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HomeMy WebLinkAboutStrategic Elements presentation5/30/2013 1 ©1997-2013Balanced Scorecard Institute, a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 1 Balanced Scorecard Strategic Balanced Scorecard Strategic Elements WorkshopElements Workshop May 31, May 31, 20132013 Facilitator: Facilitator: Gail Gail PerryPerry AgendaApprox.TimeOutcome High Level Agenda & Desired OutcomesHigh Level Agenda & Desired Outcomes •Assessment & Strategy Elements Validation or Creation: –Mission, Vision, & Values –Organizational Pains & Enablers –Customer & Stakeholder –Scorecard Perspectives –Customer Needs ©1997-2013Balanced Scorecard Institute, a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 2 Understand the overall BSC process, your role, and what will happen today and going forward. Understand how the current plan elements fit into a best practices balanced scorecard and validate/create any missing elements. Agree on Westlake’s high level strategy. Understand how this process will be completed. •Overview of the Balanced Scorecard Strategic Management System •Discuss Next Steps •Strategy Elements Creation: –Customer Value Proposition –Strategic Themes –Strategic Results 1 Hour 2 Hours 2 Hours 15 Min 5/30/2013 2 IntroductionsIntroductions About You: •Name •Your Title or Role •Balanced scorecard experience (if any) •Your expected benefits of improved strategy management ©1997-2013Balanced Scorecard Institute, a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 3 www. balancedscorecard.orgwww. balancedscorecard.org ©1997-2012 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 4 ••Vice President Strategic Solutions, Balanced Scorecard Vice President Strategic Solutions, Balanced Scorecard InstituteInstitute ••20 years experience in management consulting at 20 years experience in management consulting at Accenture and other firms, focused on strategic Accenture and other firms, focused on strategic performance improvement in the Aerospace & Defense, performance improvement in the Aerospace & Defense, Transportation, Manufacturing, Government and NonTransportation, Manufacturing, Government and Non-- Profit sectors in North America and Africa. Profit sectors in North America and Africa. ••Client experience includes: Client experience includes: City of Edmonton, U.SCity of Edmonton, U.S. Office . Office of Secretary of Defense, Fluor Corporation , ADP, DFAS, of Secretary of Defense, Fluor Corporation , ADP, DFAS, BrightPointBrightPoint, Mary Kay Inc., Northwest Fire District, , Mary Kay Inc., Northwest Fire District, Government of Botswana, United Nations Development Government of Botswana, United Nations Development Program, U.S. Army Medical Command, U.S. Air Force, US Program, U.S. Army Medical Command, U.S. Air Force, US Marine Corps, and Susan G. Marine Corps, and Susan G. KomenKomenfor the Cure.for the Cure. ••BS Industrial Engineering and MBABS Industrial Engineering and MBA Gail Perry, Gail Perry, BSMPBSMP Insert Photo About Your About Your FacilitatorFacilitator Washington, DC Office (202) 465-4253 San Jose, CA Office (408) 549-1267 Headquarters Cary, North Carolina (919) 460-8180 5/30/2013 3 5 Balanced Scorecard Institute Clients Federal Government •Federal Ministry of Health (Ethiopia) •Mongolia Economic Policy Reform and Competitiveness Project (EPRC) •Republic of Botswana (Africa) •Passport Canada (Ottawa, Canada) •Farm Credit Canada •Abu Dhabi Police (U.A.E.) •National Cancer Institute-OPIRM •U.S. House of Representatives --Chief Administrative Officer •U.S. General Services Administration •U.S. Dept. of Health & Human Services •U.S. Dept. of Commerce --Foreign & Commercial Services •Oneida Indian Nation of Wisconsin •Defense Accounting and Finance Service (DFAS) •Centers for Medicare and Medicaid Services (CMS) State and Local Government •Arapahoe County (CO) •Pinellas County Sheriff’s Office (FL) •Capital Metro (Austin, TX) •City of Newark (NJ) •City of Richmond (VA) •Buncombe County (NC) •Mecklenburg County (NC) •Greenville Utilities (NC) •City of Raleigh (NC) •Wake County (NC) •Georgia Technology Authority •Cooperative Educational Service Agency #6 6 Education •Purdue University •Dalton Public Schools (GA) •Atlanta Public Schools (GA) •West Virginia University Pharmacy Department •K12/Chicago Virtual Charter Schools •Holy Family University (PA) •Bismarck Public Schools (ND) Non-Profit •EUROCONTROL (Brussels) •Kenya Red Cross •Society of Composers, Authors and Music Publishers of Canada (SOCAN) •Habitat for Humanity •LifeNetHealth •Susan G. Komenfor the Cure •Institute of Nuclear Power Operations •American Public Gas Association •United Nations •National Marrow Donor Program •American Speech-Language & Hearing Association •Community Action Partnership (Madera, CA) •CommunityAction Partnership (San Bernardino, CA) •Jacksonville Regional Chamber of Commerce (FL) •Northwest Fire District (AZ) •Organization of American States •Spectrum Partners •Network180 •Five Acres Business, continued •Amiri Flight (U.A.E.) •Croatian Telecomm (Croatia) •LUKOIL (Russia) •KenGen(Kenya) •Placer Dome Mine •International Bank of Moscow (Russia) •Tolko Industries Ltd. (Canada) •Ukpeaāvik Iñupiat Corporation •Cisco Systems •Veolia Water North America •ECC Corporation •Hamamatsu Photonics •Constellation Energy •Blue Man Group •ESI Corporation •Simmons Foods •Aegon •IntelSat •HSA Bank •Federal Home Loan Bank •Infinity Insurance •SRVR, LLC •Centex Construction •Household Mortgage Services •MPC Products Corporation •Petroflow Corporation •Visicon Technologies •KeyLogic Systems, Inc. •Eric Mower and Associates Military •U.S. Marine Corps •U.S. Navy •U.S. Air Force •U.S. Air Force, Air Mobility Command •U.S. Army Fort Bragg •Defense Energy Support Center (DESC) •Tank Automotive Research, Development and Engineering Center (TARDEC) •Marine Corps Air Ground Combat Center (MCAGCC) Twentynine Palms •Malaysia Armed Forces Business •Brightpoint, Inc. •General Chemical Industrial Products, Inc. •LiebherrUSA •Shat-R-Shield •Mary Kay •Fluor •Aquatech •TATA Chemicals North America •Allied Blower •Constellation Energy Nuclear Group (CENG) •Airlines Reporting Corporation (ARC) •CPP, Inc •McLeod Software 5/30/2013 4 ©1997-2013Balanced Scorecard Institute, a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 7 Overview of the Balanced Overview of the Balanced Scorecard Strategic Scorecard Strategic Management System Management System Strategic Balanced Scorecard Systems Help Strategic Balanced Scorecard Systems Help Organizations Communicate “True North”Organizations Communicate “True North” 8 5/30/2013 5 What is a Balanced Scorecard?What is a Balanced Scorecard? An integrated strategic planning and integrated strategic planning and performance management system performance management system that: ••CommunicatesCommunicates with clarity an organization’s vision, mission, and strategy to employees and other stakeholders ••AlignsAligns day-to-day work to vision and strategy •Provides a frameworkframework for prioritizing programs, projects, services, products and resources •Uses strategicstrategicperformance measures performance measures and targets to measure progress ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 9 “Balanced Scorecard” Means Different “Balanced Scorecard” Means Different Things to Different PeopleThings to Different People ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 10 KPI (Key Performance Indicator) Scorecard (Kaplan & Norton 1992) “A balanced set of measures”“A balanced set of measures” Strategic Management System (K&N 1995) “Strategy focus, measurement & execution”“Strategy focus, measurement & execution” Integrated Strategic Planning & Management System (BSI 1997) “Holistically align an organization for high performance”“Holistically align an organization for high performance” 5/30/2013 6 KPI Scorecards Displayed the Organization’s KPI Scorecards Displayed the Organization’s Metrics on a DashboardMetrics on a Dashboard ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 11 FinancialCustomerInternal Learning & Growth •Earnings / Employee •Earnings / Share •Sales growth / year •Profit / sales •Cash on hand •Sales / priority customer •Return on equity •% satisfied •% repeat •New accounts added •New products added •% of key demographic •Average spend rate •Time to purchase •Quality rate •Productivity •Downtime •Bottlenecks •Time in queue •Average inventory •Hours lost to injury •Missed deadlines •Employee satisfaction •Employees trained •% cross trained •Training hours / employee •Computer currency What is this organization’s strategy? Strategic Management Systems Were Used to Strategic Management Systems Were Used to ExecuteExecute Strategy That Was Developed Strategy That Was Developed SeparatelySeparately ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 12 ObjectivesMeasuresTargetsInitiatives Financial Mission, Vision & Strategy Developed Separately or Not at All ObjectivesMeasuresTargetsInitiatives Customer ObjectivesMeasuresTargetsInitiatives Internal Business Process ObjectivesMeasuresTargetsInitiatives Learning & Growth Source: adapted from Balanced Scorecard as a Strategic Management System, Drs. Kaplan & Norton, Harvard Business Review, Jan-Feb. 1996. 5/30/2013 7 Integrated Scorecard Systems Tell a StoryIntegrated Scorecard Systems Tell a Story Simplified Strategy MapObjectivesMeasuresTargetsInitiatives Financial Customer Internal Process Learning & Growth ©1997-2012 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 13 Mission: Dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. Align Ground Crew Improve Turnaround Time Increase On- Time Flights More Customers Lower Prices Lower Costs Increase Profits Increase Revenue Vision: Continue building on our unique position --the only short haul, low-fare, high- frequency, point-to-point carrier in America. Adapted from work by Harvard University / Balanced Scorecard Collaborative •Increase Profits •Lower Costs •Increase Revenue •More Customers •Increase On-time Flights •Lower Prices •Improve Turnaround Time •Align Ground Crew •Market Value •Plane Lease Cost •Seat Revenue •# of Customers •FAA On time Arrival Rating •Customer Ranking •On Ground Time •On-Time Departure •% Ground Crew Stockholders •% Ground Crew Trained •25% per year •20% per year •5% per year •5% change •First in the industry •98% Satisfaction •<25 Minutes •93% •70% (100% by year 6) •70% •Optimize routes •Standardize planes •Quality Management •Customer Loyalty Program •Cycle time Optimization Program •Stock Ownership Plan •Ground Crew Training Why Integrated Strategic Planning & Why Integrated Strategic Planning & Management with a Balanced Scorecard? Management with a Balanced Scorecard? Strategy is Everyone’s JobStrategy is Everyone’s Job ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 14 Vision 2016: Prosperity for All 5/30/2013 8 Why Integrated Strategic Planning & Why Integrated Strategic Planning & Management with a Balanced Scorecard? Management with a Balanced Scorecard? TransparencyTransparency ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 15 Why Integrated Strategic Planning & Why Integrated Strategic Planning & Management with a Balanced Scorecard? Management with a Balanced Scorecard? Leaders Drive Organizational TransformationLeaders Drive Organizational Transformation ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 16 ••BuyBuy--inin for change through participation •Collective and individual accountabilityaccountability ••Measure only what mattersMeasure only what matters •Focus on the right initiatives right initiatives and projects and choose the right products and services ••Process improvements guided by Process improvements guided by strategystrategy ••Employees focusEmployees focus on results ••Stability Stability through change 5/30/2013 9 Why Integrated Strategic Planning & Why Integrated Strategic Planning & Management with a Balanced Scorecard? Management with a Balanced Scorecard? Become More CustomerBecome More Customer--CentricCentric ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 17 CustomerCustomer--centriccentric organizations have a better understanding of: •Customer & market needsneeds •The organization’s customer value creation value creation strategy ••Organizational weaknesses Organizational weaknesses in meeting those needs •The strategic context strategic context for process improvement Balanced Scorecard BasicsBalanced Scorecard Basics 5/30/2013 10 Strategy Has Multiple Dimensions Strategy Has Multiple Dimensions Called Called PerspectivesPerspectives Organizational Capacity Financial Customer & Stakeholder Internal Process Perspectives: Different views of organizational performance; performance dimensions ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. The Customer & Stakeholder PerspectiveThe Customer & Stakeholder Perspective •Typical desired results: growth, satisfaction, retention •Through the eyes of our customers and stakeholders: how well do our products and services meet their needs? Organizational Capacity Customer & Stakeholder Financial Internal Process ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 5/30/2013 11 The Financial PerspectiveThe Financial Perspective •Financial Performance, Business Value, Effective use of Resources Organizational Capacity Customer & Stakeholder Financial Internal Process ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. The Process PerspectiveThe Process Perspective •Typical desired results: Process efficiency; product or service quality; delivery speed •Focuses on those processes that create value for customers: –Includes product or service development or delivery –Not human resources or other capacity building processes Organizational Capacity Customer & Stakeholder Financial Excellence Internal Process ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 5/30/2013 12 The Organizational Capacity PerspectiveThe Organizational Capacity Perspective •How can we support the internal processes through improved: –Tools & technology –Knowledge, skills and abilities –Infrastructure –Work culture, innovation and leadership –Governance Organizational Capacity Customer & Stakeholder Financial Internal Process ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. Strategy Builds Value from the Strategy Builds Value from the Internal to the ExternalInternal to the External Organizational Capacity Internal Process Improvements in Internal Capacity Improved Internal Processes Drive Which Drive Customer & Stakeholder Financial Improvements in Customer Objective Performance Improved Financial Stewardship Which Drive ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 5/30/2013 13 Strategy is Made Up of Multiple Strategy is Made Up of Multiple Strategic ThemesStrategic Themes Organizational Capacity Customer Financial Internal Process Strategic Themes: Main focus areas of the organization; the organization’s “Pillars of Excellence”, used to focus staff effort on accomplishing the vision. For each Theme there is a Strategic Result St r a t e g i c T h e m e St r a t e g i c T h e m e St r a t e g i c T h e m e Strategic Result: Desired outcome for the main focus areas of the strategy. Strategic Result Strategic Result Strategic Result ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. Strategic Result St r a t e g i c T h e m e St r a t e g i c T h e m e St r a t e g i c T h e m e Customer Financial Internal Process Organizational Capacity Perspectives Mission Vision Values Engaged Leadership –Interactive Communications St r a t e g i c T h e m e Themes are the Pillars that Support Themes are the Pillars that Support Achievement of the Mission and VisionAchievement of the Mission and Vision ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 5/30/2013 14 Well Executed Strategy Leads to Well Executed Strategy Leads to Desired Strategic ResultsDesired Strategic Results Strategic Result (Outcomes) Financial Customer Internal Process Organization Capacity PE R S P E C T I V E S Strategic Objectives Strategic Themes (High-Level Strategy) ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. Organization Capacity Well Executed Strategy Leads to Well Executed Strategy Leads to Desired Strategic ResultsDesired Strategic Results Strategic Result (Outcomes) Financial Customer Internal Process Strategic Objectives Strategic Objective: Key strategy component; continuous improvement activity that must be performed; the “building blocks” that make up a strategy. Strategy Map: A graphic that shows how an organization creates value. It demonstrates the cause-effect relationships among the objectives that make up the organization’s strategy. ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 5/30/2013 15 A Strategy Map Can be “Read” A Strategy Map Can be “Read” From Bottom to TopFrom Bottom to Top Customer Financial Stewardship InternalProcess Organizational Capacity Improve Knowledge & Skills Improve Tools & Technology Lower Cycle Time Increase Process Efficiency Lower Wait Time Improve Customer Satisfaction Increase Cost- Effectiveness Leading question: Why? ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. A Strategy Map Can be “Read” A Strategy Map Can be “Read” From Top to BottomFrom Top to Bottom Customer Financial Stewardship InternalProcess Organizational Capacity Improve Knowledge & Skills Improve Tools & Technology Lower Cycle Time Increase Process Efficiency Lower Wait Time Improve Customer Satisfaction Increase Cost- Effectiveness Leading question: How? ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 5/30/2013 16 Example: Airline Balanced ScorecardExample: Airline Balanced Scorecard Simplified Strategy MapObjectivesMeasuresTargetsInitiatives Financial Customer Internal Process Learning & Growth Mission: Dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. Align Ground Crew Improve Turnaround Time Increase On- Time Flights More Customers Lower Prices Lower Costs Increase Profits Increase Revenue Vision: Continue building on our unique position --the only short haul, low-fare, high- frequency, point-to-point carrier in America. Adapted from work by Harvard University / Balanced Scorecard Collaborative •Increase Profits •Lower Costs •Increase Revenue •More Customers •Increase On-time Flights •Lower Prices •Improve Turnaround Time •Align Ground Crew •Market Value •Plane Lease Cost •Seat Revenue •# of Customers •FAA On time Arrival Rating •Customer Ranking •On Ground Time •On-Time Departure •% Ground Crew Stockholders •% Ground Crew Trained •25% per year •20% per year •5% per year •5% change •First in the industry •98% Satisfaction •<25 Minutes •93% •70% (100% by year 6) •70% •Optimize routes •Standardize planes •Quality Management •Customer Loyalty Program •Cycle time Optimization Program •Stock Ownership Plan •Ground Crew Training ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. Simplified Strategy MapObjectivesMeasuresTargetsInitiatives Financial •IncreaseProfits •Lower Costs •Increase Revenue •Market Value •Plane Lease Cost •Seat Revenue •25% per year •20%per year •5% per year •Optimize routes •Standardize planes Customer •More Customers •IncreaseOn-time Flights •Lower Prices •#of Customers •FAA On time Arrival Rating •Customer Ranking •5% change •First in the industry •98% Satisfaction •Quality Management •Customer Loyalty Program Internal •Improve TurnaroundTime •On Ground Time •On-Time Departure •<25 Minutes •93% •Cycle time Optimization Program Organizational Capacity •Align Ground Crew •% Ground Crew Stockholders •% Ground Crew •70% (100% by year 6) •70% •Stock Ownership Plan •Ground Crew Lower Prices Key: Performance Measures & Strategic Key: Performance Measures & Strategic Initiatives Align to Strategic Objectives Initiatives Align to Strategic Objectives ©1997-2013Balanced Scorecard Institute, a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 32 Mission: Dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. Align Ground Crew Improve Turnaround Time Increase On- Time Flights More Customers Lower Costs Increase Profits Increase Revenue Vision: Continue building on our unique position --the only short haul, low-fare, high-frequency, point-to-point carrier in America. Adapted from work by Harvard University / Balanced Scorecard Collaborative Measures & Targets Align to Strategic Objectives Strategic Initiative are also aligned to Strategic Objectives and are measured separately (i.e. project measures & targets related to budget, milestone, risk, etc.). 5/30/2013 17 How are Objectives Different Than How are Objectives Different Than Measures & Initiatives?Measures & Initiatives? Simplified Strategy MapObjectivesMeasuresTargetsInitiatives Financial •IncreaseProfits •Lower Costs •Increase Revenue •Market Value •Plane Lease Cost •Seat Revenue •25% per year •20%per year •5% per year •Optimize routes •Standardize planes Customer •More Customers •IncreaseOn-time Flights •Lower Prices •#of Customers •FAA On time Arrival Rating •Customer Ranking •5% change •First in the industry •98% Satisfaction •Quality Management •Customer Loyalty Program Internal Process •Improve TurnaroundTime •On Ground Time •On-Time Departure •<25 Minutes •93% •Cycle time Optimization Program Learning & Growth •Align Ground Crew •% Ground Crew Stockholders •% Ground Crew Trained •70% (100% by year 6) •70% •Stock Ownership Plan •GroundCrew Training ©1997-2010 Balanced Scorecard Institute, a Strategy Management Group company. All Rights Reserved. Do not copy without permission.33 Mission: Dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. Align Ground Crew Improve Turnaround Time Increase On- Time Flights More Customers Lower Prices Lower Costs Increase Profits Increase Revenue Vision: Continue building on our unique position --the only short haul, low-fare, high- frequency, point-to-point carrier in America. Adapted from work by Harvard University / Balanced Scorecard Collaborative Objectives: Action-oriented statements of what must be focused on over a continuous basis to achieve the strategic result •Best stated as VERB –NOUN •Language: Improve x, Increase y, Reduce z •Examples: Improve Security, Increase Customer Satisfaction •Articulate Desired Outcomes in the commentary Performance Measures: Countable indicators of performance that show how successful we have been in achieving outcomes. Targets are the desired level of performance. •Usually in terms of quality, timeliness, economics, competence, effectiveness, completeness, efficiency, satisfaction •Language: # of x, % of y, Z rate •Examples: Violent Crime Rate, Customer Satisfaction Survey Score Strategic Initiatives: Projects (that will be completed) designed to improve strategic outcomes •Language: Build x, redesign y, or write z •Examples: Establish a Neighborhood Watch Program; Establish a Customer Relationship Management Program The Logic of Integrated Strategic Planning & The Logic of Integrated Strategic Planning & Management with a Balanced ScorecardManagement with a Balanced Scorecard ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 34 30,000 ft. 15,000 ft. Ground Level 25,000 ft. Strategic Altitude Strategic Initiatives Projects & Action Plans that drive results Mission Purpose: “What we do” Performance Measures & Targets Captures whether an organization is performing at the desired level or not Vision Picture of the Future Perspectives Different views of organizational performance Strategic Themes & Results Main focus areas (“Pillars of Excellence”) driving key results Strategic Objectives & Strategy Maps Key strategy components connected to tell a cause-and-effect value creation story Customer / Stakeholder / Market Needs 5/30/2013 18 Building & Implementing a Building & Implementing a Balanced Scorecard:Balanced Scorecard: Nine Steps To Success™Nine Steps To Success™ ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 35 11 22 33 44 55 66 77 88 99Assessment Strategy Objectives Strategy Map Measures & Targets Strategic Initiatives Performance Analysis Alignment Evaluation PROGRAM LAUNCH SYSTEM ROLLOUT ©1997-2013Balanced Scorecard Institute, a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 36 AssessmentAssessment Balanced Scorecard Strategic Balanced Scorecard Strategic Elements WorkshopElements Workshop 5/30/2013 19 Guidelines for TeamworkGuidelines for Teamwork •Everyone has an equal voice: it’s not about your title; it’s about your ideas •Respect each other’s opinions •There are no “dumb” questions •Work for the good of the organization (not your specific department) •Acknowledge strategic planning and management as a change management journey, not a project sprint •Try to find something in strategic planning to get excited about; adopt a missionary’s zeal •Stay focused and on track •Nothing produced is written “in stone” –it is all open to continuous improvement ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 37 Tasks within the AssessmentTasks within the Assessment •Organization Assessment –Existing plans, analyses, and data –Internal and External Strategic Analysis –Organization Internal & External Pains and Enablers •Establish or Revalidate High Level Strategic Foundations –Mission –Vision –Core Values –Customer and Stakeholder identification and needs analysis ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 38 5/30/2013 20 Assessment Means Understanding Assessment Means Understanding the the Organization’s EnvironmentOrganization’s Environment ©1997-2013 Balanced Scorecard Institute, a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 39 The Organization Macro Environment Micro Environment Technological Forces Environmental Forces Competitors Employees / Labor Unions Suppliers Trade Associations Special Interest Groups Communities Creditors Customers Governments Stockholders Economic Forces Socio-Cultural Forces Political / Legal Regulatory Forces Source: Randy Rollinson / LBL Strategies Start Building with the Strategic Start Building with the Strategic Components You Already HaveComponents You Already Have ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 40 Start from where you are –don’t “reinvent the wheel”! Mission Vision Customer Needs -Enablers & Challenges Previously Developed Elements or Sources •Previous Mission, Vision & Values •Past Strategic Plans •Market & Demographic Studies •Goals & Business Strategies •Competitive Analysis •Assessment, Survey, & Focus Group Results •External Environmental Analysis 5/30/2013 21 Summarize SWOT and Other Analysis Summarize SWOT and Other Analysis Results as Enablers & Challenges Results as Enablers & Challenges ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 41 In t e r n a l StrengthsWeaknesses •DeepR&D expertise •Technologypatent •Convenient location •Morerecognizable brandreputation than competitors •Lack of marketing & publicrelations expertise •Productsnot user friendly for non- technologists •Slow to move sales online •Wehave a reputation as being too bureaucratic Ex t e r n a l OpportunitiesThreats •Newemerging online market •China market expanding rapidly •Rumorsthat competitor is going out of business •Potential partnershipwith local university •Vendor seems to be entering our market at alower price •Cultural demographic shifts affecting demand •Environmentalawareness increase driving down sales •Newregulations driving up cost of business EnablersChallenges Westlake Enablers Westlake Enablers & Challenges& Challenges 42 ©1997-2012 Balanced Scorecard Institute, a Strategy Management Group company. All Rights Reserved. Do not copy without permission. In t e r n a l EnablersChallenges •Shared services (no silos) •Innovative, professional, experienced, and creative staff members with deep institutional knowledge •Strong community connections and relationships / committed citizens •All employees are ‘leaders’ -empowerment to respond •Low property tax rate •Strategic management by Town / unified leadership in VVM and goals •Commitment to professional development •Size of the organization / municipality •Current makeup of governing body (Council) / good board governance / strong leadership •Own and operate Westlake Academy with continuous improvement •Technology enhances communications •High desirability factor supports land values and tax revenues •Improved Marketing and Communications •Current land use pattern -single landowner controls most of land –Entitlements and Zoning •Existing employee workload, number of employees (no departmental depth) and increased service expectations -driving productivity •Communication between all departments – municipal and academic •Westlake Academy turnover in staff •Entitlements / Zoning •Low property tax rate •Current size and location of municipal facilities •Political differences as a result of development discussions •Maintain small town feel •Proportion of focus on academic and municipal services •Managing to a budget •Increasing the yield on Blacksmith donations for WA •Varying citizen opinions on what vision should be (e.g., what is natural beauty?) 42 5/30/2013 22 Westlake Enablers Westlake Enablers & Challenges& Challenges 43 ©1997-2012 Balanced Scorecard Institute, a Strategy Management Group company. All Rights Reserved. Do not copy without permission. EnablersChallenges Ex t e r n a l •National brand / location and appeal of community •Highly desired / flagship developments •‘Room to grow’ –still have available land space •Strengthen our relationship with stakeholders •Fine tune operations through strategic management (internal and with consultants) •Landscape and topography of the community – attracts residents and businesses •Use of interlocalagreements to keep costs down and partner with others •Complete our master planning process •Potential for tax base expansion with new development •Full Integration of web technologies (E-govt) •Pending / potential growth (residential and commercial) •New state representation –elected officials •Legislation not favorable to municipalities or charter schools •Reduced funding from Foundation School Program •Funding of Westlake Academy •Changing culture of Town (municipal and academic) •Changing of governmental leadership •Property stakeholder –Hillwood •MUD within town limits •Development dormancy –or choice of another community over Westlake •Community involvement / Social Collaboration •Information dissemination •Ability to work with Major Landowners 43 Characteristics Of GoodCharacteristics Of Good Mission, Vision & Core ValuesMission, Vision & Core Values Mission •Who we are, what we are about, or our purpose –“Our Mission is to provide (serve) …” •A few sentences in length –no more than one paragraph •Often incorporates features of our organization (e.g., products or services, markets or community served, functions performed, uniqueness) Vision •Describes where we want our organization to be in 3 -10 years, our picture of the future – “Our Vision is to become (achieve) …” •Brief, easy to understand and communicate message, usually one sentence •Vision statement should be emotionally inspiring ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 44 Core Values •Describes what we stand for in the context of the organization’s mission (i.e., the Boy Scout/Girl Scout values translated into the language of the business) •Defines our code of conduct, our behavior •Provides ethical guidelines for decision-making and daily conduct (e.g., hiring, promoting, relationship building) 5/30/2013 23 Examples of Mission & VisionExamples of Mission & Vision Mission •Google: To organize the world’s information and make it universally accessible and useful •The University of Botswana: To advance the intellectual and human resource capacity of the nation and the international community. •Nature Conservancy: Preserve the plants, animals and natural communities that represent the diversity of life on Earth, by protecting the lands and waters they need to survive •Singapore Attorney General: To enhance the rule of law and constitutional government in Singapore by providing sound legal advice and assistance in developing a fair and responsive legal system, furthering good public administration and protecting the interest of the state and of the people. Vision •Susan G. Komen for the Cure:a world without breast cancer •International literacy program: in two decades time our services will no longer be needed •Starbucks (in the mid-1990s): 2000 stores by 2000 •Salesforce.com: the end of software •Wikipedia.com: a world in which every single person is given free access to the sum of all human knowledge ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 45 Westlake Mission Statement Westlake Mission Statement --DRAFTDRAFT 46 We serve the residents and businesses of Westlake by providing both municipal and academic services of the highest level of quality, while ensuring that we are efficient, cost-effective, and transparent. We take pride in the professional and personal manner in which we provide our services. 5/30/2013 24 Westlake Vision StatementsWestlake Vision Statements 47 Westlake is one-of-a-kind community that blends our rural atmosphere with our vibrant culture and metropolitan location. Westlake is an oasis of tranquility and natural beauty amidst an ever expanding urban landscape. Westlake ValuesWestlake Values •Innovation •Educational leaders •Family friendly and welcoming •Engaged Citizens •Preservation of our natural beauty •Strong aesthetic standards •Transparent government •Fiscal responsibility 48 5/30/2013 25 An Overarching Strategic Result (An Overarching Strategic Result (Vision Vision Target Target or or Strategic DestinationStrategic Destination) Can Make a ) Can Make a Vision Statement MeasureableVision Statement Measureable ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 49 This vision does not indicate an unambiguous result or target, which means an Overarching Strategic Result Overarching Strategic Result (achievable stretch target) should be developed. "I believe that this nation should commit itself to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to the Earth." U.S. President John F. Kennedy “A Compelling Place to Shop, A Compelling Place to Work, A Compelling Place to Invest” Sears Vision Statement This “vision” for the space program includes a desired result desired result and milestone milestone targettarget in a single statement, making it easy to measure and track success. Know Your Customers & StakeholdersKnow Your Customers & Stakeholders ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 50 StakeholdersCustomers Customer: direct beneficiary of your organization’s products or services. Stakeholder: anyone who has an interest in the outcome of the organization Customers are part of the larger stakeholder group. 5/30/2013 26 Customer & Stakeholder ExamplesCustomer & Stakeholder Examples ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 51 StakeholdersCustomers Government Organizations: •May be defined by charter or statute •Customers: end user or recipient of a service; may be citizens, or all people in a class or jurisdiction •Other Stakeholders: elected officials, agency managers, taxpayers, states, local businesses Non-profit Organizations: •Usually targeted to a specific group or class of members (e.g., association) •Customers:Members •Other stakeholders: donors, sponsors, public with specialized interest in the programs of the organization Commercial Organizations: •Determined by a market segmentation process •Customers:those that pay for our product or service; primary customers might be a targeted segment (e.g. a fast food restaurant might target families) •Other Stakeholders include shareholders, fund managers, regulators, vendors Some “Stakeholders” Have Specific Needs Some “Stakeholders” Have Specific Needs that Strategy Should Addressthat Strategy Should Address ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 52 StakeholdersCustomer Examples of stakeholders: •Employees •Management team •Suppliers •Regulators •Policy makers 5/30/2013 27 Westlake Customers & NeedsWestlake Customers & Needs CustomerGroupsCustomer Needs Citizens / Residents Students Businesses Peace of mind Securityin neighborhoods / Town Highdevelopment standards Responsive municipal services High qualityschool Retail and restaurantvariety Strong employment options Park access, trail connectivity Lowproperty taxes Fiscal Stewardship Sense of place within our community (exclusive, luxurious, cultural, distinctive) Accessible metropolitan destination 53 Stakeholder GroupsStakeholder Needs Employees Neighboring Communities State and Federal Agencies Businessesin Westlake Private Partners Visitors Public •Stability in public service provision •Responsive municipal staff members •Governance / direction from elected officials •Cooperation and relationship development with Westlake staff and surrounding municipality members •Transparency in regulations and building requirements 54 Westlake StakeholdersWestlake Stakeholders& Needs& Needs 5/30/2013 28 5/30/2013 29 ©1997-2013Balanced Scorecard Institute, a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 57 StrategyStrategy Balanced Scorecard Strategic Balanced Scorecard Strategic Elements WorkshopElements Workshop Tasks within Strategy DevelopmentTasks within Strategy Development •Formulate Strategy –Identify Optional Strategies –Create a Strategy Profile –Describe the Customer Value Proposition •Identify Perspective Names •Develop Strategic Themes and Strategic Results –Strategic Pillars of Excellence –Desired results and planned accomplishments ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 58 5/30/2013 30 What is Strategy?What is Strategy? ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 59 Tactic: specific actions that we take that are consistent with the organizations’ overall strategy. Strategy: a plan of action, an approach, or a game plan for achieving a goal or result. Strategy is a hypothesis a hypothesis of the best way forward for an organization to: •Beat the competition (private sector) •Improve mission effectiveness (public sector) •Achieve its vision •Satisfy customers, stakeholders and employees Strategy is about making making choiceschoices that have organization- wide impact. It is Critical to Define Your Customer Value It is Critical to Define Your Customer Value PropositionProposition ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 60 Customer Value Proposition: What an organization must deliver to develop, retain, and deepen its relationship with stakeholders; in the private sector: a description of the key benefits gained by key customers for the price (cost) charged (i.e. a proposition). Usually defined as a series of descriptors describing product or service attributesattributes, imageimage or relationship.relationship. StakeholdersCustomers 5/30/2013 31 It is Critical to Define Your Customer Value It is Critical to Define Your Customer Value PropositionProposition ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 61 Customer/ Stakeholder Group Customer Value Proposition AttributesImageRelationship Customers Stakeholders Attributes (Function, Quality, Timeliness, Economics) capture the functionality aspect of the organization’s product or service (e.g. differentiation features versus price). Image & Relationship describe the intangible factors that attract a customer to an organization. Image addresses perceived brand image & reputation (e.g. “Apple versus Microsoft”) while relationship addresses the interactive experience customers have with an organization (e.g. a real estate agent “friend” versus an “arms-length” relationship). Customer Value Proposition Example: Customer Value Proposition Example: a Government Agency a Government Agency •Primary customers: Citizens Using Agency Service •Key stakeholders: Regulators, Government Political Appointees, Other Government Agencies, All Citizens, Foreign Governments ©1997-2012 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 62 Product (Service) Attributes Function Quality Timeliness Economics Attributes •Reliable •High Quality (Reasonably Cost Effective) •Appropriate Technology •Efficient On-time Delivery •Value for Tax Dollars Image •Cost-Efficient •Accurate & Effective •Trustworthy / Transparent •Fair and Law Abiding •No Special Interests or Political Agenda Relationship •Customer-Centric •Empathetic •Impartial •Your Government Partner Image Relationship++ 5/30/2013 32 5/30/2013 33 5/30/2013 34 Westlake Customer Westlake Customer Value Value Proposition Proposition --DRAFTDRAFT ©1997-2012 Balanced Scorecard Institute, a Strategy Management Group company. All Rights Reserved. Do not copy without permission. Product / Service Attributes Desired Image Desired RelationshipFunction, Quality, Timeliness, Economics •High-touch / Personal Customer Service •Municipal Services •Academic Services /Charter School •Timely communications (email, website, social media, in print Simply Westlake Magazine, Telephone, Public Service Announcements) •Efficient cost effective service provision •High quality service •Fiscal Responsibility Red Font = Competitive Differentiator ** Areas needing Improvement and Increased Focus •Highquality aesthetics/visual appearance of developments •Transparent service provision •Professional & reliable staff •Fiscally sound and stable •Connected with residents; try to know them by name •Involved in the community •Trusted as service provider •Seen as knowledgeable and responsive to residents 67 Use Use a Strategy Canvas a Strategy Canvas to to Visualize Visualize Competing Strategic FactorsCompeting Strategic Factors ©1997-2013 Balanced Scorecard Institute, a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 68 Southwest AirlinesOther Airlines Premium Price Meals Lounges Seating Choice Spoke & Hub Friendly Service Turn- Around Time Aircraft Diversity This “Strategy Profile” or “Strategy Canvas” allowed Southwest to understand and build market share by focusing on differentiators. High Low Emphasis Market Differentiators Source: Adapted from Charting Your Company’s Future, W. Chan Kim and Renée Mauborgne, HBR, June 2002. 5/30/2013 35 A Strategy Profile Can Identify WeaknessesA Strategy Profile Can Identify Weaknesses ©1997-2013 Balanced Scorecard Institute, a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 69 Us -Now Competition Function 1 Function 2 Quality 1 Quality 2 Quality 3 RelationshipImage High Low Emphasis & Success Market Differentiators * Actual Example from a Fortune 150 client Strategy is NOT About Doing the Same Strategy is NOT About Doing the Same Thing As Everyone ElseThing As Everyone Else ©1997-2013 Balanced Scorecard Institute, a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 70 Us -Future Competition Function 1 Function 2 Quality 1 Quality 2 Quality 3 RelationshipImage High Low Emphasis & Success Market Differentiators “The granddaddy of all mistakes is competing to be the best, going down the same path as everybody else, and thinking that somehow you can achieve better results” -Michael Porter 5/30/2013 36 Strategy CanvasStrategy Canvas Pre & Post Affordable Care ActPre & Post Affordable Care Act BCBS of AL -Pre and Post ACA Pre -2011 Post -2014 More Less ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 71 Formulate Strategy Through a Process of Formulate Strategy Through a Process of Strategic Thinking & DiscoveryStrategic Thinking & Discovery ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 72 •Mission •Vision •Core Values SWOT / Enablers & Challenges, External Environmental Analysis & Other Assessment Inputs DiscoveryDiscovery •Perspectives •Strategic Themes & Results Customer Needs Analysis Customer Value Proposition 5/30/2013 37 Identify Identify Perspective NPerspective Namesames ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 73 Organization / Organizational Capacity Customer Financial Internal Perspectives: Different views of organizational performance; performance dimensions These names of the perspectives will change from organization to organization, but the concepts remain consistent. Westlake’s Current Perspective NamesWestlake’s Current Perspective Names 74 •Customer Focus •Financial Stewardship •Operational Processes •Employee Investment and Support 74 5/30/2013 38 Financial PerspectiveFinancial Perspective •Financial Performance, Value, Effective use of Resources •For businesses: how do we create value for our owners? •Originally named Financial, other options include: –Stewardship (government and nonprofits) –Financial Stewardship –Resources (or Budget) ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 75 Organizational Capacity or Learning & Growth Customer & Stakeholder Financial Internal Process Customer & Stakeholder PerspectiveCustomer & Stakeholder Perspective •Typical desired results: satisfaction and/or retention •Through the eyes of our customers and stakeholders: how well do our products and services meet their needs? •Originally named Customer, other options include: –Citizen –Member –Warfighter –Students & Parents –Primary Customers ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 76 Organizational Capacity or Learning & Growth Customer & Stakeholder Financial Internal Process 5/30/2013 39 Internal Process PerspectiveInternal Process Perspective •Typical desired results: Process efficiency; product or service quality; delivery speed •Viewed internally: how well do our products and services and other processes meet customer’s needs? •Focuses on those processes that create value for customers: –Includes product or service development or delivery –Not human resources or other capacity building processes •Traditionally named Internal Business Process, other options include: –Process –Processes –Business Processes ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 77 Organizational Capacity or Learning & Growth Customer & Stakeholder Financial Internal Process Organizational Capacity PerspectiveOrganizational Capacity Perspective •How can we support the internal processes through improved: –Tools & technology –Knowledge, skills and abilities –Infrastructure –Work culture, innovation and leadership –Governance •Traditionally named Learning & Growth, focuses on internal Organizational Capacity building; other naming options include: –People & Tools –People, Tools & Technology –Organizational Readiness ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 78 Organizational Capacity or Learning & Growth Customer & Stakeholder Financial Internal Process 5/30/2013 40 Develop Develop Strategic Themes & Strategic ResultsStrategic Themes & Strategic Results ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 79 Organization Customer Financial Internal Strategic Themes: Main focus areas of the organization; the organization’s “Pillars of Excellence”, used to focus staff effort on accomplishing the vision. For each Theme there is a Strategic Result Strategic Result: Desired outcome for the main focus areas of the strategy. Th e m e : O p e r a t i o n a l E x c e l l e n c e Th e m e : C u s t o m e r R e l a t i o n s h i p s Th e m e : G r o w t h e B u s i n e s s Strategic Result Strategic Result Strategic Result Characteristics of Characteristics of Good Strategic Themes And ResultsGood Strategic Themes And Results Strategic Themes: •Break down Vision into more operational terms •Represent the main focus areas of the organization’s high-level strategy •Are thought of as the organization’s “Pillars of Excellence” •Cut across the business and support functions of the organization •Each have one corresponding Strategic Result Strategic Results: •Define the desired outcome or goal of the Theme •Indicate how we will know success within the Theme •Are described in “end state” language (e.g. costs are low, not we will lower costs) ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 80 StrategicTheme: Grow the Business Strategic Result: •We are a preferred supplier by our use of innovative technology •Expanded product offerings •Market leadership in target markets •New after sales strategies Example: 5/30/2013 41 Example: Energy Consulting Company Example: Energy Consulting Company Strategic Themes and Strategic Results Strategic Themes and Strategic Results ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 81 Mission: To deliver the highest standard of service, providing energy products and expertise to our customers. Vision: By 2015, be the recognized leader in energy products and energy consulting services to North America’s commercial, industrial and institutional markets. Theme: Build The Business Theme: Operational Excellence Theme: Customer Intimacy Strategic Result: Dramatically increase shareholder value through acquisitions, organic growth, and asset optimization Strategic Result: Timely, accurate, value-added, and cost-effective execution Strategic Result: Knowledgeable, collaborative, consultative relationships that exceed customerexpectations Other Common Theme & Result ExamplesOther Common Theme & Result Examples •Theme: Operational Excellence –Result: The right assets, on target, on time •Theme: Innovation Excellence –Result: We are recognized universally as a creative leader and innovator •Theme: Customer Intimacy (or Delight the Customer) –Result: Customer satisfaction and retention are increasing due to service that is customized to meet their specific needs •Theme: Support Anytime, Anywhere (or Service Excellence) –Result: 24/7 support worldwide •Theme: Strategic Partnering –Result: Partnership quality is increasing, and both partners strive for win-win relationships •Theme: Good Governance –Result: Audits are “clean” and accountability is increasing ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 82 Organization Capacity Financial Customer Internal Processes Strategic Result 5/30/2013 42 Westlake Strategic Westlake Strategic Themes and Themes and ResultsResults 83 83 Strategic Themes Strategic Results Congratulations! Congratulations! You Have You Have Built Built the “Housethe “House” & Provided Critical ” & Provided Critical Strategic Guidance Strategic Guidance ©1997-2013 Balanced Scorecard Institute (BSI), a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 84 Strategic Results Customer/ Stakeholder Financial Internal Processes Organization Capacity Perspectives Mission Vision Customer Needs –Enablers & Challenges Engaged Leadership –Interactive Communications –Core Values Th e m e : O p e r a t i o n a l Ex c e l l e n c e Th e m e : S t r a t e g i c Pa r t n e r i n g Th e m e : S e r v i c e Ex c e l l e n c e Th e m e : C u l t u r e Ch a n g e 5/30/2013 43 ©1997-2013Balanced Scorecard Institute, a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 85 Next StepsNext Steps Scorecard System Development Process Flow & Schedule: Tier 1 ©1997-2013 Balanced Scorecard Institute, a Strategy Management Group company. All Rights Reserved. Do not copy without permission. 86 B. Strategic Elements Strategic Management Team Strategic Theme Teams C. Theme Training & Workshops E. Scorecard Development I D. Communications Planning 8 –12 Weeks Typical F. Owner Workshops Communications Team Objective Owner Teams G. Scorecard Development II Tier One Roll Out! A. All Teams: Assessment Survey & Interviews A. All Teams: Organizational Assessment Survey & Interviews (online assessment, phone & live interviews) B. Strategic Elements Workshop: Executive Training & Strategic Element validation & development. Strategic Elements include Mission, Vision, Organization Values, Customer Value Proposition, Challenges & Enablers, Strategic Results and Theme Results and Perspectives. C. Theme Team Training (1 day) & Workshops (2 days per team –3-4 themes typical): Strategic Objectives and Strategy Map development; Identify possible Performance Measures and Strategic Initiatives D. Communications Workshop (1 day): Communications and change management plan development. Follow up workshops optional. E. Scorecard Development Workshop I (2 days): Theme & Communications Teams work review and acceptance, Corporate Strategy Map development F. Strategic Objective Ownership Training (1/2 day) & Workshops (up to 1/2 day per Objective): Objective commentary, performance measurement and initiative review and development G. Scorecard Development Workshop II (2 days): Accept Objective Ownership Work, Prioritizes Initiatives BS C C h a m p i o n ( s )