1 Strategic management planning Strategic management planning (SMP)
Strategic Planning with BSC - LearnInHub
Transcript of Strategic Planning with BSC - LearnInHub
Strategic Planning with BSCIntroduction to BSC
Strategic planning and Management
Change Analysis
Strategy Mapping
SECTION AGENDA
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Moving towards a Strategic plan
Balance scorecard
Strategic planning &
management
Change analysis & strategic mapping
KPI selection
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Introduction to Balance Score Card
Strategic planning with BSC
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Balance Score CardBENEFITS
1. Better and effective communication
2. Increase focus on strategies and results
3. Aligning activities of all the employees
4. Measuring and monitoring the progress
• With Key Indicators
5. Prioritize products and services.
NORTAN & KAPLAN’s
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High Level Framework
Mission/ Vision/ Value/Strategies/Results
Strategic Objectives
Financial
Customer
Internal
Learning & Growth
Metrics and Targets Initiatives
Perspectives outline the major goalsof the Organization
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The 4 Perspectives
Adapted from BSC by Kaplan & Norton
Vision & Strategies
Financial
Customer
Internal Business Processes
Learning & Growth
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The 4 Perspectives
Adapted from BSC by Kaplan & Norton
Vision & Strategies
Financial
Customer
Internal Business Processes
Learning & Growth
• Financial performance• Financial resource usage
• Cash flow• Returns on Investment• Returns on capital
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The 4 Perspectives
Adapted from BSC by Kaplan & Norton
Vision & Strategies
Financial
Customer
Internal Business Processes
Learning & Growth
• Value to the customer?
• Cost• Service• Quality• Time
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The 4 Perspectives
Adapted from BSC by Kaplan & Norton
Vision & Strategies
Financial
Customer
Internal Business Processes
Learning & Growth
• Level of efficiency• Productivity
• #Bottlenecks• Process alignment• Process automation
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The 4 Perspectives
Adapted from BSC by Kaplan & Norton
Vision & Strategies
Financial
Customer
Internal Business Processes
Learning & Growth
• Ability to change and improve
• Work culture• HR• Infrastructure
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Balance Score CardDISADVANTAGES
• Implementation time and cost• Copying generic metrics• Relies heavily on strategies and
mapping• Leading KPIs also required
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Strategic Planning and Management with BSC
Next Lesson
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Strategic Planning and Management with BSC
Strategic planning with BSC
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Strategic Planning and ManagementRefer: BSC’s Nine Steps to SuccessTM
Assessment
Strategy
Objectives
Strategy map
Performance measures
Initiatives
Performance Analysis
Alignment
Evaluation
• Disciplined approach to developing a strategic planning and management system
• Effective strategic management tool
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Strategic Planning and ManagementRefer: BSC’s Nine Steps to SuccessTM
Assessment
Strategy
Objectives
Strategy map
Performance measures
Initiatives
Performance Analysis
Alignment
Evaluation
Current stateVisionMissionGoalsGap analysis
Strategic objectives set against desired stateStrategy Mapping
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Strategic Planning and ManagementRefer: BSC’s Nine Steps to SuccessTM
Assessment
Strategy
Objectives
Strategy map
Performance measures
Initiatives
Performance Analysis
Alignment
Evaluation
Performance measurement framework
Initiatives listed
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Strategic Planning and ManagementRefer: BSC’s Nine Steps to SuccessTM
Assessment
Strategy
Objectives
Strategy map
Performance measures
Initiatives
Performance Analysis
Alignment
Evaluation
Collect dataAnalyseInfer
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Strategic Planning and ManagementRefer: BSC’s Nine Steps to SuccessTM
Assessment
Strategy
Objectives
Strategy map
Performance measures
Initiatives
Performance Analysis
Alignment
Evaluation
61% of the respondents in the industry, often fail to bridge the gap between strategy formulation and its day to day implementation.
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Strategic Planning and ManagementRefer: BSC’s Nine Steps to SuccessTM
Assessment
Strategy
Objectives
Strategy map
Performance measures
Initiatives
Performance Analysis
Alignment
Evaluation
Are our strategies working?
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Let’s recap…
• 4 perspectives of BSC
• What do each signify
• Strategic Planning and Management with BSC
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Change Analysis• To find out what do you need to do to achieve your goal
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Change Analysis- Big Store
Gaps/ Changes required/ Current State
No online sales
Online site visits are very less in comparison to
brick and mortar customer footfall
Only electronic items and books sold
High downtime of online portal
IT services dependency on vendors
Perspectives
Fin
Fin
Customer
Internal
L & G
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Gaps/ Changes required/ Current State
No online sales
Online site visits are very less in comparison to
brick and mortar customer footfall
Only electronic items and books sold
High downtime of online portal
IT services dependency on vendors
Perspectives
Fin
Fin
Customer
Internal
L & G
Desired State
Increase online sales
Increase online customer base
Become a supplier for variety of products-Diversification
Reduce the downtime to minimum
Create own IT unit with developers
Change Analysis- Big Store
Big Store Strategy Planner- DIYWrite some points in the current state (as described in the case below) and respective desired state:Big Store is new retail outlet in the New City of New States. As an owner of the store you dream to see Big Store successful in the world. Goal: Double the revenue every year for next 5 years
At present, Big Store is not seeing consistent cash flow, and from the sale data so far they have only books to be sold. The morale of employees is going down as they are not finding any motivation to work here, the small sales force is not even properly trained. Big Store also wants to enter to ecommerce but has not done yet so because of absence of any IT team be it internal or outsourced.Take a cue from this and write down the current state in each of the perspectives and then the desired state.www.learninhub.com
Strategy Mapping• To document what is to be done to reach the desired state and to link all the objectives together so that they align with
the single goal.
A. Writing the strategic objectives: Verb+ Adjective+ Noun (action+ description+ result)
B. Mapping the strategic objectives with each other
C. Convert each objective into a statement as well, so that you can understand it at a later point in time.
A general thumb rule is three to four objectives for each perspective
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Strategy Mapping- Big Store
Perspectives Desired State ObjectivesFinancial Increase online sales Increase+ monthly+ sales by 20%
Increase online customer base Increase+ monthly+ subscription rate by 20%
Customer To become a supplier for variety of products
Increase launching of new products every quarter by 15%
Process & Products Reduce the downtime Decrease the portal downtime by 80%
Learning & Growth Creating own IT unit with developers
Increase IT developers count to 50 by EOQ
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Big Store Strategy Planner- DIYYou have got the points in desired state in the previous assignment, now write down at least 1 objective for each and do the mapping of those strategic objectives:
Big Store is new retail outlet in the New City of New States. As an owner of the store you dream to see Big Store successful in the world. Goal: Double the revenue every year for next 5 years
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Let’s recap…
• 4 perspectives of BSC
• What do each signify
• Strategic Planning and Management with BSC
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