Analisis Proses Bisnis by Sols LOGO Introduction to

Analisis Proses Bisnis by : Sol’s

LOGO Introduction to Balanced Scorecard Introduction to BPR

LOGO Introduction to Balanced Scorecard v Developed by § Robert Kaplan (Harvard) and David Norton § early 90 s. . v The balanced scorecard is a strategic management system (not only a measurement system) § Internal assessment, improvement and reporting system § Key is the link to the strategic plan v System to turn strategy into action

LOGO v The balanced scorecard retains traditional financial measures. But financial measures tell the story of past events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success. These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and innovation. Kaplan & Norton

LOGO Balanced Scorecard v Enables organizations to clarify their vision and strategy and translate them into action v It provides feedback about both § the internal business processes and § external outcomes v Continuous improvement of strategic performance and results.

LOGO v The balanced scorecard suggests that we view the organization from four perspectives: § § The learning growth perspective The business process perspective The customer perspective The financial perspective v Develop metrics, collect data and analyze relative to each of these perspectives

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LOGO Learning and Growth Perspective v Development of the human resources § This perspective supports the concept that people are a company's main resource and most valuable asset § metrics defined for this perspective must measure various aspects of employee improvement, growth, and satisfaction. • personnel training and improvement • cultivation of corporate culture • organizational development, including the nurturing of corporate experts, gurus, and mentors • setting up of fast and efficient knowledge transfer infrastructure • opening up of communication lines among personnel

LOGO Business Processes Perspective v Internal business processes. § These metrics, which measure various aspects (efficiency, speed, quality, etc. ) of how well the company's products, services and internal support systems are produced or delivered

LOGO The customer perspective v Focus on customer satisfaction. § Rigorous data analysis to understand the customer § Difficult to reflect the true sentiment of the customer.

LOGO Financial Perspective v Indicates if the transformation of strategy leads to economic success v Define the financial performance that the strategy is to achieve § Revenue growth § Cost reduction • Cost reduction from energy efficiency v Measures the effectiveness of the other perspectives

LOGO Characteristics of good metrics v reflect the true present status of the company from many different perspectives v provide constructive feedback to various company processes, leading to continuous improvement v show trends in company performance over time, facilitating adjustments to changes v quantify many things, making analyses more accurate and solutions more effective.

LOGO Close the loop v once the metrics have been defined and implemented v scorecard data becomes available, v follow-through becomes imperative v movements in the metrics must be analyzed to identify their causes. v Causes that produce positive (negative) changes must be sustained or enhanced (eliminated)

LOGO What is BPR? v Reengineering is the fundamental rethinking and redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed. (Hammer & Champy, 1993)

LOGO BPR is Not? v Automation v Downsizing v Outsourcing

LOGO BPR Versus Process Simplification Process Reengineering Incremental Change Process-Led Assume Attitudes & Behaviors Management-Led Various Simultaneous Projects Radical Transformation Vision-Led Change Attitudes & Behaviors Director-Led Limited Number of Initiatives (Source Coulson-Thomas, 1992)

LOGO BPR Versus Continuous Improvement Process Reengineering Incremental Change People Focus Low Investment Improve Existing Work Unit Driven Radical Transformation People & Technology Focus High Investment Rebuild Champion Driven

LOGO What is a Process? v A specific ordering of work activities across time and space, with a beginning, an end, and clearly identified inputs and outputs: a structure for action. (Davenport, 1993)

LOGO What is a Business Process? v A group of logically related tasks that use the firm's resources to provide customer-oriented results in support of the organization's objectives

LOGO Why Reengineer? v Customers § Demanding § Sophistication § Changing Needs v Competition § Local § Global

LOGO Why Reengineer? v Change § Technology § Customer Preferences

LOGO Why Organizations Don’t Reengineer? v Complacency* § § A feeling of contentment or self-satisfaction, especially when coupled with an unawareness of danger, trouble, or controversy. An instance of contented self-satisfaction. *www. dictionary. com v Political Resistance v New Developments v Fear of Unknown and Failure

LOGO Performance v BPR seeks improvements of § § Cost Quality Service Speed

LOGO Origins v Scientific Management. FW Taylor (1856 -1915). v Frederick Herzberg - Job Enrichment v Deming et al - Total Quality Management and Kaizen v In Search of Excellence (Peters and Waterman) v Value-Added Analysis (Porter).

LOGO Key Characteristics v Systems Philosophy v Global Perspective on Business Processes v Radical Improvement v Integrated Change v People Centred v Focus on End-Customers v Process-Based

LOGO Systems Perspective Feedback Inputs Transformation Environment Outputs

LOGO Process Based v Added Value § BPR Initiatives must add-value over and above the existing process v Customer-Led § BPR Initiatives must meet the needs of the customer

LOGO Radical Improvement v Sustainable § Process improvements need to become firmly rooted within the organization v Stepped Approach § Process improvements will not happen over night they need to be gradually introduced § Also assists the acceptance by staff of the change

LOGO Integrated Change v Viable Solutions § Process improvements must be viable and practical v Balanced Improvements § Process improvements must be realistic

LOGO People-Centred v Business Understanding v Empowerment & Participation v Organizational Culture

LOGO Focus on End-Customers v Process improvements must relate to the needs of the organization and be relevant to the endcustomers to which they are designed to serve