Conclusion Best Practice Business Planning Methodologies: Use of the Strategy Map & Balanced Scorecard 25 th April 2006

Conclusion

Best Practice

Business Planning Methodologies:

Use of the Strategy Map &

Balanced Scorecard

25th April 2006

© Crown Copyright

• What is this tool and why do we need it?

• The need to strategically manage change at OSNI

• The role of the Strategy Map and BSC

• How they have been developed at OSNI

• Organisational alignment

• Linkage to individual performance planning

• Implementation and Business Planning

• Issues and lessons learnt

• Q&A

OSNI and the Balanced Scorecard (BSC)

© Crown Copyright

Strategy Map & Balanced Scorecard

• Internationally recognised; developed by Kaplan & Norton at Harvard

• Used internationally in large and small private and public organisations– Tesco

– UK MOD

– Norwegian Air force

– Royal Canadian Mounted Police

• Key management tool used by OSNI to set objectives, measures and

targets, and link organisational and personal performance to our Corporate

Strategy.

• Continuing to evolve our implementation of the BSC and to learn from best

practice in its use

• BSC links naturally to European Foundation for Quality Management

(EFQM) and Investors in People (IiP).

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Strategic Planning & Implementation

Integrating Strategy & Tactics?

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Most Organisations don’t know how to Execute Strategy

They can’tDESCRIBE their

strategy

They don’tMANAGE their

strategy

They haven’tmade strategy

execution a CORECOMPETENCY

WHY?

“Less than 10% of strategieseffectively formulated are

effectively executed”-Fortune

“Less than 10% of strategieseffectively formulated are

effectively executed”-Fortune

“In the majority of cases – weestimate 70% - the real

problem isn’t bad strategy …it’s bad execution”

-Fortune

“In the majority of cases – weestimate 70% - the real

problem isn’t bad strategy …it’s bad execution”

-Fortune

© Crown Copyright

Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.

Sun Tzŭ c. 490 BC, Chinese military strategist

Tactics is efficiency in climbing the ladder of success; strategy determines whether the ladder is leaning against the right wall.

Adapted from Stephen Covey, American leadership consultant and writer

© Crown Copyright

An empowered organisation is one in which individuals have the

knowledge, skill, desire, and opportunity to personally succeed in a way

that leads to collective organisational success.

Stephen R. Covey

No institution can possibly survive if it needs geniuses or supermen to

manage it. It must be organised in such a way as to be able to get along

under a leadership composed of average human beings.

Peter F. Drucker

Strategy - what has that to do with me?

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Who are we? What do we do? Why are we here?

What kind of organisation are we and do we want to / must we become?

What is the current strategy, implicit or explicit?

What assumptions have to hold for the current strategy to be viable?

What is happening in the larger, social, technological, political, competitive and educational environments?

In which markets/areas will we be active?

What are our financial and/or public good goals?

What products and services will we offer to what customers at what price level?

How will we deliver our products and services and what technologies will we employ?

What skills, capabilities and capacities will we require and which ones are core?

Some Strategic questions for any organisation

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Organisations fail because of poor choice and/or implementation of strategy

Execution

StrategyFlawed Sound

Flawed

Doomed from the Beginning

A Botched Job

Sound

Flirting with Disaster

A Pretty Good Chance

•Examples: Ryanair Versus BA, Tesco Versus W.H.Smith

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OSNI: The need to manage Strategic

Change

© Crown Copyright

OSNI’s Role

• Supplier of mapping to:

– National, regional and local government

– Private industry

– Value-added resellers

– General public

• OSNI mapping:

– Underpins much of the Northern Ireland economy• Recent PA Consulting report estimates £7bn/yr

– Acts as a base reference for all N.I. Spatial data

© Crown Copyright

• Surveying was based on triangulation

– Measure base line by chains, rods, or tapes

– Measure angles by theodolite

– Very time consuming exercises

– Needed people on the ground

• Cartography was fine draftsmanship

– Required extreme patience/attention to detail

– Was based on wax etching, later Letraset

– Took months for a single sheet

Mapping & Surveying historically ……

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Mapping Today is firmly in the Digital Era

• Surveying uses electronic theodolites,

laser range finders, satellite positioning,

pen computers,aerial photography,

(ground radar and satellite imagery)

• Cartography is derived from digital

databases, some updated daily– Data is built up in layers

– Data can be manipulated using special

software known as GIS

– External data easily linked through the map

– Map is built on “intelligent” points, lines and

polygons, which are “attributed” and can be

“interrogated”

© Crown Copyright

Market Context

One certainty: Change will continue – in the GI industry and in NICS

• Reform & efficiency• Citizen-centric government• Joined up government• EU Directives on GI, PSI, environment, etc.• Formation of new Land & Property Services Agency• New technologies

– Falling barriers to competitor entry– New market opportunities– Rising customer expectations

• New skills needed • OSNI wish to lead change, not react to it• Every OSNI staff member is affected by and must be involved in

that change

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2000: New Chief Executive Mick Cory asked the questions:

What type of organisation was the OSNI of 2000?What values and behaviours did it expect and get?

What type of organisation should the OSNI of 2005 be?What values and behaviours would it need to ensure?

What strategic management models would it need to effect the change?

OSNI’s organisation and culture?

© Crown Copyright

The OSNI culture pre 2000 was a mixture

POWER CULTURE

Power derives from top person with little or no empowerment of others

Key behaviours:

Discipline, wariness, risk-aversion, conformity, politicking, passivity, one

man’s vision, strained external relationships

BureaucracyControlled by procedures, role descriptions and authority

Job position & grades are central

Standardised product/output

Key behaviours:

Predictability, consistency, stability, structured, methodical, conservative,

rigid, empire building, paper shuffling, impersonal, buck-passing, slow,

unresponsive.

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Culture needed in a fast-moving ICT environment

TASK CULTURE

The network organisation

Multidisciplined teams co-operating together to deliver projects.

Emphasis on results and getting things done.

Key behaviours:

Empowerment, discretion, self-managing,

flexibility, adaptability, talent, teamwork,

problem-solving, innovation, challenging

re-modelling.

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How to drive the strategic change?

1. Effect change through Executive Leadership

2. Conceptualise the Strategy

3. Translate the Strategy to Operational terms

4. Align the Organisation to the Strategy

5. Make Strategy everyone’s job

6. Maintain the momentum

7. Review

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New organisational structure put in place

Chief Executive

OperationsCorporate Services

Business Development

Finance

Accounts

FinanceManagement

Sales &Customer Services

Marketing & (Technical/Commercial) Training

Product Management/R&D

Intellectual PropertyRights

GIS Application Support

Large ScalesRevision

Small ScalesRevision & Publishing

Technical (Process)Development

Pointer

Databaseenhancement

Geodesy

Business Planning

Human Resources

Admin

Training

Premises

ICT

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Governance and Organisation

• CE instigated two boards– Strategic Board (SB) & Operational Board (OB)

– Separate terms of reference & separate meetings

– SB members plus next management layer constitute OB

– Balanced Scorecard chosen as the management tool for OSNI

• Board members trained in BSC theory

• Strategy Map (SM) developed

• Methodology cascaded

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OSNI Mission and Vision

Mission is what we do:

OSNI contributes to the public good by supplying the mapping information for Northern Ireland

Vision is what we want to become:

We intend to be a leading, financially self-sustainable, public service, maximising the commercial potential of

our information to minimise cost to the taxpayer.

In this way we will enhance our public good role further, providing expertise, support, consultancy and advice

on geographic information and geographic information systems, supporting Government and the wider Public

Services in delivering on their objectives.

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From Strategy to Individual jobs

Mission • To contribute to the public good by supplying the mapping

information for Northern Ireland

Vision • To enhance our Public Good Role

Corporate Goal• To achieve financial self sustainability Strategy Map • Focuses OSNI on delivering Mission, Vision and Corporate Goal

Balanced Scorecard• Uses mixture of lead and lag indicators/targets for every box• Detailed work done on selecting and defining

PPA & PDP• Individuals’ work plans for all staff targeted specifically at relevant

BSC• Personal Development Plan supports current and potential work

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Strategy Map V Balanced Scorecard

• Strategy Map often overlooked in Balanced Scorecard discussions and preparations, but is essential

• Captures on one page the organisation’s strategy• Permits minds to see the entire strategy in one conceptual

model• Stimulates debate while ensuring focus• Illustrates what success will look like for the organisation• Takes four different perspectives:

– Financial (or other public good perspective)

– Customer

– Key Business Processes

– Organisational Learning and Growth.

• These are not hierarchical in importance but flow logically• Alignment of the four perspectives is key to focused, internally

consistent development and implementation of strategy

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Strategy Map & Balanced Scorecard

• Vision, Mission and especially Corporate Goal are translated into

these four quadrants

• Each box in each quadrant demands specific measures and

indicators of success captured on the balanced scorecard

• Targets SMART if possible

• Mixture of lead and lag indicators

• Lag indicators only verifiable at end of process

• Lead indicators useful for monthly monitoring

• The BSC forms the basis for the Operation Board Report

• Debate at the OB is focused on reds/ambers in RAG

© Crown Copyright

The Mission, Vision and Goal

Learning & Growth Perspective:“To achieve our vision,

how must our organisationlearn and improve?”

Financial or Public Good Perspective:“If we succeed, how

will we look to ourtaxpayers/ratepayers/stakeholders?”

Customer Perspective:“To achieve our vision,how must we look to

our customers?”

Internal Perspective:“To satisfy our customers/stakeholders

which business processesmust we excel at?”

Customer Perspective

Financial PerspectiveFinancial Perspective

Key Business Processes

Organisational Learning and Growth Perspective

ProductivityProductivity GrowthGrowth

Mission: To contribute to the public good by supplying the mapping information for Northern IrelandVision: To enhance our Public Good Role


To achieve financial self sustainabilityCosts/Income


Manage CostsManage Costs Asset ManagementAsset Management New IncomeNew IncomeSustain IncomeSustain Income

Function/ChoiceFunction/ChoiceQualityQuality ServiceService RelationshipRelationship

Strategic CompetenciesKey Job

Key Competences


Key Competences

Strategic InformationTechnologies

Information NeedsICT Systems, Infrastructure



Climate for ActionLeadership, TeamworkAlignment Structure

Culture


Culture

SIAMSIAM ProductManagement

ProductManagement

ChannelManagement

ChannelManagement

Data Update& Supply

Data Update& Supply

Managing our Customer Relations


Corporate GoalCorporate Goal

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Corporate Balanced Scorecard

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O rd n a n c e S u rv e y o f N o rth e rn Ire la n dC o rp o ra te B a la n c e d S c o re c a rd 2 0 0 5 -2 0 0 6

S IA M B e n c h m a rk T B D T B DP R O D U C T M G M T -2 .0 % -2 .5 % -2 .5 %C H A N N E L M G M T -2 .0 % -2 .5 % -2 .5 %D A T A U P D & S U P -2 .0 % -2 .5 % -2 .5 %C U S T O M E R R E L B e n c h m a rk T B D T B D

P a p e r 1 0 0 % 1 0 0 % 1 0 0 %D ig ita l L ic e n s in g 1 0 0 % 1 0 0 % 1 0 0 %

C o p y r ig h t & R o y a lt ie s 1 0 0 % 1 0 0 % 1 0 0 %S e rv ic e s 1 0 0 % 1 0 0 % 1 0 0 %

(1 .5 )N e w In c o m e

IN C O M E F R O M N E W C U S T O M E R S / U P G R A D E S

S a le s M a n a g e r

F in a n c e P e rs p e c tiv e

(1 .3 )A s s e t M a n a g e m e n t

F IX E D A S S E T S to S A L E S R A T IO

F in a n c ia l A c c o u n ta n t

C O S T / IN C O M E IN D E X F in a n c ia l A c c o u n ta n t

M E A S U R E O F S U C C E S S

(1 .4 a )S u s ta in In c o m e

IN C O M E F R O M E X IS T IN G P R O D U C T B L O C K S S a le s M a n a g e r

O S N I C O R P O R A T E O B J E C T IV E

(1 .1 )T o a c h ie v e f in a n c ia l

s e lf -s u s ta in a b ility

(1 .2 a )M a n a g e C o s ts

R E S P O N S IB IL IT Y (o n b e h a lf o f O p e ra tio n a l

B o a rd )

U N IT C O S T O F K E Y B U S IN E S S P R O C E S S E S

(1 .2 b )M a n a g e C o s ts

A B S O L U T E C O S T O F A G E N C Y

P E R F O R M A N C E IN D IC A T O R / D E L IV E R A B L E

2 0 0 7 -0 8

8 6 w ith N IM A £ 1 .4 m 1 0 5 w ith o u t N IM A

2 0 0 5 -0 6

1 0 1 w ith N IM A £ 4 5 0 k / 1 1 7 w ith o u t N IM A A s s u m in g e x p e n d itu re w ith in c u rre n t b u d g e t

( i.e . e x p e n d itu re e x c lu d e s £ 1 7 5 k d e fe rre d u n t ill J u n e M o n ito r in g )

9 2 w ith N IM A £ 1 m 1 1 0 w ith o u t N IM A

2 0 0 6 -0 7

F o re c a s t N B V 3 1 /3 /0 7 £ 8 .9 m F o re c a s t In c o m e £ 8 .7 m w ith

£ 1 m N IM A = R a tio o f 1 .0 2

= % D e c re a s e o f 1 5 %

F o re c a s t N B V 3 1 /3 /0 8 £ 8 .2 m F o re c a s t In c o m e £ 9 .4 m w ith

£ 1 .4 m N IM A = R a tio o f 0 .8 7

= % D e c re a s e o f 1 5 %

(B ) F o re c a s t In c o m e - £ 8 m ( in c lu d in g £ 4 5 0 k N IM A )

(A ) F o re c a s t F ixe d A s s e ts N B V 3 1 M a r 2 0 0 6 - £ 9 ,6 1 1 ,8 6 7

= A / B = 1 .2 0 R a tio S c o re T a rg e t

£ 8 ,8 3 9 ,6 8 1 W ith in + /- 3 % V a r ia n c e

£ 9 ,4 4 1 ,7 5 6 W ith in + /- 3 %

V a r ia n c e

B D D D ire c to r

F in a n c ia l A c c o u n ta n t£ 9 ,7 8 8 ,2 4 7

W ith in + /- 3 % V a r ia n c e

(1 .4 b )S u s ta in In c o m e

T O T A L IN C O M E S a le s M a n a g e r e n d o f 0 5 /0 6 f ig u re£ 8 ,0 0 0 k e n d o f 0 6 /0 7 f ig u re

£ 2 8 0 k + % C h a n g e+ % C h a n g e

Corporate BSC – Finance Quadrant

Customer Perspective

Financial PerspectiveFinancial Perspective

Key Business Processes

Organisational Learning and Growth Perspective

ProductivityProductivity GrowthGrowth





Manage CostsManage Costs Asset ManagementAsset Management New IncomeNew IncomeSustain IncomeSustain Income

Function/ChoiceFunction/ChoiceQualityQuality ServiceService RelationshipRelationship


Key Competences


Key Competences






Culture


Culture

SIAMSIAM ProductManagement

ProductManagement

ChannelManagement

ChannelManagement

Data Update& Supply

Data Update& Supply



Corporate GoalCorporate Goal

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Financial Perspective – 1.1

110 with partial NIMA 117 without NIMA

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Customer Perspective – 2.1

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Business Perspective – 3.1

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Organisational Learning and Growth Perspective – 4.1

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CONCLUSION

STRATEGY MAP

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Implementation of the SM/BSC

Set up Strategy Map Implementation Team (SMIT)

• ‘Best practice’ recommendation, following Strategy Map and Balanced Scorecard training.

• Strategy Board selection of team – Cross Divisional representation (4 Members, 4 Divisions)

SMIT Role

• To develop a process to effectively implement the 2005-06 Strategy Map through the Business Planning process and to embed it within the culture of the Agency

© Crown Copyright

Business Planning (BP) Flowline incorporates BSC

5 Oct - 6 Oct 05Strategy Map

Review(SB)

1 Feb 05Collate Corporate

BSC (PerformanceIndicators,

Deliverables &Actions)(SMIT)

12 Dec - 13 Dec 05Prepare Div BSC templates

HODs - Prepare HMCOResidential material

(SMIT)

17 - 18 Nov 05Overview of

Strategy Map &Review Measures

(Senior Mgrs)Not Residential

22 Nov 05Collate CorporateBSC (Objectivesand Measures)

(SMIT)

24 Nov 04Draft Obj &

Measures Sign-Off(SB)

11, 24 Oct - 8 Nov 05Prepare for Measures

Review(Residential - Senior

Mgrs)(SMIT)

19 Sep - 28 SepReview Strategy

MapImplementation

Plan(SMIT)

6 Oct 05Imp Plan Sign-Off

(SB)

12 - 13 Jan 06Day 1 - Teambuilding / StrategicOverview - HMCOs (Residential)Day 2 - Develop Div Performance

Indicators, Deliverables & KeyActions (All Managers)

26 - 27 Jan 06Div Presentations to

SB(by Senior Mgrs)

3 Feb 06Draft Corp & Div BSCSign-Off to proceed

(SB)

3 Feb 06Draft Corporate BSC

(2005/09)Draft Divisional BSCs

17 - 22 Feb 06# Collation of DraftAgency Resource

Plan(MIS)

8 - 17 Feb 06# Define Staff

Resource requirements- Div BSC

(HODs & AllManagers)

6 & 7 Feb 06BSC Staff Resourcetemplate to HODs(derived from Div

BSC)(SMIT)

6 & 7 Mar 06# Finalise ‘Work

Programs & Activities’*(Senior Managers

Residential)

27 - 28 Feb 06Collation of ‘Work

Programs &Activities’* Document(To include resourceconstraints) (SMIT)

9 - 10 Mar 06Collate ‘Wk Programs & Activities’ for SB.

Request text (inc theme) fromCE & HODsfor C & BP

(SMIT)

14 Mar 06Final Draft ‘Work

Programs & Activities’*Sign-off

(SB)

14 - 24 Feb 06# Calculate draft “Big

Costs”(Roll Forward

Forecast (2006 - 10))(Accountant)

# Budgetary Constraints input as requiredthroughout process (Accountant)

8 - 13 Feb 06# HOD Input e.g.

subs, incomeDefine Div Capital

Resourcerequirements

(H M L)(HODs & AllManagers)


Programs & Activities’*(Copy to MIS & Divisions)

24 -31 Mar 06Collate and

finalise C & BPdocument

(Corp Ser Dir / Mkt/ CE)

10 - 20 Mar 06Write text for

C & BP (link toCorp BSC)(CE/HODs)

8 - 23 Mar 06Mkt Design and

Layout options incsummary of Corp

BSC and RP(Mkt)

11 Apr 06Presentation to FF

(CE)

12 - 19 Apr 06Finalise C & BP


11 Oct 05Block book keydiary dates &

Venues(SMIT)

10 - 13 Apr 06Roll-out to all

Staff, by Division(HODs to organise )

22 Jun 06Review C & BP

Process(SMIT)

16 Jun 06Completed

Corp (2005/09)and BusinessPlan (2005/06)

OSNI - Strategy Map Implementation Flowline 2006/07 (v 0.1)

Index

PeopleCE - Chief ExecutiveDiv - DivisionalHOD - Heads of DivisionMgrs - ManagersMkt - MarketingOB - Operational BoardSB - Strategy BoardSMIT - Strategy Map Implementation TeamCorp Ser Dir - Corporate Services DirectorFF - Departmental Frazer Figure

TermsBSC - Balanced Score CardC & BP - Corporate and Business PlanH M L - High, Medium and LowMIS - Management Information SystemRP - Resource Planning

24 Apr 06C & BP

Formal Presentation toMinister and Approval

(CE)

4 Apr 06(C & BP)

Agree ‘Proof text’ and‘design’ (Strategy

Board)

23 Mar 06 SB Review &

Presentation of text to CESelect Design of C & BP (CE/Mkt)Sign-off ‘Wk Programs & Activities’

Costs (SB)

8 - 17 Feb 06Work Programmes &

Activities TextRequired


Potential rework of BSC /resource Plan / Running Costs /

Capital

Move Forward

Feedback

Key Action / Input - SMIT

Key Action / Input - Others

6 & 7 Feb 06Request Work

Prog & Activities(Inc. Bus Plan

Activities templatefrom MIS) (SMIT)

6 & 7 Feb 06# Request for Financial

Input(Accountant)

Strategy Board sign-offResource Plan, Running Costs,

Work Programmes & Capital

* Work Programs & ActivitiesIncludes; Corporate and Divisional BSCs (2005/09) Resource Plan (2005/06) Resource Plan - Staff and Capital Strategy Map Financial Plan Summary and Detailed Text for each Division Values Organisational Chart

14 Nov 05Pre-Review

Meeting - (SeniorMgrs)

9 Jan 06Pre-Residential

Meeting -(HMCOs)

© Crown Copyright 2005

30 Jan 06Divisions finalise draft Div

BSCs(Senior Managers)

14 - 17 Feb 06# Collation of DraftAgency Strategic

Capital List(Accountant)

20 Feb 06# Capital Check

(Ops Board)

23 Feb 06# Capital Review(Strategy Board /

SMIT)

1 Mar 06Pre-Residential

Meeting -(Senior

Managers)

6 & 7 Feb 06# Strategic Capital

Resource template toHODs (H M L priorities)

(Accountant / SMIT)

7 Apr 06Draft C & BPto Dept FF

(CE, CS Dir)

SB Meeting todiscuss BP

content theme anddesign

(SB/Corp Ser Dir/Mkt)

20 Apr 06Draft C & BPto Minister

(CE, Corp Ser Dir)

Key Action / Input - MIS

9 May 06Corporate

Information Day(SMIT )

Supplementary Process

16 - 25 Jan 06Divisional collateDraft Divisional

BSCs

6 Feb 06Copy Draft

Corp and DivBSCs to MIS

(SMIT)

© Crown Copyright

Milestones identified & dates booked

5 Oct - 6 Oct 05Strategy Map

Review(SB)

1 Feb 05Collate Corporate

BSC (PerformanceIndicators,

Deliverables &Actions)(SMIT)

12 Dec - 13 Dec 05Prepare Div BSC templates

HODs - Prepare HMCOResidential material

(SMIT)

17 - 18 Nov 05Overview of

Strategy Map &Review Measures

(Senior Mgrs)Not Residential

22 Nov 05Collate CorporateBSC (Objectivesand Measures)

(SMIT)

24 Nov 04Draft Obj &

Measures Sign-Off(SB)

11, 24 Oct - 8 Nov 05Prepare for Measures

Review(Residential - Senior

Mgrs)(SMIT)

19 Sep - 28 SepReview Strategy

MapImplementation

Plan(SMIT)

6 Oct 05Imp Plan Sign-Off

(SB)

12 - 13 Jan 06Day 1 - Teambuilding / StrategicOverview - HMCOs (Residential)Day 2 - Develop Div Performance

Indicators, Deliverables & KeyActions (All Managers)

26 - 27 Jan 06Div Presentations to

SB(by Senior Mgrs)

3 Feb 06Draft Corp & Div BSCSign-Off to proceed

(SB)

3 Feb 06Draft Corporate BSC

(2005/09)Draft Divisional BSCs

17 - 22 Feb 06# Collation of DraftAgency Resource

Plan(MIS)

8 - 17 Feb 06# Define Staff

Resource requirements- Div BSC


6 & 7 Feb 06BSC Staff Resourcetemplate to HODs(derived from Div

BSC)(SMIT)

6 & 7 Mar 06# Finalise ‘Work

Programs & Activities’*(Senior Managers

Residential)

27 - 28 Feb 06Collation of ‘Work

Programs &Activities’* Document(To include resourceconstraints) (SMIT)

9 - 10 Mar 06Collate ‘Wk Programs & Activities’ for SB.

Request text (inc theme) fromCE & HODsfor C & BP

(SMIT)


Programs & Activities’*Sign-off

(SB)

14 - 24 Feb 06# Calculate draft “Big

Costs”(Roll Forward

Forecast (2006 - 10))(Accountant)

# Budgetary Constraints input as requiredthroughout process (Accountant)

8 - 13 Feb 06# HOD Input e.g.

subs, incomeDefine Div Capital

Resourcerequirements

(H M L)(HODs & AllManagers)


Programs & Activities’*(Copy to MIS & Divisions)

24 -31 Mar 06Collate and

finalise C & BPdocument


10 - 20 Mar 06Write text for

C & BP (link toCorp BSC)(CE/HODs)

8 - 23 Mar 06Mkt Design and

Layout options incsummary of Corp

BSC and RP(Mkt)

11 Apr 06Presentation to FF

(CE)

12 - 19 Apr 06Finalise C & BP


11 Oct 05Block book keydiary dates &

Venues(SMIT)

10 - 13 Apr 06Roll-out to all

Staff, by Division(HODs to organise )

22 Jun 06Review C & BP

Process(SMIT)

16 Jun 06Completed

Corp (2005/09)and BusinessPlan (2005/06)

OSNI - Strategy Map Implementation Flowline 2006/07 (v 0.1)

Index

PeopleCE - Chief ExecutiveDiv - DivisionalHOD - Heads of DivisionMgrs - ManagersMkt - MarketingOB - Operational BoardSB - Strategy BoardSMIT - Strategy Map Implementation TeamCorp Ser Dir - Corporate Services DirectorFF - Departmental Frazer Figure

TermsBSC - Balanced Score CardC & BP - Corporate and Business PlanH M L - High, Medium and LowMIS - Management Information SystemRP - Resource Planning

24 Apr 06C & BP

Formal Presentation toMinister and Approval

(CE)

4 Apr 06(C & BP)

Agree ‘Proof text’ and‘design’ (Strategy

Board)

23 Mar 06 SB Review &

Presentation of text to CESelect Design of C & BP (CE/Mkt)Sign-off ‘Wk Programs & Activities’

Costs (SB)

8 - 17 Feb 06Work Programmes &

Activities TextRequired


Potential rework of BSC /resource Plan / Running Costs /

Capital

Move Forward

Feedback

Key Action / Input - SMIT

Key Action / Input - Others

6 & 7 Feb 06Request Work

Prog & Activities(Inc. Bus Plan

Activities templatefrom MIS) (SMIT)

6 & 7 Feb 06# Request for Financial

Input(Accountant)

Strategy Board sign-offResource Plan, Running Costs,

Work Programmes & Capital

* Work Programs & ActivitiesIncludes; Corporate and Divisional BSCs (2005/09) Resource Plan (2005/06) Resource Plan - Staff and Capital Strategy Map Financial Plan Summary and Detailed Text for each Division Values Organisational Chart

14 Nov 05Pre-Review

Meeting - (SeniorMgrs)

9 Jan 06Pre-Residential

Meeting -(HMCOs)

© Crown Copyright 2005

30 Jan 06Divisions finalise draft Div

BSCs(Senior Managers)

14 - 17 Feb 06# Collation of DraftAgency Strategic

Capital List(Accountant)

20 Feb 06# Capital Check

(Ops Board)

23 Feb 06# Capital Review(Strategy Board /

SMIT)

1 Mar 06Pre-Residential

Meeting -(Senior

Managers)

6 & 7 Feb 06# Strategic Capital

Resource template toHODs (H M L priorities)

(Accountant / SMIT)

7 Apr 06Draft C & BPto Dept FF

(CE, CS Dir)

SB Meeting todiscuss BP

content theme anddesign

(SB/Corp Ser Dir/Mkt)

20 Apr 06Draft C & BPto Minister

(CE, Corp Ser Dir)

Key Action / Input - MIS

9 May 06Corporate

Information Day(SMIT )

Supplementary Process

16 - 25 Jan 06Divisional collateDraft Divisional

BSCs

6 Feb 06Copy Draft

Corp and DivBSCs to MIS

(SMIT)

© Crown Copyright

Business Planning Hierarchy

Link between- Strategy Map- Corporate BSC- Divisional BSC- Branch BSC- PPA & PDP

© Crown Copyright

Operational Board Report using BSC and RAG: Customer Quadrant

Corporate Balanced Scorecard Monitor 2005-2006

Data to:

CURRENCY 90% 92.95% 93.0% Sep-05Assessment undertake monthly (as per criteria)

COMPLETENESS & RELATIVE POSITION

95% 99.65% 95.0% Sep-05 Monthly sampling (as per criteria)

THEMATIC ACCURACY 90%Figure is

Provisional99.0% Sep-05 methodology established

LOGICAL CONSISTENCY 90%Figure is

Provisional85.0% Sep-05

need to develop flow-line further to enable more effective measurement

]

UnderReview

marketing group drawing up actionplan for Jan survey, this to include

OSNI's estimate

LEAD indicator

LAG indicator

Monitoring / Action required

Will be achieved

Not started Sep-05

Will not be achieved

80.0%

Figure not yet available

Sep-05

(2.3b)Service

PERCENTAGE OF COMPLAINTS RESOLVED

FIRST TIME80.0% Sep-05

80.0% 80.0%


Sep-05

Sep-05

(2.2b)Choice

PERCENTAGE OF CUSTOMERS SATISFIED

WITH CHOICE70.0%


Sep-05

70.0%

(2.4)Relationship

INDEPENDENT KEY ACCOUNT SATISFACTION

RATING

(2.3a)Service


WITH SERVICE

(2.1b)Quality

PERCENTAGE COMPLIANCE AGAINST

CRITICAL CONTROL POINTS


WITH FUNCTION

(2.2a)Function

Measures of SuccessOSNI Corporate

Objective

MIS 06/12 - 30-SEP-2005 (50%)


(2.1a)Quality


WITH QUALITY73.2%

Projection to Year End

Terms of Reference are being developed.

Status to Date Status Date

Customer

ActionsPerformance Indicator /

Deliverable

70.0%

70.0%

73.2%

MIS & Policy to issue Proposal re Handling of Complaints to HODs for agreement.


Work on the development of the survey will commence in Sep.


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Embedding the Strategy Map – Benefits:

• Understanding corporate strategy across organisation

• Understanding the Strategy Map/BSC as tools

• Ownership / buy-in through involvement

• Close alignment of resources (capital, DRC and manpower) to targets

• Basis for resource negotiations

• Basis for prioritisation decisions in-year

• Redesign of Personal Performance Agreements re Personal Strategy

Map

• Better alignment of Personal Development Plans

• Teambuilding

• Cross-Divisional working

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Strategy Map Implementation: Learning Points

• Process is not intellectually over-complex but needs full involvement

and dedicated time across the organisation.

• Supportive sponsorship by senior management is essential

• The Strategy Map and BSC will evolve as experience grows

• Choice and Definition of targets & measurements are critical and

difficult but engender useful debate

• Cross-Divisional team membership of SMIT

• Appropriate BSC Training for Strategy Board and SMIT members

• SMIT dedicated time to develop the process

• SMIT must drive the process

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Strategy Map Implementation: Key Issues

• Clear and unambiguous communication – ensuring correct levels of

expectation

• Early development of a Flowline

• Early booking of diary dates and appropriate venues (Allocate

dedicated time for managers and staff around milestones)

• Timely delivery of documentation for milestones

• Strictly adhered to flowline timescales – NO exceptions

• Involvement of all managers and staff – NO exceptions

• Review the Strategy Map each year but stick to it in-year

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Summary: Strategy Map & Balanced Scorecard

• A tool that needs involvement and clear leadership

• Keep it simple

• Hone it

• Explain it

• Integrate it into day-to-day activities

• Review it

• Adapt it

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It’s not rocket science!

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Questions & Discussion

Documents

Conclusion Best Practice Business Planning Methodologies: Use of the Strategy Map & Balanced Scorecard 25 th April 2006