The Strategy Focused Organization Balanced · PDF fileThe Strategy Focused Organization...

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© 2005 Balanced Scorecard Collaborative > Balanced Scorecard Collaborative, Central & Eastern Europe GmbH Prague, 7 April 2005 for more information contact: Peter Sperl [email protected] Mathias Mangels [email protected] The Strategy Focused Organization Balanced Scorecard Design Presentation for Office of the Government of the Czech Republic

Transcript of The Strategy Focused Organization Balanced · PDF fileThe Strategy Focused Organization...

© 2005 Balanced Scorecard Collaborative

> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH

Prague, 7 April 2005

for more information contact:

Peter [email protected]

Mathias [email protected]

The Strategy Focused Organization

Balanced Scorecard DesignPresentation for

Office of the Governmentof the Czech Republic

> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH

© 2005 Balanced Scorecard Collaborative

Vision of the Reform:

“Flexible and better functioning central state administration responding better to global challenges and cross-cutting issues”

Central State Administration Reform

> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH

© 2005 Balanced Scorecard Collaborative

Office of the Government of the Czech Republic Prague, 7 April 2005

General Information about BSCol (20 min)

Scope and approach of Projects by BSCol (30 min)

Case studies of Government Projects (25 min)

Cooperation of BSCol with IDS Scheer (15 min)

Agenda

> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH

© 2005 Balanced Scorecard Collaborative

> Balanced Scorecard Collaborative Inc.

> Balanced Scorecard Collaborative Central & Eastern Europe GmbH

Kaplan Norton

Led by Robert Kaplan (Chairman) and David Norton (President)

Over 250 experienced consultants worldwide

World-leading in strategy implementation using the Balanced Scorecard

Over 500 BSCol-led Balanced Scorecard Implementations

Wide variety of advisory, educational and training services

Pioneer in BSC e-learning and design

More than 75.000 Online Community Members

Founded as a German GmbH in November 2004

Focused on consulting and training services to private and public organizations in Central and Eastern Europe

International team located in Munich helps organizations successfully execute their strategy to create breakthrough results

Balanced Scorecard Collaborativeis a new kind of professional services firm

> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH

© 2005 Balanced Scorecard Collaborative

Our Worldwide Network of Affiliates

South KoreaSpain & Portugal

Argentina

Brazil

Chile

Mexico

Colombia & Ecuador

USA

Sweden & Norway

United Kingdom

Italy

Iceland

Asia-Pacific

China

Central & Eastern Europe

> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH

© 2005 Balanced Scorecard Collaborative

We are committed to helping companies to build

Strategy Focused Organizations (SFO)

Best Practice Capabilities

A skilled team of professionalsPeople

Integrated strategy management processesProcesses

Tools, technologies, and supportTools

• Proven methodologies by the originators of the BSC/SFO

• Tested and constantly refined in the field• References, Hall of Fame

• Unique suite of proven, proprietary support tools:

• Design & Cascade Centers, on line training, best practice-library, First Report, SFO readiness

• Depth & breadth of expertise and experience

• Advisers, coaches & trainers• Expert led model, know-how transfer• Program management & control

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21 translations

18 translations

60% usage in Fortune 500Harvard Business Review “Hall of Fame”89.000 BSC on-line members

The Balanced Scorecard in 2005

11 translations

February 2004

January - February 1992

January 1996

September 1993

September 2000

Bi-monthly Newsletter2.700 subscribers

September 1993

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Balanced Scorecard Hall of FameAchieving Breakthrough Results

TELECOMMUNI-CATIONS

FINANCIAL SERVICES

PROCESS MANUFACTURING

SERVICE AND HOSPITALITY

DISCRETE MANUFACT-

URING

GOVERNMENT

EDUCATION

HEALTH CARE

UTILITIES

POLICE & MILITARY

Engineering Polymers

North AmericaMarketing & Refining

BMW Financial Services

Commercial Vehicle Business Unit

Information and Communication Mobile

UK Ministry of Defence

US Army

Royal Norwegian Air Force

National Reconnaissance

Office

Human Resources

RCMP

EDA

Chrysler Group

USA

CGISS

Korea Telecom

Companhia Siderurgica De Tubarao

Europe

Saatchi & Saatchi

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The Challenge Is Translating Strategy into Action

“Less than 10% of strategies effectively formulated are effectively executed.”

Fortune

“Strategies most often fail because they aren’t executed well.”

Execution

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The four Barriers to Strategy Execution

Only 5% of the workforce understand the strategy

Only 25% of managers have incentives linked to overall

strategy

The People Barrier

The Vision Barrier

85% of executive teams spend less than one hour

month discussing strategy

The Management Barrier9 of 10 companies

fail to execute strategy

60% of organizations do not link budgets to strategy

The Resource Barrier

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The Implementation Problem: How to bridge leadership at the top to management of initiatives, process improvements and employees´ every day actions

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The Strategy-Focused Organizationand its five principles of success

Translate Strategy to operational terms

Mobilize Change through Executive Leadership

Align the Organization to the Strategy

Motivate to make Strategy Everyone’s Job

Govern to make Strategy a Continual Process

2

3

4

5

1• Map the strategy• Define measures• Establish targets• Rationalize initiatives• Assign accountability

• Align Secretaries• Align Divisions• Align Departments• Align Project Teams

• Communicate the strategy• Align personal goals• Align personal incentives• Align competency development

• Commit Top Leadership• Articulate case for change clearly• Engage Leadership Team• Clarify Vision and Strategy • Mobilize the Organization• Identify Program Manager

• Implement BSC reporting system • Conduct strategic review meetings • Integrate planning, budgeting and strategy• Link HR and IT planning to strategy• Link Process Management to strategy • Link knowledge sharing to strategy• Establish Strategic Management Office

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Translate the strategy to operational terms

Link and align the organization around its strategy

Make strategy everyone’s job

Make strategy a continuous process

Provide a change agenda

…so everyone can understand.

…which creates a “line of sight” from “boardroom to backroom.”

…through personal contribution tostrategic implementation.

…through organizational learningand adapting.

…for executive leadership tomobilize change.

12345

The 5 Principles of a Strategy-Focused Organization

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Czech Government6 April 2005

General Information about BSCol (20 min)

Scope and approach of Projects by BSCol (30 min)

Case studies of Government Projects (25 min)

Cooperation of BSCol with IDS Scheer (15 min)

Agenda

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© 2005 Balanced Scorecard Collaborative

Continual Process

Organizational Alignment

Translate Strategy

Executive Leadership

TRANSLATE STRATEGY INTO OPERATIONAL

TERMS

MOBILIZE CHANGE THROUGH EXECUTIVE

LEADERSHIP

ALIGN THE ORGANIZATION TO THE STRATEGY

GOVERN TO MAKE STRATEGY

A CONTINUAL PROCESS

Everybody’s Work

MOTIVATE TO MAKE STRATEGY EVERYONE’S JOB

3

2

1

5

4

Best Practice

CurrentPerformance

Being considered

Working on it

Implemented

Best Practice Not considered

1 2 3 4 5

Being considered

Working on it

Implemented

Best Practice Not considered

1 2 3 4 5

The SFO Readiness Assessment(The Balanced Scorecard Diagnosis Tool)

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The SFO Readiness Assessment Relationships between Managerial Excellence and Levels of Benefits

Leve

l of E

xcel

lenc

e of

Stra

tegi

c M

anag

emen

t Pra

ctic

es

Mobilization Practices

Translation Practices

Alignment Practices

Motivation Practices

Governance Practices

4.5

4.0

3.5

3.0

I – Hall of Fame Companies

II– “Breakthrough Results”

III – “Operational Results”

IV – “Organization Benefits”

High-Benefit Users

Low-Benefit Users

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Internal Processes Perspective

Financial Perspective

Learning & Growth Perspective

Customer Perspective

Return on Investment

Reputation

Sources of Growth Sources of Productivity

+ +

“Build the Brand”

“Make the Sale”

“Deliver the Product”

“Service Exceptionally”

Productivity Strategy

HumanCapital

InformationCapital

OrganizationCapital

ImageRelationshipProduct Service

Revenue Strategy

To satisfy our shareholders, what financial objectives must we accomplish?

To achieve our financial objectives, what customers needs must we serve?

. To satisfy our customers and shareholders, in which internal business processes must we excel?

To achieve our goals, how must our organization learn and innovate?

1

2

3

4

The four Perspectives pull together proven Management Concepts into a simple Framework Private

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Internal Processes Perspective

Mission

Learning & Growth Perspective

Sources of Confidence Sources of Productivity

+ +

Improvement & Expansion

Operational Excellence

Commercial Excellence

Customer Excellence

Policy Relationship

HumanCapital

InformationCapital

OrganizationCapital

Costumer Relationship

Quality & Service

Common Benefits

How do we achieve our (political) mission?

To achieve our mission, what customers-citizens and finan-cial needs must we serve?

. To achieve our customers-citizens and financial goals, in which internal business processes must we excel?

To achieve our goals, how must our organization learn and innovate?

1

2

3

4

The four Perspectives pull together proven Management Concepts into a simple Framework

Customer Perspective Financial PerspectiveSelf-contained

FinancingProductivity

Environmental Protection

Public

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The Balanced Scorecard Model of Value Creation

The Strategy

"If we succeed, how will we look to our shareholders?”

Financial Perspective

"To achieve our vision, how must we look to

our customers?”

Costumer Perspective

"To satisfy our customers and shareholders, at which processes must we excel?”

Internal Perspective

“How do I align my intangible assists to

improve critical processes?”

Learning & Growth

Private Sector Organizations

The Mission

“How do we attract resources and authorization

for our mission?”

"To have a social impact and to attract resources and support, at which processes must we excel?”

Internal Perspective

“How do I align myintangible assists to

improve critical processes?”

Learning & Growth

“How should we manage and allocate our resources for maximum social impact?”

Financial Perspective

Government & Non-Profit Organizations

“How do we have a social impact with our citizens/constituents?”

Costumer PerspectiveSupport Perspective

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The Strategy-Focused Organizationand its five principles of success

Translate Strategy to operational terms

Mobilize Change through Executive Leadership

Align the Organization to the Strategy

Motivate to make Strategy Everyone’s Job

Govern to make Strategy a Continual Process

2

3

4

5

1• Map the strategy• Define measures• Establish targets• Rationalize initiatives• Assign accountability

• Communicate the strategy• Align personal goals• Align personal incentives• Align competency development

• Commit Top Leadership• Articulate case for change clearly• Engage Leadership Team• Clarify Vision and Strategy • Mobilize the Organization• Identify Program Manager

• Implement BSC reporting system • Conduct strategic review meetings • Integrate planning, budgeting and strategy• Link HR and IT planning to strategy• Link Process Management to strategy • Link knowledge sharing to strategy• Establish Strategic Management Office

STRATEGY FOCUSED

ORGANIZATION

5PRINCIPLES

• Align Secretaries• Align Divisions• Align Departments• Align Project Teams

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A successful Balanced Scorecard program starts with a recognition that it is not a metrics project, it’s a change process

Executive Leadership:The BSC creates the agenda for change …

In this context Leaders must:

Create the climate for change

Create the vision and strategy

Create the Leadership Team

Change the culture

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The Mobilization Phase:Getting Started …

Leadership Objective:• Achieve commitment at the top• Build the executive team• Build case for change

Mobilize Change through Executive Leadership

Mobilization PhaseStrategic Shift:

New executive leaderNew strategy

Underperforming: Burning platformBottom-decile industry performancePoor quality or customer service

Align Business Units:Consistent value proposition:Post-merger integration

Integration:Integrating business unitsIntegrating new product lines

Get organization buy-in and leadership alignment around the need for a new process to manage strategy

Triggers of Change

> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH

© 2005 Balanced Scorecard Collaborative

The Strategy-Focused Organizationand its five principles of success

Translate Strategy to operational terms

Mobilize Change through Executive Leadership

Align the Organization to the Strategy

Motivate to make Strategy Everyone’s Job

Govern to make Strategy a Continual Process

2

3

4

5

1• Map the strategy• Define measures• Establish targets• Rationalize initiatives• Assign accountability

• Communicate the strategy• Align personal goals• Align personal incentives• Align competency development

• Commit Top Leadership• Articulate case for change clearly• Engage Leadership Team• Clarify Vision and Strategy • Mobilize the Organization• Identify Program Manager

• Implement BSC reporting system • Conduct strategic review meetings • Integrate planning, budgeting and strategy• Link HR and IT planning to strategy• Link Process Management to strategy • Link knowledge sharing to strategy• Establish Strategic Management Office

STRATEGY FOCUSED

ORGANIZATION

5PRINCIPLES

• Align Secretaries• Align Divisions• Align Departments• Align Project Teams

> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH

© 2005 Balanced Scorecard Collaborative

Example of a Strategy Map for the Private SectorAligned Internal Processes and Intangible Assets deliver Customer Value Proposition that creates Shareholder Value

Long-Term Shareholder Value

Productivity Strategy Growth Strategy

Enhance Customer Value

Improve Cost Structure

Increase Asset Utilization

Expand Revenue Opportunities

Human Capital

Information Capital

Organization CapitalCulture Leadership TeamworkAlignment

Customer Value Proposition

Price Quality Availability Selection Functionality Service Partnership Brand

Product / Service Attributes Relationship Image

SupplyProductionDistributionRisk Management

OperationsManagement Processes

SelectionAcquisitionRetentionGrowth

Customer ManagementProcesses

Opportunity IDR&D PipelineDesign/DevelopRamp-Up

InnovationProcesses

EnvironmentSafety & HealthEmploymentCommunity

Regulatory & Social Processes

Financial Perspective

Customer Perspective

Internal Perspective

Learn & Growth

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Generic Strategy Map for the Public Sector

Improvementand Expantion (Development Processes)

Relationship Institution-Comunity

Excellence in fee collection

(ComercialProcesses )

OperationalExcellence (OperationalProcesses)

Excellencein CustomerAttention (CustomerProcesses)

Competent and proactive Employees

Developmentof Strategic

Competences

Improvementof work climate

Development of IT Solutions

KnowledgeManagement

Quality

Equity

Continuity

Attention

CapacitiesCompetenceDistresses

MotivationAttitude

Empowerment

AccessibilityConfidenceOpportunity

GeneratinnTransfer

Utilization

Environ-mental care(EducationalProcesses)

AccessibilityEconomy of

Scales

Strategy of Productivity

Strategy of self-contained

Cost Reduction

Availability ofResources

Efficient useof resources

Common Benefits

Satisfactionof demand

Improvement ofquality of life

Strategy AllianceEnvironmental ProtectionCommunication

Service CultureCostumer-focusedStrategy ManagementQuality ControlDecentralizationStrategic Allianceswith private sector

Modernization

Confidence

Transparency

Responsability

Transparency

Rates / Fees

Relationship Institution-Politics

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Example of a Strategy Map for the Public SectorRoyal Canadian Mounted Police

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Objectives

Delivery of Services

Targets

97%(first time)

Meter Reading Automation

InitiativesMeasures

Promised Delivery %

Strategic Theme: Operating Efficiency

Financial

Learning & Growth

Maximize Cost-Benefit

Ensure Market-Driven Skill

Development

Improve Quality of Live

Enhance Service Delivery

Customer

Internal

Increase Infrastructure

CapacitySecure Funding

Improve Productivity

A good Balanced Scorecard connects the strategy map to objectives, measures, targets, and initiatives

Strategy Map: Diagram of the cause-and-effect relationships between strategic objectives

Strategic Objectives: What the strategy is trying to achieve

Targets: The level of

performance or rate of

improvement needed

Key Action Programs required to

achieve targets

Measures: How success

or failure (performance)

against objectives is monitored

Mission

> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH

© 2005 Balanced Scorecard Collaborative

The Strategy-Focused Organizationand its five principles of success

Translate Strategy to operational terms

Mobilize Change through Executive Leadership

Align the Organization to the Strategy

Motivate to make Strategy Everyone’s Job

Govern to make Strategy a Continual Process

2

3

4

5

1• Map the strategy• Define measures• Establish targets• Rationalize initiatives• Assign accountability

• Communicate the strategy• Align personal goals• Align personal incentives• Align competency development

• Commit Top Leadership• Articulate case for change clearly• Engage Leadership Team• Clarify Vision and Strategy • Mobilize the Organization• Identify Program Manager

• Implement BSC reporting system • Conduct strategic review meetings • Integrate planning, budgeting and strategy• Link HR and IT planning to strategy• Link Process Management to strategy • Link knowledge sharing to strategy• Establish Strategic Management Office

STRATEGY FOCUSED

ORGANIZATION

5PRINCIPLES

• Align Secretaries• Align Divisions• Align Departments• Align Project Teams

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© 2005 Balanced Scorecard Collaborative

Balanced Scorecard Implementation can proceed in stages to create a Strategy Focused Organization

Create Corporate Balanced Scorecard

Implement a strategic organizational change

program

Create team and personal objectives

Create BSC incentive compensation system

Develop change management

mobilization plan

Create BSC measurement collection and

reporting system

Create budgets for strategic programs

Operationalizethe BSC

• Measures• Targets• Initiatives

Communicate the BSC and educate

employees

Hold management

review meetings

Cascade the BSC by creating

• SBU BSC’s• SSU BSC’s

Revise & adapt the

BSC

TranslateStrategy

Everyone’s Job

OrganizationAlignment

Translate Strategy

Executive LeadershipExecutive

Leadership

Continual Process

Organization Alignment

Everyone’s Job

Continual Process

2

3

4

5

1

STAGE 2(12–24 months)

STAGE 1(6–12 months)

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Organization Alignment:Cascade the BSC to Departments & Support Units

Government Office BSC

Division BSC

Support Units BSC

Departments BSC

The deeper we deploy the BSC,

the better we can define the processes improvement needs

Processes

Team and Individuals

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Performance Management Processes are essential for moving Strategy from the Top to the Bottom

GOVDEP

• EDUCATION

• PERSONAL GOAL ALIGNMENT

• BALANCED PAYCHECKS

Everyone’s Job:

Top-Down “Bridging Process” to Share the Strategy and Align the Workforce

Bottom-Up Process to Internalize andExecute the Strategy

The Strategy–Focused Workforce

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Why do organizations fail to get results from their Balanced Scorecard programs?

#1 No Executive Ownership(done by middle management team only; long development process)

#2 Scorecard not linked to Strategy(no strategy map - just KPIs in 4 perspectives; mostly financial measures; done as a systems project)

#3 Scorecard not linked to Management Processes(Mobilize, Translate, Align, Motivate, Govern)

NOT using BSC

Using it WRONG

Using itRIGHT

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The Balanced Scorecard Portal

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Online Training eLearning Tool> Helps to mobilize for Results

Online Library> Access a wealth o Best Practices to help successfully implement the

Balanced Scorecard with 400+ assets, updated monthly

Design & Cascade Center> Build Online your Balanced Scorecard better, faster and easier

First Report> Get started reporting on your Balanced Scorecard

Readiness Director> Helps to ensure success during the BSC implementation process

The Balanced Scorecard Portal

The Balanced Scorecard Portalis a customized online system

to help organizations make strategy a core competency

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The Balanced Scorecard PortalOnline Training (eLearning Tool)

Test your knowledge and understanding of the BSC

Audio/video

Glossary of words, terms, and methodology

Easy, step by step learning process

Easily advance through the learning process

Training courses include the following themes:

Introduction to the Balanced ScorecardInitiatives

Strategy Mapping Workshops

MeasurementsReporting

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Search by:• Media Type• SFO Principle• Keywords• Full Text

The Balanced Scorecard PortalOnline Library

Conference presentations from our World Class Executive ConferencesCase studies of Hall of Fame implementationsMultimedia presentations focused on the SFO principlesArticles from the Balanced Scorecard ReportPresentations from Robert Kaplan, David Norton, and other BSCol

professionalsExecutive interviews from BSC practitioners

> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH

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Czech Government6 April 2005

General Information about BSCol (20 min)

Scope and approach of Projects by BSCol (30 min)

Case studies of Government Projects (25 min)

Cooperation of BSCol with IDS Scheer (15 min)

Agenda

> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH

© 2005 Balanced Scorecard Collaborative

Government of Rio Grande do Sul

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Objective for implementing the BSC

> Develop / refine strategy to one of the government pillars

> Align Secretaries around this strategic pillar

> Optimize the resources and programs needs

> Develop an easy to use management tool to support the process of monitoring the evolution meetings

> Recommend structure required to the management

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GOVERNMENT STRATEGYEc

onom

ic

Dev

elop

men

t

Soci

alIn

clus

ion

Red

uctio

n of

lo

cal n

ot e

qual

tr

eatm

ent

Man

agem

ent

Mod

erni

zatio

n

Integration of 4 Secretaries:HealthJobEducationHabitation

Scope of the Strategy Approach

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Assure the integration of the management / actions between social secretaries and the other government

institutions

Provide the integration of the Program with

the Civil Society

Assure the integration of the Federal, State and District politics

Integration Government - Society

Provide access to the health services

Provide access to quality education

Assure the financial resources required to

make the program viable and

sustainable

Financial Responsibility

Focus

People and Competencies

Program Objective

Provide the families self-sustainability

Improve families quality of life

Develop other opportunities to generate income

Promote the capacity to generate income in

the target-families

Put in touch citizens to the job opportunities

Look for external sources of resources

Optimize the use of public and external

resources

Look for scale benefits

Monitor the families evolution

(during and after)

Knowledge of social demands

from target-families

Align the programs to the

demands

Focus and Alignment of the Programs

Assure access to the basic education

Assure the qualityof the resources

Assure basic conditions of living

Assure water treatment

Provide basic conditions of living:

income and food

Management oriented to results

Make the image and the credibility

of Government strong

Provide skills to the families

Integrate the school to the

comunity

Assure simultaneous Operationalization of the programs

Assure information system integrated, reliable and fast

Provide cultural change focusing the job with inter-

Secretaries teams

Keep employees motivated and aligned to the objectives and

program results

Create teams: politic and operational, with the required

competences to a sharing inter-Secretaries management

Provide to Rio Grande do Sul’s families, which is not considered poor, the possibility of social promotion and self-sustainability.

Assure families treatment

Prevent the health getting

worst

Target-public and Government

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Focus and alignment:> Reduction of, approximately, 50% of Secretary's programs

Synergy:> Programs (and resources) sharing among Secretaries

Integration:> Commitment and involvement of all target District

“... the BSC is a democratic planning process that make possible the integration of all Secretaries ...”

Alceu Moreira, Secretary of Habitation

“... the BSC is a democratic planning process that make possible the integration of all Secretaries ...”

Alceu Moreira, Secretary of Habitation

Results

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UK Ministry of Defence

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© 2005 Balanced Scorecard Collaborative

The Case

UK Ministry of Defence: > One of the largest UK government departments > Annual budget of 25 billion £> Over 300.000 military and civilian personnel

The Change undertaken: UK Government’s wider „modernizing agenda“ in 2000 establishing clear strategic goals, targets, measures and initiatives

The Task: The Ministry of Defence like all government departments must squeeze better performance out of taxpayer money. Previous performance – management systems had several shortcomings

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The Challenge: Overcome a healthy skepticism from some of the most senior military officers

The Results: > Streamlined strategic objectives, targets, measures and initiatives

> Better strategic resource allocation

> Improved delivery of military capability and readiness

„The Balanced Scorecard is one of the most important management initiatives we have adopted“

Sir Kevin Tebbit, Permanent Under Secretary of State and Chairman of the Defence Management Board

„The Balanced Scorecard is one of the most important management initiatives we have adopted“

Sir Kevin Tebbit, Permanent Under Secretary of State and Chairman of the Defence Management Board

The Project

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Strategy Map

Battle Winning Defense Capability

Military Effectiveness

Reputation Defense Infrastructure

Training Acquisition Management

Technology and Equipment

ModernisingInfrastructure

Annual Budget

Defense Policy

Operational Success

Manning Levels

Investing in People

Output Deliverables Perspective

Resource Management Perspective

Enabling Processes Perspective

Building for the Future Perspective

Improve Operational

EffectivenessBetter use of Resources

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© 2005 Balanced Scorecard Collaborative

Government of Mexico

Taking the Government from Planification to Action

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© 2005 Balanced Scorecard Collaborative

Sector Programs

Human and Social Development

Economic Growth

Security, Order and Respect

Definition of Priorities / Projects / Targets / Indicators / Benchmarking Implementation / Alignment / Continue Improvement

Assurance of Implementation

National Development Plan of Mexico 2001 - 2006

Objectives and Targets

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Strategy Strategy MapMap

IndicatorIndicatorGenerationGeneration

Indicator Indicator AnalysisAnalysis

Strategy Planning Approach

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© 2005 Balanced Scorecard Collaborative

Example of a Strategy MapSecurity Cabinet

Public Security (Draft)Va

lue

for

the

Citi

zens

Inte

rnal

Pr

oces

ses

Res

ourc

es

(Hum

an, m

ater

ial

and

finan

cial

)

Increase confidence of citizens

Decrease common criminal

incidents

Decrease federal criminal

incidents

Reform public security

laws

Capacity building ofhuman resources

Disposition of federal and state

financial resources

Disposition of necessary infrastructure

and equipment

Coordinate programs and actors

Increase process transparency

Respect human rights

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Czech Government6 April 2005

General Information about BSCol (20 min)

Scope and approach of Projects by BSCol (30 min)

Case studies of Government Projects (25 min)

Cooperation of BSCol with IDS Scheer (15 min)

Agenda

> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH

© 2005 Balanced Scorecard Collaborative

Strategydiagnosis

BSCdefinition

BSCmaintenance

Del

iver

yTo

ols Strategy map

Balanced ScorecardARIS BSC

Balanced ScorecardARIS ToolsetSAP (SEM, BW)

BSCimplementation

Status quo analysisSFO ReadinessAssessment

BSCol and IDS Scheer High Level Cooperation Model

Strategy MeetingsOSMARIS ToolsetSAP (SEM, BW)

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Common Value Proposition of BSCol and IDS Scheer

Operationalization of strategy

Operationalization of strategy Alignment of the organisationAlignment of the organisation Measurement of results

of implementation Measurement of results

of implementation

Special knowledge, the best tools and innovative solutionsClose to practice by long years of experience and access to international best practicesSignificant added value due to consistent strategy definition and continuous implementationIntegration of the strategic and operative KPI‘s in the organisation

High effectiveness by creating processes and structures conform with strategyHigh efficiency due to synchronous optimisation of organisation and ITHigh implementation focus by integration of the BSC in the management systemHigh acceptance by change management as a lever for effecting changeTotal solution competence – everything from one source all over the worldEmpowerment of the customer‘s organisation and know-how Transfer

Integrated end-to-end methodology and tool supportMethods and toolsfor success measurement and analysisSustainable results due to success measurement

BSCol IDS Scheer> Best know-how worldwide in the > Best know-how worldwide in the

field of strategy implementation field of business process management

Your result is our success!

> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH

© 2005 Balanced Scorecard Collaborative

Overview of a Common Approach of BSCol and IDS Scheer

5. Strategy Implementation

3. Process Mapping and Alignment

4. InitiativePrioritization

Operationalcontrol loop

2. Strategy Mapping

6. Strategy ReviewStrategic

learning loop

0. Executive Mobilization for the SFO Implementation

1. Strategy Shared Visioning

> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH

© 2005 Balanced Scorecard Collaborative

Government References of IDS Scheer

> Czech Republic:• Ministry of Environment - Mapping and analysing processes and data flows for integrated register• Ministry of Internal Affairs - Process mapping and analysis prior to SAP implementation in area of HR• Ministry of Local Development - Design of new processes after CR accession to EU• Ministry of Defence - Process mapping and design (with "Restructuring of the Czech Army“)• Ministry of Finance - Subcontractor to D&T in the process audit (ongoing project in 2005)

> Slovak Republic:• UpSS (Office for Civil Service) - Process oriented redesign of „ Select of state officers“• Datacentrum - IT Support of state organization: Analyze of processes• Municipality of Kosice - Analysis and design of a new Organization Structure• State driven companies: ŽSR, ZSSK, ZS cargo • Selling of licenses: Ministry of Finance, Ministry of Transport, Tax Directory, Ministry of Building

> Poland:• Agencja Restrukturyzacji i Modernizacji Rolnictwa (Agriculture Agency)• Ministerstwo Gospodarki i Polityki Społecznej (Economy and Social Policy Ministry)• Centralny Instytut Ochrony Pracy (Institute of Labor Insurance)• Zakład Ubezpeiczeń Społecznych (State Insurance)• Several projects in hospitals and Municipalities

> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH

© 2005 Balanced Scorecard Collaborative

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