…simple tips for effective steps

Balanced

Scorecard

The Art & Craft

SCENE

A Compromise

Gained Skills

The Idea

The Benefits

What is Balanced Scorecard?

What Is Up!

Have a “Scorecard”!

At the highest level, the balanced scorecard isA framework that helps organizations

Translate strategy into operational objectives That drive both behavior and performance.

What is Balanced scorecard?

The benefitsProPro

No one can drive the car safely and efficiently without a dashboardTo decide based on systematic results that will lead to strategic implicationsMakes everyone (if applied and absorbed right) work for success not for “just work”Achieving goals faster Aligning firm’s resources around its vision and goalsAvoiding Non – Strategic actions / ideas / thinkingApplies the classical goal (reducing cost & increasing profit)Motivate people to achieve targets (if linked to compensation)Build up a culture of discipline (discipline people / thoughts / actions) Getting competitive advantages

No one can drive the car safely and efficiently without a dashboardTo decide based on systematic results that will lead to strategic implicationsMakes everyone (if applied and absorbed right) work for success not for “just work”Achieving goals faster Aligning firm’s resources around its vision and goalsAvoiding Non – Strategic actions / ideas / thinkingApplies the classical goal (reducing cost & increasing profit)Motivate people to achieve targets (if linked to compensation)Build up a culture of discipline (discipline people / thoughts / actions) Getting competitive advantages

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Attention to People Attention to Processes

Attention to Customers

Giving a BALANCED ATTENTION to the firm’s PILLARS OF SUCCESS

The Idea

Attention to Money

To “Scorecard” you have to do the following

Have a scorecard!

SWOTMonitoring &

Review

WARMING UP

KPIs Gap Analysis

Get Exposed !

Have a scorecard!

SWOTMonitoring &

Review

WARMING UP

KPIs Gap Analysis

Internal Scan IWhat is inside?

External Scan

Warming Up

Think out of the box

Internal Scan IIAre We Ready?

SCENEGet Exercised!

Get exposed to the (Industrial Trends) surrounding Get exposed to the (Industrial Trends) surrounding

Customer Trends

Competitor Trends Technology Trends

Policy Trends

Any Others

Customer Trends

Competitor Trends Technology Trends

Policy Trends

Any Others

ES

SCENEExternal ScanThink out of the box

Check your value added (Value Chain Analysis) Check your value added (Value Chain Analysis)

List all the processes / operations in sequence

Check the value added at each and every single process / operation

Check responsibilities

Study and analyze

List all the processes / operations in sequence

Check the value added at each and every single process / operation

Check responsibilities

Study and analyze

IS I

SCENEInternal Scan IWhat Is Inside?

Assess yourself (Capabilibly Assessment)Assess yourself (Capabilibly Assessment)

At each and every process / operation check the following:

Organization Readiness (%) People Readiness (%) Process Readiness (%) System Readiness (%)

At each and every process / operation check the following:

Organization Readiness (%) People Readiness (%) Process Readiness (%) System Readiness (%)

IS II

SCENEInternal Scan IIAre You Ready?

Check the readiness using (%) scale (0, 25, 50, 75, 100 percent) to avoid inconsistency

Expected OutcomesIt is expected to achieve the following after the “Warming Up”

Firm’s StrengthsFirm’s WeaknessesFirm’s ThreatsFirm’s Opportunities

4321

SCENE

Win The Battle!

Have a scorecard!

SWOTMonitoring &

Review

WARMING UP

KPIs Gap Analysis

Match The SWOTAssign to Exploit

Set The SWOT

SWOT

Complete the Puzzle

Develop Strategic PrioritiesThe Weapons

SCENEWin The Battle!

Write down the SWOT elements Write down the SWOT elements

The Firm’s Strengths

The Firm’s Weaknesses The Firm’s Opportunities

The Firm’s Threats

The Firm’s Strengths

The Firm’s Weaknesses The Firm’s Opportunities

The Firm’s Threats

SS

SCENESet The SWOTComplete the Puzzle

Assing each element of SWOT to another Assing each element of SWOT to another

Match between

List all the matched SWOT elements

Match between

List all the matched SWOT elements

MS

SCENEMatch The SWOTAssign to Exploit

Shape and group the matched elements Shape and group the matched elements

Group each set of matched SWOT elements that intersect together to come up with themes / priorities

Group each set of matched SWOT elements that intersect together to come up with themes / priorities DSP

SCENEDevelop Strategic PrioritiesThe Weapons

Expected OutcomesIt is expected to achieve the following after the “SWOT”

Firm’s Strategic Priorities1

SCENE

“You Can’t Manage What You Can’t Measure!”

Have a scorecard!

SWOTMonitoring &

Review

WARMING UP

KPIs Gap Analysis

Set TargetsWhat to Achieve?

Set The KPIs (Key Performance Indicators)

KPIsGet Controlled

Add Targets SupportersGet More Controlled

SCENE“You Can’t Manage What You Can’t Measure!”

Select the optimum KPIs that provide the full picture Select the optimum KPIs that provide the full picture

Choose a set of KPIs (selectively) that would facilitate monitoring the firm progress toward the set strategic priorities

Assign 1 to 3 KPIs for each strategic priority

One KPI can not measure more than one strategic priority

One strategic priority can be measured by more than one KPI

Choose a set of KPIs (selectively) that would facilitate monitoring the firm progress toward the set strategic priorities

Assign 1 to 3 KPIs for each strategic priority

One KPI can not measure more than one strategic priority

One strategic priority can be measured by more than one KPI

SK

SCENESet The KPIsGet Controlled

Set targets that could improve Set targets that could improve

Set target for each KPI to be achieved

To set the target you may:

Forecast (based on historical data) Find the “Best Practices”Look for demands, supplies, trends, events Or get the target form a highly paid CEO, who knows to

predict the future !

Set target for each KPI to be achieved

To set the target you may:

Forecast (based on historical data) Find the “Best Practices”Look for demands, supplies, trends, events Or get the target form a highly paid CEO, who knows to

predict the future !

ST

SCENESet TargetsWhat to Achieve?

Add supporters that could empower your controlAdd supporters that could empower your control

Set a specific and appropriate unit for each target for each KPI

Set the target time / date where you should achieve that target

Set the frequency base that you would review and check your progress upon

Set a specific and appropriate unit for each target for each KPI

Set the target time / date where you should achieve that target

Set the frequency base that you would review and check your progress upon

ATS

SCENEAdd Target SupportersGet More Controlled

Expected OutcomesIt is expected to achieve the following after the “KPIs”

Firm’s KPIsKPIs TargetsTargets UnitsTargets Dates and Frequency Base

4321

SCENE

“Mind The Gap”

Have a scorecard!

SWOTMonitoring &

Review

WARMING UP

KPIs Gap Analysis

Fill Up The GapWhat to Do to Fill Up?

Conduct Gap Analysis

Gap Analysis

Know Where Do You Stand?

Assign ResponsibilitiesLink the People

SCENE“Mind The Gap”

Compare between Compare between

Once you have set your KPIs and targets, then try to investigate what the current values (baselines) of these KPIs

Compare the current values with the desired targets

Analyze the gap between both values

Once you have set your KPIs and targets, then try to investigate what the current values (baselines) of these KPIs

Compare the current values with the desired targets

Analyze the gap between both values

SGA

SCENEConduct Gap AnalysisKnow Where Do You Stand?

In order to fill up the gaps try toIn order to fill up the gaps try to

Find out what actions / projects / initiatives can be taken to fill up the gap and to reach to the desired targets

Those actions can be generated through brainstorming, benchmarking and getting consulted

Find out what actions / projects / initiatives can be taken to fill up the gap and to reach to the desired targets

Those actions can be generated through brainstorming, benchmarking and getting consulted

FUG

SCENEFill Up The GapsWhat To Do TO Fill Up?

To activate those actions involve the people To activate those actions involve the people

Assign those actions to the appropriate departments / sections which can handle those actions efficiently

Each department will be responsible for certain strategic priorities, KPIs, targets, and actions

The assignment can be done through cascading / distributing those elements horizontally or vertically

Assign those actions to the appropriate departments / sections which can handle those actions efficiently

Each department will be responsible for certain strategic priorities, KPIs, targets, and actions

The assignment can be done through cascading / distributing those elements horizontally or vertically

AR

SCENEAssign ResponsibilitiesLink the People

Expected OutcomesIt is expected to achieve the following after the “Gap Analysis”

Gap Analysis ResultsSet of ActionsAssigned Responsibilities

321

SCENE

Sharpen The Saw!

Have a scorecard!

SWOTMonitoring &

Review

WARMING UP

KPIs Gap Analysis

ReactDecide What to Do?

Performance Investigation

Gap Analysis

What Is Going On?

What Is Learned?Build Up The Pharmacy

SCENESharpen The Saw!

Compare between Compare between

Compare the desired target value the achieved value

Analyze the situation

Look for root causes that made the poor results

Compare the desired target value the achieved value

Analyze the situation

Look for root causes that made the poor results

PI

SCENEPerformance InvestigationWhat Is Going On?

Find out Find out

Decide whether the performance is in control or out of control

If it is in control, keep up with the same passion

If not, develop a set of corrective actions that can help in rectifying what have been missed

Decide whether the performance is in control or out of control

If it is in control, keep up with the same passion

If not, develop a set of corrective actions that can help in rectifying what have been missed

R

SCENEReactDecide What to Do?

Enrich your pharmacy with lessons learned fromEnrich your pharmacy with lessons learned from

• In case of outstanding performance, find out what the root causes

• In contrast, in case of poor one, find out the root causes and its symptoms

• Communicate them for better performance

• In case of outstanding performance, find out what the root causes

• In contrast, in case of poor one, find out the root causes and its symptoms

• Communicate them for better performance

WL

SCENEWhat Is Learned?Build Up The Pharmacy

Expected OutcomesIt is expected to achieve the following after the “Monitoring & Review”

Performance Analysis ResultsLessons Learned Enlarged Pharmacy

321

SCENE

1

2

3

Analytical Skills

Association Skills

Interpretation / Investigation Skills

The Following Skills Could Be Gained During The Course

SCENE

SCENE

Practicing the balanced scorecard approach in micro scale projects

Conducting researches on this field

Getting exposed to the world best practices including local and international ones

Analyzing such papers and articles that correlate to BSC

Looking for cooperation with centres of Excellency which are specialized in BCS

Practicing

Best Practices

This Compromise Can Maximize The Learning Value

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3

Thanks a lot

All the best

And good luck

Now I would say

SCENE

40 40IIR Middle East

sect-about-ceo-Wheel.gif

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Balanced Scorecard Nr. Strategic Objectives Key Performance Indicators A04 05 06 07 Cause & Effect DiagramF11 Achieve profitable growth Revenues (MCHF) 91

F12 Improve productivity Revenues / Total employees (kCHF) 319

F13 Improve asset management Net op. working capital / Revenues (%) 21

M21 Develop xx module business Revenues with xx / xx (MCHF) -

M22 Develop xx business Revenues with xx (MCHF) 10

M23 Grow xx business Revenues with xx (MCHF) 4.5

M24 Develop business in fast growing markets Revenues xx (MCHF) 5

P31 Master product development processes Revenues with new products (%) 20

P32 Master customer interface processes CCRP customer satisfaction index (%) 85

On-time delivery POTD (%) 96

Rolled throughput yield (%) 80

Product infant mortality (dpm) 440

P34 Secure supplies of strategic materials Raw material availability (%) 96

P35 Align IT to support business processes IT costs / Revenues (%) 2.7

P36 Provide a sustainable work environment Number of severe accidents 0

L41 Create a culture of business excellence Scoring vs. EFQM BE model (%) -

L42 Identify with business processes Cross functional trainings (N° of peoples) -

L43 Develop Six Sigma competence Savings from Six Sigma initiatives (MCHF) -

L44 Manage employee development Employee appraisals (% accomplishment) 95

P33 Achieve operational excellence in production

Fina

nce

Mar

ket

Pote

ntia

lsPr

oces

ses

Achieve profitable growth

Improve productivity

Improve asset

management

Develop xx

business

Develop xx module

business

Grow xx

business

Develop business in fast growing

markets

Achieve operational

excellence in production

Create a culture of business

excellence

Master product

development processes

Master customer interface

processes

Provide a sustainable

work environment

Manage employee

development

Identify with Business

Processes

Secure supplies of strategic materials

Align IT to support

business processes

Develop Six Sigma

competence

Another BSC Example

IIR Middle East

A WORD-CLASS PUBLIC ORGANISATION WHICHPROVIDES EXCELLENT SCIENCE INFORMATION ANDSERVICES FOR THE BENEFIT OF THE PEOPLE OF XXXXXXX

IMPROVECOST-EFFECTIVENESS

& PRODUCTIVITY

INCREASEOUTPUT OF

HIGH QUALITY& UTILITY

ENSURE FINANCIALSELF-SUFFICIENCY

INCREASECOMPETITIVENESS

ENSURECUSTOMER

SATISFACTION

BUILD SOUNDBUSINESS

RELATIONSHIPS

DELIVER ON TIME, WITHIN BUDGET &SPECIFICATIONS

IMPROVEPRODUCTIONEFFICIENCY

RENDER EXCELLENT SERVICES

ENSURESTATE-OF-THE-ARTTECHNOLOGICAL

CAPACITY

FOSTER AWELL- MOTIVATED

STAFF

DEVELOPSTAFF

COMPETENCY

IMPROVE INTERNAL& EXTERNAL

COMMUNICATION

STIMULATEPROCESS & PRODUCT

INNOVATION

ADVANCEGOVERNMENT POLICIES

& OBJECTIVES

LEARNING AND GROWTHPERSPECTIVE

INTERNALPERSPECTIVE

CUSTOMERPERSPECTIVE

FINANCIALPERSPECTIVE

VISION