Integrating Maintenance Performance With Corporate Balanced Scorecards
Balanced Scorecards, Competencies and Compensation
description
Transcript of Balanced Scorecards, Competencies and Compensation
![Page 1: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/1.jpg)
Balanced Scorecards, Competencies and Compensation
November 3, 2011
![Page 2: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/2.jpg)
Financial Measures
• What are they?• Problems with them?–Knowledge workers
![Page 3: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/3.jpg)
Strategy
• CEO failures due to……….–Poor strategy?–Poor execution/implementation of
strategy?• So, which one is it?
![Page 4: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/4.jpg)
Balanced Scorecard
• Overcomes– Limitations of financial measures–Need to account for knowledge workers–Critical need to execute strategy
![Page 5: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/5.jpg)
Balanced Scorecard
• Overcomes– Limitations of financial measures–Need to account for knowledge workers–Critical need to execute strategy
![Page 6: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/6.jpg)
Balanced Scorecard
• Starting point–Organization’s strategy– Translate into objectives and measures
![Page 7: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/7.jpg)
Balanced Scorecard – 4 perspectives• Financial• Customer• Internal business process• Learning and growth
![Page 8: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/8.jpg)
Balanced Scorecard – 4 perspectives• Financial– Traditional component– Measures
• Revenue growth
• Cost reduction
• Productivity improvement
• Asset utilization
![Page 9: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/9.jpg)
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
![Page 10: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/10.jpg)
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?
![Page 11: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/11.jpg)
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
![Page 12: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/12.jpg)
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?
![Page 13: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/13.jpg)
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?
![Page 14: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/14.jpg)
Example
![Page 15: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/15.jpg)
![Page 16: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/16.jpg)
Balanced Scorecard
• Pro’s– Organizational alignment through shared vision– Short-term and long-term balance– Focuses the organization
![Page 17: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/17.jpg)
Balanced Scorecard
• Con’s– Complex!!!– Communication is a must
![Page 18: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/18.jpg)
• Balanced scorecard
• Chapters 4, 5, 6, 7, and 8
![Page 19: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/19.jpg)
Scorecards and Dashboards
• Basic dashboard• Electronic dashboard
![Page 20: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/20.jpg)
![Page 21: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/21.jpg)
![Page 22: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/22.jpg)
KSA
Job Requirements
•A•B•C•D•E
![Page 23: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/23.jpg)
![Page 24: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/24.jpg)
Competencies
“Fit”
![Page 25: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/25.jpg)
![Page 26: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/26.jpg)
![Page 27: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/27.jpg)
New Day for KSA
• Knowledge –practical or theoretical understanding of a
subject–described in terms of mastery levels
• Skills– Learned capacity
• Ability–Natural capacity
![Page 28: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/28.jpg)
Competency
• Combo of KSA that can be observed, measured, evaluated
• Is a key factor in successful job performance
• Focus is behavior
Competency
![Page 29: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/29.jpg)
Competency
• KSA
• Observable behavior
• Job performance
Competency
![Page 30: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/30.jpg)
Competency Models/Frameworks
• Definition–More “occupation” than “job”–Management, technical, knowledge–Vary by “job” type• Professional positions• Clerical/administrative positions• Managerial positions
![Page 31: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/31.jpg)
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
![Page 32: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/32.jpg)
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
![Page 33: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/33.jpg)
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
![Page 34: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/34.jpg)
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
![Page 35: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/35.jpg)
BusinessStrategy
CompetencyFramework
BusinessResults
![Page 36: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/36.jpg)
Professional Associations
![Page 37: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/37.jpg)
Risk and Insurance Management Society
![Page 38: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/38.jpg)
![Page 39: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/39.jpg)
Government
![Page 40: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/40.jpg)
![Page 41: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/41.jpg)
Education
![Page 42: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/42.jpg)
What’s missing?
![Page 43: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/43.jpg)
Private Sector
![Page 44: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/44.jpg)
![Page 45: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/45.jpg)
Competency Modeling
• http://www-05.ibm.com/employment/hu/ibmhu/career.html
![Page 46: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/46.jpg)
But which competencies?
Review strategy
Identify competencies
Competency Model/frame
work
Review strategy
![Page 47: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/47.jpg)
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!!!!
![Page 48: Balanced Scorecards, Competencies and Compensation](https://reader036.fdocuments.in/reader036/viewer/2022062323/56815c3c550346895dca3734/html5/thumbnails/48.jpg)
Now and later use……
• http://www.job-interview-site.com/examples-competency-based-interview-questions-list-of-competencies-skills.html