Balanced Scorecard and Individual Scorecard Chanchai DeeUam TSIS

Balanced Scorecard and Individual Scorecard ชาญชย ดอวม Chanchai Dee-Uam T-SIS Co. , Ltd.

SECTION 1 : Introduction

The Balanced Scorecard and The Big Picture Vision Strategic Management Balanced Scorecard • Activity Based Costing • Economic Value Added • Forecasting • Benchmarking • Market Research • Best Practices • Six Sigma • Statistical Process Control • Reengineering • ISO 9000 • Total Quality Management • Empowerment • Learning Organization • Self-Directed Work Teams • Change Management • Project Management • Risk Management

ระดบของแผนยทธศาสตร Corporate Strategy + Scorecard Business Strategy + Scorecard Individual Strategy + Scorecard

การแปลงยทธศาสตรสภาคปฏบต (Strategy Translation) • Stakeholder & Customer • Business/ Industry • Policy SWOT / Analytical Organization Target : เปาหมายขององคกร Vision : วสยทศน Initiative (Project/ Activity/ Event( การแปลงยทธศาสตรสภาคปฏบต Translation) (Strategy

Balanced Scorecard Mission and Vision Statements Microsoft’s Annual Report Vision A computer on every desk and in every home. Mission In our pursuit of that vision, we have grown, changed, adapted, and reinvented ourselves--to meet the challenges of our competition, to take advantage of innovation, and to deliver on the dreams and demands of our customers. We continue to be committed to outstanding products, solid operations, and long-term shareholder value.

Balanced Scorecard Mission and Vision Statements AT&T’s Annual Report Vision We are dedicated to being the world's best at bringing people together -giving them easy access to each other and to the information and services they want and need -- anytime, anywhere. Mission We believe in respect for individuals, dedication to helping customers, highest standards of integrity, innovation, and teamwork. By living these values, AT&T aspires to set a standard of excellence worldwide that will reward our shareowners, our customers, and all AT&T people.

A Balanced Scorecard Illustration Financial Perspective • Return-on-Capital • Economic Value Added • Profit Forecast Reliability • Sales Backlog Customer Perspective • Pricing Index Tier II Customers • Customer Ranking Survey • Customer Satisfaction Index • Market Share (Tier I, Key accounts) Internal Business Perspective • Hours with Customers on New Work • Rework • Safety Incidence Index • Warranty Cost Reduction Innovation and Learning Perspective • % Revenue from New Services • Staff Attitude Survey • # of Employee Suggestions • Revenue per employee Source: Kaplan and Norton

Balanced Scorecard 4 มตใน • • Balanced Scorecard Finance Perspective Customer Perspective Internal Process Perspective Learning and Growth Perspective

มตใน Balanced Scorecard และความสมพนธ Financial Perspective Customer Perspective Objective Measures Target Initiatives Internal Initiatives Process Vision and Perspective Strategy Learning and Growth Perspective Objective Measures Target Initiatives

Balanced Scorecard Table Objectives Measures Target Strategic Initiatives

Strategy Map Vision – วสยทศน SMS Strategic Issue – ประเดนยทธศาสตร Goal – เปาประสงค KPI – ตวชวด Communication : สอสาร Strategy - กลยทธ Objective - วตถประสงค Scorecard Measure - ตววด Deployment : การถายทอด Target - เปาหมาย Budget - งบประมาณ Initiative Tactic - กลวธ Project Management - การบรหารโครงการ Organization Scorecard Business Scorecard Individual Scorecard

Strategy Map Financial Customer Internal Process Learning & growth

Wendy’s Alternative to the Strategy Map Maximize THEMES Operational excellence Leadership VISION Integrity MISSION he To be t Corporate process Change Customer Financial satisfaction planning and reporting People focus Innovation To deliver superior quality of core products and services for our business customers and communities through leadership, innovation, and partnerships do Technology People CORE VALUES Community Quality e involvement qua Mergers w lity g and n i Evolving leader in everyth acquisitions businesses Continuous Commitment to shareholders improvement Understanding the consumer Supply chain management Shareholder value

การถายทอดกลยทธ Deployment Strategy Strategic Cascade Organization Strategy KPI/Measure ( Owner/ Supporter) Policy - Target Business Strategy KPI/Measure ( Owner/ Supporter) Role Individual/ Personal Strategy KPI/ Measure

Strategy Translation Activity Organization Target Vision Strategic Issue Goal Strategy KPI Measure Target Weight Strategy Target Strategic Issue Owner Supporter Goal Strategy Business – หนวยงานภายใน Organization Owner Supporter

Strategy Translation Activity Organization Target Vision Strategic Issue Goal Strategy KPI Measure Business Target Weight Strategy Target Strategic Issue Owner Supporter Goal Strategy Business – หนวยงานภายใน Organization Owner Supporter

Strategy Translation Activity Business Target Vision Strategic Issue Goal Strategy KPI Measure Target Weight Strategy Target Strategic Issue Owner Supporter Goal Strategy Personal – บคลากร Business Owner Supporter

Strategy Translation Activity Business Target Vision Strategic Issue Goal Strategy KPI Measure ROLE Target Weight Strategy Target Strategic Issue Owner Supporter Goal Strategy Personal – บคลากร Business Owner Supporter

Individual Scorecard Name : ………………………. Department : …………………. . … Organization : …………………… Role Measure/ Target Weight Score 1 60% 2 3 4 5 6 7 8 0 0 0 %%% Initiative

Human Resources What is the quality of our staff?

Total Revenue 1 Jan 04 A 110% 104% 105% B 102% C D 100% F E G H 95% 98% I 90% EBITDA 96% 90% 96% 98% 100% 102% 104% 95% 100% 105% 110% 31 Mar 04

สรป Conclusion

The Balanced Scorecard • Ties performance measures to corporate strategy • “Balance” includes – – short & long term objectives financial and non-financial measures external & internal measures various perspectives • Purposes of the balanced scorecard include – – clarify & translate vision & strategy communicate & link strategic objectives & measures plan, set targets & align strategic initiatives enhance strategic feedback & learning

Potential Problems with the BSC • Lack of time for the decision makers to focus on strategy – Having strategy sessions on a continuous basis is difficult – Running the business seems to come first • Confusion between operational efficiency and strategy – This is a continual problem – Always ask “do I have options? ” if so then it’s strategy • Difficulty in creating well defined metrics and connecting them to deliverables – Scalar metrics with defined “units of measure” • Cascading the objectives down to the staff that can deliver the results – This is the hardest and where there is the most resistance