinancialDirectorFinancialDirectorAccountabilityCustomersAllian-cesSupp-liersComm-uniry- 33 -Capgemini Proprietary and ConfidentialTelcoSuppsBSCmeasuresandaccountabilities(cont.)InternalBetheindustrybenchmarkbyanymeasure.BecomeaCentreofCompetence.Developabalancedrelationshipwiththeparentcompany.Obj
59、ectivesRefertoQualityMeasurementSystem.Numberofsignificantcentresofcompetence.ProportionofownbusinessversuscommissionbusinessInvestintherightprojectstoensureourfutureNetpresentvalueofallprojectbusinesscasestobeimplementedAgreed MeasureOperationsDirectorCEOCEOExecutiveAccountabilityMarketingDirectorO
60、rganisational LearningObjectivesStaffturnoverNumberofunfilledpositionsTrainingandeducationexpenditureas%ofpayroll.RefertoQualityMeasurementSystem.Attractandretainappropriateskills.Developalearningculture.Communicateeffectively.Applyemploymentequityprincipals.Empowerouremployees.DevelopaSiemensteamsp
61、irit.Define,communicate&livethevalues.%Blackstaffpenetration.%Blackandgenderrepresentivity.Agreed MeasureRefertoQualityMeasurementSystem.RefertoQualityMeasurementSystem.RefertoQualityMeasurementSystem.HRDirectorHRDirectorHRDirectorHRDirectorHRDirectorHRDirectorHRDirectorExecutiveAccountabilityExampl
62、eBSC:ChemCo- 35 -Capgemini Proprietary and ConfidentialClientKey IssuesChemConeededastrategytomanageadiverseportfolioinahighlycyclicalmarketManufacturerofpetrochemicals:Polymers and monomers for use as industrial feedstocksPrimarily commodity productsApproximately6000employeesOneyearintoatwoyearBusi
63、nessTransformationprojectHighlycyclicalmarket.Widevarietyofproductandcustomertypeswithintheportfolio.Majorleadershipchangeunderway.- 36 -Capgemini Proprietary and ConfidentialShareholderCustomerInternalProcessesSocietyEmployeeLearning&GrowthDevelopaLearningOrganisationFocusonMarginEnhancementStrivet
64、oContinuousEnhancementManageValueAddingProcessEffectivelyChampionResponsibleCareFosterProductStewardshipDemonstrateCommunityLeadershipProvideCustomerValueDevelopTotalBusinessRelationshipsBuildFinancialStrengthAchieveProfitableGrowthDeliverResultstoShareholderCreateaClimateforResultsChemCosBalancedSc
65、orecardtranslatedthefirmsstrategyintostrategicobjectivesacrossfiveperspectives- 37 -Capgemini Proprietary and ConfidentialBenefitsConcernsCommentsonChemCosBSCDefinedlinkagestoultimatelyprovideshareholderreturns.Introduced“society”dimensiontoindicatecommunityresponsibility.Reducefocustothirteenkeyobj
66、ectives.Balanced Scorecard CommentsBroadandgenericobjectivesandmeasures:Not specific to the organisation.Could apply to other companies. - 38 -Capgemini Proprietary and ConfidentialEmployee Learning & Growth PerspectiveSociety PerspectiveInternal Processes PerspectiveShareholder PerspectiveCustomer
67、PerspectiveTheobjectivesweretranslatedintointoasetofkeystrategicmeasuresProvide superior value to our customers by supplying them with products and services that meet their needs (total value package).Form relationships with customers which allow us to fully understand and address their needs.C1Prov
68、ide Customer ValueC2Develop Total Business RelationshipsSH1 Deliver Results to ShareholdersSH2 Build Financial StrengthSH3 Achieve Profitable GrowthDefinitionStrategic PriorityDevelop and use our leadership to empower and gain commitment from all employees thus achieving exceptional business results
69、.Improve our skills and knowledge by developing people and adapting best practices found within ChemCo and from external sources to realise all of our priorities.Be a leader in our industry by our achievements in safety, health, environment and risk management.Qualify as an industry leader by develo
70、ping mutually supportive relationships with the communities in which we conduct business.Integrate health, safety, environment, economic, and ethical considerations at every stage in the life cycle of our products.Effectively manage the selection of customers and product offerings (including technol
71、ogy & service) so as to maximise margins.Be the low cost provider of products and services by achieving competitive excellence in all our business processes.Continuously seek ways to improve and simplify ChemCos processes to achieve our strategic business objectives.Manage our businesses to achieve
72、the returns expected by shareholders.Manage our business so that we are cash positive and able to meet capital funding requirements to sustain ChemCo through the business cycle. Achieve increased size in our business to provide increased value to shareholders.E1Create a Climate for ResultsE2Develop
73、a Learning OrganisationS1Champion Responsible CareS2Demonstrate Community LeadershipS3Foster Product StewardshipI1Focus on Margin EnhancementI2Effectively Manage Value Adding ProcessesI3Strive for Continuous EnhancementShareholderCustomerInternalProcessesSocietyEmployee Learningand GrowthoCustomer s
74、atisfaction indexoRetention of targeted customersMeasuresoLeadership effectivenesssurvey ratingcommunicationsoEmployee satisfactionoBest practices identifiedoEmployee contributionoSafety,health, environment & risk results.oCommunity opinion ratingoProduct stewardship participationoContribution margi
75、noCash flow cycle timeoCost excellence ratingoFixed cost productivityoProduct development cycle timeoBusiness Transformation/SAP benefitsoReturn on capital employedoEconomic value addedoNet cash flowoTotal revenueExampleBSC:ManCo- 40 -Capgemini Proprietary and ConfidentialClientKey IssueManCorequire
76、datooltofocusandaligntheorganisationLargepetrochemicalmanufacturer.BSCwasacomponentofalargetwoyeartransformationproject.Significantcostreductionrequiredtomaintainprofitability.Needtofocusandaligntheorganisation.- 41 -Capgemini Proprietary and ConfidentialAccountabilityandtargetsareseenaskeycomponent
77、sofManCosBSCShareholder / FinancialCustomerGrowth / LearningInternal ProcessesKPI (Area)ATargetCommentsReturnonNetAssetsPBIT/Netassets(Qtr)ProfitaftertaxCashflow4-12monthsprojection(Mth)UnitcostKPI (Area)ATargetCommentsCustomersatisfactionindex%Conformancetoagreedofferingpercustomer.(Qtr)ProductMixO
78、ptimisationKPI (Area)ATargetCommentsValuecreatedbyProjectPortfolioNPVofnewanddevelopingprojectsat22%discountrate(WACC)vstargetNPV(Qtr)CorecompetenciesTakenoffuntilasuitablemeasureisdefinedKPI (Area)ATargetCommentsProcessefficiencyEnvironmentIndex:releases,resourceconsumptions,re-mediation&compliance
79、(Mth)SafetyandHealthProductionValue(Mth)DIIRincludingoccupationaldiseasesTotalCostpertonofproduct(Mth)%AdherencetoTargetMix(Mth)Tonmarketableproductpergigajoule(Mth)Actualvstarget(Mth)PeopleKPI (Area)ATargetCommentsEmployeesatisfaction/climatewindowAffirmativeActionIndex:Leadershipvalues,Jobsatisfac
80、tionandDevelopmentProductivity(Qtr)AAspectrum%(Qtr)ProductionTechnicalIntegrityIndex:tobedefinedNote: Accountabilities and targets not shown to maintain client confidentiality.- 42 -Capgemini Proprietary and ConfidentialBenefitsConcernsCommentsonManCosBSCSignificantmanagementbuy-inanduseoftheBSC.Two
81、yearsafterintroductiontheBSCremainthekeyfocus/managementtoolfortheexecutivecommittee.Peopledimensionaddedtoindicateakeyfocusarea.BSCfocusedonmeasuresnotobjectives.Aftertwoyears,executivesconsiderfifteenobjectives/measurestoomanytofocusonsimultaneously.Balanced Scorecard CommentsExampleBSC:OilCo- 44
82、-Capgemini Proprietary and ConfidentialClientKey IssueOilConeedtoaddressinternalsoftissuesSignificantplayerinthedownstreamoilbusiness.Successfulorganisationlookingtomaintainandgrowposition.Lowemployeemoralandlackofconfidenceinleadership.Lackofunderstandingoforganisationsvisionandstrategy.Growthinmar
83、ketplace.- 45 -Capgemini Proprietary and ConfidentialVisionBSCofalargedownstreamOilCompanyFinancial / Shareholder ObjectivesCustomers and Partners ObjectivesInternal Processes ObjectivesLearning and Innovation ObjectivesMaximiseshareholdervalue.Realgrowthinoperatingprofitwithalongtermobjectiveof10%.
84、Keepunitcostincreasebelowinflation.IncreaseMarketShareAddsignificantvaluetocustomers.Ensureclearroles,responsibilitiesandaccountabilitiesforallourpeople.Mobilisetheorganisationtowardsthevision.EnsurestrategicadvantagethroughIT.Ensureeffectiveperformancemanagement.Increasediversityintheworkforce.Empo
85、werouremployees.Stimulatecreativityandinnovate.- 46 -Capgemini Proprietary and ConfidentialBenefitsConcernsCommentsonOilCosBSCHalftheobjectivesfocusonsoftissues,toaddresscurrentinternalissues.Reducednumberofobjectivestoallowforgreaterfocus.Noobjectivetodetermine/focusoninternalefficiencies.Balanced
86、Scorecard Comments- 47 -Capgemini Proprietary and ConfidentialOilCodesignsmeasuresandassignedaccountabilityforalltheirobjectivesLearning and InnovationObjectiveMeasuresAccountablePersonEnsureeffectiveperformancemanagement1)Employeeswithdevelopmentplans(lead)2)Levelofacceptanceofmeritappraisalsystem(
87、lag)3) Percentageofemployeesreceivingquarterlyperformancereviews(lead)4) Levelofbeliefthatperformancedrivesrewardandrecognition(lag)HRDirectorIncreasediversityintheworkforce1)Staffmix(lag)2)Diversityawareness/attitude(lag)CEOEmpowerouremployees1)Employeebeliefthattheyareempowered(lag)OperationsDirec
88、torStimulatecreativityandinnovate1)Numberofnewideas(lag)2)Financialimpactofnewvalue-addingideas(lag)TechnologyDirectorIncreasemarketshare.1)Marketshare(lag)StrategydirectorAddsignificantvaluetocustomers1)Numberofvalueaddingplansfortop20%ofcustomers(lead)2)CustomerbeliefthatOilCoaddsvaluetothem(lag)M
89、arketingdirectorCustomers and PartnersObjectiveMeasuresAccountablePerson- 48 -Capgemini Proprietary and ConfidentialOilCodesignsmeasuresandassignedaccountabilityforalltheirobjectivesInternal ProcessesEnsureclearroles,responsibilitiesandaccountabilitiesforallourpeople1) Percentageofemployeeswithagree
90、dperformancecharters(lead)2) Degreetowhichemployeesbelievethattheirroles,responsibilitiesandaccountabilitiesareclearlydefined(lag)OperationsdirectorMobilisetheorganisationtowardsthevision1)PercentageofemployeeswhoattendedaVision/Missionroll-outsession(lead)2) Percentageofmonthlybusinessmeetingswhere
91、Vision/Missionisafixedagendaitemandisdiscussed(lead)3) EmployeebeliefthatOilCoisadheringtoitsstatedvaluesystem(lag)4)Percentageofemployeesresponding“Yes”tovision/missionunderstandingandacceptance(lag)HRdirectorEnsurestrategicadvantagethroughIT1)Returnontotalcostofownershipasaninvestmentindicator(lag
92、)ITdirectorObjectiveMeasuresAccountable PersonFinancial / ShareholderObjectiveMeasuresAccountable PersonEnsurestrategicadvantageforSasolOilthroughIT1)Returnontotalcostofownershipasaninvestmentindicator(lag)DaanMaraisMaximiseshareholdervalue1)E.V.A.CEORealgrowthinoperatingprofitwithalongtermobjective
93、of10%CEOKeepunitcostincreasebelowinflation1)Increaseinunitcost/vs.CPI.CFO1)RealannualgrowthinoperatingprofitExampleBSC:AluminumSmelter- 50 -Capgemini Proprietary and ConfidentialClientKey IssueAluminiumSmelterintroducedaBSCconcepttomonitortheprogressoftheir“STAR”projectInternationalAluminiumSmelter.
94、BSCdevelopmentwaspartofanimprovementproject.Needtodemonstratefinancialperformancetoattractfurtherinvestment:Investment required for incremental expansion.No investment would force the Smelter to close in eight years time.- 51 -Capgemini Proprietary and ConfidentialThemanagementteamBSCisdisplayedinad
95、ashboardformatPerformanceofRetrofittedpotsNetshareholdervaluePerformanceagainstSTARdeliverablesPotlineinternalenvtProduct/processdevtProfitRateofreturnUnitcost(addedvalues)AccidentrateCurrentefficiencyExternalenvironmentalindex.Environmentalpermitexceedances.Sicknessrate.Potlineoutput.Saleableoutput
96、.- 52 -Capgemini Proprietary and ConfidentialBenefitsConcernsCommentsonAluminiumSmeltersBSCThedashboardformatindicatesimportanceofeachmeasure:Large indicators represent key measures.Small indicators represent secondary measures.Bullet points indicate “warning lights”. Notice only when warning light
97、flashes.Focusonfewkeythemes.Significantdetailwasdevelopedforeachtheme.Lackofbalanceinthescorecard:Little focus on customers and innovation and learning.Little need for customer focus as most product sold to shareholder.Focus on financial measures, as these are key for long term survival.Balanced Sco
98、recard CommentsLessonsLearned- 54 -Capgemini Proprietary and ConfidentialTheBSCmustbedrivenfromthetopLeadership/managementlong-termbuy-inandcommitmenttotheBalancedScorecardprocessiscriticaltoensuringsuccess.Thescorecardneedstobealivingdocument:Modified/reviewed in line with business/environmental ch
99、anges.Scorecard modification/review in conjunction with a strategic review process.Agreeonafinallimitedsetofkeyobjectives:Too many objectives will de-focus the organisation and spread resources too thinly.Differentiate between nice-to-have and must have objectives.Measuresmustbecarefullyselectedtore
100、flect/determinetheobjectivescoreintent.Donotdevelopasystemwithhighrunning/maintenancecosts,i.e.measurementcostoutweighsbenefit:Use the 80:20 principle.- 55 -Capgemini Proprietary and ConfidentialThefinalBSCmustfocusonthefewkeyobjectivesrequiredtoachievethestrategyToomanyobjectives:Confuse & de-focus
101、 the organisation.Spread energy to thinly.Ensureabalanceofobjectivesbetweenthefourdimensions.Clearaccountabilitiesmustbeassignedforeachobjective.Assignonlykeymeasuresforeachobjective:As few measures per objective, ideally only one.Distinguish between critical and nice-to-have measures.Ensure balance
102、 between lead and lag indicators.Ensuretheobjectiveforthehighlevelscorecardarestrategicinnature,andcrucialsforalldepartments.Operational or department specific objectives must be moved to departmental scorecards.- 56 -Capgemini Proprietary and ConfidentialSuccessfulBSCdevelopmentwilldependinplacingo
103、bjectivesandmeasuresatthecorrectlevelintheBSCstructureMost of Hillsides present KPA are departmental measures.FinancialCustomers&PartnersInternalProcessesVisionLearning&InnovationFinancialCustomers&PartnersInternalProcessesVisionLearning&InnovationFinancialCustomers&PartnersInternalProcessesVisionLe
104、arning&InnovationFinancialCustomers&PartnersInternalProcessesVisionLearning&InnovationDepartmental ScorecardsHigh level or organisation scorecard:- 57 -Capgemini Proprietary and ConfidentialTwofactorsdrivetheneedforobjectivesinthehighlevelBSCFactors driving need for objectives in the high level scor
105、ecardPotential objectives can be assessed against these two dimensions.Togethertheydeterminerequirementsfortheobjectivesinthehighlevelscorecard.The need for strategic integrationThe need for operational integration- 58 -Capgemini Proprietary and ConfidentialThehighlevelscorecardmustfocusonstrategici
106、ssueswhichintegrateacrossseveraldepartmentsHighLowHighObjectivesfordepartmentalscorecardsThe needs for strategic integrationThe needs for operational integrationObjectivesforthehighlevelscorecard- 59 -Capgemini Proprietary and ConfidentialTherearemanypotentialpitfallstosuccessfulimplementationScorec
107、ard DesignScorecard Implementation / Roll-outStrategicIntentDevelop&finaliseObjectivesDevelop&finaliseMeasuresDeterminebaselinesandsettargetsIncorporatescorecardreviewaskeyiteminbusinessmanagementmeetingsManagebusinessaccordingtoscorecardReview/refinescore-cardonaregularbasisinconjunc-tionwithstrate
108、gyreviewprocessAlign/planinitiativesaccordingtoscorecardCommunicateScorecardtoorganisationDevelopandimplementBUandsectionscorecardsEnsurescorecardalignmentReview&refineonanongoingbasisManageBU,sectionetc.accordingtoscorecardformatCascadescorecardtoindividuallevel.Toensureindividualfocusandalignment.
109、Feedback to high level scorecard to ensure alignmentCorporate/Shareholder input where relevantInappropriatestrategyMeasuresnotalignedtoobjectivesTargetstoosoftorambitiousScorecardnotusedasbusinessmanagement/focustoolScorecardnotcommunicatedReviewprocessinadequateorpoorlytimedPooralignmentbetweenleve
110、lsFeedbacknottakenintoaccount- 60 -Capgemini Proprietary and ConfidentialPhilosophyProcessStrategic IntentPoorBSCdesignandimplementationcanleadtoamultitudeofproblemsIndustrygeneric,notstrategic.Perspectives“unintegrated”.Whatcustomervaluesnotdefined.Missinginternal,operationallink.Levelsinorganisati
111、onnotdistinguished.MeasurementToomanymeasures.Unrealistic,unrepeatable.Activitiesinsteadofmeasures.Misleading.Allfinancial.Noexecutiveconsensus-nottopdown.Rolloutbeforecompletion.Tietoincentivestooquickly.Toomanypeople,toolong.Losemomentum.Control,notcommunication.Strategicreportvs.strategicagenda.Strategicplanningvs.improvisation.
