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Transcript of © Michael Selby, 2010, , 415.446.5531 The Company-Wide Balanced ScoreCard Demo Navigation features...
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
The Company-Wide Balanced ScoreCard
DemoNavigation features work only in Slide Show (full screen) mode. If you are in Normal View, go to View, Slide Show
(In Office 2007, click Slide Show, From Beginning). Then click the Menu Button.
Note: To escape Slide Show, hit the Escape Key
Menu
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
ScoreCard Demo Menu:
1. What is a Balanced ScoreCard?
2. ScoreCard Demo
3. How to Choose the Right Metrics:A. Strategy MappingB. Achilles Heel AnalysisC. Strategic Employee Analysis
4. ScoreCard Development Roadmap
5. “The Plumbing”: Technical Issues
6. Contact Us
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
A Balanced ScoreCard is both a Tool and a Process:
The Tool: Your ScoreCard reports all key drivers of your strategic success. It lets you know if performance in each critical area is at the level you expect, and shows you trends for each major business driver.
The Process: For the Exec Team, the ScoreCard is the centerpiece of your month-end review process. It is also used with your extended management team, employees, and Board to educate them on key performance issues.
Menu
What is a Balanced ScoreCard?
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
FinancialFinancial Market/CustomersMarket/Customers
Operational ExcellenceOperational Excellence
BayMed Balanced BayMed Balanced ScoreCardScoreCard
People & CulturePeople & Culture
112 112
# 112.2# 112.1# 112
Gross Margin
YTD In $M
Tgt.>
Act.
### 4864
# 5,000# 4,864# ###
FreeCash FlowYTD in $K
Tgt.>
Act.
27 27
# 27.0# 27.4# 27
EBITDA
YTD In $M
Tgt.>
Act.
138 138
# 137.3# 137.5# 138
Overall Revenue YTD In $M
Tgt.>
Act.
25 25
# 24.1# 25.5# 25
Standard vs. Actual Costs
In $M
Tgt.<
Act.
34 34
# 33.0# 34.0# 34
Inventory On Hand
In $M
Tgt.<
Act.
0 0
0 10.0%0 11.0%0 0
Repeat Bsns: Rev. Growth
YOY In %
Tgt.>
Act.
15
15
# 12# 15# 15
New Business Partnerships
# Viable (Grn & Yel)
Tgt.
Act
0 0
0 10.0%0 10.4%0 0
Rev. Growth New Customers
In %
Tgt.>
Act.
31 31
# 27.10# 30.74# 31
New Product Rev. Growth
In $M
Tgt.>
Act.
32 32
# 20# 32# 32
Customer Complaints
In #'s
Tgt.<
Act.
4 4
4 4.004 3.944 4
Customer Satisfaction5 Point Scale
Tgt.>
Act.
53 53
# 60.0# 53.3# 53
Marketing Lead Value/Cost
Ratio
Tgt.>
Act.
42 42
# 41.5# 42.4# 42
Sales Quota Performance
QTD In $M
Tgt.>
Act.
130 130
# 22# 130# 130
R&D Days SlippageIn # Days
Tgt.<
Act.
1 1
1 85%1 89.4%1 1
Call Cntr Issues
Resolvd 1st CallIn %
Tgt.>
Act.
1 1
1 90.0%1 88.1%1 1
On-Time Shipments
In %
Tgt.>
Act.
4 4
4 4.54 3.84 4
Raw Materials and OEM
Inventory Turns
Tgt.>
Act.
0 0
0 10%0 10.4%0 0
Cost of Quality
As % of COGS
Tgt.<
Act.
774 774
# 769# 774# 774
Headcount Snapshot
# @ Month End
Tgt.<
Act.
1 1
1 90%1 74%1 1
Incentive Pay Strategic EE's 30% Over Base
Tgt.>
Act.
7 7
7 07 57 7
Product Dvpt Team InitiativeAvg. Days Late
Tgt.<
Act.
0 0
0 25.0%0 18.6%0 0
Internal Mobility
In %
Tgt.>
Act.
4.02
4
4 4.004 4.024 4
New Hire Survey
5 Point Scale
Tgt.
Act
4 4
4 3.774 3.674 4
Pulse Survey Last 4 Surveys
5 Pt. Scale
Tgt.>
Act.
Menu
This is the ScoreCard Dashboard of our hypothetical BayMed Products company. Each of the Red/Yellow/Green Icons describes some measure of performance. Click on an Icon to take you to its corresponding Drill Down Slide. Once there, click on “Dashboard” to return. Go ahead, try clicking the green “Overall Revenue” Icon in the upper left of the screen. Then click “Dashboard” to return.
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531 Dashboard
Products Svcs/OEM
YOY $M 9.3 4.5
Plan 25.3 26.3 27.5 28.5 29.7 30.7 31.8 32.8 33.9 34.9 36.0 37.0 YOY % 11.3% 10.8%
Revenue YTD, through May, 2010
Overall Revenue by Month
16.915.6
19.417.7
21.5
8.38.9
9.010.1
10.025.324.5
28.4 27.9
31.5
0
5
10
15
20
25
30
35
40
Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10
Re
ve
nu
e in
$M
Products Services/OEM Total Plan
Revenue Mix, YTD
91.2 92.081.9
46.3 45.3
41.8
137.5 137.3
123.7
0
20
40
60
80
100
120
140
160
YTD '10 YTD Plan YTD '09
Re
ve
nu
e $
M
Products Svcs/OEM
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
FinancialFinancial Market/CustomersMarket/Customers
Operational ExcellenceOperational Excellence
BayMed Balanced BayMed Balanced ScoreCardScoreCard
People & CulturePeople & Culture
112 112
# 112.2# 112.1# 112
Gross Margin
YTD In $M
Tgt.>
Act.
### 4864
# 5,000# 4,864# ###
FreeCash FlowYTD in $K
Tgt.>
Act.
27 27
# 27.0# 27.4# 27
EBITDA
YTD In $M
Tgt.>
Act.
138 138
# 137.3# 137.5# 138
Overall Revenue YTD In $M
Tgt.>
Act.
25 25
# 24.1# 25.5# 25
Standard vs. Actual Costs
In $M
Tgt.<
Act.
34 34
# 33.0# 34.0# 34
Inventory On Hand
In $M
Tgt.<
Act.
Menu
The Dashboard divides into 4 quadrants, or “perspectives”. The Financial perspective reports Revenues, Gross Margins, EBITDA, Operating Expense, Net Operating Income, Free Cash Flow, and any other Financial Data you choose. (hit spacebar)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
FinancialFinancial Market/CustomersMarket/Customers
Operational ExcellenceOperational Excellence
BayMed Balanced BayMed Balanced ScoreCardScoreCard
People & CulturePeople & Culture
0 0
0 10.0%0 11.0%0 0
Repeat Bsns: Rev. Growth
YOY In %
Tgt.>
Act.
15
15
# 12# 15# 15
New Business Partnerships
# Viable (Grn & Yel)
Tgt.
Act
0 0
0 10.0%0 10.4%0 0
Rev. Growth New Customers
In %
Tgt.>
Act.
31 31
# 27.10# 30.74# 31
New Product Rev. Growth
In $M
Tgt.>
Act.
32 32
# 20# 32# 32
Customer Complaints
In #'s
Tgt.<
Act.
4 4
4 4.004 3.944 4
Customer Satisfaction5 Point Scale
Tgt.>
Act.
Menu
The “Market/Customers” perspective reports repeat business with existing customers, new customers, new business partners, how recent releases are performing, customer complaints and customer satisfaction. (hit spacebar)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
FinancialFinancial Market/CustomersMarket/Customers
Operational ExcellenceOperational Excellence
BayMed Balanced BayMed Balanced ScoreCardScoreCard
People & CulturePeople & Culture
53 53
# 60.0# 53.3# 53
Marketing Lead Value/Cost
Ratio
Tgt.>
Act.
42 42
# 41.5# 42.4# 42
Sales Quota Performance
QTD In $M
Tgt.>
Act.
130 130
# 22# 130# 130
R&D Days SlippageIn # Days
Tgt.<
Act.
1 1
1 85%1 89.4%1 1
Call Cntr Issues
Resolvd 1st CallIn %
Tgt.>
Act.
1 1
1 90.0%1 88.1%1 1
On-Time Shipments
In %
Tgt.>
Act.
4 4
4 4.54 3.84 4
Raw Materials and OEM
Inventory Turns
Tgt.>
Act.
0 0
0 10%0 10.4%0 0
Cost of Quality
As % of COGS
Tgt.<
Act.
Menu
“Operational Excellence” reports the core competencies which you have to execute well to win customer loyalty. Core Competencies vary by company and industry. “BayMed” tracks sales execution, marketing effectiveness, product development speed, manufacturing and customer support excellence. (hit spacebar)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
FinancialFinancial Market/CustomersMarket/Customers
Operational ExcellenceOperational Excellence
BayMed Balanced BayMed Balanced ScoreCardScoreCard
People & CulturePeople & Culture
774 774
# 769# 774# 774
Headcount Snapshot
# @ Month End
Tgt.<
Act.
1 1
1 90%1 74%1 1
Incentive Pay Strategic EE's 30% Over Base
Tgt.>
Act.
7 7
7 07 57 7
Product Dvpt Team InitiativeAvg. Days Late
Tgt.<
Act.
0 0
0 25.0%0 18.6%0 0
Internal Mobility
In %
Tgt.>
Act.
4.02
4
4 4.004 4.024 4
New Hire Survey
5 Point Scale
Tgt.
Act
4 4
4 3.774 3.674 4
Pulse Survey Last 4 Surveys
5 Pt. Scale
Tgt.>
Act.
Menu
“People & Culture” looks at the workforce, reporting workforce growth, internal mobility and competency development, strategically vital employees, hiring quality, and employee engagement. (Hit spacebar)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
FinancialFinancial Market/CustomersMarket/Customers
Operational ExcellenceOperational Excellence
BayMed Balanced BayMed Balanced ScoreCardScoreCard
People & CulturePeople & Culture
112 112
# 112.2# 112.1# 112
Gross Margin
YTD In $M
Tgt.>
Act.
### 4864
# 5,000# 4,864# ###
FreeCash FlowYTD in $K
Tgt.>
Act.
27 27
# 27.0# 27.4# 27
EBITDA
YTD In $M
Tgt.>
Act.
138 138
# 137.3# 137.5# 138
Overall Revenue YTD In $M
Tgt.>
Act.
25 25
# 24.1# 25.5# 25
Standard vs. Actual Costs
In $M
Tgt.<
Act.
34 34
# 33.0# 34.0# 34
Inventory On Hand
In $M
Tgt.<
Act.
0 0
0 10.0%0 11.0%0 0
Repeat Bsns: Rev. Growth
YOY In %
Tgt.>
Act.
15
15
# 12# 15# 15
New Business Partnerships
# Viable (Grn & Yel)
Tgt.
Act
0 0
0 10.0%0 10.4%0 0
Rev. Growth New Customers
In %
Tgt.>
Act.
31 31
# 27.10# 30.74# 31
New Product Rev. Growth
In $M
Tgt.>
Act.
32 32
# 20# 32# 32
Customer Complaints
In #'s
Tgt.<
Act.
4 4
4 4.004 3.944 4
Customer Satisfaction5 Point Scale
Tgt.>
Act.
53 53
# 60.0# 53.3# 53
Marketing Lead Value/Cost
Ratio
Tgt.>
Act.
42 42
# 41.5# 42.4# 42
Sales Quota Performance
QTD In $M
Tgt.>
Act.
130 130
# 22# 130# 130
R&D Days SlippageIn # Days
Tgt.<
Act.
1 1
1 85%1 89.4%1 1
Call Cntr Issues
Resolvd 1st CallIn %
Tgt.>
Act.
1 1
1 90.0%1 88.1%1 1
On-Time Shipments
In %
Tgt.>
Act.
4 4
4 4.54 3.84 4
Raw Materials and OEM
Inventory Turns
Tgt.>
Act.
0 0
0 10%0 10.4%0 0
Cost of Quality
As % of COGS
Tgt.<
Act.
774 774
# 769# 774# 774
Headcount Snapshot
# @ Month End
Tgt.<
Act.
1 1
1 90%1 74%1 1
Incentive Pay Strategic EE's 30% Over Base
Tgt.>
Act.
7 7
7 07 57 7
Product Dvpt Team InitiativeAvg. Days Late
Tgt.<
Act.
0 0
0 25.0%0 18.6%0 0
Internal Mobility
In %
Tgt.>
Act.
4.02
4
4 4.004 4.024 4
New Hire Survey
5 Point Scale
Tgt.
Act
4 4
4 3.774 3.674 4
Pulse Survey Last 4 Surveys
5 Pt. Scale
Tgt.>
Act.
Menu
Now you get to have some fun. Navigate your own way through the ScoreCard by clicking on any Dashboard Icon that interests you. When you are complete, click “Menu” for other options.
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
FinancialFinancial Market/CustomersMarket/Customers
Operational ExcellenceOperational Excellence
BayMed Balanced BayMed Balanced ScoreCardScoreCard
People & CulturePeople & Culture
112 112
# 112.2# 112.1# 112
Gross Margin
YTD In $M
Tgt.>
Act.
### 4864
# 5,000# 4,864# ###
FreeCash FlowYTD in $K
Tgt.>
Act.
27 27
# 27.0# 27.4# 27
EBITDA
YTD In $M
Tgt.>
Act.
138 138
# 137.3# 137.5# 138
Overall Revenue YTD In $M
Tgt.>
Act.
25 25
# 24.1# 25.5# 25
Standard vs. Actual Costs
In $M
Tgt.<
Act.
34 34
# 33.0# 34.0# 34
Inventory On Hand
In $M
Tgt.<
Act.
0 0
0 10.0%0 11.0%0 0
Repeat Bsns: Rev. Growth
YOY In %
Tgt.>
Act.
15
15
# 12# 15# 15
New Business Partnerships
# Viable (Grn & Yel)
Tgt.
Act
0 0
0 10.0%0 10.4%0 0
Rev. Growth New Customers
In %
Tgt.>
Act.
31 31
# 27.10# 30.74# 31
New Product Rev. Growth
In $M
Tgt.>
Act.
32 32
# 20# 32# 32
Customer Complaints
In #'s
Tgt.<
Act.
4 4
4 4.004 3.944 4
Customer Satisfaction5 Point Scale
Tgt.>
Act.
53 53
# 60.0# 53.3# 53
Marketing Lead Value/Cost
Ratio
Tgt.>
Act.
42 42
# 41.5# 42.4# 42
Sales Quota Performance
QTD In $M
Tgt.>
Act.
130 130
# 22# 130# 130
R&D Days SlippageIn # Days
Tgt.<
Act.
1 1
1 85%1 89.4%1 1
Call Cntr Issues
Resolvd 1st CallIn %
Tgt.>
Act.
1 1
1 90.0%1 88.1%1 1
On-Time Shipments
In %
Tgt.>
Act.
4 4
4 4.54 3.84 4
Raw Materials and OEM
Inventory Turns
Tgt.>
Act.
0 0
0 10%0 10.4%0 0
Cost of Quality
As % of COGS
Tgt.<
Act.
774 774
# 769# 774# 774
Headcount Snapshot
# @ Month End
Tgt.<
Act.
1 1
1 90%1 74%1 1
Incentive Pay Strategic EE's 30% Over Base
Tgt.>
Act.
7 7
7 07 57 7
Product Dvpt Team InitiativeAvg. Days Late
Tgt.<
Act.
0 0
0 25.0%0 18.6%0 0
Internal Mobility
In %
Tgt.>
Act.
4.02
4
4 4.004 4.024 4
New Hire Survey
5 Point Scale
Tgt.
Act
4 4
4 3.774 3.674 4
Pulse Survey Last 4 Surveys
5 Pt. Scale
Tgt.>
Act.
Menu
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
Financial Financial MetricsMetrics
DashboardMenu
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531 Dashboardx Bsns Unitx Region
Products Svcs/OEM
YOY $M 9.3 4.5
Plan 25.3 26.3 27.5 28.5 29.7 30.7 31.8 32.8 33.9 34.9 36.0 37.0 YOY % 11.3% 10.8%
Revenue YTD, through May, 2010
Overall Revenue by Month
16.915.6
19.417.7
21.5
8.38.9
9.010.1
10.025.324.5
28.4 27.9
31.5
0
5
10
15
20
25
30
35
40
Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10
Re
ve
nu
e in
$M
Products Services/OEM Total Plan
Revenue Mix, YTD
91.2 92.081.9
46.3 45.3
41.8
137.5 137.3
123.7
0
20
40
60
80
100
120
140
160
YTD '10 YTD Plan YTD '09
Re
ve
nu
e $
M
Products Svcs/OEM
Overall Revenues are broken into Products and Services/OEM. Total Revenues appear above the stacked bars. In the chart on the right, we compare YTD Revenues This Year vs. Last and vs. Plan. You can see Revenues by Business Unit or Region by clicking the buttons at the bottom. (click this box to make it disappear)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531 DashboardOverallx Region
Revenue by Business Unit, through May, 2010
YTD Actual 55.02 YTD Plan 54.83 Annual Plan 149.59 YTD Actual 33.65 YTD Plan 36.20 Annual Plan 98.77
YTD Actual 30.36 YTD Plan 27.77 Annual Plan 75.76 YTD Actual 50.6018.51 YTD Plan 18.54 Annual Plan
Multi-Plex
10.28.6
12.110.3
13.8
0
2
4
6
8
10
12
14
16
J F M A M J J A S O N D
Rev
enu
e in
$M
Actual Plan
BayMed Products
6.3 6.5 6.8 6.9 7.2
0
2
4
6
8
10
12
J F M A M J J A S O N D
Rev
enu
e in
$M
Actual Plan
BayMed Services
5.5 5.46.1 6.4
6.9
0
1
2
3
4
5
6
7
8
J F M A M J J A S O N D
Rev
enu
e in
$M
Actual Plan
OEM Business
3.34.0
3.44.2
3.6
0
1
2
3
4
5
6
J F M A M J J A S O N D
Rev
enu
e in
$M
Actual PlanBayMed is structured into 4 Business Units: 2 major product groups, a Consulting Services group, and an OEM business. Here you see Revenues from each unit, vs. each Business Unit’s Plan. (click this box to make it disappear)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531 Dashboardx Bsns UnitOverall
30.5811.00 YTD Plan 11.24 Annual Plan
40.95 Annual Plan 111.82
YTD Actual 26.41 YTD Plan 30.22 Annual Plan 82.44 YTD Actual
Revenue by Region, through May, 2010
YTD Actual 58.87 YTD Plan 54.94 Annual Plan 149.89 YTD Actual 41.26 YTD Plan
North America
10.8 10.512.2 11.9
13.5
0
2
4
6
8
10
12
14
16
J F M A M J J A S O N D
Rev
enu
e in
$M
Actual Plan
Europe
7.6 7.48.5 8.4
9.4
0
2
4
6
8
10
12
J F M A M J J A S O N D
Rev
enu
e in
$M
Actual Plan
Asia Pacific
4.9 4.75.5 5.3
6.0
0
1
2
3
4
5
6
7
8
9
J F M A M J J A S O N D
Rev
enu
e in
$M
Actual Plan
Rest of World
2.0 2.02.3 2.2
2.5
0
1
1
2
2
3
3
4
J F M A M J J A S O N D
Rev
enu
e in
$M
Actual Plan
By region, we can see that our North American and European business is ahead of Plan, and that Asia Pacific and Rest of World are behind Plan. (click this box to make it disappear)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531 Dashboard
Rev $M 70.6 76.7 78.6 79.7 78.2 59.3 Actual $M 43.0 47.1 48.6 49.6 48.4 36.3COS $M 13.5 15.3 16.3 17.2 15.0 10.4 Plan $M 42.8 46.3 47.8 48.9 48.3 36.2
Gross Margin and Operating Expense, through May, 2010
Gross Margin
57.061.4 62.2 62.5 63.2
48.9
80.8%80.0%
79.2%78.4%
80.8%
82.4%
0
10
20
30
40
50
60
70
Q1,'09 Q2,'09 Q3,'09 Q4,'09 Q1,'10 Q2,'10 Q3,'10 Q4,'10
Gro
ss
Ma
rgin
in $
M
60%
65%
70%
75%
80%
85%
Gro
ss
Ma
rgin
%
GM $M GM % GM % Plan
Operating Expense
100.5%
101.6% 101.6%101.4%
100.2%100.3%
96%
98%
100%
102%
104%
Q1,'09 Q2,'09 Q3,'09 Q4,'09 Q1,'10 Q2,'10 Q3,'10 Q4,'10
Op
Ex
as
% o
f P
lan
OpEx as % of Plan Plan = 100%
S er vices
0
1
1
Q1 ,'1 0
#R E F ! #R E F !
OE M
0
1
1
Q1 ,'1 0
#R E F ! #R E F !
Menu
We now begin looking at the drivers of profitability, beginning with Gross Margins (in $M and in %) and OpEx. The ScoreCard reveals that OpEx has been consistently over Plan, but has recently improved. (click to disappear)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
R&D MftgSales/Mktg
Cust.Sppt.
G&A R&D MftgSales/Mktg
Cust.Sppt.
G&A
Var $K (327) 813 (277) (219) 124 (348) 971 (281) (224) 93
QTD YTD
Op Ex by Department and EBITDA, through May, 2010
EBITDA
14.0 14.313.7
12.9
14.8
12.6
19.9%
18.6%
17.4%
16.1%
18.9%
21.2%
0
2
4
6
8
10
12
14
16
Q1,'09 Q2,'09 Q3,'09 Q4,'09 Q1,'10 Q2,'10 Q3,'10 Q4,'10
EB
ITD
A in
$M
0%
5%
10%
15%
20%
25%
EB
ITD
A %
Actual EBITDA % Plan %
OpEx by Department
-6.4%
3.9%
-6.8%
-8.5%
3.7%
-2.9%
2.0%
-3.0%
-3.8%
1.2%
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
Op
Ex
as %
of
Pla
n
Variance %
S er vices
0
1
1
Q1 ,'1 0
#R E F ! #R E F !
OE M
0
1
1
Q1 ,'1 0
#R E F ! #R E F !
DashboardMenu
Here we break out OpEx by Department, and also show EBITDA. We can see that the problems with OpEx come from Mftg and G&A, and that nevertheless EBITDA is above Plan. (click to disappear)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
Q1'09 Q2'09 Q3'09 Q4'09 Q1,'10 Q2,'10 Q3,'10 Q4,'10 Q1'09 Q2'09 Q3'09 Q4'09 Q1,'10 Q2,'10 Q3,'10 Q4,'10 Q1'09 Q2'09 Q3'09 Q4'09 Q1,'10 Q2,'10 Q3,'10 Q4,'10
YTD Actual $M 4.12 4.86 YTD Actual $M 3.01 3.57 YTD Actual $M 9.14 16.03YTD Δ vs. Plan 37% -3% YTD Δ vs. Plan 43% 2% YTD Δ vs. Plan 2% 7%
Free Cash Flow, through May, 2010Free Cash Flow
2.31
1.38
2.54
1.51
4.12
0.75
2.00
3.00 3.00 3.00 3.00
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
Fre
e C
ash
Flo
w $
M
Actual $M QTD Plan Q Plan $
Change in Working Capital
1.68
0.99
1.85
1.09
3.01
0.56
1.40
2.10 2.10 2.10 2.10
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Ch
ang
e in
Wo
rkin
g C
apit
al $
M
Actual $M QTD Plan Q Plan $
Capital Expenditure
2.39 2.51 2.63 2.76
9.14
6.88
6.00
9.00 9.00 9.00 9.00
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
Cap
ital
Exp
end
itu
re $
M
Actual $M QTD Plan Q Plan $
Inventory
1.88 1.86 1.84 1.82 1.77 1.73
1.80 1.79 1.80 1.79
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
Inve
nto
ry $
M
Actual $M Plan
Accounts Receivable
0.66 0.67 0.68 0.68 0.70 0.72
0.70 0.70 0.70 0.70
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
Acc
ou
nts
Rec
eiva
ble
$M
Actual $M Plan
Accounts Payable
0.38 0.37 0.37 0.36 0.35 0.35
0.35 0.35 0.35 0.35
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
Acc
ou
nts
Pay
able
$M
Actual $M Plan
DashboardMenu
Cash Flow is critical to any business. Tracking it’s key drivers helps ensure it’s control. (click to disappear)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
Model Cost Actual Cost Gain(Loss) Model Cost Actual Cost Gain(Loss) Model Cost Actual Cost Gain(Loss) Model Cost Actual Cost Gain(Loss)
Overhead 1,135,033 1,248,536 -113,503 713,730 785,103 -71,373 288,859 317,745 -28,886 271,746 298,921 -27,175
Indirect Labor 2,837,582 2,837,582 0 1,855,699 1,784,326 71,373 808,805 722,147 86,658 625,017 625,017 0Material 5,107,647 6,015,674 -908,026 3,425,906 3,425,906 0 1,494,605 1,440,256 54,349Direct Labor 2,270,066 2,270,066 0 1,141,969 1,570,207 -428,238 1,790,925 1,790,925 0 326,096 326,096 0COGS T'tl 11,350,328 12,371,857 -1,021,529 7,137,304 7,565,542 -428,238 2,888,589 2,830,817 57,772 2,717,464 2,690,289 27,175
Standard Vs. Actual Costs by Business Unit, YTD through May, 2010
Multiplexes BayMed Products BayMed Services OEM
S er vices
0
1
1
Q1 ,'1 0
#R E F ! #R E F !
OE M
0
1
1
Q1 ,'1 0
#R E F ! #R E F !
20% 20.0%16%
22.0%
62% 62.0%
12% 12%
45%53.0%
48%
48.0%
55% 53%
25%
25.0%
26%
25.0%
28% 25.0%23%
23%
10%
11.0%
10%
11.0%
10%11.0%
10% 11%
0%
20%
40%
60%
80%
100%
Model Actual Model Actual Model Actual Model Actual
% o
f C
OG
S
Direct Labor Material Indirect Labor Overhead 100% Line
DashboardMenu
For each of our Business Units, we have a cost model, which, if met, helps ensure profitability. This chart helps us understand the key drivers of Cost of Sales. (click to disappear)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
18.12 17.50 10.42 10.00 5.49 5.50Current Value $M Plan Value $M
$ Value of Inventory through May, 2010
Current Value $M Plan Value $M Current Value $M Plan Value $M
BayMed Products BU
5.6 5.8 6.0 6.2 6.0
2.62.7
2.8 2.8 2.8
1.51.5
1.6 1.6 1.6
0
2
4
6
8
10
12
14
16
18
20
J F M A M J J A S O N D
Val
ue
in $
M
MultiPlex BU
11.211.712.111.911.8
3.73.9
4.14.0 4.0
2.3
2.4
2.52.4 2.4
0
2
4
6
8
10
12
14
16
18
20
J F M A M J J A S O N D
Val
ue
in $
M
OEM BU
1.6 1.7 1.7 1.6 1.7
1.0 1.1 1.1 1.1 1.1
2.72.9 2.8 2.7 2.7
0
2
4
6
8
10
12
14
16
18
20
J F M A M J J A S O N DV
alu
e in
$M
Finished Goods Work In Process Raw Materials 2009
DashboardMenu
This final slide in our Finance quadrant helps us understand how well we are controlling inventory costs. While our OEM inventory levels are at Plan, we are over our cost targets in both the MultiPlex and Products BU’s. (click to disappear)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
Customer/ Customer/ Market Market MetricsMetrics
DashboardMenu
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
$K
Hosp Corp Amer
Tenet Health Corp
Cath Health
Init.
Sutter Health
Methodist
Hosp
Cath HC
West
Univ HC Svcs
Kindrd HC
Comm Hth
Systms
Saint Brnbs
HC
Sentara Life-Point
Select Medical
Advnts Health
Kaiser Perm
Sanfrd Health
Kettrng HC Net
YTD '09 1,779 1,816 1,623 1,421 1,466 1,900 1,329 851 1,170 1,225 1,036 845 821 884 665 443 40% Change 3.3% -3.2% 6.9% 12.2% 4.5% -19.8% 3.3% 53.7% 8.3% -4.4% 4.5% 17.7% 3.3% -9.9% 8.3% 22.9% 4.5%
$K
Hosp Corp Amer
Tenet Health Corp
Cath Health
Init.
Sutter Health
Kaiser Perm
Cath HC
West
Univ HC Svcs
Sentara Life-Point
Methodist
Hosp
Colin Med
Criti-kon
Datex Ohmed
Med-tronic
Siemns Med.
YTD '09 8,037 4,048 4,929 4,465 4,143 4,018 4,804 3,762 3,576 2,257 2,760 2,500 2,320 1,500 840% Change 3.7% 63.1% 21.7% 12.0% -4.4% -17.0% 35.6% 21.0% 1.3% 13.9% 20.7% 1.5% -5.3% 11.1% 20.8%
YTD Repeat Business YOY, through May, 2010
BayMed Products
1,837 1,757 1,734 1,595 1,532 1,525 1,373 1,307 1,267 1,171 1,083 995 848 797 720 545 4490
500
1,000
1,500
2,000
YT
D R
even
ue
in $
KYTD May, '10 YTD May, '09
8,3376,603 6,001
5,0023,962 3,334
6,5134,554 3,621
2,571 3,332 2,537 2,197 1,666 1,0150
2,000
4,000
6,000
8,000
10,000
YT
D R
even
ue
in $
K
Multi-Plex OEMBayMed Services
DashboardMenu
Key to revenue growth is repeat business with existing customers. Here we track Year Over Year sales to our top customers in each of our 4 Business Units. (click to disappear)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
Customer
Colin Med
Bair-Hugger
Bovie DetectoSiemns
Med.Respir-onics
DragerTutt-
nauerZoll
MedicalSkytron
P. Bennett
Mos Tenure 17 13 10 7 17 13 10 10 17 13 101H vs 2H 36.5% -2.6% -50.4% 35.8% 5.1% -44.1% -4.1% 45.6% -26.2% -3.5% 45.6% 0.0% 0.0% 0.0% 0.0% 0.0%
Customer
Zeiss Medical
NellcorMar-
quetteSteris Penlon Phillips Pedigo Maquet Abaxis AFGA Almana
APC Cardio
BioMed Systems
Mos Tenure 17 13 10 7 13 10 7 17 13 10 17 131H vs 2H 5.1% -3.0% 54.8% -32.7% 11.2% -5.3% 56.4% 0.0% -33.7% 55.0% -1.6% 0.0% 58.9% 14.9% -40.6% 0.0%
Major New Business Revenues, through May, 2010(for Customers 6-18 Months Tenure; 1st Half vs. Last Half of Tenure)
MultiPlex OEMBioMed Services
BayMed Products
143
108
87
55
118
95
72 67
94
7356
195
106
43
74
124
5369
98
69 7181
0
50
100
150
200
250
Rev
enu
e in
$K
1st half 2nd half
35
496
320
134
354
242
160 144
298
217
121
229
157
36
481 495
90
394
229250
95
461
213193
263
93
0
100
200
300
400
500
600
Rev
enu
e in
$K
DashboardMenu
Also key to growth is our ability to attract, and then grow, business with new customers. Here we look at our largest new customers (6-18 months old), comparing revenues from the first half of their tenure to the last half. Hopefully, it’s growing! (click to disappear)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
Impact 2010Partner/Product Name
OwnerType of Oppy
Plan 2010 $K
Forecast 2010 $K
Oppy >2010 $K
Status
Colin Med OEM Ptnr 2,147 2,147 >$10,000 y
MPX-017 y
Critikon Joint Vntur 1,500 1,500 7,500 y
Research Agreement y
Datex Ohmed Acquire 40 1,160 >$10,000 g
RC-7000 g
Med-tronic Joint Vntur 900 900 3,500 g
Immuno-B4 g
Siemns Med. OEM Ptnr 500 500 >$10,000 y
Dialysis MiniLab y
Respironics IP Purchase 750 750 >$20,000 y
RC-7000 y
Valley Lab IP Purchase 200 200 >$5,000 y
MPX-023 y
Welch Allyn Joint Vntur 700 1,000 >$15,000 y
P2 y
Zoll Medical OEM Ptnr 4,300 4,300 >$15,000 y
Immuno-B4 y
Zeiss Medical Acquire >$10,000 r
Dialysis MiniLab r
Penlon Medical Joint Vntur >$10,000 y
MPX-032 y
Ritter-Midmark OEM Ptnr >$10,000 r
Immuno-B4 r
HP IP Purchase >$5,000 y
RC-7000 y
Nellcor Acquire >$20,000 g
Agreement g
Marquette Joint Vntur >$10,000 g
Multiple projects g
Baxter OEM Ptnr >$10,000 g
MPX-047 g
Berchtold Acquire >$30,000 g
Multiple projects g
Passed Ops committee. Update timelines in proposal and proceed through supply chain
Bill J
New Business Partnership Opportunities, through May, '10
Waiting for feedback on our proposal - once it is in, move to contract on basis of current draftSent draft with sections marked that need to be changed. Chasing feedback
Awaiting feedback on contract (delay because Corp Legal concerned)
Comments
Alison P
Bill J
Aaron P
Update proposal and identify the best people at Siemens to present it to
Prepare proposal for order and present once data from initial QA are available (July)Meet with new person at Valley
Meet with Kyle at Welcy Allyn to get clarity of situation and near term demand.Start pushing for new order in July to have in place for seamless transition into Sept
Send multiple proposals and follow up
Stay close for expected end of qualification end of May
Close contract by mid June
Discussion on hold until MSA is signed (expected by end of June at the very latest)Follow up on term sheet sent end of April and on status of QA results in June
On hold - follow up with R-M now that Immunox system was published to still be in R-M pipelineFollow up on opportunity and press release
Opportunity Defined (RFP)
Proposal Delivered
Workplan/ Term Sheet Agreed On
Draft Agreement
Sent
Contract Signed
Aaron P
Bill J
Close contract by mid June
Brian S
Alison P
Alison P
Aaron P
Aaron P
Bill J
Future Impact
Alison P
Brian S
Brian S
Bill J
Alison P
3 Mos Ago Current Month
DashboardMenu
Key to BayMed’s success are Business Partnerships – in product development, in shared IP, as OEM partners, and as possible acquisitions. Here we track progress, beginning with defining the opportunity, and ending with a signed contract. (click to disappear)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
Revenue from Targeted New Products, through May, 2010
MPX-017
1.741.81
1.921.972.06
0.0
0.5
1.0
1.5
2.0
2.5
J F M A M J J A S O N D
Rev
enu
e in
$M
Actual $M Target $M
RC-7000
0.780.810.860.880.92
0
0
0
1
1
1
1
1
2
2
J F M A M J J A S O N D
Rev
enu
e in
$M
Dialysis MiniLab
1.121.17
1.241.271.33
0
0
0
1
1
1
1
1
2
J F M A M J J A S O N D
Rev
enu
e in
$M
Immuno-B4
0.770.81
0.85 0.870.92
0.0
0.2
0.4
0.6
0.8
1.0
1.2
J F M A M J J A S O N D
Rev
enu
e in
$M
Boxter A5
0.810.84
0.890.920.96
0.0
0.2
0.4
0.6
0.8
1.0
1.2
J F M A M J J A S O N D
Rev
enu
e in
$M
Silvon 2
0.410.42
0.450.460.48
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
J F M A M J J A S O N D
Rev
enu
e in
$M
DashboardMenu
Every product development company has revenue hopes for it’s new releases. Do these releases grow according to plan? This chart tells us how realistic our revenue assumptions were. (click to disappear)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
Shpmnt Accuracy 6 Mos
2 Mos
Shpmnt Timing 6 Mos
2 Mos
Eqpt Perfrmance 6 Mos
2 Mos
Documentation 6 Mos
2 Mos
Pricing 6 Mos
2 Mos
Sales Honesty 6 Mos
2 Mos
Cust. Service 6 Mos
2 Mos
Tech Support 6 Mos
2 Mos
32 0 0 0 0 0 0 0
Customer Complaints, Through May, 2010
Overall, by Month
18
20
18
20
32
0
5
10
15
20
25
30
35
J F M A M J J A S O N D
# o
f C
om
pla
ints
Total Target < 20
By Category
6%
8%
2%
0%
11%
12%
13%
12%
23%
27%
9%
12%
34%
27%
2%
4%
0% 10% 20% 30% 40%
Category as % of Total
DashboardMenu
Of course, BayMed tries to keep major customer complaints to a minimum. Here we see not only the raw numbers, but complaints by type, and whether each type is getting worse or better. (click to disappear)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
Order Accuracy
Order Speed Arrival Condition
Ease of SetUp
Clear Documntat'n
Call Center Access
Issue Resolved
Customer Courtesy
Overall Functioning
Overall Experience
Order Accuracy
Order Speed Arrival Condition
Installation Speed
Clear Documntat'n
Call Center Access
Issue Resolved
Installer Courtesy
Overall Functioning
Overall Experience
Customer Satisfaction Ratings Through May., '10
Registration Card Surveys
Overall Rating: 3.94 # Responses Last 3 Months: 54
New Installations
Overall Rating: 3.75 # Responses Last 3 Months: 14
0 0.2 0.4 0.6 0.8 1 1.2
C al l V ol umes
0
1
1
2
0 0.2 0.4 0.6 0.8 1 1.2
3.95
4.02
3.70
3.90
4.24
4.20
3.95
4.30
3.17
3.30
3.95
4.02
3.70
3.90
4.24
4.20
3.95
3.17
3.30
4.30
3.0
3.5
4.0
4.5
5.0
Previous 3 Months Most Recent 3 Month Target: 4.00
3 .0
3 .5
4 .0
4 .5
5 .0
3.75
3.82
3.52
3.71
4.03
3.99
3.75
4.09
3.01
3.14
3.75
3.82
3.52
3.71
4.03
3.99
3.75
3.01
3.14
4.09
3.0
3.5
4.0
4.5
5.0
3 .0
3 .5
4 .0
4 .5
5 .0
DashboardMenu
BayMed tracks customer satisfaction in two ways: (1) When customers return registration cards for new products they have purchased, and (2) When our installation engineers install major new equipment. We compare the most recent 3 months to the previous 3 to see if we’re improving. (click to disappear)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
Operational Operational Excellence Excellence
MetricsMetrics
DashboardMenu
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
NoAm-East
NoAm-Cntrl
NoAm-West
Latin Amer.
EUR-West
EUR-East
East Asia ROW Model
NoAm-East
NoAm-Cntrl
NoAm-West
Latin Amer.
EUR-West
EUR-East
East Asia ROW
NoAm-East
NoAm-Cntrl
NoAm-West
Latin Amer.
EUR-West
EUR-East
East Asia ROW
Total $M 163 155 185 86 178 105 195 90 T'tl $M 28.3 23.9 25.2 13.2 18.1 7.7 21.5 7.4
NoAm-East
NoAm-Cntrl
NoAm-West
Latin Amer.
EUR-West
EUR-East
East Asia ROW Model
NoAm-East
NoAm-Cntrl
NoAm-West
Latin Amer.
EUR-West
EUR-East
East Asia ROW
112% 109% 104% 107% 94% 85% 95% 88%
28.8%
CTW Resellers
Sond Inc
Radive GmbH
3,728,876
3,442,039
3,155,202
2,868,366
22.0%
17.0%
Sales Effectiveness, through May, 2010
% QTD Target
Resellers
Name YTD Revenue
% House Leads Closed
TriStar 6,310,405
Xilent GmbH
5,449,895
2,294,693
1,434,183
Appenware
Cypron Design
Inets Corp
28.0%
20.0%
18.0%
27.0%
24.0%
Gesundbnd GmbH 2,390,387 Curacen 2,027,770 Kaiser Perm 1,390,0363,028,121ChinLauTop Deals Pending
Catholic HC West 2,789,372 2,249,382 TulagenMethodist HC 2,549,039
HelioArcSW Ministries AtlantaCare
1,249,0311,187,0782,187,429
Brazilen LTDPramed
1,789,0211,548,688
Pipeline (Sales Activity)
23.6 21.0 24.911.8 17.0 7.9 18.4 6.6
15.0 12.3 12.9
6.612.3
4.812.0
5.5
12.6 11.714.7
6.810.6
6.6
13.8
4.9
28.423.1
29.5
16.7
27.2
16.4
38.0
13.7
83.486.7
102.8
44.4
110.5
69.6
112.7
59.6
0
50
100
150
200
In $
M
Closed-6 Mo. Written Quote Sales AnalysisQualified Leads Raw Leads
Conversion Rates (Sales Efficiency)
52% 53% 52% 49% 51% 45% 40% 45% 42%
82% 85% 83% 80% 81%72%
66%73% 68%
62% 60% 58%56% 57%
50%45%
51%47%
27% 32% 31%29% 30%
27%24%
27%25%
Co
nv
ers
ion
%
Written Quote Sales AnalysisQualified Leads Raw Leads
Pipeline Value (Sales Effectiveness)
7.9 6.4 6.33.3
5.51.9
5.42.3
5.75.0 5.8
2.8
3.4
1.8
4.6
1.4
7.6
5.86.5
3.9
4.4
2.0
6.4
1.8
7.1
6.76.6
3.1
4.7
2.0
5.1
1.9
28
25
29
14
20
9
22
8
0
5
10
15
20
25
30
In $
M
Written Quote Sales Analysis Qualified LeadsRaw Leads Target
Quota Performance
8.377.27 8.23
3.995.08
2.12 1.82
5.55
7.476.64
7.89
3.74
5.40
2.49
5.81
2.08
11.8010.49
12.46
5.90
8.52
3.93
9.18
3.28
0
2
4
6
8
10
12
14
In $
M
QTD Actual QTD Tgt Q-End Target
Revenue by Source
10% 12% 14% 14% 17% 17% 18% 18% 18%
20% 19% 18% 17% 14% 12% 10% 8% 7%
20% 25%33% 40% 47% 53% 58% 65% 69%
50% 44%35% 29% 22% 17% 14% 9% 6%
Co
nve
rsio
n %
SelfGen-New SelfGen-Rpt House-New House-Rpt
DashboardMenu
The top 3 charts track (a) the raw $ value of business in the pipeline, (b) the probability of closing that business based on previous conversion rates, and (c) the resulting “real” pipeline value (a x b). Below, we see quota performance, as well as other key sales data. (click to disappear)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
Salivan2
MPX-017
Nov-08 Dec-08
Direct Mail
Replies
Trade Pubs
Replies
Trade Shows
Blast Email
Replies
Web-Direct
Replies
Google AdWord Replies
Direct Mail
Replies
Trade Pubs
Replies
Trade Shows
Blast Email
Replies
0.5 8.4
Prospecting
(Phone)
Referrals from
Partners
Prospecting
(Phone)
Referrals from
Partners
Web-Direct
Replies
Google AdWord Replies
Value $M (# Qual Leads x
Valu/Lead)
Enviro-Lab
RC-7000
Dialysis Minilab
1.8 1.1 2.9 4.04.4 3.8
Silvon 3.5
Product Name
BoxterA3
24 Hr.Tri-Bon
TRS-3010
AsthmaPak
Jul-08 Sep-08
Immuno-B4
Boxter A5
May-09 Jul-09 Aug-09
Marketing Effectiveness, through May, 2010
Sep-08 Nov-08 Feb-09 Apr-09Launch May-08
Lead Generation, Last 3 Mos.
195
69 27123
83 33 56 89
487
248
122
875
321
88155
318
22
55
19
68
22
33
53
44
0
200
400
600
800
1,000
# L
ead
s
0
10
20
30
40
50
60
70
80
Val
ue/
Qu
al.
Lea
d $
K
# Qualified Leads # Raw Leads Pot. Value/Qual. Lead
Lead Value/Cost Ratio, Last 3 Mos.
.4 1.2 .8 .8 .2 1.1 .9 .4
22.4
55.2
18.7
68.3
21.5
33.1
52.5
44.459
44
23
81
111
30
56
103
0
10
20
30
40
50
60
70
80
Co
st &
Val
u/Q
ual
ifie
d L
ead
$K
0
20
40
60
80
100
120
Rat
io V
alu
e/C
ost
Cost/Qual. Lead Pot. Valu/Qual. Lead
Ratio Actual Ratio Target
Cost Efficiency of Last 12 Product Launches
12.3
8.7
4.5
15.6
13.2
18.7
7.4
5.2
15.3
19.0
7.8
11.3
4.9
2.6 0.9 2.33.4
5.6
2.7 1.4 2.4 2.1 1.73.4
2.53.3
5.0
6.7
3.83.3
2.8
3.8
6.3
9.1
4.5
3.3
0
2
4
6
8
10
12
14
16
18
20
Mk
tg S
pe
nd
vs
. R
ev
en
ue
$
M
0
1
2
3
4
5
6
7
8
9
10
Ra
tio
Re
ve
nu
e /
Mk
tg
Sp
en
d
1st 9 Mo. Rev. $M Mkt. Launch Spend Ratio
DashboardMenu
In Marketing, we are interested in # of qualified leads by source, and the ratio between value of each lead and it’s cost. At bottom is a chart showing our most recent 12 product launches, and the ratio between 1st 9 mo. Revenue vs. Marketing launch expense. (click to disappear)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531 Dashboard
Boxter A7 Orig Launch Current Launch
Feasibility Report
Complete
Phase 2 Approval
Fully Functional Prototype
Regulatory Submissions
Complete
Technical Report
Complete
Phase 3 Approval
Initial Run Passes QA
Test
Transfer Lots Made/Tested
9/15/10 9/15/10
Date Completed 11/1/09 12/15/09 2/15/10 2/28/10 3/31/10 4/15/10 6/30/10 7/31/10
1 Mo. Ago 1 1 1 1 1 1 0 0Now 1 1 1 1 1 1 0 0
Days Late 0 15 14 0 0 0 1000 1000
RC 8000 Orig Launch Current Launch
Feasibility Report
Complete
Phase 2 Approval
Fully Functional Prototype
Regulatory Submissions
Complete
Technical Report
Complete
Phase 3 Approval
Initial Run Passes QA
Test
Transfer Lots Made/Tested
11/30/10 12/31/10
Date Completed 11/15/09 12/31/09 3/15/10 4/30/10 5/31/10 5/31/10 8/31/10 10/31/10
1 Mo. Ago 1 1 1 1 0 0 0 0Now 1 1 1 1 1 1 0 0
Days Late 0 0 59 61 46 31 31 31
TRS 3020 Orig Launch Current Launch
Technical Report
Complete
Phase 3 Approval
Initial Run Passes QA
Test
Transfer Lots Made/Tested
Design Validt'n Rpt Complete
Phase 4 Approval
Market Pre-Launch
Complete
Device Mstr Record
Complete8/15/10 11/1/10
Date Completed 9/16/09 10/3/09 11/30/09 1/15/10 3/1/10 4/12/10 6/1/10 7/1/10
1 Mo. Ago 1 1 1 1 1 1 0 0Now 1 1 1 1 1 1 0 0
Days Late 2 3 45 75 104 130 120 122
HIV MiniLab Orig Launch Current Launch
Business Case Complete
Product Req'rments
Drafted
Feasibility Report
Complete
Phase 2 Approval
Fully Functional Prototype
Regulatory Submissions
Complete3/15/11 8/15/10
Date Completed 3/1/10 3/1/10 4/15/10 5/1/10 7/1/10 8/15/10
1 Mo. Ago 0 0 1 1 1 1 0 0Now 0 0 1 1 1 1 0 0
Days Late #N/A #N/A 0 0 0 0 1000 1000
Diabetes AB Orig Launch Current Launch
Design Validt'n Rpt Complete
Phase 4 Approval
Market Pre-Launch
Complete
Device Mstr Record
Complete
Regulatory Approval Received
Phase 5 Approval
1/1/11 1/1/11
Date Completed 10/15/09 12/1/09 1/1/10 3/15/10 4/30/10 5/31/10
1 Mo. Ago 1 1 1 1 1 0 0 0Now 1 1 1 1 1 1 0 0
Days Late 0 0 0 0 0 0 #N/A #N/A
Feasibility Development Transfer and Scale Up
Product Development Schedules, through May 31, 2010
Feasibility Development Transfer and Scale Up
Development Transfer and Scale Up Launch
Feasibility Development
Transfer and Scale Up Launch
Menu
In Engineering, it’s all about meeting our milestones on major products in development. This chart shows recent and upcoming milestones, where we stand now vs. 1 mo. ago, and days early/late for each milestone. (click to disappear)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
# Cm't 20 20 25 25 28 # Cm't 220 210 180 100 173# OT 18 17 21 23 25 # OT 214 198 145 89 144
# Cm't 120 120 97 85 115 #K Cm't 453 450 392 275 393# OT 113 100 88 78 103 #K OT 448 405 333 244 345
On-Time Shipments and Service by Business Unit, through May, 2010
YTD OT % 89.8% YTD OT % 90.4%
YTD OT % 88.1% YTD OT % 89.5%
Multiplexes
90.0 85.0 84.0 92.0 89.3
90.0
0
20
40
60
80
100
J F M A M J J A S O N D
On
-Tim
e %
BayMed Products
97.3 94.380.6 89.0 83.2
95.0
0
20
40
60
80
100
J F M A M J J A S O N D
On
-Tim
e %
OEM
98.9 90.0 84.9 88.7 88.0
90.0
0
20
40
60
80
100
J F M A M J J A S O N D
On
-Tim
e %
BayMed Service Contract Milestones
94.283.3 90.7 91.8 89.6
90.0
0
20
40
60
80
100
J F M A M J J A S O N D
On
-Tim
e %
Actual Target
DashboardMenu
In Manufacturing, we have three slides. This first slide looks at order fulfillment timeliness: do we meet our delivery commitments? We track both Product Orders as well as Service Contract milestones. (click to disappear)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
3.180.12
Net Active Value $M 3.06
Gross Inventory Value $MExcess and Obsolete $M
Gross Inventory Value $M 0.98Excess and Obsolete $M 0.01
Inventory Turns Through May, 2010
Net Active Value $M 0.97
Net Active Value $M 9.97
Gross Inventory Value $MExcess and Obsolete $M
10.450.48
Raw Materials & OEM
3.0 4.0 3.5 3.8 4.00
1
2
3
4
5
J F M A M J J A S O N D
Inve
nto
ry T
urn
sActual Target
Work In Progress
5.0 7.5 6.0 6.7 7.40
2
4
6
8
10
12
J F M A M J J A S O N D
Inve
nto
ry T
urn
s
Finished Goods
0.4 0.5 1.0 1.3 1.40.0
0.5
1.0
1.5
2.0
J F M A M J J A S O N D
Inve
nto
ry T
urn
s
DashboardMenu
In Manufacturing, we have three slides. This second slide looks at Inventory Turn rates in each of our three “value-add” levels. (click to disappear)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
1.150.28 Current Mo ($M) 0.23 YTD ($M)
0.13 YTD ($M) 0.41
Current Mo ($M) 0.04 YTD ($M) 0.21 Current Mo ($M) 0.05 YTD ($M)
YTD ($M) 2.81
Cost of Quality, through May, 2010
Current Mo ($M) 0.68 Current Mo ($M) 0.22 YTD ($M) 0.75 Current Mo ($M)
Total
7.28.9
6.7
9.610.4
0
2
4
6
8
10
12
J F M A M J J A S O N D
Q C
ost
as
% o
f C
OG
S
Actual Target
Sustaining Engineering
1.62.0
1.7
2.7
3.4
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
J F M A M J J A S O N D
Inventory Accuracy
0.50.9
1.21.6
2.1
0.0
0.5
1.0
1.5
2.0
2.5
J F M A M J J A S O N D
Scrap
0.9
0.60.5 0.6
0.7
0.0
0.2
0.4
0.6
0.8
1.0
1.2
J F M A M J J A S O N D
Q C
ost
as
% o
f C
OG
S
Rework
1.0 1.0
0.8 0.8 0.8
0.0
0.2
0.4
0.6
0.8
1.0
1.2
J F M A M J J A S O N D
Warranty
3.2
4.4
2.5
3.93.6
0
1
2
3
4
5
6
J F M A M J J A S O N D
DashboardMenu
This third manufacturing slide looks at the cost of poor quality in Total, and by each of 5 key drivers. Note that quality cost is expressed as a % of COGS – we want NOT to exceed 10%. Note the problem areas of Sustaining Engineering and Inventory Accuracy. (click to disappear)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
Calls K#'s 113 110 115 118 114 Calls K#'s 113 110 115 118 114# Resolv'd 100 83 101 87 102 <30" K#'s 101 98 103 108 103
Calls K#'s 113 110 115 118 114Aban K#'s 10.9 9.8 9.8 9.8 9.8
Call Center Statistics, through May, 2010
% Issues Resolved on First Call8
8.6
%
76
.0%
88
.1%
73
.9%
89
.4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
J F M A M J J A S O N D
# C
alls
/Mo
nth
% Answered Within 30 Seconds
89
.5%
89
.7%
90
.0%
91
.2%
90
.3%
80%
85%
90%
95%
100%
J F M A M J J A S O N D
% w
/in
30"
% Abandoned
9.7
%
8.9
%
8.5
%
8.3
%
8.6
%
0%
2%
4%
6%
8%
10%
12%
J F M A M J J A S O N D
% A
ban
do
ned
Average Talk Times
2:1
5
2:3
3
2:3
7
2:2
4
2:1
7
0:00
0:30
1:00
1:30
2:00
2:30
3:00
J F M A M J J A S O N D
Tim
e in
Min
ute
s &
Sec
on
ds
TargetActual
DashboardMenu
Our most serious goal in the Call Center is to resolve the customer’s issue on their first call. We also measure answering speed, abandonment rate and average talk times. (click to disappear)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
People & People & Culture Culture MetricsMetrics
DashboardMenu
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531 Dashboard
Ac
tg/F
in.
Ad
m/H
R
Cu
stS
vc
En
g
IT
Mft
g
Mk
tg
Mtr
ls
Q.A
.
Sa
les
To
tal
Ac
tg/F
in.
Ad
m/H
R
Cu
stS
vc
En
g
IT
Mft
g
Mk
tg
Mtr
ls
Q.A
.
Sa
les
To
tal
Actual 24 62 55 116 38 256 50 42 62 69 774 0-30 1 1 1 2 1 2 8AOP 22 63 50 107 43 258 49 41 65 71 769 31-60 1 2 1 1 1 6
61-90 2 1 2 5>90 1 1 2
Ac
tg/F
in.
Ad
m/H
R
Cu
stS
vc
En
g
IT
Mft
g
Mk
tg
Mtr
ls
Q.A
.
Sa
les
To
tal
Ac
tg/F
in.
Ad
m/H
R
Cu
stS
vc
En
g
IT
Mft
g
Mk
tg
Mtr
ls
Q.A
.
Sa
les
To
tal
14 1322 18
Headcount Snapshot, through May, 2010
NewReplacement
InvoluntaryVoluntary
Headcount as % of AOP
109.
1%
98.4
%
110.
0%
108.
4%
88.4
%
99.2
%
102.
0%
102.
4%
95.4
%
97.2
%
100.
7%
85%
90%
95%
100%
105%
110%
115%
Hea
dco
un
t as
% o
f A
OP
New & Replacement Hires YTD
13
1
4
1
8
2 21
1
1
5
1
2
1
20
2
4
6
8
10
12
Hir
es b
y D
epar
tmen
t
Replacemt New
Terminations, YTD
1 14
1
10
122
1
1
4
12
0
2
4
6
8
10
12
14
16
Ter
ms
by
Dep
artm
ent
Voluntary Involuntary
% Overage Open Reqs (>60 Days)
27%
40% 38% 39%33%
0%
10%
20%
30%
40%
50%
J F M A M J J A S O N D
% R
eqs
>60
Day
s O
ld
Actual % Acceptable Level Target
Menu
In this Headcount snapshot, we look at actual headcount as a % of annual operating plan (AOP). We also look at hiring speed, and the number of hires and terminations. (click to disappear)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531 Dashboard
Live Read Live Read Live Read Live Read Live Read Live Read Live Read Live Read Live Read Live Read
Acutal # 35 64 17 71 15 10 18 214 18 144 22 112 14 12 23 39 18 35 162 666 # Eval'd 20 59 48 84 26 228 38 37 57 39 636Target # 36 72 18 72 18 18 20 240 20 160 40 120 15 12 30 40 20 42 197 734 # EE's 24 62 55 116 38 256 50 42 62 69 774
Actg/Fin.
Adm/HR
CustSvc
Eng IT Mftg Mktg Mtrls Q.A. Sales Total
Acutal # # Lateral 3 12 10 13 2 31 5 5 6 3 90Target # # Vertical 1 8 6 7 1 18 2 4 4 3 54
# EE's 24 62 55 116 38 256 50 42 62 69 774
Eng ITCross-Selling
ProductKnwldge
MultiTierSelling
Project Mgmt
ProcessMapping
Cust'merReq'rmnt
Leader-ship
Mgmt.Basics
Sr. Mgt. Seminar
Actg/Fin.
People Trained in Key Programs, YTD
Actg/Fin.
Adm/HR
CustSvc
Eng IT Mftg Mktg
Sales TotalTotal
Mftg Mktg Mtrls Q.A.Adm/
HRCustSvc
Mtrls Q.A. Sales
19 51 46 67 24 195 37
Co-Wide % 72%
31 49 37
50
Co-Wide Actual 556 Co-Wide Target 774
Employee Development and Mobility, through May, 2010
42 62 6924 62 55 116 38 256
9789
9499
83
56
90 89 90 90
55
93 93100
77
9890
83 8291
0
20
40
60
80
100
% E
mp
loye
es C
om
ple
tin
g
Live Training Readings Target: 100%Performance Evals in Last 12 Mos.
83%95%
87%72% 68%
89%76%
88% 92%
57%
82%
0%
20%
40%
60%
80%
100%
% E
E's
Eva
luat
ed
% w Dvpt Plans Target
Development Plans Updated in Last 12 Mos.
79% 82% 84%
58% 63%76% 74% 74% 79%
54%
0%
20%
40%
60%
80%
100%
% E
E's
Eva
luat
ed
% w Dvpt Plans Target
Internal Mobility Last 12 Mos.
13%
19% 18%
11%5%
12% 10% 12% 10%4%
12%
4%
13%11%
6%
3%
7%
4%
10%
6%
4%
7%
0%
5%
10%
15%
20%
25%
30%
35%
% M
ob
ility
% Lateral % Vertical Target
Menu
Key to a competent workforce is their training in strategically vital programs, appraising their performance, developing their skills, and ensuring their internal mobility into new and challenging positions. (click to disappear)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
R&D Mktg BsDev Sales Mftg FIN HR Total R&D Mktg BsDev Sales Mftg FIN HR Total R&D Mktg BsDev Sales Mftg FIN HR Total# 4's & 5's 29 7 3 15 26 10 5 95 #w DvpPln 25 7 3 12 24 9 5 85 # 360'd 21 5 3 12 20 9 3 73# EE's 31 7 3 17 41 10 5 114 # EE's 31 7 3 17 41 10 5 114 # EE's 31 7 3 17 41 10 5 114
R&D Mktg BsDev Sales Mftg FIN HR Total R&D Mktg BsDev Sales Mftg FIN HR Total R&D Mktg BsDev Sales Mftg FIN HR Total# w >30% 29 5 3 17 18 9 3 84 # Met Mntr 26 3 2 7 18 9 5 70 #w R'plmnt 19 3 2 12 26 7 3 72# EE's 31 7 3 17 41 10 5 114 # EE's 31 7 3 17 41 10 5 114 # EE's 31 7 3 17 41 10 5 114
R&D Mktg BsDev Sales Mftg FIN Total31 7 3 17 41 10 114
116 41 9 124 360 62 77427% 17% 33% 14% 11% 16% 15%
5628%
Strategically Critical Employees, for the Month of May, '10
STRATEGIC POSITIONS# Strategic PositionsTotal Positions% Strategic Positions
HR
% Strategic EE's Rated 4 or 5
94%100% 100%
88%
63%
100% 100%
83%
30%
40%
50%
60%
70%
80%
90%
100%
% R
ate
d 4
or
5
% with Development Plans In Place
81%
100% 100%
71%
59%
90%100%
75%
30%
40%
50%
60%
70%
80%
90%
100%
% w
/ D
vpt.
Pla
ns
% Receiving 360° Evaluations
68% 71%
100%
71%
49%
90%
60% 64%
30%
40%
50%
60%
70%
80%
90%
100%
% R
ecei
vin
g 3
60's
% Eligible >30% Incentive Pay
94%
71%
100% 100%
44%
90%
60%
74%
30%
40%
50%
60%
70%
80%
90%
100%
% E
lig
. >
30%
In
cen
tive
.
% Met w/ Mentors Last 2 Mos.
84%
43%
67%
41% 44%
90%100%
61%
30%
40%
50%
60%
70%
80%
90%
100%
% M
et w
/ M
ento
rs% w/ Available Internal Replacement
61%
43%
67% 71%63%
70%60% 63%
30%
40%
50%
60%
70%
80%
90%
100%
% w
/ In
t. R
epla
cem
nt
DashboardMenu
BayMed devotes particular attention to the most critical 15% or so of it’s employees. For more on this, please go to “Strategic Employee Analysis” on the Menu. (click to disappear)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
PDP Intiative
Joe Brownley
Date Complete (Future) 1/15/10 2/1/10 2/15/10 3/1/10 4/1/10 4/15/10 5/15/10 6/15/10 7/31/10
1 Month Ago
Now
Days Late (Ahead) 5 15 0 0 -5 10 5 ""Comments
Product Team Elixir Tappan FDA Merc HyperBow Roadster Merc 2
Cust. Support Deliverables
Approved
Documentation Plan Template
Approved
Product Development Process Improvement Initiative, through May 31, 2010
First Training Held on April 10; poor attendance from Marketing and Manufacturing; 2nd Session to be held on June 10
Bsns Case Template Approved
Comp. Analysis Template Approved
Feature/Function Template Approved
Exit criteria for All PDP Steps
Approved
Training for All Applicaable Mgrs
& EE's
Training for All Applicaable Mgrs
& EE's
Mftg. Deliverables
Approved
Product Dvpt Process Training YTD
30
12
6
03 3
30
15
12
3
12
3
0
5
10
15
20
25
30
35
EngEE's
EngMgrs
MktgEE's
MktgMgrs
MftgEE's
MftgEE's
YT
D C
om
ple
tio
ns
Actual Target
Product Team Staffing Levels
12
10 109
10
8
12
10 109
10
8
3
1
3
2
2
1
3
1
3
2
2
1
2
1
2
2
2
0
2
1
2
2
2
0
0
2
4
6
8
10
12
14
16
18
Plan Act Plan Act Plan Act Plan Act Plan Act Plan Act
# S
taff
on
Tea
m
Eng Mktg Mftg
DashboardMenu
BayMed has had a particular issue with product team deliverables and with fully staffing it’s product development teams. For more on remedying this issue, see the “Achilles Heel Analysis”, on the menu. (click to disappear)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531 Dashboard
SURVEY ITEMEng/
ITSales Marketing/
Cust ServiceMftg/QA/Materials
Acctg/Fin/Admin/HR
Team prepared for my arrival 4.0 3.6 3.8 3.9 3.8Benefits/ee programs meet expectations 4.0 4.1 4.2 3.7 3.3Know who to ask re: processes/projects 4.1 3.6 3.8 3.8 3.9My training plan exists 3.1 3.6 3.6 3.4 3.7Mgr & I have established my goals 3.9 4.1 3.6 4.2 4.1Mgr interested in me as a person 4.1 4.6 3.9 3.8 3.9I see how my goals fit w/ team's goals 4.1 4.1 3.9 4.2 4.3My job is as was described in interviews 3.9 4.6 3.9 3.9 4.1I know/can approach mgmt team folks 4.3 4.6 4.1 4.2 4.4Overall, this is a great place to work 4.5 4.6 4.0 4.4 4.5
# Surveys 10 3 2 14 6
SURVEY ITEMEng/
ITSales Marketing/
Cust ServiceMftg/QA/Materials
Acctg/Fin/Admin/HR
Position filled in acceptable timeframe 3.5 4.1 2.4 3.4 3.3I had high quality candidates to recruit from 3.5 3.6 3.6 3.0 3.8Recruiting/Sign On/Relocation $ adequate to attract 3.9 4.1 3.9 3.5 3.7OnBoarding process gave EE valuable Gen. knowledge 4.2 3.6 4.3 4.0 3.9New EE's tech skills as strong as I had hoped 4.0 3.1 4.3 4.4 3.7Interpersonal/Org. skills as strong as I had hoped 4.5 3.6 3.8 4.1 4.0Starting Salary set at right level compared to peers 4.2 4.1 4.1 4.4 3.7New EE ramped up learning curve as fast as I had hoped 4.2 4.1 4.3 4.0 4.2EE will be fully competent in this position in 12 months 3.3 4.1 3.8 4.5 3.3EE has met or exceeded my expectations 2.4 3.6 4.1 3.8 3.8
# Surveys 8 3 2 11 5
EMPLOYEE SURVEY
MANAGER SURVEY
New Hire Surveys, Last 6 Months
Menu
BayMed wants to ensure that new employees integrate quickly into the company, and that their managers are satisfied with the hiring process. We survey both new hires and their managers after 90 days. Look at the red horizontal patterns to see where the problems are. (click to disappear)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531 Dashboard
Feb-10 Mar-10 Apr-10 May-10 TotalMftg/QA
M'trlsEng/
ITSales/
Mktg/CSHR/Fin/Admin
GreenIs = >
My manager values me as a person 4.0 4.1 4.2 3.9 4.0 4.1 4.1 4.1 4.0 4.0
My work challenges me 4.0 4.1 4.2 4.0 4.1 4.2 4.0 3.9 4.0 4.0
I feel high sense of urgency in my work 3.9 4.1 4.1 3.9 4.0 3.9 4.2 4.0 4.7 4.0
I'm fairly rewarded for the work I do 3.3 3.5 3.4 3.2 3.3 3.3 3.3 3.4 3.7 3.7
Co-workers value contribution I make 3.9 3.8 3.9 3.8 3.8 3.8 3.8 4.0 4.0 3.8
I can achieve my career ambitions 3.5 3.7 3.7 3.5 3.6 3.7 3.6 3.5 4.3 3.7
Management has a clear vision 3.6 3.5 3.4 3.4 3.5 3.5 3.3 3.5 3.5 3.7
I'm at "leading edge" of knowledge in my profession 3.4 3.6 3.5 3.5 3.5 3.5 3.5 3.7 3.0 3.7
I'm empowered to decide how best to do my work 3.8 3.8 3.8 3.7 3.8 3.8 3.7 3.8 3.7 3.7
There are good financial incentives to stay here 3.0 3.5 3.4 2.9 3.2 3.3 3.3 3.3 3.4 3.7
People here look forward to coming to work 3.6 3.5 3.7 3.5 3.6 3.5 3.8 3.6 4.0 3.7
My employee benefits are attractive and unique 3.2 3.7 3.6 3.1 3.4 3.4 3.8 3.1 4.3 3.7
I feel a sense of ownership in this company 3.3 3.7 3.6 3.6 3.5 3.7 3.4 3.7 3.5 3.7
I get the chance to have fun at work 3.8 3.9 3.9 3.7 3.8 3.8 4.1 3.9 4.3 4.0
All in all, this is a great place to work 3.7 4.0 4.1 3.8 3.9 3.9 4.2 3.9 4.3 4.0
# Surveys Returned 73 83 66 64 286 117 41 50 3
3.61 3.75 3.76 3.56 3.67 3.69 3.76 3.69 3.92 3.773Total Score
Pulse Survey Results, Last 4 Surveys
Division-Wide Data Totals By Function
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BayMed wants to create a stimulating work culture, with knowledgeable, engaged employees. Our “pulse survey” checks one-twelfth of the workforce each month. The horizontal yellow & red rows reveal where our challenges are. (click to disappear). This is the last slide of the demo, so you may want to click Menu for other options.
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
Strategy Mapping
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Strategy Mapping is the first of three methods used to identify key metrics for our ScoreCard. (hit spacebar)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
1. 1. Successfully Launch MPX 3000Successfully Launch MPX 3000
Finance• ‘10 Sales: US=$5M; EUR=$3M; Asia=$2M; Op. Margins=35%• ‘10 Budget, 1.x/2.x revs=$6.5M, (+5%), tracked x function
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A key element of our strategy is to successfully launch a MAJOR new product. Since this product is a cornerstone for our future, we set specific Finance quadrant goals for it ($10M in Sales, Op. Margins of 35%, and an operating budget of $6.5M, tracked by department. (hit spacebar)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
1. 1. Successfully Launch MPX 3000Successfully Launch MPX 3000
Finance• ‘10 Sales: US=$5M; EUR=$3M; Asia=$2M; Op. Margins=35%• ‘10 Budget, 1.x/2.x revs=$6.5M, (+5%), tracked x function
Customer/Markets• Orders from >10 Top U.S. and >8 Top European Customers• Installation Failures <10%; 80% res.<8 hrs.; 100%<72 hrs.
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We’re looking for market BREADTH across the US and Europe, and want to ensure customer satisfaction with our installations. (hit spacebar)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
1. 1. Successfully Launch MPX 3000Successfully Launch MPX 3000
Finance• ‘10 Sales: US=$5M; EUR=$3M; Asia=$2M; Op. Margins=35%• ‘10 Budget, 1.x/2.x revs=$6.5M, (+5%), tracked x function
Customer/Markets• Orders from >10 Top U.S. and >8 Top European Customers• Installation Failures <10%; 80% res.<8 hrs.; 100%<72 hrs.
Operational Excellence• Order fulfillment: 90% <1 week; 100% <2 weeks • QA funct. test at pre-ship <.5% functionality failures, 10% sample
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We want to meet orders for this product on time, and we want all functionality to work, once installed. Notice how specific each bullet point is. (hit spacebar)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
1. 1. Successfully Launch MPX 3000Successfully Launch MPX 3000
Finance• ‘10 Sales: US=$5M; EUR=$3M; Asia=$2M; Op. Margins=35%• ‘10 Budget, 1.x/2.x revs=$6.5M, (+5%), tracked x function
Customer/Markets• Orders from >10 Top U.S. and >8 Top European Customers• Installation Failures <10%; 80% res.<8 hrs.; 100%<72 hrs.
Operational Excellence• Order fulfillment: 90% <1 week; 100% <2 weeks • QA funct. test at pre-ship <.5% functionality failures, 10% sample
People & Culture• Sales Force (100%) trained in Product Knowledge prior to launch• All Sales/Prod Team reqs filled <60 days
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Finally, we want all our Sales Force trained in the product BEFORE it’s released, and all Sales and Product Team reqs filled (no holes in the team!). Note how, for this strategic initiative, we identify ScoreCard metrics in each of the four quadrants. This is Strategy Mapping. (click to disappear, and then click menu)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
Achilles Heel Analysis
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Achilles Heel Analysis is the second of three methods used to identify key metrics for our ScoreCard. (hit spacebar)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
Possible Achilles Heels
• Poor Product Development Discipline
• Low Customer Orientation/Little Market Familiarity
• Little Awareness of Business Strategy/ Key Competitors
• No Measurement or Education in Core Processes
• . . . and in your company???
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Every company has core processes it must be good at. If it isn’t good at a core process, that’s an Achilles Heel for the company. For BayMed, poor Product Development Discipline is an Achilles Heel (hit spacebar)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
Achilles Heel #1: Poor Discipline in Product Development Process (PDP)
• Product Teams are Engineering-centric; Mktg, Mftg come too late into the process
• Cross Functional Deliverables Between Engineering, Marketing, and Manufacturing Poorly Defined
• Poor Accountability re: Early Deliverables (Business Case, ROI Analysis, Competitive Analysis)
• Projects Don’t Meet Their Milestones; Internal Partners not Prepared with Their Pieces
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A cross functional team from Engineering, Marketing and Manufacturing identifies key aspects of the PDP Process that need improvement (hit spacebar)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
PDP Intiative
Joe Brownley
Date Complete (Future) 1/15/10 2/1/10 2/15/10 3/1/10 4/1/10 4/15/10 5/15/10 6/15/10 7/31/10
1 Month Ago
Now
Days Late (Ahead) 5 15 0 0 -5 10 5 ""Comments
Product Team Elixir Tappan FDA Merc HyperBow Roadster Merc 2
Cust. Support Deliverables
Approved
Documentation Plan Template
Approved
Product Development Process Improvement Initiative, through May 31, 2010
First Training Held on April 10; poor attendance from Marketing and Manufacturing; 2nd Session to be held on June 10
Bsns Case Template Approved
Comp. Analysis Template Approved
Feature/Function Template Approved
Exit criteria for All PDP Steps
Approved
Training for All Applicaable Mgrs
& EE's
Training for All Applicaable Mgrs
& EE's
Mftg. Deliverables
Approved
Product Dvpt Process Training YTD
30
12
6
03 3
30
15
12
3
12
3
0
5
10
15
20
25
30
35
EngEE's
EngMgrs
MktgEE's
MktgMgrs
MftgEE's
MftgEE's
YT
D C
om
ple
tio
ns
Actual Target
Product Team Staffing Levels
12
10 109
10
8
12
10 109
10
8
3
1
3
2
2
1
3
1
3
2
2
1
2
1
2
2
2
0
2
1
2
2
2
0
0
2
4
6
8
10
12
14
16
18
Plan Act Plan Act Plan Act Plan Act Plan Act Plan Act
# S
taff
on
Tea
m
Eng Mktg Mftg
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From this analysis, we decide to track (a) the development of PDP Templates, (b) PDP Training, and (c) Product Team Staffing, as metrics for our ScoreCard. (click to disappear, then click Menu)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
Strategic Employee Strategic Employee AnalysisAnalysis
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Strategic Employee Analysis is the third of three methods used to identify key metrics for our ScoreCard. (hit spacebar)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
Strategic Themes, FY’10
1. Successfully Launch Two New Hi-Potential Products (On-Time; $10M 1st Yr. Rev./each)
2. One or Two Successful Acquisitions
3. Achieve $30M Revenue in Eastern Europe
4. Implement LEAN Manufacturing
5. Implement “Strategic Employee” Initiative
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We begin by identifying five Strategic Themes for 2010. (hit spacebar)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
Strategically Critical Employees• R&D: Project Team Leaders & Key Tech. Leads on
Breakthrough Products
• Mktg: Product Mgrs in Recent or About-To-Be Releases
• Bsns Dvpt: Leaders for Key Acquisition Candidates
• Sales: Mgrs & Reps Responsible for New Territories/ Niches
• Mftg: Process-Reengineering Team Leaders and New Equipment/Technologies Central to Strategic Themes
• Finance: Leader of Acquisition or Strategically Vital Accounting Initiative
• HR: Leader of Strategic Competency Project, Strategic Pay, or Strategic Employee Identification Project
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For each of these strategic themes, we identify key employees directly responsible for the achievement of each strategy. We identify a pool of about 15% of the workforce. (click to disappear; then hit spacebar to advance)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
R&D Mktg BsDev Sales Mftg FIN HR Total R&D Mktg BsDev Sales Mftg FIN HR Total R&D Mktg BsDev Sales Mftg FIN HR Total# 4's & 5's 29 7 3 15 26 10 5 95 #w DvpPln 25 7 3 12 24 9 5 85 # 360'd 21 5 3 12 20 9 3 73# EE's 31 7 3 17 41 10 5 114 # EE's 31 7 3 17 41 10 5 114 # EE's 31 7 3 17 41 10 5 114
R&D Mktg BsDev Sales Mftg FIN HR Total R&D Mktg BsDev Sales Mftg FIN HR Total R&D Mktg BsDev Sales Mftg FIN HR Total# w >30% 29 5 3 17 18 9 3 84 # Met Mntr 26 3 2 7 18 9 5 70 #w R'plmnt 19 3 2 12 26 7 3 72# EE's 31 7 3 17 41 10 5 114 # EE's 31 7 3 17 41 10 5 114 # EE's 31 7 3 17 41 10 5 114
R&D Mktg BsDev Sales Mftg FIN Total31 7 3 17 41 10 114
116 41 9 124 360 62 77427% 17% 33% 14% 11% 16% 15%
5628%
Strategically Critical Employees, for the Month of May, '10
STRATEGIC POSITIONS# Strategic PositionsTotal Positions% Strategic Positions
HR
% Strategic EE's Rated 4 or 5
94%100% 100%
88%
63%
100% 100%
83%
30%
40%
50%
60%
70%
80%
90%
100%
% R
ate
d 4
or
5
% with Development Plans In Place
81%
100% 100%
71%
59%
90%100%
75%
30%
40%
50%
60%
70%
80%
90%
100%
% w
/ D
vpt.
Pla
ns
% Receiving 360° Evaluations
68% 71%
100%
71%
49%
90%
60% 64%
30%
40%
50%
60%
70%
80%
90%
100%
% R
ecei
vin
g 3
60's
% Eligible >30% Incentive Pay
94%
71%
100% 100%
44%
90%
60%
74%
30%
40%
50%
60%
70%
80%
90%
100%
% E
lig
. >
30%
In
cen
tive
.
% Met w/ Mentors Last 2 Mos.
84%
43%
67%
41% 44%
90%100%
61%
30%
40%
50%
60%
70%
80%
90%
100%
% M
et w
/ M
ento
rs% w/ Available Internal Replacement
61%
43%
67% 71%63%
70%60% 63%
30%
40%
50%
60%
70%
80%
90%
100%
% w
/ In
t. R
epla
cem
nt
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For these strategic employees (~15% of workforce), we ensure (a) that those positions are filled with highly rated employees, (b) who have development plans in place, (c) who receive 360° evaluations, (d) who have a chance of earning 30% above base pay if they achieve their goals, (e) who have mentors, and (f) for whom we have internal replacements. This is what we’re willing to do to ensure our strategic success. (click to disappear, then click Menu)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
ScoreCard Development Roadmap
Step 1: Metrics Selection
1. Exec. Interviews• Bsns Issues, SC
wants• Strategic Initiatives• ID X-Func. Team
3. Choose Metrics• List Possible Metrics• Revu for Balance• Exec Team Chooses
4. Spec Metrics• I.D. Owners, Data-Providers• Define Data-Sets• Design Slides
6. Build ScoreCard• Create Dashboard• Import Charts• Review w/ Execs
5. Build Excel Files• Create/Revu Drafts• Build Files w/ Real Data• Train Data Providers
Step 2: Design & Build
8. Exec Team Use• Coach CEO• Present @ 1-2
Exec Team Mtgs.
9. Company-Wide Use• Extended Mgmt.
Team• All Hands Meeting
Step 3: Initial Use
2. Strategy Mapping• I.D. Achilles Heels• I.D. X-Func. Collab.• I.D. Feasible Metrics
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Here is a high-level roadmap of the 3 month process of ScoreCard Development. Company VP’s choose the metrics and give major input on slide designs. VP’s name data providers from each function who provide the data. The external consultant leads the entire project, designing the slides, building the files, and training the data providers. (click to disappear, and then click Menu)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
Metric
Leader
Finance
Metric
Leader
Sales
Metric
Leader
Mktg.
Metric
Leader
Eng.
Metric
Leader
Mfg.
Metric
Leader
QA
Metric
Leader
Cust Sppt
Metric
Leader
HR
ScoreCard Master File
Executive Team
PowerPoint File:
The “Plumbing”The “Plumbing”
Excel Files:
Metrics
1-4
Metrics
5-6
Metric
7
Metric
8
Metrics
9-12
Metrics
13-14
Metric
15
Metrics
16-19
Shared ServerShared Server
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An Excel file tracks data for each metric. A slide from each Excel file electronically links to the PowerPoint file (which you have been reviewing in this demo). Data exists in a variety of databases (finance, manufacturing, HR). Data from these databases can be electronically dumped into the Excel files. It’s the consultant’s job, working with data providers, to expedite this process. (click to disappear, then click Menu)
© Michael Selby, 2010, www.scorecardpartners.com, 415.446.5531
For More Information, For More Information, Contact:Contact:
Michael SelbyMichael SelbyScoreCard PartnersScoreCard Partners
(415) 446.5531(415) [email protected], [email protected], or
Visit us on the web atVisit us on the web atwww.scorecardpartners.comwww.scorecardpartners.com
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