凯捷—平衡计分卡—WestpacBSC_DiscussionPaper_Sanitised.ppt

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1、 Managing Performance With The Balanced ScorecardDiscussion Paper11 April 20021 Performance Management_Discussion Paper.pptConfidential-Do Not Distribute 05/04/02Draft Discussion PaperContentsBackground and IntroductionThe Balanced Scorecard ConceptBenefits of the Balanced ScorecardProposed Approach

2、 to Balanced Scorecard Design&ImplementationIndicative Project TimingOur CredentialsAppendix 2 Performance Management_Discussion Paper.pptConfidential-Do Not Distribute 05/04/02Draft Discussion PaperBusiness ObjectivesThe Executive General Manager Of Has Commissioned The Construction Of A Blueprint

3、To Transform Adapt to market conditions fasterRecognise new connected business environmentSegment capabilities true flexibility and two-way scalabilityUtilise technology to optimally fit and lead the businessReduce fixed cost baseWhy Performance Management?The Blueprint will maximise the potential v

4、alue of the new Team and provide a framework for infrastructure that supports our Business Objectives understands that a critical factor to a successful transformation will be the development of a rigorous performance management systemThe Blueprint for Transformation will identify opportunities to a

5、ddress the following needs:A consistent approach to performance management is critical to the success of the Blueprint for transformationA Balanced Scorecard approach to performance management will ensure:Performance measures can be used to drive behavioural change throughout the organisationWill li

6、nk performance throughout the business and directly align to corporate strategyAchieving commonality of performance measures across the organisation will help to meet the needs outlined in the BlueprintWill ensure that initiatives are identified and properly tracked3 Performance Management_Discussio

7、n Paper.pptConfidential-Do Not Distribute 05/04/02Draft Discussion PaperToday,There Are A Number Of Different Methods In Which Performance Is Measured Across Group ExecutiveManager&Senior ManagerAppointedOfficerBU1BU2BU3BU4ExecutiveGeneral/Chief ManagerGeneral ManagersPerformance System:Value Manage

8、mentPerformance Measures:Shareholder;Customer;Employee;CommunityProject Management GroupPerformance System:Performance,Planning&ReviewPerformance Measures:Project Delivery;Relationships;Leadership;Staff Development;Best PracticeTotal Headcount9999999 HC999 HC999 HC*999 HC9999999999999999999999999999

9、99Specialist99999999999Other9999Performance System:Performance,Planning&ReviewPerformance Measures:Vary according to roleOperationsPerformance System:Performance PaysPerformance Measures:Shareholder;Customer;Employee;CommunityCurrent performance measurements systems are ad hoc and inconsistentPerfor

10、mance Measures are not closely aligned to the organisational strategy4 Performance Management_Discussion Paper.pptConfidential-Do Not Distribute 05/04/02Draft Discussion PaperThe Current Suite Of Performance Measurement Systems Within Make It Difficult To Manage The BusinessPerformance Measurement i

11、s not aligned to organisational strategyLack of key performance indicators and few customer focused measures within business processesThere is a mismatch between people and process measurementThe measurement and management of performance is not consistent throughout the organisationPerformance measu

12、rement systems dont allow for effective communication across the organisationA consolidation of existing performance measurement systems through the implementation of an organisation wide performance management system is essentialUncertainty as to whether we are measuring the right thingsNo balanced

13、 approach to performance measurement.What customers value is not defined within measurement systemsUncertainty as to whether we are measuring the right thingsInconsistent approach to performance measurement.Difficult to get consolidated view of performance.Difficult to communicate performance.Withou

14、t effective communication may be a lack of unified vision and buy-in to performance targets*To be validated early on in this projectPossible Effect*Problem5 Performance Management_Discussion Paper.pptConfidential-Do Not Distribute 05/04/02Draft Discussion PaperA Scorecard Is Required To Provide With

15、 A Measurement System To Track The Reorientation Of The BusinessPerformance Measures that are linked to Executive strategyTransparent and consistent performance objectivesA set of measures that can be clearly communicated to all employees of the businessA set of measures that will provide complete u

16、nderstanding of what each employee does and how it drives business performanceA measurement system that can be extended to all areas of the businessA performance system that can drive the behavioural change required to achieve a customer driven strategyThe reorientation focuses on delivery of value

17、to customers and alignment of resources to execute customer driven strategy.The successful implementation of the blueprint will require a balanced scorecard which provides:6 Performance Management_Discussion Paper.pptConfidential-Do Not Distribute 05/04/02Draft Discussion PaperContentsBackground and

18、 IntroductionThe Balanced Scorecard ConceptBenefits of the Balanced ScorecardProposed Approach to Balanced Scorecard Design&ImplementationIndicative Project TimingOur CredentialsAppendix 7 Performance Management_Discussion Paper.pptConfidential-Do Not Distribute 05/04/02Draft Discussion PaperFeedbac

19、k system used to test the hypotheses on which strategy is basedStrategy development is a continuous processStretch targets are agreedInvestments are determined by the strategyAnnual budgets are linked to long-range plansGoal alignment exists from top to bottomOpen communication of strategy is basis

20、for employee empowermentClarifying and Translating the Vision and StrategyStrategic Feedback and LearningPlanning and Target SettingCommunication and LinkingBalancedScorecardA Balanced Scoreboard Creates A Strategic Framework For ActionThe strategy is the reference point for the entire management pr

21、ocessThe shared vision is the foundation for strategic learning8 Performance Management_Discussion Paper.pptConfidential-Do Not Distribute 05/04/02Draft Discussion PaperA Balanced Scorecard Is Not Just A Set Of Measures,Rather A Performance Management System That Drives ValueLearning/Organisationaln

22、People policynAlliance managementnCustomer focusnManagement span of controlnNumber of“learning”partnerships”n%mgmt time interfacing with cust.nTreble in three yearsn10 in five yearsn20%in two yearsOwner/AccountabilitynFinance DirectornCEOnBusiness Development ManagerTargetsnTop 10%of FTSE companies

23、each yearnRPI+X%annuallyn25%in three yearsMeasurementsnEVAnOperating MarginnRevenue from new servicesBusinessObjectivesnShareholder valuenProfitnNew revenuePerspectiveShareholderRequirements(Financial)nMarketing DirectornBusiness Development ManagernMarketing DirectornNumber one customer ratingn$Xm

24、in five yearsn#1 customer ratingnValue for moneynProfits from alliancesnCustomer satisfact.nDifferentiationnStrategic alliancesnCustomer serviceIndustry/CustomerPositioningnChief Operating OfficernR&D ManagernMarketing DirectornBest-in-class within five yearsnReduced by 50%in two yearsn60%within one

25、 yearnRevenue/work hournProduct development cycle timenNumber of initiatives targeted at profitable segmentsnProductivitynNew product developmentnSegmentationnHuman Resources DirectornBusiness Develop.ManagernCEOInternalCapabilitiesInitiativesnImplement EVAnCreate customer segmentation modelnRedefin

26、e channel strategynReengineer New Product Development processnDevelop new HR strategynImplement performance based compensation programIllustrativeThe Balanced Scorecard creates value by providing a consistent,disciplined approach to link strategy to day-to-day operationsTheBalancedScorecardhas fourp

27、erspectivesThe Balanced Scorecard links Business Objectives and Strategy to Initiatives9 Performance Management_Discussion Paper.pptConfidential-Do Not Distribute 05/04/02Draft Discussion PaperPartialRevenueStrategyShareholdernEVAnRevenue mixnRevenue growthCustomernCustomer satisfied surveynCustomer

28、 retentionnDepth of relationInternalnShare of segmentnProduct development cyclenRevenue from new productsnHours with customersnCross-sell rationLearningnEmployee satisfactionnRevenue per employeenStrategic info availabilitynStrategic job coveragenPersonal goals alignmentIncrease Customer Confidence

29、in Our Financial AdviceBroaden Revenue Mix Improve EconomicReturnsUnderstand Customer SegmentsCross-Sell the Product LineDevelopthe OfferingAchieveEmployee SatisfactionImprove Customer InformationBroaden Skills(Financial Planner)AlignReward SystemEVA is based on concepts from Stern Stewart Measures

30、Need To Be Interlinked By Cause And Effect Relationships That Ultimately Drive To Financial IndicatorsA correctly balanced scorecard will link performance through the business to directly align to corporate strategy10 Performance Management_Discussion Paper.pptConfidential-Do Not Distribute 05/04/02

31、Draft Discussion PaperThe Case For Financial Measures Has Long Been Taken For Granted Whereas Non-Financial Measures Are Often Overlooked1.Strategy Execution2.Management Credibility3.Quality of Strategy4.Innovativeness5.Ability to Attract Talented People6.Market Share7.Management Experience8.Quality

32、 of Executive Compensation9.Quality of Major Processes10.Research Leadership40%of portfolio decisions are attributable to non-financial measuresThe more non-financial information analysts use,the more accurate their forecastsNon-financial information is widely utilised as a leading indicator for fut

33、ure financial performanceSource:Cap Gemini Ernst&Young Study,The Measures That Matter.Understanding&managing non-financial information is a key component of any strategy for long term value creationIn a recent study,Cap Gemini Ernst&Young asked U.S.investors which non-financial measures they value m

34、ost?11 Performance Management_Discussion Paper.pptConfidential-Do Not Distribute 05/04/02Draft Discussion PaperExecutiveGeneral/Chief ManagersOperationsSenior Managers Strategic ObjectivesBusiness ObjectivesFunctional ObjectivesMeasuresMeasuresMeasuresTargetsTargetsTargetsMajor InitiativesInitiative

35、sActivitiesDrill Down/CascadingPerformance Measurement RoadmapLevel D,E etc.(Total Headcout 6036)1To Ensure Alignment,A Top-Level Scorecard Needs To Be Cascaded Down And Across The Business And Its Operations1.Note:1)Headcount sourced from P&P Cube,Jan 022)Shared Services includes PMG;BSG;P&P3)Ops H

36、C does not include WIB NZ4)Includes IT Specialists12 Performance Management_Discussion Paper.pptConfidential-Do Not Distribute 05/04/02Draft Discussion PaperContentsBackground and IntroductionThe Balanced Scorecard ConceptBenefits of the Balanced ScorecardProposed Approach to Balanced Scorecard Desi

37、gn&ImplementationIndicative Project TimingOur CredentialsAppendix 13 Performance Management_Discussion Paper.pptConfidential-Do Not Distribute 05/04/02Draft Discussion PaperA Balanced Scorecard Drives Organisational Value.BenefitsFeatureIncreased PerformanceIncreased performance by using the correct

38、 measures which are well understood,well aligned with strategies,and focus on the right activities and behavioursImproved performance by having a consistent view(mind map)of the value drivers of the business;being able to measure the drivers and ensuring that accountabilities for drivers and measure

39、s are clear and reinforcedCommunicationCommunicates the business objective and strategy internally-Provides strategic focus-Reveals inconsistencies and gaps within the strategy-Links measures to strategic objectivesImproves ability to communicate with external stakeholders,investors and analystsEffi

40、ciencyIncreased confidence that resource deployment and organisational effort via current initiatives is focused directly on supporting the strategy and creating enterprise valueEnhanced responsiveness through ensuring a greater number of lead measuresPromotes alignment up and down the organisationA

41、ssurance that measures have been independently selected from an external standpoint of consistency,accuracy,clarity of definition,and against leading practiceIndicates where to focus initiativesIs a management tool for decision-makingImproves compensation/reward systems 14 Performance Management_Dis

42、cussion Paper.pptConfidential-Do Not Distribute 05/04/02Draft Discussion Paper.And Provides Different Types Of ValueFOR ALMOST EVERYBODYIN MANY CASESFOR SOMERigorous Measurement System:“Interprets our strategy into a set of measures to track performance.”Aligned Management:“Aligning executives behin

43、d decisions needed to hit goals.”“We had ideas in a shoe box;BSC organized them in a nice structured closet.”Communicated to Organization:“Communicated our strategy better than anything else I have seen.”Focused on Key Areas:“Consensus to organize behind the key initiatives that drive value.”“Can ta

44、ke business out of a reactionary mode into a proactive mode.”Clarified Linkages:“Highlights cause-and-effect relationships between objectives;highlights linkages across organizations.”“Highlighted that no function can operate individually.”Helped Refine Strategy:“Linkage map sessions helped us refin

45、e one persons ideas on vision into a common strategy for the business.”“Made us re-think our supply chain strategy from state-of-the-art to customer-friendly.”“Comparing functional strategies with inside/outside aspirations helped refine our strategy;tracking market data will drive better strategy f

46、ormulation.”“Becoming the framework to discuss strategy;replacing Long Range Plan.”Types of Value15 Performance Management_Discussion Paper.pptConfidential-Do Not Distribute 05/04/02Draft Discussion PaperContentsBackground and IntroductionThe Balanced Scorecard ConceptBenefits of the Balanced Scorec

47、ardProposed Approach to Balanced Scorecard Design&ImplementationIndicative Project TimingOur CredentialsAppendix 16 Performance Management_Discussion Paper.pptConfidential-Do Not Distribute 05/04/02Draft Discussion PaperTo ensure strategy alignment,the Balanced Scorecard is cascaded down the busines

48、s over 3 yearsDesignImplementDesignImplementDesignImplementSep 02Sep 03Sep 04Group ExecutiveManager&Senior Manager*AppointedOfficerGeneral/Chief ManagerSpecialistOtherAll Staff123*45678+Level17 Performance Management_Discussion Paper.pptConfidential-Do Not Distribute 05/04/02Draft Discussion PaperOu

49、r Proposed Approach for Year 1 Can Be Split Into Three Distinct Phases:Design,Implementation And RefinementScorecard Design Phase(6-8 Weeks)Scorecard Implementation Phase(10-12 Weeks)Transition StreamScorecard Refinement Phase(Ongoing)1 SeptCommunications planChange Agent NetworkTrainingTechnology S

50、tream*BSC PortalDesignAnalysis of Current StateFuture State DesignLook&FeelFunctionalityProgrammingBSC PortalImplementationTech rolloutTrainingProject Management StreamBudget&Resource Mgt&ReportingSchedule MgtResource MgtManagementStreamImprovement/Review/RefinementDay-to-day management of BSCTraini