Balanced Scorecard with QPR Make Your Strategy Work€¦ · team/personal objectives Reduce ”out of stock” incidents by 40% Netherlands Reduce out of stock by 30% France Reduce

© QPR Software Plc © QPR Software Plc

Balanced Scorecard with QPR Make Your Strategy Work


Agenda

Balanced Scorecard introduction

Challenges with Balanced Scorecard (BSC)

Software: How QPR ScoreCard helps you be successful with Balanced Scorecard

Services: How QPR helps you be successful with Balanced Scorecard

Key benefits

Customer examples

Product demonstration

Q & A


What will make your strategy work?

- Communication: Employees need to understand the strategy

After our executive strategy workshops we decided that we need to focus on developing more target offerings in the XXX market and we will support this by

making appropriate changes to our business model.

Any questions??

- Task setting: Employees need to understand their role in strategy

- Resources: The budgets need to support the strategy

- Rewards: The reward systems need to support strategy execution

?

- Measurement: Are you progressing as you planned?

- Action: pre-emptive and / or reactive?

- Assessment: Is the plan based on valid assumptions?

Execution: Without it every plan fails!

Feedback


Drivers & Enablers

Aspirations & Value Proposition

Balanced Scorecard: Control the execution of your strategy

The Balanced Scorecard method translates strategy into objectives for multiple perspectives of business that need to be achieved in order for strategy to succeed

Vision: What we want

How will our processes support

that?

What are the skills and resources that we need to make it

happen?

How do we balance those objectives with customer

needs?

What are our financial objectives?


Translate strategic objectives into team/personal objectives

Reduce ”out of stock” incidents by 40%

Netherlands Reduce out of stock by 30%

France Reduce out of stock by 40%

Product A target: 15 incidents

Product B target: 8 incidents

Product C target: 20 incidents

Purchasing, target: 5 PO errors

Inventory, target: 10 inventory booking errors

Logistics, target: 6 wrong deliveries

Corporate

Geographic

Business unit

Functional teams

This makes strategy

crystal clear!


The Balanced Scorecard

Vision Where we are going

Strategy How we get there

Objectives What we need to do to

make it happen

Measures

How we monitor our progress

Action Plans How we make sure we stay on track


50% of organizations fail with BSC!

Lack of participation (executives-only) leads to misalignment – Employees are unaware of their role in strategy and key objectives

– Easy to initiate new projects that are not in line with plans

Technology can help ease communication & improve execution

Executive sponsorship is lost or never gained – Theory or implementation fails to impress

– Provided data is inaccurate, incomplete, out of date or unreliable

Technology can help improve data quality and availability

Reward systems are in conflict with BSC objectives – Sacrifice your bonus for the good of the company?

Consulting can help align reward practices with strategy

Participants do not get the idea, resulting in resistance and misuse – BSC is used for / perceived as a system for controlling employees

Training & education can help you manage cultural chance

Balanced Scorecard shifts from business tool to becoming an IT project – Supporting technology fails to support the growing amount of participants and hampers change

Specialist Balanced Scorecard software helps you avoid this


QPR Balanced Scorecard Solution

Software: Balanced Scorecard Collaborative Certified – QPR ScoreCard: http://www.qpr.com/performance -management.html

Consulting: Balanced Scorecard for your organization – To make Balanced Scorecard work in your specific case and get most

value out of the methodology and technology

Implementation services and training – To introduce the methodology to all who will be involved

– To help you get started and go live smooth and fast

Support and Maintenance – To help you maintain and increase the value offered by the QPR

system

Over a 1000 customer implementations!

http://www.qpr.com/performance -management.html




Balanced Scorecard Software


Business systems and information storage

QPR ScoreCard Designer:

Scorecard modeling and maintenance

QPR ScoreCard Portal:

Reporting, monitoring, manual data input and

collaboration

portal

QPR ScoreCard in Your Organization

automatic data collection

manual data input

QPR ScoreCard Server


Communicate Your Strategy and Get Insight in How Well it’s Working!

How you tell the story of your strategy in an objective-based

cause-and-effect format

Your capability objectives

Your operational objectives

Your value proposal

objectives

Your financial objectives

Communicate your strategy with interactive strategy maps


Make the Role Each Employee Plays in Strategy Clear to Them!

Personal portal pages that communicate strategy one-to-one

Everything I need to know...and do on a single page!


Get a complete view of performance!

All available scorecards: the scorecard hierarchy...

The measure / metric hierarchy of the selected

scorecard

Directly editable performance information (based on user access

rights)

Contextual information: trends, range colors, actions, comments,

previous period values...

Easily navigate scorecard hierarchies across areas and from top to bottom!


High-Level Performance Overview with Dashboards!

QPR dashboards are interactive, meaning that

a mouse-click on the map is all it takes to get

you to the details!

A drag-and-drop approach to creating custom dashboards!

Easy to create and customize dashboards for business performance,

suppliers, distributors, employees, teams, risks, quality, processes,

projects, business units, regulatory compliance...


Analyze Performance Across All Your ScoreCards!

I want an overview of all measures that focus on our profitability and that compares last quarter to

the previous one.

Design your own views...bookmark, share or export to Excel!


Easily Click Your Way to the Root Cause of Identified Problems!

”warning” symbol: poor performance on

lower levels!

Drill-down works from every view in QPR ScoreCard!

Drill-down functionality is intuitive so I can easily identify the root cause of problems!

click!

click!

click!

click!


You’ll Work Together & Fix Problems!

What went wrong...and how are we fixing it?

QPR Portal actions do!

QPR Portal Actions - lessons - tasks - comments - risks - near misses - control activities

Publishing Portal Actions - the responsible person - ”me only” - everyone - selected users - notify people via email? - attach additional information? - link to more metrics?

Obtain a ”record of the past” - audit trail - valueable info for the future! - identify ”lessons learned” - identify ”best practices”

Online collaboration turns ”observations” into ”knowledge”!

Measures and graphs don’t

provide context...


Get Alerted to Performance Issues

How do you identify a problem? Why didn’t we

know about this problem earlier?

We have 50 scorecards with 265

measures each...

Metric value is missing

Allow every user to configure their own alerts! Keep data reliable!!


Periodic Reporting Made Easy!

Briefing booklets Portal-based reporting:

collection of views with multiple distribution options to other portal viewers

Export to MS Excel Perform further analysis

and calculations on exported analysis data

Static Microsoft Word reports Capture all scorecard

information in a Microsoft Word document and distribute

Dynamic Microsoft Word reports Freely design your own

report contents, one-click publishing of latest information and distribute


Implementing QPR ScoreCard

Getting started...

Customizing to our own needs...

Managing scorecards...

Data consistency...

Managing users...

Collecting and consolidating

data...


The problem with our competitors:

You’ll Build Metric Framework Fast!

Pre-defined templates for: - perspectives - categories - metric types - value settings - measurement units - period levels - consolidations - graph templates

Balanced Scorecard included!

QPR ScoreCard gets you started quickly with performance management!

How long before we can

start?

Three months minimum...how does

that sound? Late...


You Can Fully Customize Metrics!

Your purpose for measurement?

Supplier Scorecards

What to measure?

How to measure?

What measurement attributes?

Measurement frequency?

Graph presentation type?

Projects

Tailor your metrics easily and conveniently to suit your needs and purpose!


You Can Reuse Scorecard Metrics!

Often seen: Same measure on multiple scorecards

How do we maintain it all?

Copy / Paste, over and over??

update

My metric

Referencing measures

Up to date, value-consistent scorecards with minimal maintenance!

Automatically propagate changes throughout your

metric framework!!


You Can Customize the Behavior of Your System!

Free linking between system objects: Tailor the system to your needs!


Manage Scorecards Conveniently!

Base scorecard

business scorecard

business scorecard

business scorecard

business scorecard

business scorecard

Multiple similar scorecards Define attribute inheritance

Ability to protect local additions from being overwritten!

Update and inherit changes

Easily align individual scorecards with ongoing and new projects!

New project!

Update all scorecards manually??

A lot of work....


Where do you get your data from??

You’ll be Flexible in Collecting Data!

Measure what you want...not just what you can!!

your people? your systems? your files?

All of them!

QPR ScoreCard Server and Database

automatic data collection quantitative and qualitative!!

manual data input quantitative & qualitative!!


Flexibility When Consolidating Data!

Profitability index

How do we combine dollars, percentages and customer

compaints into a meaningful metric??

I can code it...but it will take time...

And what if we’d like to change it

later?

Same thing...

Build your measure framework the way you want it...the day you want it!

convenient consolidation definition!!

Gross margin in % Operating profit in million $


QPR ScoreCard Portal

QPR ScoreCard Designer

local user management

Management

You Control Who Has Access to What...

...as well as their access properties

Define users and groups...

QPR user management

Assign access to scorecards, perspectives, measures...

Manage user and access rights conveniently!


...and Who is Reponsible for What!

It’s your measure. Now get it done...

How and by when?

Define your own roles and assign accountability by selecting from available

users

Agree on how the road towards the

goal will be travelled...

Accountability and agreement are both ingredients for success!


Balanced Scorecard with QPR ScoreCard Means:

Deploy your Balanced Scorecard fast – Typically our customers are live within 2 weeks

Flexible: Make Balanced Scorecard work your way – Measuring, monitoring and reporting

– Collecting and consolidating data

Scalable: Involve all your employees – From ”Microsoft Excel no longer works for us” implementations to

>20K users, thousands of scorecards and millions of metrics

Collaborative: Engage your employees – Much more than just a reporting tool: Balanced Scorecard success

requires employees to participate

Easy to use – Focused at the business user


Balanced Scorecard Services

Consulting

Training

Customer Care & Software Maintenance


Balanced Scorecard Consulting

Balanced Scorecard training – Train your organization how rto utilize Balanced Scorecard

– Making it part of your management and steering practices

Balanced Scorecard maturity assessment – Identifying the challenges and benefits of current Balanced Scorecard utilization

– Defining the expectations for your Balanced Scorecard

– Recommendation of next actions

Strategy Mapping – Creation of logical cause-effect relationships between strategic objectives

– Setting the Key Performance Indicators

Cascading your scorecard – Rolling out BSC so that everyone understands their team/personal targets

– From top to manager-level


Training Services

Tailored trainings for QPR ScoreCard developers – How to best use QPR ScoreCard in your organization

– Building and developing scorecards with QPR ScoreCard

– How to best utilize the functions and features of QPR ScoreCard

QPR Portal trainings for users – How to navigate the scorecard structure

– How to find relevant information from measures

Self-learning material


Key benefits

One provider that supports you from start to success – Consulting, training, software and expertise gained, developed and

constantly improved during 1500 implementations in over 15 years

Software that helps you execute strategy – Scalable: Involve all your employees

– Collaborative. Engage your employees

– Flexible: Collect, measure, monitor and report as best suits you

– Fast to implement: Go live within two weeks

Get maximum value from Balanced Scorecard – A complete portfolio of consulting and training services covering

methodology, implementation, maintenance and solftware


Customer Reference – Small Size United Finance Company - Oman

Largest Omani financing organization – 25% market share offering a wide range of financing solutions for

businesses and consumers

Started with BSC in 2007, based on Microsoft Excel – Could only support a small group of participants: Top management

– Expanding this to all 170 employees would result in too much manual maintenance work

Selected QPR Local Partner IYCON and QPR ScoreCard – Robust offering and lots of good references from representative

organizations in the Middle East

Fully operational Balanced Scorecard solution in 4 weeks! – Week 1: Building the scorecard hierarchy

– Week 2: Fine tuning and tailoring the value settings: Ready for go-live

– Week 3: Integration with all backend systems

– Week 4: Implementation and definition of reports ad briefing booklets


Customer Reference – Mid Size Turkish Petroleum - Turkey

National Oil Company of Turkish State – 4,000 personnel producing 94,000 barrels per day

– Operations in Turkey, Caspian region, North Africa and the Middle East

Started with Balanced Scorecard from scratch – First ever BSC implementation in Turkish public sector

– Seeking a way to improve strategy execution and corporate performance by involving all its employees

From zero to operational in all its business units in 6 months! – Workshops for creating strategy map, identify all KPI’s and measures for 3

scorecard levels

– Building of scorecards, cascading and integration with business systems

– Customized user and administrator trainings

QPR ScoreCard allows TP to reliably measure the degree of realization of strategic objectives and commuunicate strategy clearly to its employees


Customer Reference – Large Size NEC Soft Ltd. - Japan

IT consultant, system integrator and ASP service provider – 5,500 personnel, 980 Million € turnover, operations in Japan, China and

Vietnam

Quality assessment pointed towards weak strategy execution and insufficient performance measurement – Opted for Balanced Scorecard to fix the problem in 2002

– Chose QPR ScoreCard for BSC roll out (enterprise-wide license) in 2004

– Rolled BSC out to cover 45 divisions (9 staff divisions, 35 line divisions and 1 subsidiary company), all of which having 3 Balanced Scorecards: mid term, annual and half-year

Able to manage and maintain the strategy management system (135 Balanced Scorecards) with 2 people!


Selected customer references

Over 1,500 organizations worldwide rely on QPR ScoreCard!!


QPR ScoreCard demonstration


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Q?

A!

Documents

Balanced Scorecard with QPR Make Your Strategy Work€¦ · team/personal objectives Reduce ”out of stock” incidents by 40% Netherlands Reduce out of stock by 30% France Reduce