Professional Documents
Culture Documents
Objectives
Measures (D=Drivers)
Maximize returns
Profitable growth
Manage operating costs
ROCE
Revenue growth
Operating costs / customer
Internal
Yr 1
Yr 2
14%
6%
$150
14.5%
8%
$140
80%
85%
5%
10%
$500M
$500M
90%
7%
12%
$550M
$550M
95%
Yr 3
Initiatives
15%
12%
$125
90% Customer loyalty program
Promised delivery %
New product uptake rate
On-time market research projects (D)
90%
20%
90%
95%
25%
95%
85%
6hr
89%
4hr
97%
30%
100% Service dispatch automation
CIS upgrade
95% Call center software integration
3hr
80%
85%
2%
3%
4%
+/15%
8 hr
65%
10
3.0
5%
+/10%
4 hr
75%
12
4.0
4.0
4.5
Business Growth
Capitalize on deregulation
opportunities
Optimize trading opportunities
Develop innovative services
Use alliances and joint ventures
Leverage cross-group R&D
Learning &
Growth
Targets
2012
Palladium
Group, Inc.
World-class
leadership
effectiveness
4.0
4.5
4.5
90/100 92/100 95/100
80%
85%
90% Community outreach program
Cross-selling marketing program
4%
Shared service
6% benchmark/outsourcing initiative
+/-5% ERP implementation
2 hr
85% Competency profiling
15
4.5 Performance compensation link
4.5 Leadership training program
BSC Terminology
Strategic Theme:
Strategic Theme:
Customer Service
Excellence
Financial
Max. Return
on Assets
Profitable
Growth
Custom
er
Intern
al
Measures
Statement of
what strategy
must achieve
and whats
critical to its
success
How success in
achieving the
strategy will be
measured and
tracked
Targets
Initiatives
The level of
performance or
rate of
improvement
needed
Key action
programs
required to
achieve
objectives
Industry
Leading
Customer
Loyalty
Seamless CrossGroup
Delivery of
Services
Understand
Drivers
of Customer
Value
Learning
&
Growth
Objectives
Effective
Customer
Service
Processes
Objectives
Seamless
CrossGroup Delivery
of
Services
Ensure MarketDriven
Skill
Development
2-3
Measures
Promised
Delivery %
Targets
97%
(first time)
Initiatives
Service Dispatch
Automation
Assess/evaluate the
performance results at
the
end of a time period or
activity
Measure intermediate
processes, activities, and
behaviors
Objectives
Examples
- Grow customer
confidence
- Maintain
strategic
workforce
Customer retention
Strategic skill
coverage
Strengths
Usually objective and
easily captured
Strengths
More predictive in nature
Allows organizations to
adjust behaviors for
performance
Issues
Issues
Examples
Based on hypotheses of
strategic cause and effect
Often difficult to collect
supporting data
2-4
Lead measures
are more reflective of
a companys
Strategy
Lead measures
communicate how you
want to accomplish
the objective
2-5
Increase
Revenues
Broaden
Revenue
Mix
Customer
Perspective
Internal
Perspective
Understa
nd
Customer
Segments
Learning &
Growth
Perspective
Broaden
Financial
Planning
Skills
Cross-Sell
the
Banks
Product
Line
Improve
Employee
Satisfaction
Improve
Customer
Informati
on
Lead Measures
Revenue Growth
Revenue Mix
Increase
Customer
Confidence in
Banks
Financial
Advice
Develop
Bank
Services
Lag Measures
Reward
Employee
Performanc
e
2-6
Customer Satisfaction
Customer Retention
Number of Key
Customers Contacted
Share of Segment
New Product Revenue
Cross-Sell Ratio
Employee
Satisfaction
Strategic Skills
Coverage
Number of Employees
who Achieve Bonus
Personal Goal
Alignment
Purpose of Targets
Targets:
Targets Should:
Match a measure, one for one
Be quantifiable
Clearly communicate the
expected performance
2-7
Stretch Targets
Milestones
Year
Year 1
Year 2
Year 3
Stretch
Target
% Increase
25%
12%
7%
50%
2-8
Measure
Revenue
Target
Year 1
Stretch
$39,774
$111,482
Employee retention
Satisfaction rating
To-dos:
Mystery caller program
in place baseline
established
Target set for future
2-9
90% in 60
seconds
85%
90%
Y/N on
90%
complianc
e rating
accomplishment
of to-dos
2-10
When in doubt, look back to the strategy and the performance gap
2.
3.
4.
5.
2-11
Purpose of Initiatives
Initiatives Are Defined to Help Close the Performance Gap
OBJECTIVE
Improve Order
Fulfillment
MEASURE / TARGET
Target
Time from
order to
shipment
INITIATIVE
18
Time (hours)
Measure
gap
12
12 hours
Actual
Target
2-12
Implement
automated
order
management
system
An Initiative Is Not:
Business as usual
For Example: Meet Quarterly Sales Targets, Preventative Maintenance
Agreement; Implement Firewall Security Upgrades
2-13