BSC by xiangpeng

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									              TRANSLATE THE STRATEGY INTO OPERATIONAL TERMS – I

                                    “THE PERSPECTIVE”
    FINANCIAL PERSPECTIVE

“ TO SATISFY OUR SHAREHOLDERS
AND INCREASE MARKET STAKE
WHAT FINANCIAL OBJECTIVES MUST
BE ACCOMPLISHED?”


                        CUSTOMER PERSPECTIVE

                    “TO ACHIEVE OUR FINANCIAL
                    OBJECTIVES AND INCREASE MARKET
                    STAKE WE NEED TO SERVE ONLY
                    THAT WHAT A CUSTOMER NEED AND
                    WHAT ARE THESE?”

                                            INTERNAL PERSPECTIVE

                                       “TO SATISFY OUR CUSTOMERS,
                                       SHAREHOLDERS AND INCREASE
                                       MARKET STAKE IN WHAT ALL
                                       INTERNAL PROCESSES WE MUST
                                       EXCEL FOR?”


                                                                LEARNING PERSPECTIVE

                                                            “TO ACHIEVE THE ABOVE GOALS,
                                                            WHAT STRATEGIC SKILLS, TRAINING
                                                            AND INITIATIVES THE
                                                            ORGANIZATION NEED TO EXCEL IN?”
        TRANSLATE THE STRATEGY INTO OPERATIONAL TERMS – II
                             “THE PERFORMANCE FACTORS”

A statement of what we
must have and what is thus                                     How success in
critical to its success                                        achieving each
                                                               strategy will be
                                                               measured and tracked



                   OBJECTIVES                 MEASURES




                   INITIATIVES                TARGET



 Only key action plan                                  To enhance level of
 required achieving these                              performance from the
 objectives therein                                    existing one i.e.
                                                       Improvements targeted
      TRANSLATE THE STRATEGY INTO OPERATIONAL TERMS – III

                      “TRANSLATING THE VISION”


  VISION
              OBJECTIVE     MEASURES      TARGET     INIATIVE



 FINANCIAL
PERSPECTIVE




 CUSTOMER
PERSPECTIVE




 INTERNAL
PERSPECTIVE




 LEARNING
PERSPECTIVE
            TRANSLATE THE STRATEGY INTO OPERATIONAL TERMS – IV

        “ALIGN ALL LEVELS OF THE ORGANIZATION TOWARDS THE GOAL”



                              CEO                                CHAIRMAN




  HOD -I         HOD -II      HOD -III     HOD -IV      HOD -V
FINANCIAL       CUSTOMER     INTERNAL     LEARNING      OTHERS         SHAPER



                                                                       TEAM
                                                                       WORKER


    M              M             M           M            M

    M              M             M           M            M

    M              M             M           M            M

    M              M             M           M            M           FINISHERS
       TRANSLATE THE STRATEGY INTO OPERATIONAL TERMS – V

                         “THE ISSUES”

THE BARRIER                                           THE SOLUTION

 IN VISION                     TRANSLATING THE VISION BY IDENTIFYING STRATEGIC
                               OBJECTIVES, LINKAGES, MEASURES, TARGET AND
                               INITIATIVES.

 IN PEOPLE                     LINKING THE ORGANIZATION BY COMMUNICATING AND
                               ALIGNING WITH THE STRATEGY, BY DEFINING INDIVIDUAL
                               CONTRIBUTION TO THE STRATEGY BY LINKING TO
                               COMPENSATION ON MONITORED PERFORMANCE.

 IN OPERATIONS                 ALIGNING RESOURCES BY PRIORTIZING STRATEGIC
                               INITIATIVES ONLY AND LINK PLANNING , PROCUREMENT
                               AND BUDGETING TO THE STRATEGY FOR TIMELY DELIVERY.

 IN LEARNING                   LEARNING AND FEEDBACK NEEDS TO INCORPORATE
                               ORGANISED INSIGHTS AND PUT EACH STRARTEGY TO
                               INTROSPECTION.
                TRANSLATE THE STRATEGY INTO OPERATIONAL TERMS – VI

                                      “ THE COULD BE THEME”
                                                   ENHANCE
                                                    SALES


  INCREASE          REVIEW            SUSTAIN IN FOR        REDUCE     LAUNCH NEW          DEVICE
    ASSET         COSTING FOR          BEST QUALITY        OPERATING     RANGE         INCENTIVES FOR
 TURNOVER            HIKE                                    COSTS                      BEATING PLAN



  REDUCE              ENHANCE                   MEET OPERATING             ENSURE CUSTOMER
 VARIABLE              WORK                  DISCIPLINE BY TRAINING           SERVICING
 COSTS LIKE            NORMS                            IN


RAW MATERIALS         UTILISE CAPEX            TEAM WORK                  DO CUSTOMER SATISFACTION
                                                                          SURVEY
CONSUMABLES          ELIMINATE                 INTERNAL CUSTOMER
                     SURPLUS                   SERVICE                    ASSURE QUALITY PERFORMANCE
JOB WORK
                     ELIMINATE                 EVA                        ON TIME DELIVERY
MACHINING            REDUNDANTS
                                               SIX SIGMA                  QUICK CUSTOMER RESPONSE

                                               TQM/TPM                    SERVICE WITH SMILE NOT GRUDGE

                                               QUALITY CIRCLE

                                               IMPROVEMENT TEAMS
                   TRANSLATE THE STRATEGY INTO OPERATIONAL TERMS –VII
                               “THE LAG AND LEAD FACTOR”
                                                STRATEGIC MEASUREMENTS
      STRATEGIC OBJECTIVES                                      PERFORMANCE DRIVERS
                                      CORE OUTCOME (LAG)
                                                                       (LEAD)
FINANCIAL:
• F-1.
• F-2.
• F-3.
• F-4.


CUSTOMER:

•   C-1.
•   C-2.
•   C-3.
•   C-4.

INTERNAL:

•   I-1.
•   I-2.
•   I-3.
•   I-4.

LEARNING:

•   L-1.
•   L-2.
•   L-3.
•   L-4.
                                   TRANSLATE THE STRATEGY INTO OPERATIONAL TERMS –VIII
                                        “THE TIMELINE MONITORING METHODOLOGY”
              WEEKS                  1 2 3 4 5 6 7 8 9 10   11   12   13   14   15   16   17   18   19   20   21   22   23   24   25   26   27   28   29   30



ACTIVITIES.
I. MEASUREMENT PROGRAMME

1
2
3
4


II. DEFINE STRATEGIC OBJECTIVES-
1
2
3
4


III. SELECT STRATEGIC MEASURES-
1
2
3
4


IV. BUILD IMPLEMENTATION PLAN-
1
2
3
4
                 TRANSLATE THE STRATEGY INTO OPERATIONAL TERMS –IX
                          “A ONE PAGE ASSESSMENT FORMAT”

                                A ONE PAGE ASSESSMENT FORMAT
    PROBLEMS IDENTIFIED:                                       COST CENTRE:
*
                                                               PART NO:
                                      TEAM MEMBERS
*

*

*                                                              REG. NO:

*
                                                               RESULT:

ANALYSIS MADE:              COUNTER/PREVENTIVE MEASURES:       HOW TO MAINTAIN NIL:
*                           *                                  *
                                                               *
*                           *                                  *

*                           *                                  HORIZONTAL DEPLOYMENT:
                                                               *
*                           *                                  *
                                                               *
                            *
IMPELMENTATION MODE:                                           SAVINGS:
                            *
*                                                              *
                                                               *
*                           *                                  *

*                           *
                                                               RESPONSIBILITY TO ENSURE
                                                               IMPLEMENTATION:
*                           *
                                                               *
                                                               *
TRANSLATE THE STRATEGY INTO OPERATIONAL TERMS – X

                 “DO REMEMBER”

          YOU CAN’T MANAGE STRATEGY

                      WITH

         A SYSTEM DESIGNED FOR TACTICS.
                      ECONOMIC VALUE ADDED

A fundamental measure for multitude of analysis or in simple terms it is indeed the difference
between our Economic Return and the minimum required by all investors, times capital employed,
as –

     EVA = (R-C) * TC
     R = Economic Rate Of Return
     C = Cost Of The Capital
     TC = Total Capital

EVA Concept is used to measure our Annual Operating Performance, to evaluate annual business
plans, to create measures for management incentive bonus and to judge the merits of major capital
investments.

								
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