© 2005 Balanced Scorecard Collaborative
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
Prague, 7 April 2005
for more information contact:
Peter [email protected]
Mathias [email protected]
The Strategy Focused Organization
Balanced Scorecard DesignPresentation for
Office of the Governmentof the Czech Republic
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Vision of the Reform:
“Flexible and better functioning central state administration responding better to global challenges and cross-cutting issues”
Central State Administration Reform
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Office of the Government of the Czech Republic Prague, 7 April 2005
General Information about BSCol (20 min)
Scope and approach of Projects by BSCol (30 min)
Case studies of Government Projects (25 min)
Cooperation of BSCol with IDS Scheer (15 min)
Agenda
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
> Balanced Scorecard Collaborative Inc.
> Balanced Scorecard Collaborative Central & Eastern Europe GmbH
Kaplan Norton
Led by Robert Kaplan (Chairman) and David Norton (President)
Over 250 experienced consultants worldwide
World-leading in strategy implementation using the Balanced Scorecard
Over 500 BSCol-led Balanced Scorecard Implementations
Wide variety of advisory, educational and training services
Pioneer in BSC e-learning and design
More than 75.000 Online Community Members
Founded as a German GmbH in November 2004
Focused on consulting and training services to private and public organizations in Central and Eastern Europe
International team located in Munich helps organizations successfully execute their strategy to create breakthrough results
Balanced Scorecard Collaborativeis a new kind of professional services firm
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Our Worldwide Network of Affiliates
South KoreaSpain & Portugal
Argentina
Brazil
Chile
Mexico
Colombia & Ecuador
USA
Sweden & Norway
United Kingdom
Italy
Iceland
Asia-Pacific
China
Central & Eastern Europe
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
We are committed to helping companies to build
Strategy Focused Organizations (SFO)
Best Practice Capabilities
A skilled team of professionalsPeople
Integrated strategy management processesProcesses
Tools, technologies, and supportTools
• Proven methodologies by the originators of the BSC/SFO
• Tested and constantly refined in the field• References, Hall of Fame
• Unique suite of proven, proprietary support tools:
• Design & Cascade Centers, on line training, best practice-library, First Report, SFO readiness
• Depth & breadth of expertise and experience
• Advisers, coaches & trainers• Expert led model, know-how transfer• Program management & control
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
21 translations
18 translations
60% usage in Fortune 500Harvard Business Review “Hall of Fame”89.000 BSC on-line members
The Balanced Scorecard in 2005
11 translations
February 2004
January - February 1992
January 1996
September 1993
September 2000
Bi-monthly Newsletter2.700 subscribers
September 1993
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Balanced Scorecard Hall of FameAchieving Breakthrough Results
TELECOMMUNI-CATIONS
FINANCIAL SERVICES
PROCESS MANUFACTURING
SERVICE AND HOSPITALITY
DISCRETE MANUFACT-
URING
GOVERNMENT
EDUCATION
HEALTH CARE
UTILITIES
POLICE & MILITARY
Engineering Polymers
North AmericaMarketing & Refining
BMW Financial Services
Commercial Vehicle Business Unit
Information and Communication Mobile
UK Ministry of Defence
US Army
Royal Norwegian Air Force
National Reconnaissance
Office
Human Resources
RCMP
EDA
Chrysler Group
USA
CGISS
Korea Telecom
Companhia Siderurgica De Tubarao
Europe
Saatchi & Saatchi
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
The Challenge Is Translating Strategy into Action
“Less than 10% of strategies effectively formulated are effectively executed.”
Fortune
“Strategies most often fail because they aren’t executed well.”
Execution
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
The four Barriers to Strategy Execution
Only 5% of the workforce understand the strategy
Only 25% of managers have incentives linked to overall
strategy
The People Barrier
The Vision Barrier
85% of executive teams spend less than one hour
month discussing strategy
The Management Barrier9 of 10 companies
fail to execute strategy
60% of organizations do not link budgets to strategy
The Resource Barrier
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
The Implementation Problem: How to bridge leadership at the top to management of initiatives, process improvements and employees´ every day actions
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
The Strategy-Focused Organizationand its five principles of success
Translate Strategy to operational terms
Mobilize Change through Executive Leadership
Align the Organization to the Strategy
Motivate to make Strategy Everyone’s Job
Govern to make Strategy a Continual Process
2
3
4
5
1• Map the strategy• Define measures• Establish targets• Rationalize initiatives• Assign accountability
• Align Secretaries• Align Divisions• Align Departments• Align Project Teams
• Communicate the strategy• Align personal goals• Align personal incentives• Align competency development
• Commit Top Leadership• Articulate case for change clearly• Engage Leadership Team• Clarify Vision and Strategy • Mobilize the Organization• Identify Program Manager
• Implement BSC reporting system • Conduct strategic review meetings • Integrate planning, budgeting and strategy• Link HR and IT planning to strategy• Link Process Management to strategy • Link knowledge sharing to strategy• Establish Strategic Management Office
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Translate the strategy to operational terms
Link and align the organization around its strategy
Make strategy everyone’s job
Make strategy a continuous process
Provide a change agenda
…so everyone can understand.
…which creates a “line of sight” from “boardroom to backroom.”
…through personal contribution tostrategic implementation.
…through organizational learningand adapting.
…for executive leadership tomobilize change.
12345
The 5 Principles of a Strategy-Focused Organization
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Czech Government6 April 2005
General Information about BSCol (20 min)
Scope and approach of Projects by BSCol (30 min)
Case studies of Government Projects (25 min)
Cooperation of BSCol with IDS Scheer (15 min)
Agenda
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Continual Process
Organizational Alignment
Translate Strategy
Executive Leadership
TRANSLATE STRATEGY INTO OPERATIONAL
TERMS
MOBILIZE CHANGE THROUGH EXECUTIVE
LEADERSHIP
ALIGN THE ORGANIZATION TO THE STRATEGY
GOVERN TO MAKE STRATEGY
A CONTINUAL PROCESS
Everybody’s Work
MOTIVATE TO MAKE STRATEGY EVERYONE’S JOB
3
2
1
5
4
Best Practice
CurrentPerformance
Being considered
Working on it
Implemented
Best Practice Not considered
1 2 3 4 5
Being considered
Working on it
Implemented
Best Practice Not considered
1 2 3 4 5
The SFO Readiness Assessment(The Balanced Scorecard Diagnosis Tool)
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
The SFO Readiness Assessment Relationships between Managerial Excellence and Levels of Benefits
Leve
l of E
xcel
lenc
e of
Stra
tegi
c M
anag
emen
t Pra
ctic
es
Mobilization Practices
Translation Practices
Alignment Practices
Motivation Practices
Governance Practices
4.5
4.0
3.5
3.0
I – Hall of Fame Companies
II– “Breakthrough Results”
III – “Operational Results”
IV – “Organization Benefits”
High-Benefit Users
Low-Benefit Users
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Internal Processes Perspective
Financial Perspective
Learning & Growth Perspective
Customer Perspective
Return on Investment
Reputation
Sources of Growth Sources of Productivity
+ +
“Build the Brand”
“Make the Sale”
“Deliver the Product”
“Service Exceptionally”
Productivity Strategy
HumanCapital
InformationCapital
OrganizationCapital
ImageRelationshipProduct Service
Revenue Strategy
To satisfy our shareholders, what financial objectives must we accomplish?
To achieve our financial objectives, what customers needs must we serve?
. To satisfy our customers and shareholders, in which internal business processes must we excel?
To achieve our goals, how must our organization learn and innovate?
1
2
3
4
The four Perspectives pull together proven Management Concepts into a simple Framework Private
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Internal Processes Perspective
Mission
Learning & Growth Perspective
Sources of Confidence Sources of Productivity
+ +
Improvement & Expansion
Operational Excellence
Commercial Excellence
Customer Excellence
Policy Relationship
HumanCapital
InformationCapital
OrganizationCapital
Costumer Relationship
Quality & Service
Common Benefits
How do we achieve our (political) mission?
To achieve our mission, what customers-citizens and finan-cial needs must we serve?
. To achieve our customers-citizens and financial goals, in which internal business processes must we excel?
To achieve our goals, how must our organization learn and innovate?
1
2
3
4
The four Perspectives pull together proven Management Concepts into a simple Framework
Customer Perspective Financial PerspectiveSelf-contained
FinancingProductivity
Environmental Protection
Public
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
The Balanced Scorecard Model of Value Creation
The Strategy
"If we succeed, how will we look to our shareholders?”
Financial Perspective
"To achieve our vision, how must we look to
our customers?”
Costumer Perspective
"To satisfy our customers and shareholders, at which processes must we excel?”
Internal Perspective
“How do I align my intangible assists to
improve critical processes?”
Learning & Growth
Private Sector Organizations
The Mission
“How do we attract resources and authorization
for our mission?”
"To have a social impact and to attract resources and support, at which processes must we excel?”
Internal Perspective
“How do I align myintangible assists to
improve critical processes?”
Learning & Growth
“How should we manage and allocate our resources for maximum social impact?”
Financial Perspective
Government & Non-Profit Organizations
“How do we have a social impact with our citizens/constituents?”
Costumer PerspectiveSupport Perspective
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
The Strategy-Focused Organizationand its five principles of success
Translate Strategy to operational terms
Mobilize Change through Executive Leadership
Align the Organization to the Strategy
Motivate to make Strategy Everyone’s Job
Govern to make Strategy a Continual Process
2
3
4
5
1• Map the strategy• Define measures• Establish targets• Rationalize initiatives• Assign accountability
• Communicate the strategy• Align personal goals• Align personal incentives• Align competency development
• Commit Top Leadership• Articulate case for change clearly• Engage Leadership Team• Clarify Vision and Strategy • Mobilize the Organization• Identify Program Manager
• Implement BSC reporting system • Conduct strategic review meetings • Integrate planning, budgeting and strategy• Link HR and IT planning to strategy• Link Process Management to strategy • Link knowledge sharing to strategy• Establish Strategic Management Office
STRATEGY FOCUSED
ORGANIZATION
5PRINCIPLES
• Align Secretaries• Align Divisions• Align Departments• Align Project Teams
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
A successful Balanced Scorecard program starts with a recognition that it is not a metrics project, it’s a change process
Executive Leadership:The BSC creates the agenda for change …
In this context Leaders must:
Create the climate for change
Create the vision and strategy
Create the Leadership Team
Change the culture
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
The Mobilization Phase:Getting Started …
Leadership Objective:• Achieve commitment at the top• Build the executive team• Build case for change
Mobilize Change through Executive Leadership
Mobilization PhaseStrategic Shift:
New executive leaderNew strategy
Underperforming: Burning platformBottom-decile industry performancePoor quality or customer service
Align Business Units:Consistent value proposition:Post-merger integration
Integration:Integrating business unitsIntegrating new product lines
Get organization buy-in and leadership alignment around the need for a new process to manage strategy
Triggers of Change
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
The Strategy-Focused Organizationand its five principles of success
Translate Strategy to operational terms
Mobilize Change through Executive Leadership
Align the Organization to the Strategy
Motivate to make Strategy Everyone’s Job
Govern to make Strategy a Continual Process
2
3
4
5
1• Map the strategy• Define measures• Establish targets• Rationalize initiatives• Assign accountability
• Communicate the strategy• Align personal goals• Align personal incentives• Align competency development
• Commit Top Leadership• Articulate case for change clearly• Engage Leadership Team• Clarify Vision and Strategy • Mobilize the Organization• Identify Program Manager
• Implement BSC reporting system • Conduct strategic review meetings • Integrate planning, budgeting and strategy• Link HR and IT planning to strategy• Link Process Management to strategy • Link knowledge sharing to strategy• Establish Strategic Management Office
STRATEGY FOCUSED
ORGANIZATION
5PRINCIPLES
• Align Secretaries• Align Divisions• Align Departments• Align Project Teams
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Example of a Strategy Map for the Private SectorAligned Internal Processes and Intangible Assets deliver Customer Value Proposition that creates Shareholder Value
Long-Term Shareholder Value
Productivity Strategy Growth Strategy
Enhance Customer Value
Improve Cost Structure
Increase Asset Utilization
Expand Revenue Opportunities
Human Capital
Information Capital
Organization CapitalCulture Leadership TeamworkAlignment
Customer Value Proposition
Price Quality Availability Selection Functionality Service Partnership Brand
Product / Service Attributes Relationship Image
SupplyProductionDistributionRisk Management
OperationsManagement Processes
SelectionAcquisitionRetentionGrowth
Customer ManagementProcesses
Opportunity IDR&D PipelineDesign/DevelopRamp-Up
InnovationProcesses
EnvironmentSafety & HealthEmploymentCommunity
Regulatory & Social Processes
Financial Perspective
Customer Perspective
Internal Perspective
Learn & Growth
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Generic Strategy Map for the Public Sector
Improvementand Expantion (Development Processes)
Relationship Institution-Comunity
Excellence in fee collection
(ComercialProcesses )
OperationalExcellence (OperationalProcesses)
Excellencein CustomerAttention (CustomerProcesses)
Competent and proactive Employees
Developmentof Strategic
Competences
Improvementof work climate
Development of IT Solutions
KnowledgeManagement
Quality
Equity
Continuity
Attention
CapacitiesCompetenceDistresses
MotivationAttitude
Empowerment
AccessibilityConfidenceOpportunity
GeneratinnTransfer
Utilization
Environ-mental care(EducationalProcesses)
AccessibilityEconomy of
Scales
Strategy of Productivity
Strategy of self-contained
Cost Reduction
Availability ofResources
Efficient useof resources
Common Benefits
Satisfactionof demand
Improvement ofquality of life
Strategy AllianceEnvironmental ProtectionCommunication
Service CultureCostumer-focusedStrategy ManagementQuality ControlDecentralizationStrategic Allianceswith private sector
Modernization
Confidence
Transparency
Responsability
Transparency
Rates / Fees
Relationship Institution-Politics
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Example of a Strategy Map for the Public SectorRoyal Canadian Mounted Police
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Objectives
Delivery of Services
Targets
97%(first time)
Meter Reading Automation
InitiativesMeasures
Promised Delivery %
Strategic Theme: Operating Efficiency
Financial
Learning & Growth
Maximize Cost-Benefit
Ensure Market-Driven Skill
Development
Improve Quality of Live
Enhance Service Delivery
Customer
Internal
Increase Infrastructure
CapacitySecure Funding
Improve Productivity
A good Balanced Scorecard connects the strategy map to objectives, measures, targets, and initiatives
Strategy Map: Diagram of the cause-and-effect relationships between strategic objectives
Strategic Objectives: What the strategy is trying to achieve
Targets: The level of
performance or rate of
improvement needed
Key Action Programs required to
achieve targets
Measures: How success
or failure (performance)
against objectives is monitored
Mission
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
The Strategy-Focused Organizationand its five principles of success
Translate Strategy to operational terms
Mobilize Change through Executive Leadership
Align the Organization to the Strategy
Motivate to make Strategy Everyone’s Job
Govern to make Strategy a Continual Process
2
3
4
5
1• Map the strategy• Define measures• Establish targets• Rationalize initiatives• Assign accountability
• Communicate the strategy• Align personal goals• Align personal incentives• Align competency development
• Commit Top Leadership• Articulate case for change clearly• Engage Leadership Team• Clarify Vision and Strategy • Mobilize the Organization• Identify Program Manager
• Implement BSC reporting system • Conduct strategic review meetings • Integrate planning, budgeting and strategy• Link HR and IT planning to strategy• Link Process Management to strategy • Link knowledge sharing to strategy• Establish Strategic Management Office
STRATEGY FOCUSED
ORGANIZATION
5PRINCIPLES
• Align Secretaries• Align Divisions• Align Departments• Align Project Teams
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Balanced Scorecard Implementation can proceed in stages to create a Strategy Focused Organization
Create Corporate Balanced Scorecard
Implement a strategic organizational change
program
Create team and personal objectives
Create BSC incentive compensation system
Develop change management
mobilization plan
Create BSC measurement collection and
reporting system
Create budgets for strategic programs
Operationalizethe BSC
• Measures• Targets• Initiatives
Communicate the BSC and educate
employees
Hold management
review meetings
Cascade the BSC by creating
• SBU BSC’s• SSU BSC’s
Revise & adapt the
BSC
TranslateStrategy
Everyone’s Job
OrganizationAlignment
Translate Strategy
Executive LeadershipExecutive
Leadership
Continual Process
Organization Alignment
Everyone’s Job
Continual Process
2
3
4
5
1
STAGE 2(12–24 months)
STAGE 1(6–12 months)
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Organization Alignment:Cascade the BSC to Departments & Support Units
Government Office BSC
Division BSC
Support Units BSC
Departments BSC
The deeper we deploy the BSC,
the better we can define the processes improvement needs
Processes
Team and Individuals
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Performance Management Processes are essential for moving Strategy from the Top to the Bottom
GOVDEP
• EDUCATION
• PERSONAL GOAL ALIGNMENT
• BALANCED PAYCHECKS
Everyone’s Job:
Top-Down “Bridging Process” to Share the Strategy and Align the Workforce
Bottom-Up Process to Internalize andExecute the Strategy
The Strategy–Focused Workforce
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Why do organizations fail to get results from their Balanced Scorecard programs?
#1 No Executive Ownership(done by middle management team only; long development process)
#2 Scorecard not linked to Strategy(no strategy map - just KPIs in 4 perspectives; mostly financial measures; done as a systems project)
#3 Scorecard not linked to Management Processes(Mobilize, Translate, Align, Motivate, Govern)
NOT using BSC
Using it WRONG
Using itRIGHT
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
The Balanced Scorecard Portal
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Online Training eLearning Tool> Helps to mobilize for Results
Online Library> Access a wealth o Best Practices to help successfully implement the
Balanced Scorecard with 400+ assets, updated monthly
Design & Cascade Center> Build Online your Balanced Scorecard better, faster and easier
First Report> Get started reporting on your Balanced Scorecard
Readiness Director> Helps to ensure success during the BSC implementation process
The Balanced Scorecard Portal
The Balanced Scorecard Portalis a customized online system
to help organizations make strategy a core competency
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
The Balanced Scorecard PortalOnline Training (eLearning Tool)
Test your knowledge and understanding of the BSC
Audio/video
Glossary of words, terms, and methodology
Easy, step by step learning process
Easily advance through the learning process
Training courses include the following themes:
Introduction to the Balanced ScorecardInitiatives
Strategy Mapping Workshops
MeasurementsReporting
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Search by:• Media Type• SFO Principle• Keywords• Full Text
The Balanced Scorecard PortalOnline Library
Conference presentations from our World Class Executive ConferencesCase studies of Hall of Fame implementationsMultimedia presentations focused on the SFO principlesArticles from the Balanced Scorecard ReportPresentations from Robert Kaplan, David Norton, and other BSCol
professionalsExecutive interviews from BSC practitioners
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Czech Government6 April 2005
General Information about BSCol (20 min)
Scope and approach of Projects by BSCol (30 min)
Case studies of Government Projects (25 min)
Cooperation of BSCol with IDS Scheer (15 min)
Agenda
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Government of Rio Grande do Sul
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Objective for implementing the BSC
> Develop / refine strategy to one of the government pillars
> Align Secretaries around this strategic pillar
> Optimize the resources and programs needs
> Develop an easy to use management tool to support the process of monitoring the evolution meetings
> Recommend structure required to the management
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
GOVERNMENT STRATEGYEc
onom
ic
Dev
elop
men
t
Soci
alIn
clus
ion
Red
uctio
n of
lo
cal n
ot e
qual
tr
eatm
ent
Man
agem
ent
Mod
erni
zatio
n
Integration of 4 Secretaries:HealthJobEducationHabitation
Scope of the Strategy Approach
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Assure the integration of the management / actions between social secretaries and the other government
institutions
Provide the integration of the Program with
the Civil Society
Assure the integration of the Federal, State and District politics
Integration Government - Society
Provide access to the health services
Provide access to quality education
Assure the financial resources required to
make the program viable and
sustainable
Financial Responsibility
Focus
People and Competencies
Program Objective
Provide the families self-sustainability
Improve families quality of life
Develop other opportunities to generate income
Promote the capacity to generate income in
the target-families
Put in touch citizens to the job opportunities
Look for external sources of resources
Optimize the use of public and external
resources
Look for scale benefits
Monitor the families evolution
(during and after)
Knowledge of social demands
from target-families
Align the programs to the
demands
Focus and Alignment of the Programs
Assure access to the basic education
Assure the qualityof the resources
Assure basic conditions of living
Assure water treatment
Provide basic conditions of living:
income and food
Management oriented to results
Make the image and the credibility
of Government strong
Provide skills to the families
Integrate the school to the
comunity
Assure simultaneous Operationalization of the programs
Assure information system integrated, reliable and fast
Provide cultural change focusing the job with inter-
Secretaries teams
Keep employees motivated and aligned to the objectives and
program results
Create teams: politic and operational, with the required
competences to a sharing inter-Secretaries management
Provide to Rio Grande do Sul’s families, which is not considered poor, the possibility of social promotion and self-sustainability.
Assure families treatment
Prevent the health getting
worst
Target-public and Government
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Focus and alignment:> Reduction of, approximately, 50% of Secretary's programs
Synergy:> Programs (and resources) sharing among Secretaries
Integration:> Commitment and involvement of all target District
“... the BSC is a democratic planning process that make possible the integration of all Secretaries ...”
Alceu Moreira, Secretary of Habitation
“... the BSC is a democratic planning process that make possible the integration of all Secretaries ...”
Alceu Moreira, Secretary of Habitation
Results
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
UK Ministry of Defence
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
The Case
UK Ministry of Defence: > One of the largest UK government departments > Annual budget of 25 billion £> Over 300.000 military and civilian personnel
The Change undertaken: UK Government’s wider „modernizing agenda“ in 2000 establishing clear strategic goals, targets, measures and initiatives
The Task: The Ministry of Defence like all government departments must squeeze better performance out of taxpayer money. Previous performance – management systems had several shortcomings
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
The Challenge: Overcome a healthy skepticism from some of the most senior military officers
The Results: > Streamlined strategic objectives, targets, measures and initiatives
> Better strategic resource allocation
> Improved delivery of military capability and readiness
„The Balanced Scorecard is one of the most important management initiatives we have adopted“
Sir Kevin Tebbit, Permanent Under Secretary of State and Chairman of the Defence Management Board
„The Balanced Scorecard is one of the most important management initiatives we have adopted“
Sir Kevin Tebbit, Permanent Under Secretary of State and Chairman of the Defence Management Board
The Project
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Strategy Map
Battle Winning Defense Capability
Military Effectiveness
Reputation Defense Infrastructure
Training Acquisition Management
Technology and Equipment
ModernisingInfrastructure
Annual Budget
Defense Policy
Operational Success
Manning Levels
Investing in People
Output Deliverables Perspective
Resource Management Perspective
Enabling Processes Perspective
Building for the Future Perspective
Improve Operational
EffectivenessBetter use of Resources
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Government of Mexico
Taking the Government from Planification to Action
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Sector Programs
Human and Social Development
Economic Growth
Security, Order and Respect
Definition of Priorities / Projects / Targets / Indicators / Benchmarking Implementation / Alignment / Continue Improvement
Assurance of Implementation
National Development Plan of Mexico 2001 - 2006
Objectives and Targets
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Strategy Strategy MapMap
IndicatorIndicatorGenerationGeneration
Indicator Indicator AnalysisAnalysis
Strategy Planning Approach
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Example of a Strategy MapSecurity Cabinet
Public Security (Draft)Va
lue
for
the
Citi
zens
Inte
rnal
Pr
oces
ses
Res
ourc
es
(Hum
an, m
ater
ial
and
finan
cial
)
Increase confidence of citizens
Decrease common criminal
incidents
Decrease federal criminal
incidents
Reform public security
laws
Capacity building ofhuman resources
Disposition of federal and state
financial resources
Disposition of necessary infrastructure
and equipment
Coordinate programs and actors
Increase process transparency
Respect human rights
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Czech Government6 April 2005
General Information about BSCol (20 min)
Scope and approach of Projects by BSCol (30 min)
Case studies of Government Projects (25 min)
Cooperation of BSCol with IDS Scheer (15 min)
Agenda
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Strategydiagnosis
BSCdefinition
BSCmaintenance
Del
iver
yTo
ols Strategy map
Balanced ScorecardARIS BSC
Balanced ScorecardARIS ToolsetSAP (SEM, BW)
BSCimplementation
Status quo analysisSFO ReadinessAssessment
BSCol and IDS Scheer High Level Cooperation Model
Strategy MeetingsOSMARIS ToolsetSAP (SEM, BW)
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Common Value Proposition of BSCol and IDS Scheer
Operationalization of strategy
Operationalization of strategy Alignment of the organisationAlignment of the organisation Measurement of results
of implementation Measurement of results
of implementation
Special knowledge, the best tools and innovative solutionsClose to practice by long years of experience and access to international best practicesSignificant added value due to consistent strategy definition and continuous implementationIntegration of the strategic and operative KPI‘s in the organisation
High effectiveness by creating processes and structures conform with strategyHigh efficiency due to synchronous optimisation of organisation and ITHigh implementation focus by integration of the BSC in the management systemHigh acceptance by change management as a lever for effecting changeTotal solution competence – everything from one source all over the worldEmpowerment of the customer‘s organisation and know-how Transfer
Integrated end-to-end methodology and tool supportMethods and toolsfor success measurement and analysisSustainable results due to success measurement
BSCol IDS Scheer> Best know-how worldwide in the > Best know-how worldwide in the
field of strategy implementation field of business process management
Your result is our success!
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Overview of a Common Approach of BSCol and IDS Scheer
5. Strategy Implementation
3. Process Mapping and Alignment
4. InitiativePrioritization
Operationalcontrol loop
2. Strategy Mapping
6. Strategy ReviewStrategic
learning loop
0. Executive Mobilization for the SFO Implementation
1. Strategy Shared Visioning
> Balanced Scorecard Collaborative, Central & Eastern Europe GmbH
© 2005 Balanced Scorecard Collaborative
Government References of IDS Scheer
> Czech Republic:• Ministry of Environment - Mapping and analysing processes and data flows for integrated register• Ministry of Internal Affairs - Process mapping and analysis prior to SAP implementation in area of HR• Ministry of Local Development - Design of new processes after CR accession to EU• Ministry of Defence - Process mapping and design (with "Restructuring of the Czech Army“)• Ministry of Finance - Subcontractor to D&T in the process audit (ongoing project in 2005)
> Slovak Republic:• UpSS (Office for Civil Service) - Process oriented redesign of „ Select of state officers“• Datacentrum - IT Support of state organization: Analyze of processes• Municipality of Kosice - Analysis and design of a new Organization Structure• State driven companies: ŽSR, ZSSK, ZS cargo • Selling of licenses: Ministry of Finance, Ministry of Transport, Tax Directory, Ministry of Building
> Poland:• Agencja Restrukturyzacji i Modernizacji Rolnictwa (Agriculture Agency)• Ministerstwo Gospodarki i Polityki Społecznej (Economy and Social Policy Ministry)• Centralny Instytut Ochrony Pracy (Institute of Labor Insurance)• Zakład Ubezpeiczeń Społecznych (State Insurance)• Several projects in hospitals and Municipalities