Transcript Balanced Scorecard

Human Capital Development
Forum In ICT – The Role of
HR in Corporate Strategy
Formulation &
Implementation
Presentation by Quinto Ojok MBA,FCCA,CPA,CBSCP
Director Finance & IT Services - Uganda Communications Commission (UCC)
[email protected]
+256772431290
Strategy
Programme overview
• Introduction
• Workshop objectives
• Introduction to strategic planning &
management
• Overview of BSC
• Strategic Plan Formulation using BSC
Strategy
Introduction
• Strategic planning experience
• Balanced scorecard experience
Strategy
Workshop Objectives
• As HR professional :
• Understand the concept of BSC and acquire skills in
formulating a Strategic Plan using balanced score card
• Understand how BSC can be used to improve
organisational / employee performance
• Understand how to develop meaningful performance
measure
• Revalidate Strategic Plan for your organisation using
BSC
Strategy
Corporate Strategic Planning &
Management
1. Traditional Methodology
-
Situational Analysis - SWOT/PEST
Core values
Vision
Mission
SMART objectives
Strategies,
Programmes/ Activities
Monitoring & Evaluation
Strategy
Corporate Strategic Planning &
Management
2. Balanced Scorecard Methodology
- Links vision, strategy to actions/programs
 Stakeholders Analysis- Customer Needs & Value
Propositions-Attributes, Relationship, Image
 Situational Analysis - Assessment of organisational
internal & external enablers & pains/SWOT & PESTLE
 Formulation or revalidation of high level strategic
foundations – Mission, Vision (measurable), Core Values
 Development of Strategic Themes and Results
 Naming of Perspectives
 Development of Strategic Objectives
 Organisation Strategy Mapping
Strategy
Con’t
• Determine measures & targets that drive
performance
• Strategic initiatives –Projects/activities
• Strategic Budgeting
• Metrics automation –Business Intelligence
(Scorecard)
• Cascading of objectives at departmental &
individual levels
• Monitoring & Evaluation
Strategy
Balanced Scorecard?
• What is BSC?
• An integrated strategic planning and
performance management systems that :
 Communicates with clarity the organisation’s Mission, Vision and
Strategy to the employees & other stakeholders
 Aligns day to day work with vision and strategy
 Provides framework for prioritising programmes, projects and
resources
 Uses strategic performance measures and targets to measure
progress
Strategy
Why BSC?
• Leaders and managers need a tool to
systematically drive:
 Collective and individual accountability
 Performance reporting compliance
 Buy-in- through Participation
Strategy
History of BSC
1990- Dr. David Norton carried out a study on
balanced organisation measures (financial and NonFinancial)
1996- BSC translating strategy into action
65% of fortune 1000 companies use BSC
Financial measures
Net profit – bottom line
Market share
Sales growth
Actual Vs Budget
Cost effectiveness
Non-Financial measures
•Stakeholder Satisfaction
•Operational efficiency & effectives
•Employee competence
•Organisation capacity
Strategy
Performance Perspectives
BSC Methodology
Four dimensions called perspectivesview points
• Financial perspective- how do shareholders/stakeholders
look at us
• Customers/ stakeholders perspective – how
do customers look at us
• Internal business process perspective- What
must we excel at ?
• Organisational capacity perspective- How
have we developed our human, information & organisational capital
Strategy
Linking Actions to Mission ,Vision & Strategy
(A2V) or Translating V&S2A
Strategy
BSC cont’
 When implemented properly, each one of these
perspectives contains four subparts consisting of:
 Strategic objectives
 Measures
 Targets
 Strategic initiatives
Strategy
Bsc Cont’
– Objectives – what you plan to achieve in that
perspective
– Measures - how progress for that particular
objective will be measured
– Targets - refer to the target value that the
organization seeks to obtain for each
measure
– Initiatives - what will be done to facilitate the
reaching of the target
Strategy
BSC Cont’
• The term “scorecard” signifies quantified
performance measures and “balanced”
signifies the system is balanced between:
– Short-term and long term objectives
– Financial and non-financial measures
– Lagging and leading indicators
– Internal and external performance
perspectives
Strategy
Business case for BSC
Strategy
9 Steps in Strategic Planning
Formulation & Implementation
STEP 1
Assessment
-Stakeholders analysis
- SWOT/PESTLE analysis
- Revalidate mission,
vision ,core values
STEP 2
Strategy Formulation
- High Level Business
strategies from STEP
1
strategic elements
STEP 3
Strategic objectives
developed from STEP
2 strategies
STEP 6
Strategic Initiatives
-Identify critical projects to
improve performance
- Develop initiative
performance measures
- Strategic Budgeting
STEP 5
Measures & Targets
- Develop outcome &
output performance of
strategic objectives
-
STEP 4
Strategy Mapping
- Create strategy
maps for each
strategy
Strategy
STEP7
Performance Analysis
- collect, report &
present visual
performance information
STEP 8
Cascading strategy
to departmental &
individual
STEP 9
Evaluation
-Make correction on
strategy based on
actual performance
Step One: Assessment
1.1 Stakeholders Analysis
Strategy
Customer Value Proposition
Strategy
Customer Value proposition
Strategy
Examples of Customer Value
Preposition
Strategy
Primary Customers
•Artists
•Education Institutions
•Cultural Institutions
•Public/Citizens
Other Stakeholders
•Employees
•Board of Trustees
•Tax Authority
•Business Partners
•Civil Society
•Parliament
•NGO’S
•Media Houses
•Government
Depts./Agencies
•Foreign Missions
•Tourists
Stakeholders Needs
•Standards
•Entertainment
•Education
•Artist development
•Information
•Recording
equipment
&
facilities
•Archiving/storage facilities
•Skills development
•Capacity building
•Local artefacts
•Performance Management
•Partnerships
•Policy advice
•Quality services
•Taxes
•Job satisfaction
Strategy
Value Preposition
Service Attributes
•Value for Money
•Reliable
•Efficient on time delivery
Relationship
•Customer centric
•Professional
•Empathetic
•Friendly
•Consultative
Image
•Reliable
•Knowledgeable
•Customer centric
•Hi-tech
•Trustworthy
Assessment cont’
1.2 Situational Analysis- What are the
facts
• Competition & Market analysis
• Survey and assessment results
• PESTLE Analysis
• SWOT Analysis
• Strategic Pains/Challenges & Enablers
Strategy
SITUATIONAL ANALYSIS
ENABLERS
CHALLENGES/
Internal
PAINS
Strategic Issues
Implication
Strengths
Land in Prime Location
Ease of access and room for expansion
X
Skilled Human Resources
Competence to implement the strategy
X
Management &Trustee Goodwill
Leadership engagement
X
Unique Theatre Equipment & Facilities
Competitive edge over others
X
Insufficient Funds for strategic Initiatives
Unfunded initiatives
X
Poor Customer Care
Negative Image
X
Less Usage of Information Technology
Inefficient operation & Negative Image
X
Inadequate Partner Collaboration
Lack of Funding Diversification
X
External
Opportunities
Weakness
Threats
Political Goodwill
Priority Policy implementation
X
Committed Artists
Less coordination efforts
X
Existence of Laws and Sector Policies
Proper mandate and guidance provided
X
Vibrant Economy
More disposable income
X
Lack of Regulations
Less enforcement
Changing Cultural Trends
Positive & Negative changes
X
X
Social Media Usage
Positive & Negative trends
X
X
Competing Cultural Institutions
Positive & Negative trends
X
X
Strategy
X
Revalidate Strategic Elements
•
–
•
-
•
•
Mission
Who we are ,our reason of existence.
Our Mission is to provide………………
Vision
Describes where our organisation should be in 3-10 yrs, it is the
picture of the future or memory of the future
Measurable and time bound
Our Vision is to become ( achieve) …. In 2020
Strategic Destination Statement
- In 2020, we are the leading ICT training provider in Africa
Core values- What we stand for, our belief in the context of our
mission (defines our code of conduct)
Strategy
Mission Statement
How to develop a shared understanding of a Mission Statement
Discussion questions
Answers
What service or product do we provide?
Who do we serve?
In what manner do we provide it
What higher level benefits are gained?
Example :“To provide quality training, consultancy and advisory services to the
ICT Sector in Africa through development of appropriate programmes, strategic
alliances and partnership”
Strategy
Vision Statement
How to develop a shared understanding of a Vision
Discussion questions
Answers
What is our picture of the future in five
years from now?
How will we know that we have
achieved that? Will it be measurable?
How will the change impact on our
stakeholders?
At what point in time will we achieve
that?
“To be a leading and self-sustaining Centre of Excellence for ICT capacity
building in Africa by 2018”.
Strategy
Step Two: Strategy Formulation
What is Strategy
• A plan of action, an approach, a game plan for achieving
a result or goal
• It is an hypothesis of the best way forward for an
organisation to:
• - beat competition ( Private sector)
• - Improve mission effectives (Public sector)
• - Achieve its vision
• - Satisfy customers, stakeholders including employees
• - It is about making choices that have organisation wide
impact
Strategy
Strategy Formulation
Strategy
Strategy Perspectives
Strategy
Strategy
Strategy
Mission
To preserve, develop, and promote Uganda’s
culture globally through setting standards,
building capacity and implementing national
policies.
Vision
A centre of excellence in nurturing culture as a primary driver of national
development in Uganda by 2018
Core Values
Integrity, Team work , Professional & Accountability
Theme Strategic Result:
Cost effective services are
delivered timely every time
Organizational
Capacity
ABC
Company
UNCC Pillars
of Excellence
Strategy
CUSTOMER INTIMACY
Processes
OPERATIONAL EXCELLENCE
Customer
Theme Strategic Result:
Knowledgeable, collaborative and
Consultative relationship that exceeds
customer and stakeholders expectations
STRATEGIC PARTNERSHIPS
Perspectives
Financial Performance
Theme Strategic Result:
Value added, win-win partnership
is enhanced
Strategic Themes Xtics
characteristics of a good strategic theme and
result
• Breakdown vision into more operational terms
• Represent the main focus areas of
organisational high level strategy
• Are pillars of excellence
• Cuts across business and support functions of
the organisation
• Each has a corresponding strategic
result/desired outcome of the theme
Strategy
Strategic Themes
Strategy
Step Three: Strategic
Objectives
Strategy
Strategic Objectives
Strategy
Strategic Altitude
Strategy
Strategic Altitude
Strategy
Strategic Objectives Cont’
Strategy
Strategy
Strategy
Step Four: Strategy Mapping
Strategy
Strategy
Theme Strategy Map
Strategy
Theme Strategy Map
Strategy
Combinding theme Objectives into
Tier 1 (corporate )Objectives
Strategy
Corporate Strategy Map
Strategy
Example Strategy Map
Strategy
Strategy
Strategy
Strategy
Objective Commentary: Improve IT utilisation
Strategic
objectives
Objective
commentary
Performance Performa
measure
nce
candidates
target
Strategic
Initiatives
Improve IT
utilisation
Deploy IT resources in all
organisational processes to
reduce service delivery and
reporting turn around time.
Increase data based
decision making,
knowledge sharing.
% automated
processes
1. Develop IT
strategy align to
Business Strategy
100%
1. Implement
virtualisation of
servers to
accommodate
increased
operation and data
Intended Results/
Outcomes:
1.Online service delivery
3.Online reporting
4. Online customer selfservice
2.Implement
centralised ERP and
CRM and Business
Intelligence
3.Train employees
and customers on the
use of online service
delivery
Strategy
Strategy
Step 5: Performance Measure
Strategy
Strategy
Strategic Impact Measures
Strategy
Strategy
Strategy
Strategy
Strategy
Step Six : Strategic Initiatives
Strategy
UNCC CORPORATE SCORECARD 2014-2018
Customer/Stakeholder Perspective
Strategic
Objective Objective
Performance
Objective
Owner
Commentary
Measure
Increase
Gallery
The
Customer/
Manager
customers should appeal to
satisfaction
/stakeholder
Stakeholder
the customers and fulfil their
score
survey tool &
Value
needs at a reasonable charge. 2)
% of repeat
Intended Result:
customers
services
provided
to 1)
Customer
Target
Strategic
Initiatives
80%
1.
60%
Develop customer
programme
2.
1.Satisfied
Develop &
implement
customers/stakeholders
production quality
2.Retained customers
assurance
programmes
3.
Customer service
training & coaching
programmes
4.
Develop webbased customer
service
Increase
Productio UNCC is committed to
Contribution to n
1.
preserving, promoting and
% of policy
60%
1.
Develop policy
initiatives
initiatives for
Culture
Manager. developing Uganda’s culture
contributing to
preservation,
Preservation,
Gallery
for the benefit of the current
preservation ,
promotion and
Promotion and
Manager
and future generations
promotion &
development of
Strategy
Strategic Budgeting
STRATEGIC INITIATIVES
BUDGET (
USD)
2,500
1
Develop Customer /stakeholder Survey Tool & Programme
2
Develop & Implement Quality Assurance
Programmes
3
Develop and Implement Customer Service
Training & Coaching
4
10,000
5
Develop Policy Initiatives for Preservation, Promotion and Development of
Culture.
Develop Frameworks for Documentation of Local films ,Drama & Dance
6
Develop Programmes for Collection of Artefacts; Sensitisation of Communities
90,000
7
Conduct Cost and Fees Analysis Programme
12,000
8
Develop Cost Control Programmes
9
Develop Finance and Operation Manuals
15,000
10
Develop & Implement Marketing & Advertising Strategy
50,000
11
Formulate Lobbying Strategy
25,000
12
Identify & Appraise Investment Projects
5,000
programmes
8,000
10,000
4,000
125,000
Strategy
Strategy
Strategy
Strategy
Strategy
Strategy
•
•
•
•
Thank You
Merci
Asante Sana
Zikoma
Strategy