Office of Strategy Management - Edublog · Balanced Scorecard Masters Building Your Scorecard: Working Towards an Office of Strategy Management Steve ... Citibank BPM Group
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Arlington, November 2007
Balanced Scorecard MastersBalanced Scorecard MastersBuilding Your Scorecard: Working Towards an Office of Strategy Managementan Office of Strategy Management
BSC Needs to be “aligned” (driven by) the Strategy Map
Objectives MeasurementStrategic Theme:O ti Effi i InitiativeTarget
gy pHarvard K&N Southwest Airlines Example
j
• Market Value
• Seat Revenue
• Plane Lease
Operating Efficiency g
• 30% CAGR
• 20% CAGR
• 5% CAGR
ProfitabilityFinancial
MoreCustomersFewer Planes
• Profitability
• More Customers Plane Lease
Cost• FAA On Time
Arrival Rating• Customer
Ranking (Market
• Quality management
• Customer loyalty
5% CAGR
• #1
• #1
Customers
Lowest Prices
CustomerFlight
Is on Time
• Fewer planes• Flight is on -
time• Lowest prices
Ranking (Market Survey)
• On Ground Time• On-Time
Departure
• Cycle time optimization program
loyalty program
• 30 Minutes• 90%
Internal
Fast Ground Turnaround
• Fast ground turnaround
• % Ground crew trained
• % Ground crew stockholders
• ESOP
• Ground crew training
• yr. 1 70%yr. 3 90%yr. 5 100%
Learning
Ground Crew Alignment
• Ground crew alignment
Why doesn’t it always work? Let’s review what we mean…
Performance Management“The use of performance measurement information toThe use of performance measurement information to
help set agreed‐upon performance goals, allocate and prioritize resources, inform managers to either confirm or change current policy or program directions to meetor change current policy or program directions to meet those goals, and report on the success in meeting those goals.”
Performance Measurement“A process of assessing progress towards achievingA process of assessing progress towards achieving
predetermined goals, including information on [efficiency, quality, and] outcomes….
TowersAssociates www.bennugroup.net www.stevetowers.comSource: “Serving the American Public: Best practices in performance measurement,” June 1997.
“We were measuring the wrong ******* things!”
Mi
Ry ichael O
’Leyan A
ir’s CE
Ryan Air – Europe’s largestAnd most successful Airline eary
EOAnd most successful Airline.
“It’s not rocket science. You need to be measuringWh ’ i hWhat’s important to the customer. Then you make sure everything you do is achieving those measures.achieving those measures.
******* simple really.That way customers keep coming back for more”.
We don’t focus on the Customer!Our service centre hierarchyWhat have we focussed on?
The service centre as a systemWhat we SHOULD pay attention to
Mgr•Service Level•Abandon Rate•Costs
How many of these measures does the customer care about?
What happens when
MgrFocus: creation of value for customersMeasures: capability, predictability of demand, response, failureRole: Acts on the system
FLM•# Call/Cases •AHT•Quality
ppthe actuals fall short of targets?Personal reviews- Training & coaching- Personal Development plans
M lFLM
Focus: creation of value for customers, removal of failure and wasteMeasures: achievement of purpose, reducing variation in system performanceRole: Act on the system
Assoc
•AHT•Ability to follow policies/pro
- More people
What about acting on the system? How much of demand is failure? Assoc
Role: Act on the system
Focus: doing what the customer wantsM hi t fAssoc policies/pro
cedures/scripts
What % of demand are we meeting?
Assoc Measures: achievement of purpose, variation in performance
We focus on numbers/targets which we think will mean good service for our customers. The problem is that these numbers aren’t set by the customer and;
The problem is that these numbers aren t set by the customer and;
• don’t relate to what the customer is contacting us about • don’t tell us how effectively we deal with their demands• Don’t give us a means of explicitly and progressively achieving the Successful Customer Outcomes.
Arlington, November 2007
Balanced Scorecard MastersBuilding Your Scorecard: Working Towards an Office of Strategy Management
Striving for Balanced Scorecard Success – we don’t always succeedwe don t always succeed
Embedding the scorecard as part of our i ti l DNAorganizational DNA
Developing the Office of Strategic Management – the keys to the future
1. Ensure the hard won benefits of initial BSC1. Ensure the hard won benefits of initial BSC initiatives are secured
2. Create a framework to ensure ongoing2. Create a framework to ensure ongoing success
3. Establish the strategic discipline and rigour3. Establish the strategic discipline and rigour across the organization to encourage and grow future success?
4. Consolidate the gains and become a triple crown + company
Project Managers to lead initiativesI iti ti di t d d b t• Initiative coordinators and drum beaters
Certifed Process Professionals to align for SCO's• process improvements and a process• process improvements, and a process management/documentation team
Performance Analysts to count towards SCO'sPerformance Analysts to count towards SCO s• Gather data, first level analysis, scorecard updates
Balanced Scorecard MastersBalanced Scorecard MastersBuilding Your Scorecard: Working Towards an Office of Strategy Managementan Office of Strategy Management
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