Executing Shared Value: Delivering Positive Impact in ... How Companies Create Shared Value...
Transcript of Executing Shared Value: Delivering Positive Impact in ... How Companies Create Shared Value...
1Copyright © Harvard Business School, 2013
Executing Shared Value:
Delivering Positive Impact in IndonesiaA One-Day Conference with Prof. Robert S. Kaplan
Jakarta | May 31st | 2016
Executing a Shared Value Strategy
May 2016
Robert S. (Bob) KaplanMarvin Bower Professor of Leadership Development, Emeritus
3Copyright © Robert S. Kaplan, 2016
The world is changing
Shared value – the corporate answer
Strategy Execution Tools – Executing Shared Value
Conclusions
Table of Contents
4Copyright © Robert S. Kaplan, 2016
Global Capitalism at Risk
Research performed by for HBS 100th Anniversary (2008)
Conducted among HBS Alumni and Friends: CEOs of global
corporations and NGOs
Professors Joseph Bower, Herman (Dutch) Leonard, and Lynn Paine
“Global Capitalism at Risk: What Are You Doing About It?”
Harvard Business Review (September 2011).
Capitalism at Risk: Rethinking the Role of Business
Harvard Business Press, 2012.
5Copyright © Robert S. Kaplan, 2016
The Study Identified 11 Disruptive Forces to the Global
Market System
1. Fragility of Financial System
2. Breakdowns in Global Trade
3. Inequality and Populism
4. Migration
5. Environment
6. Breakdowns in Rule of Law
7. Decline of Public Health and Education
8. State Capitalism
9. Radical Movements, Terrorism and War
10. Biological evolution and pandemics
11. Ineffectiveness of National and International
Institutions
6Copyright © Robert S. Kaplan, 2016
3. Inequality and Populism
• Inequality undermines faith that market-based
global growth benefits all
• Excessive CEO compensation (US, UK)
• High unemployment among youth (Europe,
Arab countries)
7Copyright © Robert S. Kaplan, 2016
3. Inequality and Populism
• Bruce Scott thesis: Countries can have any two but not all three ofo Democracyo Market Systemo Persistent inequality
• Democracy and persistent inequality can lead to populist leaders, such as those in Venezuela, Argentina, Greece, and Bolivia, who:
o Increase the role of state in the economyo Over-regulate market transactionso Violate property rightso Confiscate private property
8Copyright © Robert S. Kaplan, 2016
5. Environmental Problems
• Over-fishing (fish stocks in most of world will collapse by
2050)
• Pressure on land (25% deforestation in Indonesia)
• Consuming more water, especially for agriculture, than supply
• Waste disposal (solid and also pollution of rivers and oceans)
• Accelerating soil degradation leading to declining yields and
productivity growth in agriculture: high food prices and
volatility
9Copyright © Robert S. Kaplan, 2016
5. Environmental Problems: Climate Change
• 21st century expectation of 4ºC increase, but volatility of estimate
is extremely high; we are playing roulette with our climate
• High rate of species destruction and coral reefs, the breeding
grounds for fish
• Higher incidence of extreme weather events; hurricanes,
tornadoes, …
• Greatest impact will be on the most marginal populations
10Copyright © Robert S. Kaplan, 2016
6. Breakdowns in Rule of Law
• Corruption
• Bribery
• Extortion
• Kidnappings
• Cyber-terrorism
• Theft of Intellectual Property
11Copyright © Robert S. Kaplan, 2016
7. Decline of Public Health and Education
• Poor health and education are primary drivers of high youth
unemployment (in addition to restrictive labor regulations)
• Limits the quality of employees for businesses
• Challenge for company programs to enhance the education and
health of its work force
12Copyright © Robert S. Kaplan, 2016
9. Radical movements, terrorism and war
• Self-explanatory; but capitalism and markets function best in
peaceful, lawful environments where all participants agree on the
“rules of the game”
13Copyright © Robert S. Kaplan, 2016
11. Ineffectiveness of national and international
institutions
• Inability to cope with global problems (climate change,
trade, migration, finance, cyber-terrorism … )
14Copyright © Robert S. Kaplan, 2016
Business Opportunity from Global Challenges
Society now expects more from business
• Most public institutions and NGOs are ineffective; they fail to
deliverable measureable, sustainable results
• Only business has a history of effectiveness and efficiency
15Copyright © Robert S. Kaplan, 2016
CEOs had four different responses to the 11 global
challenges
1. Business as usual (denial)
o Acknowledge that the problems exist but they are not that
severe; capitalism system will do fine.
2. Business as bystander (Milton Friedman)
o Problems exist but governments must solve these
problems; the “business of business is business”
o Business advances society’s interest best by developing
great products and services that meet customers’
expectations, create jobs, and make money for
shareholders
16Copyright © Robert S. Kaplan, 2016
The CEOs had four different responses (continued)
3. Business as Innovator
o Recognize the changing environment for business and develop new strategies, products and services that enable them to survive and prosper in the changing environment for business
o How to serve the “Bottom-of-Pyramid”
o Operate in a sustainable manner
4. Business as Activist
o Recognize benefits from collective action
o Participate in shaping public policy
o Encourage governments to solve society’s problems
17Copyright © Robert S. Kaplan, 2016
The world is changing
Shared value – the corporate answer
Strategy Execution Tools – Executing Shared Value
Conclusions
Table of Contents
18Copyright © Robert S. Kaplan, 2016
• Stage 1: Philanthropy
o Donate to worthy social causes
o Employees Volunteer
o Corporate Foundation Report
• Stage 2: Corporate Social Responsibility (CSR)
o Comply with community and environmental standards
o Be a good corporate citizen
o Launch “sustainability” initiatives”
o Publish annual CSR report, Integrated (triple bottom line) reporting
o Improve trust and reputation; “Greenwashing”
• Stage 3: Create Shared Value
o Make an economic profit while addressing societal needs within the
context of a sustainable business model
Role of Business in Society
19Copyright © Robert S. Kaplan, 2016
How Companies Create Shared Value
Definition: Companies create shared value when they enhance their
competitiveness while advancing economic and social
conditions in the communities in which they operate
M. Porter and M. Kramer, “Creating Shared Value,” Harvard Business Review (Jan-Feb 2011)
Examples of creating shared value:1. Introduce new products and markets to meet societal needs
(nutrition, energy and water conservation, employee skills, health and safety, finance for bottom-of-pyramid, … )
2. Enhance productivity through reduced pollution, energy and water consumption
3. Facilitate local cluster development• Local infrastructure: ports, rail, roads, telecom, energy• More competitive local product and labor markets• More employment
20Copyright © Robert S. Kaplan, 2016
Community And Business Interdependency
This interdependence means that public policies that undermine the productivity and competitiveness of businesses are self-defeating, especially in a global economy where facilities and jobs can easily move elsewhere.
A business needs a successful community, not only to create demand for its products but also to provide critical public assets and a supportive environment
A community needs successful businesses to provide jobs and wealth
creation opportunities for its citizens
Businesses Community
The competitiveness of a company and the health of the communities around it are closely intertwined:
21Copyright © Robert S. Kaplan, 2016
Business Opportunities &
Challenges
Shared value is
the intersection
of business
opportunities &
challenges, social
needs and
corporate assets
and expertise.
Social Needs
Corporate Assets and Expertise
Social
Needs
Corporate
Assets and
Expertise
Identifying the OpportunityThe core value of Shared Value
23Copyright © Robert S. Kaplan, 2016
• Dow Chemical: Nexera canola and sunflower seeds
• Nestlé: Micronutrient spices
• Novartis: Medicine and health services to rural India
• Mars: agricultural development in Ivory Coast
• Intel: training 10 million teachers in use of technology
• Cisco: training disadvantaged youths to be network administrators
• Becton Dickinson: protecting health workers with needle-less injection
devices
• Vodafone: mobile banking services in East Africa
Examples of companies attempting to create “Shared
Value” (Pfitzer et al, HBR September 2013)
24Copyright © Robert S. Kaplan, 2016
• Corporate Social Responsibility phase
• Donated drugs for low-income populations
• Corporate Shared Value phase
• Implemented a new drug business model for low-income populations
• Developed new packaging for small quantities of drugs
• Contributed to patient education
• Improved local healthcare delivery infrastructure
Novartis Moved from CSR to CSV in Rural India
25Copyright © Robert S. Kaplan, 2016
The Change Agenda: From Corporate Social Responsibility
(CSR) to Creating Shared Value (CSV)
CSR CSV
Value: Doing goodValue: Economic and societal
benefits relative to cost
Citizenship, philanthropy, sustainability
Joint company and community value creation
Discretionary or in response to external pressure
Integral to competing
Separate from profit maximization Integral to profit maximization
Agenda is determined by external reporting & personal preferences
Agenda is company specific and internally generated
Impact limited by corporate footprint and CSR budget
Realigns the entire company budget
26Copyright © Robert S. Kaplan, 2016
Benefits of Creating Shared Value In Practice
The opportunity to create economic value through creating societal value will be one of the most powerful forces driving growth in the global economy.
Benefits of creating Shared Value in practice are broad, sustainable and far reaching:
Profits involving a social purpose will enable society to advance more rapidly while allowing companies to grow even more
The result is a positive cycle of company and community prosperity, which leads to profits that endure
Companies will make real strides on improving the environment when they treat it as a productivity driver rather than a feel-good response to external pressure
Shared Value approach leads financial services companies to create innovative products for bottom-of-pyramid customers
27Copyright © Robert S. Kaplan, 2016
Shared Value As Part Of The Strategy
Shared Value will become an integral part of strategy
The essence of strategy is choosing a unique positioning and a distinctive value chain to deliver on it
Shared Value opens up many
New needs to meet
New products to offer
New customers to serve
New ways to configure the value chain
The cycle of imitation and zero-sum competition can be broken
28Copyright © Robert S. Kaplan, 2016
The world is changing
Shared value – the corporate answer
Strategy Execution Tools – Executing Shared Value
Conclusions
Table of Contents
29Copyright © Robert S. Kaplan, 2016
The Balanced Scorecard: The Central Component in a
Strategy Execution Management System
Private Sector Organizations
"If we succeed, how will
we look to our
shareholders?”
"To achieve our vision,
how must we look to
our customers?”
"To satisfy our customers
and shareholders, at which
processes must we excel?”
“How do we align our
intangible assets to
improve critical
processes?”
“How do we have a social
impact with our
citizens/constituents?”
Mission (Customer) Perspective
“To have a social impact and to
attract resources and support, at
which processes must we excel?”
“How do we align our
intangible assets to improve
critical processes?”
“How should we manage and
allocate our resources for
maximum social impact?”
Financial Perspective
Customer Perspective
Process Perspective
Learning & Growth
Process
Learning & Growth
Financial
“How do we attract resources
and authorization for our
mission?”
Support Perspective
Non Profit and Public Sector Organizations
30Copyright © Robert S. Kaplan, 2016
The Balanced Scorecard:
Multiple Innovation Cycles Since Its 1992 Introduction
Measurement
and
Reporting
Office of
Strategy
Management
Strategy
Management
System
Leveraging
Intangible
Assets
1992 20001996 20041993 2005 2006
22 translations 18 translations 12 translations12 translations
Strategy
Maps
Aligning by
Strategic
Themes
10 Harvard Business Review articles
13 HBS Cases:Chemical Bank (1994)
Mobil (A)-(D) (1996)
United Way (1997)
Wells Fargo Online (1998)
City of Charlotte (1999)
New Profit, Inc (2000)
Montefiore Hospital (2001)
Boston Lyric Opera (2001)
First Commonwealth (2004)
Fulton County School System (2006)
Amanco: Sustainability Scorecard (2007)
Infosys Relationship Scorecard (2009)
Volkswagen do Brasil (2010)
2008
Strategy
Execution
System
17 translations
Palladium Balanced Scorecard Hall of Fame for Executing Strategy™
as of December, 2014
32Copyright © Robert S. Kaplan, 2016
Jeollabuk-do Province, South Korea
• Population had decreased from 2.5 mm (1966) to 1.87 mm (2006)
• Last place in every index among the nation’s 16 provincial governments
Gross regional domestic product
Income per capita
Financial self-sufficiency
# of businesses and employed workers
Reliance on raw materials extraction and agriculture
© DMTHOTH via Wikimedia Commons
33Copyright © Robert S. Kaplan, 2016
New Governor, Wanjoo Kim, Takes Office in July 2006, Re-Elected in 2010
• Adopts Balanced Scorecard as the Province’s performance management system
• Strong opposition from labor union and some employees
• Challenges to develop quantifiable performance goals
© www.jeonbuk.go.kr/
34Copyright © Robert S. Kaplan, 2016
Goals achieved: 2007 to 2011
• Population has begun to increase, reversing 45 years of
decline
• 8.6% CAGR in GRDP; national average is 3.7%
• 1st among 16 provinces in growth rate of exports o Exports in 2011 = $12.8 bn
o Exports in 2006 = $ 5.4 bn
• Increase in percentage of GRDP from secondary
(value-added) industries from 23% to 29%
• 350% increase in number of businesses attracted (five
year average)
• Number of paying tourists increases 70%
• Fiscal self-reliance percentage increases from 15% to
21%
35Copyright © Robert S. Kaplan, 2016
The Kaplan-Norton six-stage closed loop management
system for Strategy Execution
Process
Initiative
EXECUTION
1
3
45
6
• Mission, Values,
Vision
• Strategy Formulation
DEVELOP THE
STRATEGY
• Strategy Map/Themes
• Measures / Targets
• Initiative Portfolios
• Funding / Stratex
TRANSLATE THE
STRATEGY
ALIGN THE
ORGANIZATION
• Business Units
• Support Units
• Employees
PLAN OPERATIONS
• Key process
improvement
• Sales planning
• Resource capacity plan
• Budgeting
• Profitability Analysis
• Strategy
Correlations
• Emerging Strategies
TEST & ADAPT
• Strategy Reviews
• Operating Reviews
MONITOR & LEARN
2
36Copyright © Robert S. Kaplan, 2016
Stage 1: Develop the Strategy
Process
Initiative
EXECUTION
1
3
45
6
• Mission, Values, Vision
• Strategic Analysis• Strategy Formulation
DEVELOP THE STRATEGY
• Strategy Map / Themes
• Measures / Targets• Initiative Portfolios• Funding / Stratex
TRANSLATE THE STRATEGY
ALIGN THE ORGANIZATION
• Business Units• Support Units• Employees• Board of Directors
PLAN OPERATIONS
• Key process improvement• Sales planning• Resource capacity plan• Budgeting
• Profitability Analysis
• Strategy Correlations
• Emerging Strategies
TEST & ADAPT
• Strategy Reviews
• Operating Reviews
MONITOR & LEARN
2
37Copyright © Robert S. Kaplan, 2016
Stage 2 of the Management System: Plan the Strategy
• Mission, Values, Vision • Strategic Analysis• Strategy Formulation
Process
Initiative
EXECUTION
1
3
45
6
DEVELOP THE STRATEGY
• Strategy Map / Themes• Measures / Targets• Initiative Portfolios• Funding / Stratex
PLAN THE STRATEGY
ALIGN THE ORGANIZATION
• Business Units• Support Units• Employees• Board of Directors
PLAN OPERATIONS
• Key process improvement• Sales planning• Resource capacity plan• Budgeting
• Profitability Analysis
• Strategy Correlations
• Emerging Strategies
TEST & ADAPT
• Strategy Reviews
• Operating Reviews
MONITOR & LEARN
2
38Copyright © Robert S. Kaplan, 2016
#1. Financial performance, a lag
indicator, measures the tangible
outcomes from the strategy.
#2. The customer value proposition
defines the source of value.
#3. Strategic processes create value for
customers and shareholders.
Process Perspective
Financial Perspective
Customer Perspective
Sustained
Shareholder
Value
Operations
Management
Processes
Customer
Management
Processes
Innovation
Processes
Productivity Revenue Growth
Price Quality Time Function Relation Brand
Product/Service Attributes Relationship Image
Regulatory and
Social Processes
Learning & Growth Perspective
Human Capital
Information Capital
Organization Capital
#4. Aligned intangible assets drive
improvement in the strategic
processes
A Strategy Map links strategic objectives across the four
Balanced Scorecard perspectives.
39Copyright © Robert S. Kaplan, 2016
Amanco: Creating Shared Value
Vision: To be recognized as the leading Latin American distributor of
plastic pipe systems for fluid (water) transportation; generate
economic value while operating in a framework of ethics, eco-
efficiency and with social responsibility to improve people's
quality of life.
Regions: South America
MEXICO
ANDINAR
(Argentina, Ecuador,
Peru, Venezuela)
BRAZIL
CENTRAL AMERICAN
REGION
(Costa Rica, El Salvador, Guatemala,
Honduras, Nicaragua, Panama)
COLOMBIA
Regions: South America
MEXICO
ANDINAR
(Argentina, Ecuador,
Peru, Venezuela)
BRAZIL
CENTRAL AMERICAN
REGION
(Costa Rica, El Salvador, Guatemala,
Honduras, Nicaragua, Panama)
COLOMBIA
40Copyright © Robert S. Kaplan, 2016
Amanco’s Corporate Social Responsibility
• Triple bottom line performance focused on:
o Economic sustainability
o Corporate Social Responsibility
o Environmental Management
• Customers want products that improve society and protect
the environment
• Amanco created ‘Social and Environmental’ as a separate
dimension in its Scorecard to signal its importance
41Copyright © Robert S. Kaplan, 2016
Amanco’s Strategy Map
42Copyright © Robert S. Kaplan, 2016
Stage 3 of the Management System: Align the Organization
Process
Initiative
EXECUTION
3
4
5
6
• Mission, Values, Vision • Stretch Targets• Strategic Analysis• Strategy Formulation
DEVELOP THE STRATEGY
• Strategy Map / Themes• Measures / Targets• Initiatives• Funding / Stratex
TRANSLATE THE STRATEGY
ALIGN THE ORGANIZATION
• Business Units• Support Units• Employees• Board of Directors
PLAN OPERATIONS
• Key process improvement• Sales planning• Resource capacity plan• Budgeting
• Profitability Analysis
• Strategy Correlations
• Emerging Strategies
TEST & ADAPT
• Strategy Reviews
• Operating Reviews
MONITOR & LEARN
21
43Copyright © Robert S. Kaplan, 2016
Opera
tional
Excellence
Fin
ancia
l
Perf
orm
ance
Client
/ M
ark
et
Focus
Tale
nt
Managem
ent
Valu
es
/Eth
ics
Scale
Infr
a
Innovation Client Management Execution Excellence Risk Management
Enhance Shareholder Value
Improve Profits and Profitability
Achieve
Revenue Growth
Increase Revenue
Productivity
Grow Key / Large
Accounts
Acquire & Manage
Large Deals
Improve Rate
Realization
Leverage Solutions
& Alliances
Enhance Client Satisfaction
Strengthen Brand Position
Leverage & Reuse
Intellectual Property
Develop & Retain
Competencies
Develop Diversity in
Workforce
Strengthen
Performance Ethic
Improve Workforce Motivation
Improve Quality Of
Talent Recruited
Nurture Infosys Values Be A Responsible Corporate Citizen
Improve Return On
Capital Investment
Reduce
Operational Cost
Scale State-Of-The-Art Physical InfrastructureScale State-Of-The-Art Technology Infrastructure
Identify & Incubate
New Business Ideas
Broaden Business
Footprint
Conduct Business Legally & Ethically
Strengthen Internal
Collaboration
Strengthen Client
Facing Processes
Improve Resource
Utilization
Improve Quality &
Productivity
Improve BEF and Unit
Scalability
Reduce & Manage
Operational Risk
Develop Multiple Tiers Of Leadership
Optimize Onsite
Offshore Mix
Infosys Strategy Map
44Copyright © Robert S. Kaplan, 2016
Infosys cascaded its corporate scorecard to key
executives and all business units and departments
Overall Business
Scorecard
Business Unit /
Department
Scorecards
Board Member’s
Scorecards
Target Actual Annual
Target
Annual
Actuals
Q1
Target
Q1
Actuals
Q2
Target
Q2
Actuals
Q3
Target
Q3
Actuals
Q4
Target
Q4
Actuals
Financial Performance
Revenue (MUSD) - Infosys standalone xxx.xx xxx.xx xxx.xx xxxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
% Forecast accuracy - - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Sustain profitability % Net profit - Infosys standalone zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Onsite revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Offshore revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Client / Market Focus
Grow key / global accounts % Increase in revenue from key / global accounts (QOQ) - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Differentiate solution sets # Of solution sets developed (Cumulative starting Q2) - - xx xx - - xx xx xx xx xx xx Quarterly
Deliver end-to-end services # Of clients using > 3 services above threshold $ yy yy yy yy yy yy yy yy yy yy yy yy Quarterly
Broaden geographical footprint % Revenue from non-North American geographies zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Enhance client satisfaction Annual client satisfaction index (CSAT) - xx xx xx - - xx xx - - - Q2
Strengthen brand position Annual brand awareness / position index (Gallup Survey) - - TBD - - - - - - TBD Q4
Execution Excellence
# of units with expenses within budgets - - xx xx xx xx xx xx xx - xx xx Quarterly
Accounts receivables (DSO) xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
Leverage GDM Onsite - offshore ratio - xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% Quarterly
Leverage alliances Revenue with role of alliances (MUSD) - yy yy yy yy yy yy yy yy yy yy yy Quarterly
Improve quality & productivity % practices meeting benchmark Q & P goals - - zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Integrate business processes Annual Malcolm Baldrige internal assessment score - xxx xxx xxx - - - - xxx TBD - xxx Q3
Improve internal partnerships Annual Internal partner satisfaction index (IPSAT) - xxx xxx xxx - - - - xxx xxxx - Q3
People Development
% Employees with required competencies (PM, PA, SE) xx% xx% xx% xx% - - xx% xx% - - xx% xx% Q2, Q4
% Attrition of high performers (Annualized) x% x% x% x% x% x% x% x% x% x% x% x% Quarterly
Develop global workforce Global employees as % of employees with overseas base location - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Develop 3 tiers of leadership # Of key leadership positions with defined successors (Start Q3) - - zz% zz% - - - - zz% zz% zz% zz% Quarterly
Strengthen performance ethic Annual employee Satisfaction with High Performance Work Ethic - - zz% zz% - - zz% zz% - - - Q2
Improve workforce motivation Annual Employee satisfaction index (ESAT) zz% - zz% zz% - - zz% zz% - - - Q2
Corporate Citizenship Contribution to Infosys foundation (MUSD) zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Frequency
Note: TBD = To be decided, Blue text = Annual Indicators, Green = Target met / exceeded, Yellow: Within tolerance, Red: Target not achieved
FY 03
Increase revenue productivity
Achieve revenue growth
FY 04
Control operational costs
Develop & retain competencies
Business Objectives Infosys Performance Measures
Target Actual Annual
Target
Annual
Actuals
Q1
Target
Q1
Actuals
Q2
Target
Q2
Actuals
Q3
Target
Q3
Actuals
Q4
Target
Q4
Actuals
Financial Performance
Revenue (MUSD) - Infosys standalone xxx.xx xxx.xx xxx.xx xxxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
% Forecast accuracy - - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Sustain profitability % Net profit - Infosys standalone zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Onsite revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Offshore revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Client / Market Focus
Grow key / global accounts % Increase in revenue from key / global accounts (QOQ) - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Differentiate solution sets # Of solution sets developed (Cumulative starting Q2) - - xx xx - - xx xx xx xx xx xx Quarterly
Deliver end-to-end services # Of clients using > 3 services above threshold $ yy yy yy yy yy yy yy yy yy yy yy yy Quarterly
Broaden geographical footprint % Revenue from non-North American geographies zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Enhance client satisfaction Annual client satisfaction index (CSAT) - xx xx xx - - xx xx - - - Q2
Strengthen brand position Annual brand awareness / position index (Gallup Survey) - - TBD - - - - - - TBD Q4
Execution Excellence
# of units with expenses within budgets - - xx xx xx xx xx xx xx - xx xx Quarterly
Accounts receivables (DSO) xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
Leverage GDM Onsite - offshore ratio - xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% Quarterly
Leverage alliances Revenue with role of alliances (MUSD) - yy yy yy yy yy yy yy yy yy yy yy Quarterly
Improve quality & productivity % practices meeting benchmark Q & P goals - - zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Integrate business processes Annual Malcolm Baldrige internal assessment score - xxx xxx xxx - - - - xxx TBD - xxx Q3
Improve internal partnerships Annual Internal partner satisfaction index (IPSAT) - xxx xxx xxx - - - - xxx xxxx - Q3
People Development
% Employees with required competencies (PM, PA, SE) xx% xx% xx% xx% - - xx% xx% - - xx% xx% Q2, Q4
% Attrition of high performers (Annualized) x% x% x% x% x% x% x% x% x% x% x% x% Quarterly
Develop global workforce Global employees as % of employees with overseas base location - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Develop 3 tiers of leadership # Of key leadership positions with defined successors (Start Q3) - - zz% zz% - - - - zz% zz% zz% zz% Quarterly
Strengthen performance ethic Annual employee Satisfaction with High Performance Work Ethic - - zz% zz% - - zz% zz% - - - Q2
Improve workforce motivation Annual Employee satisfaction index (ESAT) zz% - zz% zz% - - zz% zz% - - - Q2
Corporate Citizenship Contribution to Infosys foundation (MUSD) zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Frequency
Note: TBD = To be decided, Blue text = Annual Indicators, Green = Target met / exceeded, Yellow: Within tolerance, Red: Target not achieved
FY 03
Increase revenue productivity
Achieve revenue growth
FY 04
Control operational costs
Develop & retain competencies
Business Objectives Infosys Performance Measures
Target Actual Annual
Target
Annual
Actuals
Q1
Target
Q1
Actuals
Q2
Target
Q2
Actuals
Q3
Target
Q3
Actuals
Q4
Target
Q4
Actuals
Financial Performance
Revenue (MUSD) - Infosys standalone xxx.xx xxx.xx xxx.xx xxxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
% Forecast accuracy - - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Sustain profitability % Net profit - Infosys standalone zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Onsite revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Offshore revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Client / Market Focus
Grow key / global accounts % Increase in revenue from key / global accounts (QOQ) - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Differentiate solution sets # Of solution sets developed (Cumulative starting Q2) - - xx xx - - xx xx xx xx xx xx Quarterly
Deliver end-to-end services # Of clients using > 3 services above threshold $ yy yy yy yy yy yy yy yy yy yy yy yy Quarterly
Broaden geographical footprint % Revenue from non-North American geographies zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Enhance client satisfaction Annual client satisfaction index (CSAT) - xx xx xx - - xx xx - - - Q2
Strengthen brand position Annual brand awareness / position index (Gallup Survey) - - TBD - - - - - - TBD Q4
Execution Excellence
# of units with expenses within budgets - - xx xx xx xx xx xx xx - xx xx Quarterly
Accounts receivables (DSO) xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
Leverage GDM Onsite - offshore ratio - xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% Quarterly
Leverage alliances Revenue with role of alliances (MUSD) - yy yy yy yy yy yy yy yy yy yy yy Quarterly
Improve quality & productivity % practices meeting benchmark Q & P goals - - zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Integrate business processes Annual Malcolm Baldrige internal assessment score - xxx xxx xxx - - - - xxx TBD - xxx Q3
Improve internal partnerships Annual Internal partner satisfaction index (IPSAT) - xxx xxx xxx - - - - xxx xxxx - Q3
People Development
% Employees with required competencies (PM, PA, SE) xx% xx% xx% xx% - - xx% xx% - - xx% xx% Q2, Q4
% Attrition of high performers (Annualized) x% x% x% x% x% x% x% x% x% x% x% x% Quarterly
Develop global workforce Global employees as % of employees with overseas base location - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Develop 3 tiers of leadership # Of key leadership positions with defined successors (Start Q3) - - zz% zz% - - - - zz% zz% zz% zz% Quarterly
Strengthen performance ethic Annual employee Satisfaction with High Performance Work Ethic - - zz% zz% - - zz% zz% - - - Q2
Improve workforce motivation Annual Employee satisfaction index (ESAT) zz% - zz% zz% - - zz% zz% - - - Q2
Corporate Citizenship Contribution to Infosys foundation (MUSD) zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Frequency
Note: TBD = To be decided, Blue text = Annual Indicators, Green = Target met / exceeded, Yellow: Within tolerance, Red: Target not achieved
FY 03
Increase revenue productivity
Achieve revenue growth
FY 04
Control operational costs
Develop & retain competencies
Business Objectives Infosys Performance Measures
Target Actual Annual
Target
Annual
Actuals
Q1
Target
Q1
Actuals
Q2
Target
Q2
Actuals
Q3
Target
Q3
Actuals
Q4
Target
Q4
Actuals
Financial Performance
Revenue (MUSD) - Infosys standalone xxx.xx xxx.xx xxx.xx xxxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
% Forecast accuracy - - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Sustain profitability % Net profit - Infosys standalone zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Onsite revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Offshore revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Client / Market Focus
Grow key / global accounts % Increase in revenue from key / global accounts (QOQ) - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Differentiate solution sets # Of solution sets developed (Cumulative starting Q2) - - xx xx - - xx xx xx xx xx xx Quarterly
Deliver end-to-end services # Of clients using > 3 services above threshold $ yy yy yy yy yy yy yy yy yy yy yy yy Quarterly
Broaden geographical footprint % Revenue from non-North American geographies zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Enhance client satisfaction Annual client satisfaction index (CSAT) - xx xx xx - - xx xx - - - Q2
Strengthen brand position Annual brand awareness / position index (Gallup Survey) - - TBD - - - - - - TBD Q4
Execution Excellence
# of units with expenses within budgets - - xx xx xx xx xx xx xx - xx xx Quarterly
Accounts receivables (DSO) xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
Leverage GDM Onsite - offshore ratio - xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% Quarterly
Leverage alliances Revenue with role of alliances (MUSD) - yy yy yy yy yy yy yy yy yy yy yy Quarterly
Improve quality & productivity % practices meeting benchmark Q & P goals - - zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Integrate business processes Annual Malcolm Baldrige internal assessment score - xxx xxx xxx - - - - xxx TBD - xxx Q3
Improve internal partnerships Annual Internal partner satisfaction index (IPSAT) - xxx xxx xxx - - - - xxx xxxx - Q3
People Development
% Employees with required competencies (PM, PA, SE) xx% xx% xx% xx% - - xx% xx% - - xx% xx% Q2, Q4
% Attrition of high performers (Annualized) x% x% x% x% x% x% x% x% x% x% x% x% Quarterly
Develop global workforce Global employees as % of employees with overseas base location - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Develop 3 tiers of leadership # Of key leadership positions with defined successors (Start Q3) - - zz% zz% - - - - zz% zz% zz% zz% Quarterly
Strengthen performance ethic Annual employee Satisfaction with High Performance Work Ethic - - zz% zz% - - zz% zz% - - - Q2
Improve workforce motivation Annual Employee satisfaction index (ESAT) zz% - zz% zz% - - zz% zz% - - - Q2
Corporate Citizenship Contribution to Infosys foundation (MUSD) zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Frequency
Note: TBD = To be decided, Blue text = Annual Indicators, Green = Target met / exceeded, Yellow: Within tolerance, Red: Target not achieved
FY 03
Increase revenue productivity
Achieve revenue growth
FY 04
Control operational costs
Develop & retain competencies
Business Objectives Infosys Performance Measures
Target Actual Annual
Target
Annual
Actuals
Q1
Target
Q1
Actuals
Q2
Target
Q2
Actuals
Q3
Target
Q3
Actuals
Q4
Target
Q4
Actuals
Financial Performance
Revenue (MUSD) - Infosys standalone xxx.xx xxx.xx xxx.xx xxxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
% Forecast accuracy - - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Sustain profitability % Net profit - Infosys standalone zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Onsite revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Offshore revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Client / Market Focus
Grow key / global accounts % Increase in revenue from key / global accounts (QOQ) - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Differentiate solution sets # Of solution sets developed (Cumulative starting Q2) - - xx xx - - xx xx xx xx xx xx Quarterly
Deliver end-to-end services # Of clients using > 3 services above threshold $ yy yy yy yy yy yy yy yy yy yy yy yy Quarterly
Broaden geographical footprint % Revenue from non-North American geographies zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Enhance client satisfaction Annual client satisfaction index (CSAT) - xx xx xx - - xx xx - - - Q2
Strengthen brand position Annual brand awareness / position index (Gallup Survey) - - TBD - - - - - - TBD Q4
Execution Excellence
# of units with expenses within budgets - - xx xx xx xx xx xx xx - xx xx Quarterly
Accounts receivables (DSO) xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
Leverage GDM Onsite - offshore ratio - xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% Quarterly
Leverage alliances Revenue with role of alliances (MUSD) - yy yy yy yy yy yy yy yy yy yy yy Quarterly
Improve quality & productivity % practices meeting benchmark Q & P goals - - zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Integrate business processes Annual Malcolm Baldrige internal assessment score - xxx xxx xxx - - - - xxx TBD - xxx Q3
Improve internal partnerships Annual Internal partner satisfaction index (IPSAT) - xxx xxx xxx - - - - xxx xxxx - Q3
People Development
% Employees with required competencies (PM, PA, SE) xx% xx% xx% xx% - - xx% xx% - - xx% xx% Q2, Q4
% Attrition of high performers (Annualized) x% x% x% x% x% x% x% x% x% x% x% x% Quarterly
Develop global workforce Global employees as % of employees with overseas base location - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Develop 3 tiers of leadership # Of key leadership positions with defined successors (Start Q3) - - zz% zz% - - - - zz% zz% zz% zz% Quarterly
Strengthen performance ethic Annual employee Satisfaction with High Performance Work Ethic - - zz% zz% - - zz% zz% - - - Q2
Improve workforce motivation Annual Employee satisfaction index (ESAT) zz% - zz% zz% - - zz% zz% - - - Q2
Corporate Citizenship Contribution to Infosys foundation (MUSD) zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Frequency
Note: TBD = To be decided, Blue text = Annual Indicators, Green = Target met / exceeded, Yellow: Within tolerance, Red: Target not achieved
FY 03
Increase revenue productivity
Achieve revenue growth
FY 04
Control operational costs
Develop & retain competencies
Business Objectives Infosys Performance Measures
Target Actual Annual
Target
Annual
Actuals
Q1
Target
Q1
Actuals
Q2
Target
Q2
Actuals
Q3
Target
Q3
Actuals
Q4
Target
Q4
Actuals
Financial Performance
Revenue (MUSD) - Infosys standalone xxx.xx xxx.xx xxx.xx xxxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
% Forecast accuracy - - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Sustain profitability % Net profit - Infosys standalone zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Onsite revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Offshore revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Client / Market Focus
Grow key / global accounts % Increase in revenue from key / global accounts (QOQ) - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Differentiate solution sets # Of solution sets developed (Cumulative starting Q2) - - xx xx - - xx xx xx xx xx xx Quarterly
Deliver end-to-end services # Of clients using > 3 services above threshold $ yy yy yy yy yy yy yy yy yy yy yy yy Quarterly
Broaden geographical footprint % Revenue from non-North American geographies zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Enhance client satisfaction Annual client satisfaction index (CSAT) - xx xx xx - - xx xx - - - Q2
Strengthen brand position Annual brand awareness / position index (Gallup Survey) - - TBD - - - - - - TBD Q4
Execution Excellence
# of units with expenses within budgets - - xx xx xx xx xx xx xx - xx xx Quarterly
Accounts receivables (DSO) xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
Leverage GDM Onsite - offshore ratio - xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% Quarterly
Leverage alliances Revenue with role of alliances (MUSD) - yy yy yy yy yy yy yy yy yy yy yy Quarterly
Improve quality & productivity % practices meeting benchmark Q & P goals - - zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Integrate business processes Annual Malcolm Baldrige internal assessment score - xxx xxx xxx - - - - xxx TBD - xxx Q3
Improve internal partnerships Annual Internal partner satisfaction index (IPSAT) - xxx xxx xxx - - - - xxx xxxx - Q3
People Development
% Employees with required competencies (PM, PA, SE) xx% xx% xx% xx% - - xx% xx% - - xx% xx% Q2, Q4
% Attrition of high performers (Annualized) x% x% x% x% x% x% x% x% x% x% x% x% Quarterly
Develop global workforce Global employees as % of employees with overseas base location - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Develop 3 tiers of leadership # Of key leadership positions with defined successors (Start Q3) - - zz% zz% - - - - zz% zz% zz% zz% Quarterly
Strengthen performance ethic Annual employee Satisfaction with High Performance Work Ethic - - zz% zz% - - zz% zz% - - - Q2
Improve workforce motivation Annual Employee satisfaction index (ESAT) zz% - zz% zz% - - zz% zz% - - - Q2
Corporate Citizenship Contribution to Infosys foundation (MUSD) zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Frequency
Note: TBD = To be decided, Blue text = Annual Indicators, Green = Target met / exceeded, Yellow: Within tolerance, Red: Target not achieved
FY 03
Increase revenue productivity
Achieve revenue growth
FY 04
Control operational costs
Develop & retain competencies
Business Objectives Infosys Performance Measures
Target Actual Annual
Target
Annual
Actuals
Q1
Target
Q1
Actuals
Q2
Target
Q2
Actuals
Q3
Target
Q3
Actuals
Q4
Target
Q4
Actuals
Financial Performance
Revenue (MUSD) - Infosys standalone xxx.xx xxx.xx xxx.xx xxxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
% Forecast accuracy - - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Sustain profitability % Net profit - Infosys standalone zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Onsite revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Offshore revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Client / Market Focus
Grow key / global accounts % Increase in revenue from key / global accounts (QOQ) - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Differentiate solution sets # Of solution sets developed (Cumulative starting Q2) - - xx xx - - xx xx xx xx xx xx Quarterly
Deliver end-to-end services # Of clients using > 3 services above threshold $ yy yy yy yy yy yy yy yy yy yy yy yy Quarterly
Broaden geographical footprint % Revenue from non-North American geographies zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Enhance client satisfaction Annual client satisfaction index (CSAT) - xx xx xx - - xx xx - - - Q2
Strengthen brand position Annual brand awareness / position index (Gallup Survey) - - TBD - - - - - - TBD Q4
Execution Excellence
# of units with expenses within budgets - - xx xx xx xx xx xx xx - xx xx Quarterly
Accounts receivables (DSO) xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
Leverage GDM Onsite - offshore ratio - xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% Quarterly
Leverage alliances Revenue with role of alliances (MUSD) - yy yy yy yy yy yy yy yy yy yy yy Quarterly
Improve quality & productivity % practices meeting benchmark Q & P goals - - zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Integrate business processes Annual Malcolm Baldrige internal assessment score - xxx xxx xxx - - - - xxx TBD - xxx Q3
Improve internal partnerships Annual Internal partner satisfaction index (IPSAT) - xxx xxx xxx - - - - xxx xxxx - Q3
People Development
% Employees with required competencies (PM, PA, SE) xx% xx% xx% xx% - - xx% xx% - - xx% xx% Q2, Q4
% Attrition of high performers (Annualized) x% x% x% x% x% x% x% x% x% x% x% x% Quarterly
Develop global workforce Global employees as % of employees with overseas base location - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Develop 3 tiers of leadership # Of key leadership positions with defined successors (Start Q3) - - zz% zz% - - - - zz% zz% zz% zz% Quarterly
Strengthen performance ethic Annual employee Satisfaction with High Performance Work Ethic - - zz% zz% - - zz% zz% - - - Q2
Improve workforce motivation Annual Employee satisfaction index (ESAT) zz% - zz% zz% - - zz% zz% - - - Q2
Corporate Citizenship Contribution to Infosys foundation (MUSD) zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Frequency
Note: TBD = To be decided, Blue text = Annual Indicators, Green = Target met / exceeded, Yellow: Within tolerance, Red: Target not achieved
FY 03
Increase revenue productivity
Achieve revenue growth
FY 04
Control operational costs
Develop & retain competencies
Business Objectives Infosys Performance Measures
Target Actual Annual
Target
Annual
Actuals
Q1
Target
Q1
Actuals
Q2
Target
Q2
Actuals
Q3
Target
Q3
Actuals
Q4
Target
Q4
Actuals
Financial Performance
Revenue (MUSD) - Infosys standalone xxx.xx xxx.xx xxx.xx xxxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
% Forecast accuracy - - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Sustain profitability % Net profit - Infosys standalone zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Onsite revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Offshore revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Client / Market Focus
Grow key / global accounts % Increase in revenue from key / global accounts (QOQ) - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Differentiate solution sets # Of solution sets developed (Cumulative starting Q2) - - xx xx - - xx xx xx xx xx xx Quarterly
Deliver end-to-end services # Of clients using > 3 services above threshold $ yy yy yy yy yy yy yy yy yy yy yy yy Quarterly
Broaden geographical footprint % Revenue from non-North American geographies zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Enhance client satisfaction Annual client satisfaction index (CSAT) - xx xx xx - - xx xx - - - Q2
Strengthen brand position Annual brand awareness / position index (Gallup Survey) - - TBD - - - - - - TBD Q4
Execution Excellence
# of units with expenses within budgets - - xx xx xx xx xx xx xx - xx xx Quarterly
Accounts receivables (DSO) xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
Leverage GDM Onsite - offshore ratio - xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% Quarterly
Leverage alliances Revenue with role of alliances (MUSD) - yy yy yy yy yy yy yy yy yy yy yy Quarterly
Improve quality & productivity % practices meeting benchmark Q & P goals - - zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Integrate business processes Annual Malcolm Baldrige internal assessment score - xxx xxx xxx - - - - xxx TBD - xxx Q3
Improve internal partnerships Annual Internal partner satisfaction index (IPSAT) - xxx xxx xxx - - - - xxx xxxx - Q3
People Development
% Employees with required competencies (PM, PA, SE) xx% xx% xx% xx% - - xx% xx% - - xx% xx% Q2, Q4
% Attrition of high performers (Annualized) x% x% x% x% x% x% x% x% x% x% x% x% Quarterly
Develop global workforce Global employees as % of employees with overseas base location - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Develop 3 tiers of leadership # Of key leadership positions with defined successors (Start Q3) - - zz% zz% - - - - zz% zz% zz% zz% Quarterly
Strengthen performance ethic Annual employee Satisfaction with High Performance Work Ethic - - zz% zz% - - zz% zz% - - - Q2
Improve workforce motivation Annual Employee satisfaction index (ESAT) zz% - zz% zz% - - zz% zz% - - - Q2
Corporate Citizenship Contribution to Infosys foundation (MUSD) zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Frequency
Note: TBD = To be decided, Blue text = Annual Indicators, Green = Target met / exceeded, Yellow: Within tolerance, Red: Target not achieved
FY 03
Increase revenue productivity
Achieve revenue growth
FY 04
Control operational costs
Develop & retain competencies
Business Objectives Infosys Performance Measures
Target Actual Annual
Target
Annual
Actuals
Q1
Target
Q1
Actuals
Q2
Target
Q2
Actuals
Q3
Target
Q3
Actuals
Q4
Target
Q4
Actuals
Financial Performance
Revenue (MUSD) - Infosys standalone xxx.xx xxx.xx xxx.xx xxxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
% Forecast accuracy - - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Sustain profitability % Net profit - Infosys standalone zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Onsite revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Offshore revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Client / Market Focus
Grow key / global accounts % Increase in revenue from key / global accounts (QOQ) - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Differentiate solution sets # Of solution sets developed (Cumulative starting Q2) - - xx xx - - xx xx xx xx xx xx Quarterly
Deliver end-to-end services # Of clients using > 3 services above threshold $ yy yy yy yy yy yy yy yy yy yy yy yy Quarterly
Broaden geographical footprint % Revenue from non-North American geographies zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Enhance client satisfaction Annual client satisfaction index (CSAT) - xx xx xx - - xx xx - - - Q2
Strengthen brand position Annual brand awareness / position index (Gallup Survey) - - TBD - - - - - - TBD Q4
Execution Excellence
# of units with expenses within budgets - - xx xx xx xx xx xx xx - xx xx Quarterly
Accounts receivables (DSO) xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
Leverage GDM Onsite - offshore ratio - xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% Quarterly
Leverage alliances Revenue with role of alliances (MUSD) - yy yy yy yy yy yy yy yy yy yy yy Quarterly
Improve quality & productivity % practices meeting benchmark Q & P goals - - zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Integrate business processes Annual Malcolm Baldrige internal assessment score - xxx xxx xxx - - - - xxx TBD - xxx Q3
Improve internal partnerships Annual Internal partner satisfaction index (IPSAT) - xxx xxx xxx - - - - xxx xxxx - Q3
People Development
% Employees with required competencies (PM, PA, SE) xx% xx% xx% xx% - - xx% xx% - - xx% xx% Q2, Q4
% Attrition of high performers (Annualized) x% x% x% x% x% x% x% x% x% x% x% x% Quarterly
Develop global workforce Global employees as % of employees with overseas base location - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Develop 3 tiers of leadership # Of key leadership positions with defined successors (Start Q3) - - zz% zz% - - - - zz% zz% zz% zz% Quarterly
Strengthen performance ethic Annual employee Satisfaction with High Performance Work Ethic - - zz% zz% - - zz% zz% - - - Q2
Improve workforce motivation Annual Employee satisfaction index (ESAT) zz% - zz% zz% - - zz% zz% - - - Q2
Corporate Citizenship Contribution to Infosys foundation (MUSD) zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Frequency
Note: TBD = To be decided, Blue text = Annual Indicators, Green = Target met / exceeded, Yellow: Within tolerance, Red: Target not achieved
FY 03
Increase revenue productivity
Achieve revenue growth
FY 04
Control operational costs
Develop & retain competencies
Business Objectives Infosys Performance Measures
Target Actual Annual
Target
Annual
Actuals
Q1
Target
Q1
Actuals
Q2
Target
Q2
Actuals
Q3
Target
Q3
Actuals
Q4
Target
Q4
Actuals
Financial Performance
Revenue (MUSD) - Infosys standalone xxx.xx xxx.xx xxx.xx xxxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
% Forecast accuracy - - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Sustain profitability % Net profit - Infosys standalone zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Onsite revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Offshore revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Client / Market Focus
Grow key / global accounts % Increase in revenue from key / global accounts (QOQ) - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Differentiate solution sets # Of solution sets developed (Cumulative starting Q2) - - xx xx - - xx xx xx xx xx xx Quarterly
Deliver end-to-end services # Of clients using > 3 services above threshold $ yy yy yy yy yy yy yy yy yy yy yy yy Quarterly
Broaden geographical footprint % Revenue from non-North American geographies zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Enhance client satisfaction Annual client satisfaction index (CSAT) - xx xx xx - - xx xx - - - Q2
Strengthen brand position Annual brand awareness / position index (Gallup Survey) - - TBD - - - - - - TBD Q4
Execution Excellence
# of units with expenses within budgets - - xx xx xx xx xx xx xx - xx xx Quarterly
Accounts receivables (DSO) xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
Leverage GDM Onsite - offshore ratio - xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% Quarterly
Leverage alliances Revenue with role of alliances (MUSD) - yy yy yy yy yy yy yy yy yy yy yy Quarterly
Improve quality & productivity % practices meeting benchmark Q & P goals - - zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Integrate business processes Annual Malcolm Baldrige internal assessment score - xxx xxx xxx - - - - xxx TBD - xxx Q3
Improve internal partnerships Annual Internal partner satisfaction index (IPSAT) - xxx xxx xxx - - - - xxx xxxx - Q3
People Development
% Employees with required competencies (PM, PA, SE) xx% xx% xx% xx% - - xx% xx% - - xx% xx% Q2, Q4
% Attrition of high performers (Annualized) x% x% x% x% x% x% x% x% x% x% x% x% Quarterly
Develop global workforce Global employees as % of employees with overseas base location - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Develop 3 tiers of leadership # Of key leadership positions with defined successors (Start Q3) - - zz% zz% - - - - zz% zz% zz% zz% Quarterly
Strengthen performance ethic Annual employee Satisfaction with High Performance Work Ethic - - zz% zz% - - zz% zz% - - - Q2
Improve workforce motivation Annual Employee satisfaction index (ESAT) zz% - zz% zz% - - zz% zz% - - - Q2
Corporate Citizenship Contribution to Infosys foundation (MUSD) zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Frequency
Note: TBD = To be decided, Blue text = Annual Indicators, Green = Target met / exceeded, Yellow: Within tolerance, Red: Target not achieved
FY 03
Increase revenue productivity
Achieve revenue growth
FY 04
Control operational costs
Develop & retain competencies
Business Objectives Infosys Performance Measures
Target Actual Annual
Target
Annual
Actuals
Q1
Target
Q1
Actuals
Q2
Target
Q2
Actuals
Q3
Target
Q3
Actuals
Q4
Target
Q4
Actuals
Financial Performance
Revenue (MUSD) - Infosys standalone xxx.xx xxx.xx xxx.xx xxxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
% Forecast accuracy - - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Sustain profitability % Net profit - Infosys standalone zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Onsite revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Offshore revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Client / Market Focus
Grow key / global accounts % Increase in revenue from key / global accounts (QOQ) - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Differentiate solution sets # Of solution sets developed (Cumulative starting Q2) - - xx xx - - xx xx xx xx xx xx Quarterly
Deliver end-to-end services # Of clients using > 3 services above threshold $ yy yy yy yy yy yy yy yy yy yy yy yy Quarterly
Broaden geographical footprint % Revenue from non-North American geographies zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Enhance client satisfaction Annual client satisfaction index (CSAT) - xx xx xx - - xx xx - - - Q2
Strengthen brand position Annual brand awareness / position index (Gallup Survey) - - TBD - - - - - - TBD Q4
Execution Excellence
# of units with expenses within budgets - - xx xx xx xx xx xx xx - xx xx Quarterly
Accounts receivables (DSO) xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
Leverage GDM Onsite - offshore ratio - xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% Quarterly
Leverage alliances Revenue with role of alliances (MUSD) - yy yy yy yy yy yy yy yy yy yy yy Quarterly
Improve quality & productivity % practices meeting benchmark Q & P goals - - zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Integrate business processes Annual Malcolm Baldrige internal assessment score - xxx xxx xxx - - - - xxx TBD - xxx Q3
Improve internal partnerships Annual Internal partner satisfaction index (IPSAT) - xxx xxx xxx - - - - xxx xxxx - Q3
People Development
% Employees with required competencies (PM, PA, SE) xx% xx% xx% xx% - - xx% xx% - - xx% xx% Q2, Q4
% Attrition of high performers (Annualized) x% x% x% x% x% x% x% x% x% x% x% x% Quarterly
Develop global workforce Global employees as % of employees with overseas base location - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Develop 3 tiers of leadership # Of key leadership positions with defined successors (Start Q3) - - zz% zz% - - - - zz% zz% zz% zz% Quarterly
Strengthen performance ethic Annual employee Satisfaction with High Performance Work Ethic - - zz% zz% - - zz% zz% - - - Q2
Improve workforce motivation Annual Employee satisfaction index (ESAT) zz% - zz% zz% - - zz% zz% - - - Q2
Corporate Citizenship Contribution to Infosys foundation (MUSD) zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Frequency
Note: TBD = To be decided, Blue text = Annual Indicators, Green = Target met / exceeded, Yellow: Within tolerance, Red: Target not achieved
FY 03
Increase revenue productivity
Achieve revenue growth
FY 04
Control operational costs
Develop & retain competencies
Business Objectives Infosys Performance Measures
Target Actual Annual
Target
Annual
Actuals
Q1
Target
Q1
Actuals
Q2
Target
Q2
Actuals
Q3
Target
Q3
Actuals
Q4
Target
Q4
Actuals
Financial Performance
Revenue (MUSD) - Infosys standalone xxx.xx xxx.xx xxx.xx xxxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
% Forecast accuracy - - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Sustain profitability % Net profit - Infosys standalone zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Onsite revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Offshore revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Client / Market Focus
Grow key / global accounts % Increase in revenue from key / global accounts (QOQ) - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Differentiate solution sets # Of solution sets developed (Cumulative starting Q2) - - xx xx - - xx xx xx xx xx xx Quarterly
Deliver end-to-end services # Of clients using > 3 services above threshold $ yy yy yy yy yy yy yy yy yy yy yy yy Quarterly
Broaden geographical footprint % Revenue from non-North American geographies zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Enhance client satisfaction Annual client satisfaction index (CSAT) - xx xx xx - - xx xx - - - Q2
Strengthen brand position Annual brand awareness / position index (Gallup Survey) - - TBD - - - - - - TBD Q4
Execution Excellence
# of units with expenses within budgets - - xx xx xx xx xx xx xx - xx xx Quarterly
Accounts receivables (DSO) xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
Leverage GDM Onsite - offshore ratio - xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% Quarterly
Leverage alliances Revenue with role of alliances (MUSD) - yy yy yy yy yy yy yy yy yy yy yy Quarterly
Improve quality & productivity % practices meeting benchmark Q & P goals - - zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Integrate business processes Annual Malcolm Baldrige internal assessment score - xxx xxx xxx - - - - xxx TBD - xxx Q3
Improve internal partnerships Annual Internal partner satisfaction index (IPSAT) - xxx xxx xxx - - - - xxx xxxx - Q3
People Development
% Employees with required competencies (PM, PA, SE) xx% xx% xx% xx% - - xx% xx% - - xx% xx% Q2, Q4
% Attrition of high performers (Annualized) x% x% x% x% x% x% x% x% x% x% x% x% Quarterly
Develop global workforce Global employees as % of employees with overseas base location - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Develop 3 tiers of leadership # Of key leadership positions with defined successors (Start Q3) - - zz% zz% - - - - zz% zz% zz% zz% Quarterly
Strengthen performance ethic Annual employee Satisfaction with High Performance Work Ethic - - zz% zz% - - zz% zz% - - - Q2
Improve workforce motivation Annual Employee satisfaction index (ESAT) zz% - zz% zz% - - zz% zz% - - - Q2
Corporate Citizenship Contribution to Infosys foundation (MUSD) zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Frequency
Note: TBD = To be decided, Blue text = Annual Indicators, Green = Target met / exceeded, Yellow: Within tolerance, Red: Target not achieved
FY 03
Increase revenue productivity
Achieve revenue growth
FY 04
Control operational costs
Develop & retain competencies
Business Objectives Infosys Performance Measures
Target Actual Annual
Target
Annual
Actuals
Q1
Target
Q1
Actuals
Q2
Target
Q2
Actuals
Q3
Target
Q3
Actuals
Q4
Target
Q4
Actuals
Financial Performance
Revenue (MUSD) - Infosys standalone xxx.xx xxx.xx xxx.xx xxxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
% Forecast accuracy - - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Sustain profitability % Net profit - Infosys standalone zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Onsite revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Offshore revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Client / Market Focus
Grow key / global accounts % Increase in revenue from key / global accounts (QOQ) - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Differentiate solution sets # Of solution sets developed (Cumulative starting Q2) - - xx xx - - xx xx xx xx xx xx Quarterly
Deliver end-to-end services # Of clients using > 3 services above threshold $ yy yy yy yy yy yy yy yy yy yy yy yy Quarterly
Broaden geographical footprint % Revenue from non-North American geographies zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Enhance client satisfaction Annual client satisfaction index (CSAT) - xx xx xx - - xx xx - - - Q2
Strengthen brand position Annual brand awareness / position index (Gallup Survey) - - TBD - - - - - - TBD Q4
Execution Excellence
# of units with expenses within budgets - - xx xx xx xx xx xx xx - xx xx Quarterly
Accounts receivables (DSO) xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
Leverage GDM Onsite - offshore ratio - xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% Quarterly
Leverage alliances Revenue with role of alliances (MUSD) - yy yy yy yy yy yy yy yy yy yy yy Quarterly
Improve quality & productivity % practices meeting benchmark Q & P goals - - zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Integrate business processes Annual Malcolm Baldrige internal assessment score - xxx xxx xxx - - - - xxx TBD - xxx Q3
Improve internal partnerships Annual Internal partner satisfaction index (IPSAT) - xxx xxx xxx - - - - xxx xxxx - Q3
People Development
% Employees with required competencies (PM, PA, SE) xx% xx% xx% xx% - - xx% xx% - - xx% xx% Q2, Q4
% Attrition of high performers (Annualized) x% x% x% x% x% x% x% x% x% x% x% x% Quarterly
Develop global workforce Global employees as % of employees with overseas base location - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Develop 3 tiers of leadership # Of key leadership positions with defined successors (Start Q3) - - zz% zz% - - - - zz% zz% zz% zz% Quarterly
Strengthen performance ethic Annual employee Satisfaction with High Performance Work Ethic - - zz% zz% - - zz% zz% - - - Q2
Improve workforce motivation Annual Employee satisfaction index (ESAT) zz% - zz% zz% - - zz% zz% - - - Q2
Corporate Citizenship Contribution to Infosys foundation (MUSD) zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Frequency
Note: TBD = To be decided, Blue text = Annual Indicators, Green = Target met / exceeded, Yellow: Within tolerance, Red: Target not achieved
FY 03
Increase revenue productivity
Achieve revenue growth
FY 04
Control operational costs
Develop & retain competencies
Business Objectives Infosys Performance Measures
Target Actual Annual
Target
Annual
Actuals
Q1
Target
Q1
Actuals
Q2
Target
Q2
Actuals
Q3
Target
Q3
Actuals
Q4
Target
Q4
Actuals
Financial Performance
Revenue (MUSD) - Infosys standalone xxx.xx xxx.xx xxx.xx xxxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
% Forecast accuracy - - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Sustain profitability % Net profit - Infosys standalone zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Onsite revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Offshore revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Client / Market Focus
Grow key / global accounts % Increase in revenue from key / global accounts (QOQ) - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Differentiate solution sets # Of solution sets developed (Cumulative starting Q2) - - xx xx - - xx xx xx xx xx xx Quarterly
Deliver end-to-end services # Of clients using > 3 services above threshold $ yy yy yy yy yy yy yy yy yy yy yy yy Quarterly
Broaden geographical footprint % Revenue from non-North American geographies zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Enhance client satisfaction Annual client satisfaction index (CSAT) - xx xx xx - - xx xx - - - Q2
Strengthen brand position Annual brand awareness / position index (Gallup Survey) - - TBD - - - - - - TBD Q4
Execution Excellence
# of units with expenses within budgets - - xx xx xx xx xx xx xx - xx xx Quarterly
Accounts receivables (DSO) xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
Leverage GDM Onsite - offshore ratio - xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% Quarterly
Leverage alliances Revenue with role of alliances (MUSD) - yy yy yy yy yy yy yy yy yy yy yy Quarterly
Improve quality & productivity % practices meeting benchmark Q & P goals - - zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Integrate business processes Annual Malcolm Baldrige internal assessment score - xxx xxx xxx - - - - xxx TBD - xxx Q3
Improve internal partnerships Annual Internal partner satisfaction index (IPSAT) - xxx xxx xxx - - - - xxx xxxx - Q3
People Development
% Employees with required competencies (PM, PA, SE) xx% xx% xx% xx% - - xx% xx% - - xx% xx% Q2, Q4
% Attrition of high performers (Annualized) x% x% x% x% x% x% x% x% x% x% x% x% Quarterly
Develop global workforce Global employees as % of employees with overseas base location - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Develop 3 tiers of leadership # Of key leadership positions with defined successors (Start Q3) - - zz% zz% - - - - zz% zz% zz% zz% Quarterly
Strengthen performance ethic Annual employee Satisfaction with High Performance Work Ethic - - zz% zz% - - zz% zz% - - - Q2
Improve workforce motivation Annual Employee satisfaction index (ESAT) zz% - zz% zz% - - zz% zz% - - - Q2
Corporate Citizenship Contribution to Infosys foundation (MUSD) zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Frequency
Note: TBD = To be decided, Blue text = Annual Indicators, Green = Target met / exceeded, Yellow: Within tolerance, Red: Target not achieved
FY 03
Increase revenue productivity
Achieve revenue growth
FY 04
Control operational costs
Develop & retain competencies
Business Objectives Infosys Performance Measures
Target Actual Annual
Target
Annual
Actuals
Q1
Target
Q1
Actuals
Q2
Target
Q2
Actuals
Q3
Target
Q3
Actuals
Q4
Target
Q4
Actuals
Financial Performance
Revenue (MUSD) - Infosys standalone xxx.xx xxx.xx xxx.xx xxxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
% Forecast accuracy - - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Sustain profitability % Net profit - Infosys standalone zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Onsite revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Offshore revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Client / Market Focus
Grow key / global accounts % Increase in revenue from key / global accounts (QOQ) - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Differentiate solution sets # Of solution sets developed (Cumulative starting Q2) - - xx xx - - xx xx xx xx xx xx Quarterly
Deliver end-to-end services # Of clients using > 3 services above threshold $ yy yy yy yy yy yy yy yy yy yy yy yy Quarterly
Broaden geographical footprint % Revenue from non-North American geographies zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Enhance client satisfaction Annual client satisfaction index (CSAT) - xx xx xx - - xx xx - - - Q2
Strengthen brand position Annual brand awareness / position index (Gallup Survey) - - TBD - - - - - - TBD Q4
Execution Excellence
# of units with expenses within budgets - - xx xx xx xx xx xx xx - xx xx Quarterly
Accounts receivables (DSO) xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
Leverage GDM Onsite - offshore ratio - xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% Quarterly
Leverage alliances Revenue with role of alliances (MUSD) - yy yy yy yy yy yy yy yy yy yy yy Quarterly
Improve quality & productivity % practices meeting benchmark Q & P goals - - zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Integrate business processes Annual Malcolm Baldrige internal assessment score - xxx xxx xxx - - - - xxx TBD - xxx Q3
Improve internal partnerships Annual Internal partner satisfaction index (IPSAT) - xxx xxx xxx - - - - xxx xxxx - Q3
People Development
% Employees with required competencies (PM, PA, SE) xx% xx% xx% xx% - - xx% xx% - - xx% xx% Q2, Q4
% Attrition of high performers (Annualized) x% x% x% x% x% x% x% x% x% x% x% x% Quarterly
Develop global workforce Global employees as % of employees with overseas base location - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Develop 3 tiers of leadership # Of key leadership positions with defined successors (Start Q3) - - zz% zz% - - - - zz% zz% zz% zz% Quarterly
Strengthen performance ethic Annual employee Satisfaction with High Performance Work Ethic - - zz% zz% - - zz% zz% - - - Q2
Improve workforce motivation Annual Employee satisfaction index (ESAT) zz% - zz% zz% - - zz% zz% - - - Q2
Corporate Citizenship Contribution to Infosys foundation (MUSD) zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Frequency
Note: TBD = To be decided, Blue text = Annual Indicators, Green = Target met / exceeded, Yellow: Within tolerance, Red: Target not achieved
FY 03
Increase revenue productivity
Achieve revenue growth
FY 04
Control operational costs
Develop & retain competencies
Business Objectives Infosys Performance Measures
Target Actual Annual
Target
Annual
Actuals
Q1
Target
Q1
Actuals
Q2
Target
Q2
Actuals
Q3
Target
Q3
Actuals
Q4
Target
Q4
Actuals
Financial Performance
Revenue (MUSD) - Infosys standalone xxx.xx xxx.xx xxx.xx xxxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
% Forecast accuracy - - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Sustain profitability % Net profit - Infosys standalone zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Onsite revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Offshore revenue productivity (Billed) - xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Quarterly
Client / Market Focus
Grow key / global accounts % Increase in revenue from key / global accounts (QOQ) - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Differentiate solution sets # Of solution sets developed (Cumulative starting Q2) - - xx xx - - xx xx xx xx xx xx Quarterly
Deliver end-to-end services # Of clients using > 3 services above threshold $ yy yy yy yy yy yy yy yy yy yy yy yy Quarterly
Broaden geographical footprint % Revenue from non-North American geographies zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Enhance client satisfaction Annual client satisfaction index (CSAT) - xx xx xx - - xx xx - - - Q2
Strengthen brand position Annual brand awareness / position index (Gallup Survey) - - TBD - - - - - - TBD Q4
Execution Excellence
# of units with expenses within budgets - - xx xx xx xx xx xx xx - xx xx Quarterly
Accounts receivables (DSO) xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx Quarterly
Leverage GDM Onsite - offshore ratio - xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% Quarterly
Leverage alliances Revenue with role of alliances (MUSD) - yy yy yy yy yy yy yy yy yy yy yy Quarterly
Improve quality & productivity % practices meeting benchmark Q & P goals - - zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Integrate business processes Annual Malcolm Baldrige internal assessment score - xxx xxx xxx - - - - xxx TBD - xxx Q3
Improve internal partnerships Annual Internal partner satisfaction index (IPSAT) - xxx xxx xxx - - - - xxx xxxx - Q3
People Development
% Employees with required competencies (PM, PA, SE) xx% xx% xx% xx% - - xx% xx% - - xx% xx% Q2, Q4
% Attrition of high performers (Annualized) x% x% x% x% x% x% x% x% x% x% x% x% Quarterly
Develop global workforce Global employees as % of employees with overseas base location - yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% yy% Quarterly
Develop 3 tiers of leadership # Of key leadership positions with defined successors (Start Q3) - - zz% zz% - - - - zz% zz% zz% zz% Quarterly
Strengthen performance ethic Annual employee Satisfaction with High Performance Work Ethic - - zz% zz% - - zz% zz% - - - Q2
Improve workforce motivation Annual Employee satisfaction index (ESAT) zz% - zz% zz% - - zz% zz% - - - Q2
Corporate Citizenship Contribution to Infosys foundation (MUSD) zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% zz% Quarterly
Frequency
Note: TBD = To be decided, Blue text = Annual Indicators, Green = Target met / exceeded, Yellow: Within tolerance, Red: Target not achieved
FY 03
Increase revenue productivity
Achieve revenue growth
FY 04
Control operational costs
Develop & retain competencies
Business Objectives Infosys Performance Measures
Infosys Scorecard
CEO Scorecard CFO Scorecard COO Scorecard
Only Illustrative
45Copyright © Robert S. Kaplan, 2016
Infosys Also Creates a Relationship Scorecard with its Key
Clients
46Copyright © Robert S. Kaplan, 2016
Stage 5 of the Management System: Monitor and Learn
Process
Initiative
EXECUTION
1
3
5
6
2
• Key process improvement
• Sales planning• Resource capacity plan• Budgeting
PLAN OPERATIONS4
• Business Units• Support Units• Employees
ALIGN THE ORGANIZATION
• Strategy
Reviews
• Operating
Reviews
MONITOR & LEARN
• Profitability Analysis
• Strategy Correlations
• Emerging Strategies
TEST & ADAPT
• Strategy Map / Themes• Measures / Targets• Initiative Portfolios• Funding / Stratex
TRANSLATE THE STRATEGY
• Mission, Values, Vision • Strategic Analysis• Strategy Formulation
DEVELOP THE STRATEGY
47Copyright © Robert S. Kaplan, 2016
Convene a Separate (Monthly) Strategy Review Meeting
Performance
Initiatives & Programsoutput
result
Strategy Review Loop
corrections
input
Strategy Review Meetings
• Why did we miss the target?
• What correcting actions should
we consider?
• Are initiatives on schedule?
• Do you need more resources?
• Would an multi-functional task
force help?
48Copyright © Robert S. Kaplan, 2016
• Meetings preceded by distribution of accurate and timely information
o Color-coded strategy maps
o BSC measures and trends
o Summary reports on strategic initiatives
• Managers prepare in advance; Purpose of the meeting is not to report
on listen to performance results
• One version of the truth: Do not argue about the data or the measures
• Managers not blamed for reporting problems
o “The only thing worse than bad news is bad news late.”
• Purpose of meetings is to understand problems, react to them, and
develop solutions that can be implemented rapidly
• Accountability for follow-up clearly assigned
Critical Ingredients for Effective Strategy Review
Meetings
49Copyright © Robert S. Kaplan, 2016
The world is changing
Shared value – the corporate answer
Strategy Execution Tools – Executing Shared Value
Conclusions
Table of Contents
50Copyright © Robert S. Kaplan, 2016
Building a Strategy Map and Balanced Scorecard creates
trust and understanding among the participants
• Co-creating the strategy map and scorecard creates consensus,
commitment and a common agenda among the Executive Leadership
Team of the company, public sector agency, or NGO
Consensus
Com
mitm
ent
Successful Strategy
Implementation
51Copyright © Robert S. Kaplan, 2016
Recall the closing words in Abraham Lincoln’s Gettysburg
Address (1863)
“We here highly resolve that these dead shall not have died in vain… and that government
of the people, by the people, for the people
shall not perish from the earth.”
Amanco and Novartis deliver social value for the people in the communities where they market, produce, and sell.
But what about introducing value created by the people or of the people?
52Copyright © Robert S. Kaplan, 2016
The Future for Shared Value
• The multiple players in a shared strategy must concur on both the
vision and the plan to execute a shared-value strategy
successfully
• Bringing a company and its multiple community and
environmental stakeholders (local governments and NGOs)
together to co-create a strategy map and scorecard …
• will create consensus and commitment as well as accountability
and a governance structure … for a long-term, sustainable,
shared-value strategy.
© Palladium 2015
CONTACT:
Joan Cabezas
Asia-Pacific Regional Director, Strategy Execution
Ratu Plaza Office Tower 19th Floor,
Jl. Jend. Sudirman Kav 9, Jakarta Pusat, 10270
Indonesia
M+ 62 812 917 595 70
Skype Joan.Cabezas-palladium
Ratu Plaza Office Tower 19th Floor,
Jl. Jend. Sudirman Kav 9,
Jakarta Pusat, 10270, Indonesia.