Please enable JavaScript.
Coggle requires JavaScript to display documents.
Business Performance Management (BPM Methodology: Balanced ScoreCard…
-
Closed-Loop Process
Process Steps
- Conduct a current situation analysis
- Determine the planning horizon
- Conduct an environmental scan
- Identify critical sucess factors
- Key factors that delineate the things that an organization
must excel at to be successful
- Complete a gap analysis
- Create a strategic vision
- Develop a business strategy
- Identify a strategic objectives and goals
- Objectives: A broad statement prescribing targeted
directions for an organization
- Goal : A quantified objective with a designated time period
Operational Planning
Translates an organisation's strategic objectives and goals into a set of well - defined tactics and initatives, resources requirements and expected results for some future time period (usually a year)
What to monitor ?
- Critical Sucess factors
- Strategic goals and targets
- Key Performance Indicators (KPI)
How to monitor ?
through Balanced Scorecard
What Do We Need to Do Differently?
Success depends on new projects
- Creating new products
- Entering new markets
- Acquiring new customers
-
- A strategy map is a visual representation of what the execution team believes will drive its strategy
- It shows a chain of objectives that will lead to
successfully executing the strategy
- Most strategy maps have 4 perspectives:
• Financial - 100& lag (result)
• Customer - Mix of lead and lag
• Internal Operations - Mix of lead and lag
• Learning and growth - 100% lead (driver)
-
- Well-developed, usable Balanced Scorecards have
12-24 measures.
- Measures are divided into 2 categories:
- Leading – Leading measures drive an objective
- Lagging – Lagging measures are the results of an objective
- Well-built BSCs have a good mix of leading and
lagging measures to drive the strategic theme and
measures results
- Lagging measure from one objective will be the
leading measure into another measure
Sources for setting realistic targets:
- Historical tracking and benchmarking of organisational data
- Horizontal comparison between similar business units in your organisation
- Association benchmarks
- Best practice surveys from private consulting firms
- Best estimates from a panel of experts
- Regulatory benchmarks set by legislative agencies
-
-
- Initiatives are collections of actions or projects designed
to achieve the Strategic Objective
- Identify current initiatives and brainstorm for new
initiatives that support the objectives
- Rationalise current initiatives by checking which of them
support the strategic objectives
- Mission – What do we do? Why do we exist?
- Vision – What do we want to be? (Notice that this is not about doing It is
about being in the future)
- Values – What do we believe in? How do we act?
Selecting strategic Themes
- Strategic themes are the main, high-level business strategies that organization will pursue to achieve its vision.
- Part of the strategic planning work of building a balanced score card.
- Tips on selecting strategic themes
- Select no more than 3 to 5 strategic themes
- Give them memorable and motivational names of 3 to 5 words beginning with a verb
- Select themes that complement each other
- Select themes that will bridge the strategic gap to your destination
- Select themes that you can defend with good execution
- Budgets, plan, forecasts, models, initiatives, targets
- Performance dashboards, reports, analytical tools
- Interpret, collaborate, assess, decide, act, adjust, track
- Mission, values, goals, objectives, incentives, strategy maps