Using The Balanced Scorecard As A Strategic Management System By Kaplan Robert S Norton
Alignment by Robert Kaplan
-
Upload
starish-333 -
Category
Business
-
view
3.170 -
download
8
Transcript of Alignment by Robert Kaplan
Aligning Support Functions5
Contents
Alignment : A Source of Economic value1
Corporate Strategy & Structure : Historical Perspective2
Aligning Financial & Customer Strategies3
Aligning internal process & Learning & Growth Strategies4
Aligning Boards and Investors7
Aligning External partners8
Managing the Alignment Process9
Total Strategic Alignment10
Cascading : The Process6
ALIGNMENT MATTERS
Orchestrating change
through executive leadership
Defining: • Strategy
Maps• Balance
Scorecards
• Targets• Initiatives
Aligning all parties with the strategy• Corporate• Business
units• Support units• External
partners• Boards
Providing:• Education• Communicati
on• Goal setting• Incentive
compensation• Training of
staff
Integrating strategy into:• Planning• Budgeting• Reporting • Managem
ent Reviews
MOBILIZATION STRATEGYTRANSLATION
ORGANIZATIONALIGNMENT
EMPLOYEEMOTIVATION
GOVERNANCE
5 KEY MANAGEMENT PROCESS
Relationship between Managerial Excellence & Level of Benefits
1 = “We are awful at this” 4 = “We are good at this”2 = “We are not good at this” 5 = “ We are best practice at this”3 = “We are okay at this”
ENTERPRISE DERIVED VALUE
Customer
Derived Value
Enterprise
Derived Value
Value Creation
Enterprise Value Proposit
ion
Customer Value Proposit
ion
Value CreationStrategy
Customer Value Proposition
BEST TOTAL COST
PRODUCT LEADER
CUSTOMER SOLUTIONS
SYSTEM PLATFORM
Offer products & services that are
consistent, timely, and
low cost
Offer Products &
services that expand existing
performance boundaries
Provide a customized
mix of products and
services, combined with know
how, to solve customers’
problem
Provide a platform that becomes the
industry standard for
offering products and
services
Enterprise Value Proposition
FINANCIAL CUSTOMER INTERNAL PROCESS
LEARNING & GROWTH
What are shareholder expectations for financial performance
?
To reach our financial
objectives, how do we
create value for our
customer ?
What processes must we
excel at to satisfy our customers
and shareholders
?
How do we align our intangible assets – people,
system, and culture – to improve the
critical processes?
MANAGING ALIGNMENT AS A PROCESS
• The corporate office defines strategic guidelines to shape strategies at lower levels of the organization
1. Enterprise Value Proposition
• The corporation’s board of director reviews, approves, and monitor corporate strategy
2. Board & Shareholder Alignment
• The corporate strategy is translated into those corporate policies that will be administered by corporate support units
3. Corporate office to corporate support unit
• The corporate priorities are cascaded into business unit strategies
4. Corporate office to business units
• The strategic priorities of the business units are incorporated in the strategies of the functional support units
5. Business units to support units
• The priorities of the customer value proposition are communicated to targeted customers and reflected in specific customer feedback and measures
Business units to customers
• The shared priorities for suppliers, outsourcers and alliance partners are reflected in business unit strategies
7. Business support unite to suppliers and other external partners
• The strategies of the local business support units reflect the priorities of the corporate support unit8. Corporate support