01. the New Strategy Management System

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DDrr..DDaavviiddPP..NNoorrttoonnDirector, Palladium Group, Inc.

Founder, Balanced Scorecard Collaborative

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Biography

Dr. David P. Norton

Director, Palladium Group

Dr. Norton is a founder and director of the Palladium Group, an organization specializing in systems and processes to improve the execution of business strategy.

He has founded and built a series of professional service firms during the course of his career, each focused on leading edge issues of management.NNoollaann,,

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oorrttoonnaannddCCoommppaannyy, founded in 1975, specialized in the emerging science of information technology management.RReennaaiissssaanncceeSSoolluuttiioonnss, founded in 1992,

focused on the emerging niche of knowledge management. The

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e, founded in 1998, helped form the new professional discipline ofstrategy management.

A frequent lecturer and author, Dr. Norton is best known for his work with the Balanced Scorecard, which has been the subject of many conferences and articles.

He is the co-author, with Robert S. Kaplan, of eight Harvard Business Review (HBR) articles and five books:

The Balanced Scorecard (1996)

The Strategy Focused Organization (2000)

Strategy Maps (2004)

Alignment (2006)

The Execution Premium (2008)

His books have sold more than one million copies in 23 different languages.

The Balanced Scorecard concept was selected by the editors of theHHaarrvvaarrddBBuussiinneessssRReevviieewwas one of the most influential management ideas of the past 75

years. Dr. Norton was voted on as one of the worlds 12 most influential management thinkers by Sun Top Medias Thinkers 50 for 2007. Drs. Norton and Kaplanwere recently honored with the Champion of Workplace Learning and Performance Award (2008) by ASTD (The American Society for Training and Development).

Dr. Norton earned a BS in electrical engineering from Worcester Polytechnic Institute, an MS in operations research from the Florida Institute of Technology, an

MBA from Florida State University, and his doctorate in business administration from Harvard Business School.


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AAnnEEccoonnoommiiccMMooddeellooffVVaalluueeCCrreeaattiioonn


7/13


4.1 Strategic awareness created

4.2 Personal goals aligned

4.3 Personal incentives aligned

4.4 Competency development aligned

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1.1 Leaders drive strategy execution

1.2 Executives make case for change

1.3 Well articulated strategy exists1.4 Leaders reinforce strategic priorities

1.5 Office of Strategy Management established

II..MMOOBBIILLIIZZEECCHHAANNGGEETTHHRROOUUGGHHEEXXEECCUUTTIIVVEELLEEAADDEERRSSHHIIPP

3.1 Corporate role defined

3.2 Enterprise scorecard guides business units

3.3 Business unit scorecards guide support units

3.4 Scorecards align suppliers and/or customers

3.5 Scorecard reports to board and/or shareholders

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A. RESOURCE MANAGEMENT

5.1 Budget is linked to strategy

5.2 Planning for HR/IT linked to strategy

5.3 Portfolio of strategic initiatives aligned to themes

B. KEY PROCESS MANAGEMENT

5.4 Process improvement aligned to strategy

5.5 Best practice sharing in place

C. LEARNING & CONTROL

5.6 Strategy reviewed on regular basis

5.7 Data and analytics guide strategy

2.1 Strategy translated in strategy map

2.2 Strategy described in Balanced Scorecard

2.3 Targets identified for all measures2.4 Strategic initiatives rationalized

2.5 Executives accountability assigned

2006

TThheepphhiilloossoopphhyyooffmmaannaaggeemmeenntthhaassggiivveennrriisseettooaasseettooffssuucccceessssffuullmmaannaaggeemmeennttpprraaccttiicceess..

f1

15


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8/13


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f1

17


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IInniittiiaattiivveess: Manage a limited number of keystrategic initiatives

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(Survey of 143 performance management professionals, BSC Research, 2006)

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9/13


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f1

19


TThheessttrraatteeggyymmaannaaggeemmeennttssyysstteemmpprroommootteessssppeeeedd,,fflleexxiibbiilliittyyaannddaaddaappttaabbiilliittyyttoocchhaannggee

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Protect long-term

Shorten time horizon

Rapid response

Communicate

Shift priorities

Re-align organization

Analyze

Find new

opportunities

Be clear about

objectives and measures

Re-prioritize investments

Manage Stratex

Change the strategy


10/13


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Training man-days increasedby 5,500

Employee satisfactionincreased from 60% to 70%

Only distribution utility in Indiato receive all 3 ISOcertifications

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13/13


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01. the New Strategy Management System

Documents

Transcript of 01. the New Strategy Management System