Paramjitsharma
implementing - bscbsc
Paramjitsharma
CommunicatingAnd
Linking
Strategic Feedback and
Learning
Planning andTarget Setting
Clarifying andTranslating the
Vision andStrategy
BalanceScorecard
Using BSC asStrategic Framework
For Action
Paramjitsharma
Launching The Balance Scorecard Programme
Obtain Clarity and Consensus about Strategy
Achieve Focus
Leadership Development
Strategic Intervention
Educate the Organisation
Set Strategic Targets
Align Programmes and Investments
Build a feed back system
Build a BalancedScorecard
Build a newManagement
System
Paramjitsharma
The Dynamics: Mobilizing the Organisation
1 Clarify the Vision
Team formedAt least 3 monthsDeveloping BSCTranslate vision to strategyClarity and UnderstandingBuilding ConsensusCommitment to strategy
Paramjitsharma
The Dynamics: Mobilizing the Organisation
2 Communicate to Middle Managers
Top 3 layers brought togetherLearning and discussingNew StrategyBSC as communication vehicle4-5 months taken
Paramjitsharma
The Dynamics: Mobilizing the Organisation
2B Develop Business unit Scorecards
6-9months (three months)Each SBU Having strategyTranslating strategy into scorecard
Paramjitsharma
The Dynamics: Mobilizing the Organisation
3A Eliminate Nonstrategic Investments
Corporate ScorecardClarifying Strategic PrioritiesIdentify non contributing factorsEliminate them6th month(1 month)
Paramjitsharma
The Dynamics: Mobilizing the Organisation
3B Launch Corporate Change Program
Need for change programmeLaunchedWhen SBU ‘s prepare scorecards6th Month (1 month)
Paramjitsharma
The Dynamics: Mobilizing the Organisation
4 Review Business Unit Scorecard
Review by Executive teamShaping Strategy if needed9-11 months3 months
Paramjitsharma
The Dynamics: Mobilizing the Organisation
5 Refine the Vision
Review brings out cross business issuesNot initially included in corporate strategyCorporate scorecard is updated12 month1 month
Paramjitsharma
The Dynamics: Mobilizing the Organisation
6A communicate the Balance Scorecard
Let the Entire Organisation be communicatedWhen Management team is comfortableDisseminated to entire Organisation12th month1 month
Paramjitsharma
The Dynamics: Mobilizing the Organisation
6B Establish Individual Performance Objectives
Top 3 layers of Management link individual Objectives and performance incentives Compensation to their scorecards
Months 13-14
2 months
Paramjitsharma
The Dynamics: Mobilizing the Organisation
7 Update Long Range Plan and Budget
5 years goals are established for each measure investments required are funded1st year requirement becomes annual budget15-17 months3 months
Paramjitsharma
The Dynamics: Mobilizing the Organisation
8 Conduct Monthly and Quarterly Review
Monthly review processSupplementary quarterly reviewOn strategic issues18th month on going
Paramjitsharma
The Dynamics: Mobilizing the Organisation
9 Conduct Annual Strategy Review
Beginning of 3rd yearStrategy may require reviewExecutive lists new(10) strategic issuesEach SBU is asked to develop strategyOn each issues25-26 Months2 Months
Paramjitsharma
The Dynamics: Mobilizing the Organisation
10 Link Every one’s performance to balance scorecard
Paramjitsharma
Building An Integrated Management System
1 Strategy formulation & Strategic issue update
2 Link to personal Objectives and Rewards
3 Link to planning, Resource allocation & Annual Budgets
4 Feedback and Strategic Learning
Paramjitsharma
Building An Integrated Management System
1 Strategy formulation & Strategic issue update
Outlining Strategic IssuesImplementation in each SBU’sLinking Corporate/SBU strategies to Functional Strategies
Paramjitsharma
Building An Integrated Management System
2 Link to personal Objectives and Rewards
Linking strategies to personal obj & Rewards
Paramjitsharma
Building An Integrated Management System
3 Link to planning, Resource allocation & Annual Budgets
Paramjitsharma
Building An Integrated Management System
4 Feedback and Strategic Learning
Periodic Strategic Review
Paramjitsharma
Some Cautions
Structural Defects
Duplication of effortsDefects in non financial measuresReporting ProblemsCommunication ProblemsUnsound Basis for ResourceAllocation….
Organizational Defects
Defective process of implementationBreakdown in performanceMore about MeasureImitation of good organizationsLack of informationDelay in implementation of BSC
Paramjitsharma
Managing Ongoing Strategic Management System
CommunicatingAnd
Linking
Strategic Feedback and
Learning
Planning andTarget Setting
Clarifying andTranslating the
Vision andStrategy
BalanceScorecard
Director Of Strategic Planning
Director of Human Resources
Chief Financial Officer
Chief InformationOfficer
Paramjitsharma
Vision & Strategies not actionable
Strategies not linked to departmental and Individual Goals
Strategies not linked to Long term/short term Resource Allocation
Feedback that is tactical not strategic
Barriers to effective Implementation of BSC
Paramjitsharma
Barriers to effective Implementation of BSC
Strategy &Vision
Financial Plan& CapitalAllocation
Personal MBO &Incentives
MonthlyReview
Budget
1 Vision & Strategy not Actionable
2 Strategy notLinked to Dept Team& Individual Goals
3 Strategy not Linked to Resource Allocation
4 feedback that is tactically not strategic
Paramjitsharma
Cant be translated into actionCant be acted UponCant be understoodFragmentation & Sub optimization of effortsLacking consensus & ClarityDifferent AgendasNo integrationNot linked coherently to overall strategy
Barrier No 1: Vision and strategy not Actionable
Paramjitsharma
Not translated into Department/ individual Goals
Different PrioritiesFailure of Human Resource ManagementDisalignment in Goals
Barrier No 2: Strategy not Linked to Goals
Paramjitsharma
Separate Processes for Long term &Short term Strategic planningFunding to unrelated prioritiesPoor Monthly ReviewsUnfocused New Mgt TechniquesPoor Integration
Barrier No 3: Strategy not Linked to Resource Allocation
Paramjitsharma
Different Management System for Strategic Implementation
Clarifying & TranslatingThe Strategy & Vision
Planning &Target Setting
Communicating And Linking
Strategic Feedback&
LearningBalance
Scorecard
•Goal alignments from top to bottom•Education and open communication about strategy
•Compensation is linked To Strategy
•Stretch targets are established and accepted•Strategic initiatives are clearly identified•Investments are determined by strategy•Annual Budgets are linked to long term planning
•The strategy is the reference point for the entire management process•The shared vision is the foundation for strategic planning
•Feedback system used to test The hypothesis on which strategy Is based
•Team problem solving
•Strategy development is a Continuous Process
Paramjitsharma
thanks