Transcript of Balanced Scorecards, Competencies and Compensation November 3, 2011.
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- Balanced Scorecards, Competencies and Compensation November 3,
2011
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- Financial Measures What are they? Problems with them? Knowledge
workers
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- Strategy CEO failures due to. PPoor strategy? PPoor
execution/implementation of strategy? So, which one is it?
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- Balanced Scorecard Overcomes Limitations of financial measures
Need to account for knowledge workers Critical need to execute
strategy
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- Balanced Scorecard Overcomes Limitations of financial measures
Need to account for knowledge workers Critical need to execute
strategy
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- Balanced Scorecard Starting point Organizations strategy
Translate into objectives and measures
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- Balanced Scorecard 4 perspectives Financial Customer Internal
business process Learning and growth
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- Balanced Scorecard 4 perspectives Financial Traditional
component Measures Revenue growth Cost reduction Productivity
improvement Asset utilization
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- Balanced Scorecard 4 perspectives Customer How do they see you?
What do they want from us? Measures Market share Customer
acquisition Customer retention Customer satisfaction Customer
profitability
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- Balanced Scorecard 4 perspectives Internal business processes
Core processes those that directly impact how we meet customer
demands Netflix??? Measures Depends on what customers demand Low
price? Variety?
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- Balanced Scorecard 4 perspectives Learning and growth Types of
capital Human capital Information capital Organizational capital
Measures Employee satisfaction Employee retention Employee
productivity Competencies to deliver required results
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- Balanced Scorecard and Compensation Points to consider Purpose
Overall purpose Specific behaviours (un)desired Impact on culture?
Measures Are data available? Are the data accurate? How many?
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- Balanced Scorecard and Compensation Points to consider
Perspectives (related to measures) All? Equally weighted? Leading
or lagging? TEXT: hours spent with customers by salespeople
Long/short-term performance?
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- Example
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- Balanced Scorecard Pros Organizational alignment through shared
vision Short-term and long-term balance Focuses the
organization
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- Balanced Scorecard Cons Complex!!! Communication is a must
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- Balanced scorecard Chapters 4, 5, 6, 7, and 8
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- Scorecards and Dashboards Basic dashboard Electronic
dashboard
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- KSA Job Requirements A B C D E
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- Competencies Fit
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- New Day for KSA Knowledge practical or theoretical
understanding of a subject described in terms of mastery levels
Skills Learned capacity Ability Natural capacity
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- Competency Combo of K S A that can be observed, measured,
evaluated Is a key factor in successful job performance Focus is
behavior Competency
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- KSA Observable behavior Job performance Competency
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- Competency Models/Frameworks Definition More occupation than
job Management, technical, knowledge Vary by job type Professional
positions Clerical/administrative positions Managerial
positions
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- Competency Models/Frameworks Behaviors Customer Focus
Builds/maintains customer satisfaction with products and services
Focuses on the customer's business results, rather than own Seeks
customer feedback and ensures needs have been fully met Delivers
products and services when and where the customer needs them
Explores options when unable to deliver a requested product or
service, and pursues solutions until the customer is satisfied
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- Competency Models/Frameworks Behaviors Business Alignment
aligns the direction, products, services and performance of a
business line with the rest of the organization Integrates
executive direction into every decision and consultation Seeks to
understand other programs in the department, including their
services, deliverables, and measures Advocates for and positively
represents other programs and services when working with customers
and stakeholders
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- Competency Models/Frameworks Behaviors Teamwork Anticipating
potential conflicts and addressing them directly and effectively
Treating others with courtesy, tact and respect Working effectively
with others, regardless of organizational level, background,
gender, race or ethnicity Working to resolve disagreements,
attempting to persuade others and reach agreements Biding by and
supporting group decisions Facilitating team interaction and
maintaining focus on group goals
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- Competency Models/Frameworks Compensation Matrix Combo of your
level of competencies and position in pay range level of
competencies Basket approach level just one of many factors
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- Business Strategy Competency Framework Business Results
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- Professional Associations
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- Risk and Insurance Management Society
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- Government
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- Education
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- Whats missing?
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- Private Sector
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- Competency Modeling http://www-
05.ibm.com/employment/hu/ibmhu/c areer.html http://www-
05.ibm.com/employment/hu/ibmhu/c areer.html
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- But which competencies? Review strategy Identify competencies
Competency Model/frame work Review strategy
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- How to identify competencies? Think in terms of areas of
knowledge and abilities Analyze job Watch stars perform What areas
of knowledge do you see the employees using? What abilities are
required? Interview stars superior performance is the norm!!!!
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- Now and later use http://www.job-interview-
site.com/examples-competency-based- interview-questions-list-of-
competencies-skills.html http://www.job-interview-
site.com/examples-competency-based- interview-questions-list-of-
competencies-skills.html