BALANCE SCORE CARD AT PHILIPS

By: Group-10

KOMAL

Founded in 1891 by Gerard Philips in Netherlands.

A world leader in healthcare, lifestyle and lighting.

It integrates technologies and design into people-centric solutions by:

based on fundamental customer insights and the brand promise of “sense and simplicity”.

MISSION

To improve the quality of people’s life through the timely introduction of meaningful innovations.

VISION

“In the world where technology increasingly touches every aspect of our daily lives, we will be a

leading solutions provider in the areas of healthcare, lifestyle and enabling technology,

aspiring to become the most admired company in our industry as seen by our stakeholder.”

COMPANY’S Overview

“Vision 2010” strategy establishes the character of Philips as

a people-focused,

market-driven company

that is organized around its customerand markets.

EDDIE

ACHIEVEMENTS

1927- First Radio was introduced.

1950- First large screen projection TV was developed.

1950(late)- transistor-based radio stations and stereophonic sound were introduced.

CONTD.

1963- Compact Audio Cassette for sound recording was launched.

1965- Produced first integrated circuit.

1967- Color TV was introduced in Netherlands.

GROWTH CHRONICLE

1970•LAUNCHED ENERGY SAVING LAMPS

1972•Estd.A MUSIC COMPANY POLYGRAM

1974•AQUISITION OF MAGNAVOX

1975 AQUSITION OF SIGNETICS

1978•LAUNCHED LASER DISC PLAYER

1981•AQUISITION OF T.V BUSINESS OF GTE SYLVANIA USA

1983•ACQUISITION OF LIGHTING LAMP BUSINESS OF WESTINGHOUSE

PHILIPS

LIGHTING

CONSUMER ELECTRONICS

DOMESTIC APPLIANCES &PERSONAL

CARE

COMPONENTS

SEMICONDUCTORS

MEDICAL SYSTEMS

LIGHTING CONSUMER ELECTRONICS

DOMESTIC APPLIANCES&PERSONAL CARE

COMPONETS

SEMI CONDUCTORS

MEDICAL SYSTEMS

•LAMPS•LUMINARIES•LIGHTING,ELECTRONIC S,GEAR•AUTOMOTIVE&SPECIAL LIGHTING•BATTERIES

•CONSUMER T.V•PORTABLE AUDIO•AUDIO SYSTEMS•SET TOP BOXES•MP4•DVD SYSTEMS•REMOTE CONTROLS•LCD PROJECTORS•SPEAKER SYSTEMS

•SHAVERS•BEARD TRIMMERS•HAIR CLIPPERS•HAIR DRYERS•VACCUM CLEANERS•STEAM IRON•FOOD PROCESSORS•BLENDERS•COFFEE MAKERS•KETTLES

•DISPLAY COMPONENTS•OPTICAL STORAGE•MOBILE DISPLAY SYSTEMS•LARGE DISPLAY SYSTEMS•EMERGING ELECTRONIC SOLUTIONS

•MULTI MARKET PRODUCTS•CONSUMER SYSTEMS•TELECOM TERMINALS•TELECOM TERMINALS

•X-RAY EQUIPMENTS•IMAGING IT•HEALTH CARE SERVICES•TRANSCRIPTION SERVICES•NUCLEAR MEDICINE•ULTRASOUND•MAGNETIC RESONANCE•COMPUTED TOMOGRAPHY

HISTORY

Introduction : In 1990 the dismal Financial performance lead to reconstructing of the company.

Need: To shift the focus from High Volume to high value Business.

Introduced – BEST “Business Excellence through Speed and Teamwork” in 1999.

BEST

PBE – Philips Business Excellence Model PST – Process Survey Tools BSC – Balance Score Card

SHAILEE

NEED FOR BALANCE SCORECARD

In the late 1990’s the external environment was changing rapidly.

Existing business structure at Philips did not support this kind of change.

Competition from Asian Companies like Samsung and LG increased.

All these changes made Philips realise that its operations needed to be more flexible , innovative and value added.

Focus on the removal of SILO mentality.

Reorganisation and reduction of business units.

Had an existing Corporate Quality Department functioning under the Quality Policy Board.

However, Philips wanted to improve the quality of the

product even more and create more innovative products.

For this , it introduced BEST (Business Excellence through

Speed and Teamwork) in july 1999 , applicable across all processes ,

facilities and employees.

BEST involved focusing on business prioritiers , increasing

the capability of business processes and bringing in

better team work.

BEST

Balance Score card

Philips Busine

ss Excellence

Process survey tools

Black belts etc.

The Philips Business Excellence Model is based on the European Foundation for Quality Management (EFQM).

The EFQM model is as follows:

LEADERSHIP

PROCESSES

KEY PERFORMANCE

RESULTS

ENABLERS RESULTS

PEOPLE

POLICY and STRATEGY

PARTNERSHIPS and RESOURCES

SOCIETY RESULTS

CUSTOMER RELATIONS

PEOPLE RESULTS

INNOVATION AND LEARNINGDRIVING IMPROVEMENTS

PBE CRITERIA

LEADERSHIP• Define goals and

show directions• Set priorities• Lead by

example• Inspire

commitment• Manage overall

process

PROCESSES• Achieve sustainable

excellent results.• World class

processes• Deliver outstanding

results• Processes must be

robust , simple , dynamic

• Adaptable to chanaging business

• Improve over time

RESULTS• Measuring all the

business results of a company is very critical.

• It determines business excellence

• Measured by customers , employees, society and financial community

PHILIPS STRATEGY EVOLUTION

High Volume Electronics (1990’s)•Portfolio•Restructuring•Volatility•Lets Make Things Better

Healthcare and lifestyle (2000’s)One PhilipsGrowthValue CreationSense and Simplicity

BSC Using it Philips aimed at communicating

the company’s vision and strategy to the employees and letting them know the role they require to play in realizing the mission.

POLICY DEPLOYMENT Translate top-level targets into

operational targets in the organization. It was done by encouraging constant

communication & dialog between successive management levels in order to achieve a consensus on the targets to be achieved and develop better understanding between the top level mgt, who set the strategy and the employees who were involved in converting the strategy into action.

CUSTOMER SATISFACTION It believed that if a company responds

to its customers by bringing in products, services, and information that they require, the customers would respond through brand loyalty.

Therefore, hear customer’s voice by converting their complaints into opportunities by acting on them.

RAVEENA

CRITICAL SUCCESS FACTORS

competence

process

customers

financial

MEASURE PERFORMANCE/CSF’S Customer satisfaction Customer value creation Employee satisfaction Revenue growth Od Operational excellence

TARGET Gap between the desired performance

and existing performance was used to set targets.

2-4 years They were measurable, realistic, time

based. Criteria: analysis of market, customer

base, brand value, innovation, performance.

BSC PERSPECTIVESPERSPECTIVE CSF’s

COMPETENCE KNOWLEDGETECHNOLOGYLEADERSHIPTEAMWORK

PROCESSES DRIVERS FOR PERFORMANCE

CUSTOMERS VALUE PROPOSITION

FINANCIAL VALUEGROWTHPRODUCTIVITY

LEVELS OF BSC

TOP MGT LEVEL STRATEGIC REVIEW CARD

MIDDLE MGT LEVEL OPERATIONS REVIEW CARD

LOWER MGT LEVEL BUSINESS UNIT CARD

OTHER LEVEL EMPLOYEE CARD

DEEPSHIKHA

TOOLS:

Balance Score card

Philips

Business

Excellence

Process survey tools

Black belts etc.

IMPLEMENTING BSC

• Initiative was taken by top management of the company

• Quality department instructed all subsidiaries about the implementation

Through BSC,Philips aimed at

identifying the factors that could help in achieving the company’s strategic goals

Implementing a global BSC helped philips:

• In articulating & communicating their strategy• Measuring the drivers of their performance & results

IMPROVING BSC Company’s literature was taken into

consideration Through this & employees inputs,a

generic framework was developed In 2000,A brochure was circulated

across the organization In 2001,for implementing the

BSC,Philips used a reporting system In 2002,Philips used a one-page

strategy document,the BSC formed a part of the document

CONTD. Philips used BBS online system Performance indicators & CSFs were

identified in every department,division with the help of BBS at Philips

In 2006,Philips created an online BSC for each unit

KETKI

MEASURES

CONCLUSION