Leadership Perspectives

Balanced Score Card

Balanced Score Card

The first stage in business transformation is to build an architecture for the change program, complete with objectives, measures and a management process including executive accountabilities for the various initiatives launched.

The Balanced Scorecard is the conceptual structure Leadership Perspectives uses to build this architecture for change.

The Balanced Scorecard Drives Rapid Strategy Implementation

Executive Team Alignment Strategy Map Balanced Scorecards

Translate the Strategy Into Operational

Terms

Governance Process Strategic Management Analytics & Information

Systems

Make Strategy a Continual Process

Corporate Role Business Unit Synergies Support Unit Synergies

Align theOrganization to the

Strategy

Strategic initiatives are clearly identified

Investments are rationalized by the strategy

Link Budgets and Strategy

Prioritize initiativesand

Align Resources

Strategic Awareness Personal Scorecard Balanced Paychecks /

Link to Compensation

Make StrategyEveryone’s Job

1

2

3

5

4STRATEGY

The Balanced Scorecard Provides a Framework to Translate the Vision and Strategy Into Operational Terms

Financial Perspective"If we succeed, how will we look to our shareholders?”

Profit-ability

The Vision

Growth

Share-holderValue

Customer Perspective"To achieve my vision, how must we look to my customers?”

CycleTime

Quality

Service

Price/Cost

Internal Perspective"To satisfy my customers, what business processes must we excel at?”

CycleTime

Quality

Productivity

Organization Learning" To achieve our vision, how must our organization learn and improve?”

Market Innovation

ContinuousLearning

IntellectualAssets

Measurement is the language that gives clarity to vague concepts.

Measurement is used to communicate, not to control.

Building the scorecard develops consensus and teamwork throughout the organization.

Internal Process Perspective

We Use the Balanced Scorecard to Clarify Strategy and Translate it into Focused, Actionable Objectives

The Balanced Scorecard Is Based on an

Understanding of the Cause and Effect

Relationships on Which the Strategy Is Based

Financial Perspective

Learning & Growth Perspective

Customer Perspective

Return on InvestmentReturn on Investment

PricePrice QualityQuality TimeTime FunctionFunction ImageImage RelationRelation

Value Proposition

Sources of Growth Sources of Productivity

Staff Competencies

Technology Infrastructure

Goal Alignment ++

“Build the Brand”

“Build the Brand”

“Make the Sale”

“Make the Sale”

“Deliver the Product”

“Deliver the Product”

“Service Exceptionally”

“Service Exceptionally”

Pathways to Performance

Revenue StrategyRevenue Strategy

Productivity Strategy

Productivity Strategy

Staff Awareness +

Metro Bank VisionMetro Bank Vision

“To be the best broad-based financial institution, a leader in our chosen markets”

The Revenue Growth Strategy

“Improve stability by broadening the sources of revenue from current customers”

The Productivity Strategy

“Improve operating efficiency by shifting customers to more cost-effective channels of distribution”

Improve Returns

Improve Operating Efficiency

Broaden Revenue

Mix

Increase Customer

Confidence in Our Financial

Advice

IncreaseCustomer

Satisfaction Through Superior

Execution

IncreaseEmployee

Productivity

Access to Strategic

Information

Develop Strategic

Skills

Align Personal

Goals

FinancialPerspective

CustomerPerspective

InternalPerspective

Learning Perspective

Cross-Sell the Product

Line

Shift to Appropriate

Channel

Provide Rapid

Response

Develop New

Products

Minimize Problems

Understand Customer Segments

The Balanced Scorecard Is Used to Tell the Story of Your Strategy

Example

4. Solution Delivery

1. Leverage Resources

2. Service Excellence

3. Sales Excellence

5. Redesigning Our Customers’ Business

This Begins With Developing the Key Strategic Themes or Pathways – These Form the Strategy Stairway

Case Example: Odessa Computers Long-Term Strategic

Near-Term Tactical

Pathways

For Each Pathway, We Develop a Cause and Effect Model Across the Four Perspectives of the Balanced Scorecard

1. Financial

2. Customer

3. Internal

4. Learning/Growth

4. Solution Delivery

1. Leverage Resources

2. Service Excellence

3. Sales Excellence

5. Customer Partnering

Case Example: Odessa Computers

Build a Cause and Effect Model for Each Pathway: An Example

Increase Consultative Selling Skills

Shift Revenue Mix to Higher Margin

Products/Services to Improve Margins

Odessa ComputersPathway 3: Sales Excellence

Learning /Growth

Process

Customer

Financial

Deploy Business Unit Offerings

Put Right Sales Team Together

Qualify Opportunities

Solve High Value Business Problems

Discover & Analyze

Customer Needs

A Strategy Map of Odessa Computers: The Sum of the Pathways

Financial

Provide World-Class Ongoing

Support

Customer

Internal

Learning & Innovation

Easy to Do Business With

Solve High Value Business Problems

New Product Development/Service

Opportunities

Share Best Practices

Increase Leadership Skills

Foster Sales/Marketing Alignment

New Product Development Insights/

Raw Creativity

Perform Effective Delivery and Installation

Increase Consultative Selling Skills

Improve Customer Awareness

PROFITABLE GROWTH

Sales Excellence

Manage Inventory and Receivable

Effectively

Leverage Resources

Supply Knowledge Infrastructure (System

and Tools)

Create Success-Oriented Culture

Capture Product/Customer/Industry Knowledge

Create Customer Driven

Marketing Insights

Shift Resources to High Potential Revenue

Generating Roles

Deploy Services Resources to Improve

Productivity

Put Right Sales Team Together

Dynamic Deployment of

Cross- Functional Resources

Just-in-Time Resource

DeploymentManage

Resources

Build Skills

Attract, Retain, and Motivate Associates

Clarify and Communicate Roles & Responsibilities

Leverage People and Financial Assets to Achieve Organizational

Productivity

Shift Revenue Mix to Higher Margin

Products/Services to Improve Margins

Grow Revenue Through Customer

Extension/Expansion

Redefine Customers Businesses

Grow Revenue Through Customer Retention

Service ExcellenceCustomer PartneringSolution Delivery

Simplify Processes and

Enhance Systems

Effective Project Management

Deploy Business Unit Offerings

Localize Business Unit Offerings

Qualify Opportunities

Create Centers of Solution Expertise

Create Customer Competitive Advantage

My Partner for Creating High Value

Solutions

Discover & Analyze

Customer Needs Partners/ Alliances

F

C

I

L&G

Manage Resources

Improve Customer

Awareness]

From Strategy Map to Implementation: Targets and the Business Case Measures

Put Right Sales Team Together

Shift Revenue Mix to Higher Margin

Products/Services

Deploy Business Unit Offerings

Discover and Analyze

Customer Needs

Solve High Value Business Problems

IncreaseConsultative Selling Skills

ACCELERATE PROFITABLE GROWTH

Attract, Retain, and Motivate Outstanding Associates

Qualify Opportunities

Build/EnhanceSet of Skills/

Competencies

• Gross Margin %• Gross Margin %

• CSM Relationship Survey - Overall Solutions Provided to you by Odessa

• CSM Relationship Survey - Overall Solutions Provided to you by Odessa

• % Opportunities Through Bid Review Where PS Risk Assessment Performed

• % Opportunities Through Bid Review Where PS Risk Assessment Performed

• Total HV offering $ in the Funnel (Next 12 Months)

• Total HV offering $ in the Funnel (Next 12 Months)

• Opportunities by Key Marketing Programs - $/#

• Opportunities by Key Marketing Programs - $/#

• % Associates in Customer-Facing HV Positions

• % Associates in Customer-Facing HV Positions

• Number of Associates with Objectives on File

• Number of Associates with Objectives on File • Sales and Pre-Sales

Open Position Days• Associate Turnover

• Associate Satisfaction Survey - overall question

• Sales and Pre-Sales Open Position Days

• Associate Turnover

• Associate Satisfaction Survey - overall question

• Associates Certified within Key Job Families

• Leadership Index

• Associates Certified within Key Job Families

• Leadership Index

Clear Roles & Accountabilities

• 1995 impact of $XX

• 1996 impact of $XX

• 1997 impact of $XX

• 1998 impact of $XX

• 1995 impact of $XX

• 1996 impact of $XX

• 1997 impact of $XX

• 1998 impact of $XX

• We will contribute X% increase in GM – and $XXX in bottom line growth by 1998

• We will contribute X% increase in GM – and $XXX in bottom line growth by 1998

Paper supplies Integration

Price Realization-II

Lead with Service Bundles

High Availability Transaction Processing

Global Realization Process (GRP)

Sustain/Execute The Sales Process(TSP)

Financial

Customer

Internal

Learning

Shift Revenue Mix to Higher Margin Products/Services

to Improve Margins

Deploy Business Unit

Offerings

Discover and Analyze

Customer Needs

Solve High Value Business Problems

Strategic Pathway

Clarify and Communicate Roles & Responsibilities

Attract, Retain, and Motivate Associates

Qualify Opportunities

Existing Initiatives

Certification Program

Consultative Selling

Integrate media products into our computer and self-service offerings

(Outside Study): Localize Americas programs on a regional basis (e.g., The Sales Process, Marketing Programs for Canada, Latin America and US Area).

Increasing PS and CS service content and enable all 550 salespeople to sell services.

Developing horizontal offerings across industries.

Define and deploy the GRP in the Americas Region

Expand to Professional Services and other sales industries.

Building consultative selling skills within our sales and services organizations.

Manufacturing -Jim S.

Corporate Marketing - Alice L.

Global Sales - Connie C.

Corporate Marketing - Bruce G.

Distribution - Eric S.

Lg Bus. Sales - Barbara R.

HR - Allen V.

Training - Bryan D.

Initiatives Description Sponsor

Put Right Sales Team Together

Increase Consultative

Selling Skills

From Strategy Map to Implementation: The Alignment of Initiatives and Resources

StrategicPathways

Targets and Measures

Supporting Initiatives and

Implementation Plan

Financial

Provide World-Class Ongoing

Support

Customer

Internal

Learning &Innovation

Easy to DoBusiness With

Solve High ValueBusiness Problems

New ProductDevelopment/Service

Opportunities

Share BestPractices

IncreaseLeadership Skills

Foster Sales/Marketing Alignment

New Product Development Insights/

Raw Creativity

PerformEffective Deliveryand Installation

Increase ConsultativeSelling Skills

Improve Customer Awareness

PROFITABLE GROWTH

Sales Excellence

Manage Inventoryand Receivables

Effectively

LeverageResources

Supply KnowledgeInfrastructure

(System and Tools)

Create Success-Oriented Culture

Capture Product/Customer/Industry Knowledge

CreateCustomer Driven

Marketing Insights

Shift Resources to High Potential Revenue

Generating Roles

Deploy Services Resources to Improve

Productivity

Put Right Sales Team Together

DynamicDeployment of

Cross- FunctionalResources

Just-in-TimeResource

DeploymentManage

Resources

BuildSkills

Attract, Retain, and Motivate Associates

Clarify and Communicate Roles & Responsibilities

Leverage Peopleand Financial Assets toAchieve Organizational

Productivity

Shift Revenue Mix toHigher Margin

Products/Services toImprove Margins

Grow Revenue ThroughCustomer

Extension/Expansion

Redefine CustomersBusinesses

Grow Revenue ThroughCustomer Retention

Service Excellence Our VisionSolution Selling

SimplifyProcesses and

Enhance Systems

Effective ProjectManagement

Deploy BusinessUnit Offerings

Localize BusinessUnit Offerings

Discover andAnalyze Customer

Needs

QualifyOpportunities

Create Centersof Expertise

Create CustomerCompetitive Advantage

Differentiate OdessaFrom Competition

Context For

• Clear roles and responsibilities in managing initiatives

• Executive Meetings

• Balanced Scorecard provides a key communication tool to the entire organization

Aligning the Managing Process and Balanced Scorecard Architecture

Balanced Scorecard Architecture

Managing Process