KPI BSC

1
????????????

• ????????????
• ???????????????????
• ????????????????????????????????????????????????
• ??????????????????????????
• ???????????????????????????? KPI (BSC)
• ????????????? Benchmarking
• ???????????????????????????????????????

2
Do it first Do it fast Do it right
Best in the world
Better Cheaper Faster
????????
????????????
Benchmarking!!!
Doing the right things Effectiveness Doing the
things right Efficiency
????????????????
???????????
3
?????? ??????????? ?????? Out side in Right
think Right things
??????
?????????
??????
????????
World Class
?????? ???????????????? Inside out Think
right Things right
??????
??????????
???????????? ?????????????
?????????
?????????????
??????????
??????
????????
???????????
????????
??????????????? Balanced Score Card
??????
????????????
??????????????
4
????????????????????????????????

• ??????????????????????? ??????? ?????????????
• ??????????????????????????????????????????????????
  ??????
• SWOT ????????????????
• ????????????????????????????
• ????????????????????????????????????????????
• ???? Re- ???????
• Re-Thinking ?????????? ???????????
• Re-positioning ??????????????????
• Re-Strategies ?????????????????????
• Re-Structuring ?????????????????
• Re-Design ????????????????????

5
Mission Statement Answers the Question
Vision Statement Answers the Question
??????????
What Do We Want to Become? World Class Hospital?
What is Our Business? Health care? Or
Business ?
6
Competitiveness Agenda 2003
World of Differences Partnerships for the
future ????????????????????
What we might do? Opportunities/Threats
What we can do? Strengths/Weakness
???????
What we want to do? Value?
What do other expect us to do? Desires of
Stakeholder
7
??????????? 4 ???????
????? O ???????? T ???????
S ??? ??????? ??????? W ??????? ???????
8
Competitiveness Agenda 2003
World of Differences Partnerships for the
future ????????????????????
What opportunities Can we develop?
What resource and Capabilities do we want to
develop?
???????
What should we be Caring about?
How can we build shared Expectation among our
Stakeholder?
9
???????????????
????????????????
???????????????
??????????????????? ???????????????? Strategic
Map?????
?????????????????????
10
????????????

• ????????????
• ???????????????????
• ????????????????????????????????????????????????
• ??????????????????????????
• ???????????????????????????? KPI (BSC)
• ????????????? Benchmarking
• ???????????????????????????????????????

11
Balanced Scorecard

• Vision
• Mission
• Strategic Analysis
• Business Analysis
• Performance Measurement
• Product/Customer Selection
• Process Improvement
• Cost reduction

• Kaplan and Norton

• 1 Management concept
• 2 Organizational Excellence
• 3 Strategic Planning
• 4 Benchmarking
• 5 Business process redesign
• 6 Project management

12
??????? ??????
?????????????? ?????????????????
???????????? Outside-in Think Global Excellence
Organization Sense
??????????? Inside out Act Local Process Respons
e Benchmark
???????????????
?????????????????? ???????????????????????
?????????????
13
????????????? ?????????????????
????????
????????????? ????????????? ???????????
???????? ????????????? ???????????
???????????? ???????
??????
?????
??????????
????????????? ?????????????? ???????
14
?????????????????????????????????????????????
Strategy ????????????????????
MISSION ?????? Why we exist
VALUES ????????????????? Whats important to us
VISION Goal ????????????????????? What we want
to be
STRATEGY ?????????? Our game plan
STRATEGIC OUTCOMES ???????
???????????????? ????
??????????
???????????????????
????????????????? ???????????
15
MANAGERS LINK ORGANIZATIONAL LEVELS
M.D.
STRATEGY
Balanced Score Card
GOAL
KPI
GOAL
KPI
Manager
Manager
GOAL
KPI
???????? ???????????????
section
Section
???????????? ????????????
16
Ultimate goal
Purpose/ Mission statement
Vision
Objective
Mission
Strategy
Strategic Goal
Mission
Strategy
Strategic Goal
Mission
Tactic
operational goal
Process
17
????????? ????????
?????????? ????????????
?????????? ???????????????????
????????????? (????????????)
??????????? ????????? ???????????????? ???????????
??????
Goal
??????
Goal
?????????
???????
??????
???????????
????????????
????????
18
Balanced Score Card??????????????????????????????
?????????????

• Kaplan and Norton

• BSC ???????????????????????????????? ????????
  ??????????????????????????????????????????????????
  ?????????? ???????????????????????????????????????
  ??????????????????????????????????????????????????
  ?????????

??????????????????????????????????????????? ??????
??????????????????
19
Balanced Scorecard ??????????????????????
Strategy Is a Step In a Continuum
MISSION ?????? Why we exist
VALUES ????????????????? Whats important to us
VISION Goal ????????????????????? What we want
to be
STRATEGY ?????????? Our game plan
BALANCED SCORECARD Implementation Focus
STRATEGIC INITIATIVES ???????/??????? What we
need to do
PERSONAL OBJECTIVES ???????????????? What I need
to do
STRATEGIC OUTCOMES ???????
???????????????? ????
??????????
???????????????????
????????????????? ???????????
20
???????????????????
Response
Senses
??????
?????????
????
????????
??
???
?????????????? IT HR
21
Balanced Scorecard
How do we look to shareholders?
How do customers see us?
What must we excel at?
Internal business perspective
Customer perspective
Goals
Measures
Goals
Measures
Innovation and learning perspective
Can we continue to improve and create value?
Goals
Measures
Source HBR, Jan-Feb. 1992
22
Balanced Scorecard ????????????? 4
?????????????????????????????????????
The Vision
Financial Perspective

• Profitability
• Growth
• Shareholder Value

If we succeed, how will we look to our
shareholders?
Customer Perspective

• Measurement is the language that gives clarity to
  vague concepts
• Measurement is used to communicate, not simply to
  control

To achieve our vision, what customer needs must
we serve?

• Price
• Service
• Quality

Internal Perspective

• Cycle Time
• Productivity
• Cost

To satisfy our customers and shareholders, at
which business processes must we excel?
Learning and Growth

• New Skills
• Continuous Improvement
• Intellectual Assets

To excel in our processes, what must our
organization learn?
23
??????????????????????????????
??????????????????????? ??????????
?????????
??????????????????????
???????????? ??????? Stakeholder
??? Lag Indicator Outcomes
??????????
?????????? Sense
?????????
?????????????? Response
??? Lead Indicator Drivers
???????????? ???????? Enabler
???????????
24
????????????? ???????????? ????????
???????? ???????? ??????
??????????????? ???????????????????
????????????? 10 15 ?????????????????
???? ??????????/???????
???????????????? ????????????
??????????????????? 2,000??? 2,500???
??????????? ?????????????? ??????????????
?????????????? lt20
lt15 ?? IT ????? ???????????
????????????? lt1 ??. lt50
???? ??????????????? ?????????????
???????????????? lt20 lt15
??Barcode ????????????? ???????????
?????????????? lt 7 lt5
?????? ??????????? ????????????
?????????? ????????????????? 5
8 ????????? IT
??????????????? ?????????????? 8 ??????
15 ?????? ?????IS/IT
25
Mission Strategy Strategic
Functional objective objective CSFKPI
CSFKPI Operational CSFKPI
???????? ???? ???? ??
Process Indicator
26
Score CardO-M-T-I
Initiative
Target
Measure
Objective
27
O-M-T-I
Initiatives
Target
Measure
Objective
Action Plan
Responsible person
Due date
Action Plan
Initiatives
28
????????????????
Initiative
Target
Measure
Objective
????????/???????
Objective
Initiative
Target
Measure
Objective
Initiative
Target
Measure
??????????
I
O
T
M
I
O
T
M
I
O
T
M
29
Mission Strategy Strategic
Functional objective objective CSFKPI
CSFKPI Operational CSFKPI
???????? ???? ???? ??
Process Indicator
30
Strategic KPI ????????????? ??????????????? ??
??????????????? ??????????
Strategy ?????????? ??????????? ?????? ????????
??
Strategic Objective ?????????????? ?????????? ?
?????????
Strategic CSF ??????? ???????? ????????? ??????
????
31
Functional KPI ????????????? ?????????????????
?? ????????? ??????????
Functional CSF ??????????????????????????????????
???? ?????????????????? ??????????
Functional Objective ???????????? ???????????????
? ???? ????? ??????????
Strategy Objective ?????????????? ?????????? ?
?????????
32
Operational crucial business activities ???????
??????????? ???????????? ?????????????????????????
????????? ???? CSR ?????????????????? ??????????
Operational KPI ???????????????????????? ???????
?????????????? ??????????????????? ??????????
Operational CSF ??????????????????????? ?????????
??? ????? ??????????
??? ???
33
Using the performance equation
WHAT
HOW
????????????
???????
Target
Measure
RESULTS
COMPETENCIES
Core Performance Results
Job-Specific Performance Results
Job-Specific Competencies
Core Competencies
34
????????????

• ????????????
• ???????????????????
• ????????????????????????????????????????????????
• ??????????????????????????
• ???????????????????????????? KPI (BSC)
• ????????????? Benchmarking
• ???????????????????????????????????????

35
Theme Example from Southwest Airlines Balanced
Scorecard
36
The Mobil Story (US Marketing Refining)
1993-1998
Productivity Strategy Maximize utilization of
existing assets and integrate the business to
reduce total delivered cost.
Growth Strategy Improve quality of revenue by
understanding customer needs and differentiating
ourselves accordingly.
Financial Perspective
Return on Capital
Increased from 6 to 16
Competitive Position(profitability)
From last (1993)to first (95, 96, 97, 98)
Volume Growth
Reduce Cash Expenses
Improve Cash Flow
Exceeds industry by 2-2.5 annually
Down by 20
From -500 M/Yr to 700 M/Yr
Customer Perspective
Customer Satisfaction
Continuous improvement for 3 consecutive years
Internal Perspective
Product Innovation
Customer Management
Speedpass Active
Dealer Quality
Perfect Orders
Increasing at rate of 1M per year
Continuous improvement for 4 consecutive years
Continuous improvement for 4 consecutive years
Operational Excellence
Good Neighbor
Quality
Capacity Utilization
Safety
Environmental
Lost work incidents down from 150 to 30 per year
Continuous improvement for 4 consecutive years
Annual value of lost yield reduced from 175m to
50m
Number of incidents reduced by 63
Learning Growth Perspective
Motivated Prepared Workforce
Strategic Awareness
Annual employee survey shows awareness of
strategy increased from 20 to 80
37
A Good Balanced Scorecard Strategy Map Tells the
Story of Your Strategy
The Revenue Growth Strategy
The Productivity Strategy
Improve stability by broadening the sources of
revenue from current customers
Improve operating efficiency by shifting
customers to more cost-effective channels of
distribution
Improve Returns
Financial Perspective
Improve Operating Efficiency
Broaden Revenue Mix
Increase Customer Confidence in Our Financial
Advice
Increase Customer Satisfaction Through Superior
Execution
Customer Perspective
Internal Perspective
Cross-Sell the Product Line
Shift to Appropriate Channel
Provide Rapid Response
Develop New Products
Understand Customer Segments
Minimize Problems
Increase Employee Productivity
Learning Perspective
Develop Strategic Skills
Align Personal Goals
Access to Strategic Information
38
????????????

• ????????????
• ???????????????????
• ????????????????????????????????????????????????
• ??????????????????????????
• ???????????????????????????? KPI (BSC)
• ????????????? Benchmarking
• ???????????????????????????????????????

39
???????????????
??? BSC????
50 ?????? BSC
??? BSC??????? ???????????? ??????????????????????
??? ??????????????????????????????
??????????????
40
Applying The Balanced Scorecard For Starbucks

• Financial
• 1 billion company (market value)
• 100 million annual profits
• 800 stock appreciation
• 2000 stores

• Customer
• Striving to be 3rd place
• Repeat business
• 30-40 annual expansion
• Only 5 of all U.S. consumption
• Brand extension

• Process
• Brewing the perfect cup
• Brewing the perfect cup at home
• Retail skills and customer service
• Coffee knowledge
• Empowerment

• People/Learning
• Commitment/trust (low turnover)
• Training
• Beanstock program
• Opinion surveys
• Flexible schedules