Are you managing a team that just can't deliver on the strategic objectives? Then YOU are at fault, not them. Learn the "4x4" methodology to turn STRATEGY into ACTION on Feb 11-12, 2013. For more info: http://www.surveymonkey.com/s/Scorecard2013
NVIDIA's overall business overview Presentation.pptx
4x4 Methodology for Startegic Execution: workshop preview
1. THE BALANCED SCORECARD
Translating Strategy Into Action
Execution Gap
Turning Goals into Actions
PERSPECTIVES DISCIPLINES
STRATEGY EXECUTION
For more info:
http://www.surveymonkey.com/s/Scorecard2013
2. Agenda
1. Why strategic planning?
2. Communicating strategy
3. The Balanced Scorecard
4. The 4 Disciplines of
Execution
For more info:
http://www.surveymonkey.com/s/Scorecard2013
3. Mark Twain
“If you don’t know where you are
going, you may not like it when
you get there.”
For more info:
http://www.surveymonkey.com/s/Scorecard2013
„ 3
4. • B
• A
For more info:
http://www.surveymonkey.com/s/Scorecard2013
„ 4
5. Why Strategic Planning?
§ To get from A to B in the most effective and
efficient way possible.
§ Must Win Battles in order to win the War.
§ To remain sustainable and competitive.
For more info:
http://www.surveymonkey.com/s/Scorecard2013
„ 5
6. Levels of Strategic Planning
Vision
Mission,
Values
Long-term Strategic
Objectives
Annual Organization wide
Goals (Measures, Targets)
Department Goals
For more info:
Individual Goals/Actions
http://www.surveymonkey.com/s/Scorecard2013
„ 6
7. THE BLIND MEN AND THE ELEPHANT
by John Godfrey Saxe (1816-1887)
For more info:
http://www.surveymonkey.com/s/Scorecard2013
„ 7
8. • You can’t manage
something that you can’t
describe!
• There is no
generally accepted
way to describe a
business strategy
For more info:
http://www.surveymonkey.com/s/Scorecard2013
„ 8
10. • 1% • 18%
• Strategy
• 300%
• Text
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Development plan
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For more info:sed nibh. Vivamus vitae dolor. Ut bibendum volutpat mi. Pellentesque quis magna non lectus elementum pretium. Aliquam quis est vitae arcu consequat
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• 12%
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http://www.surveymonkey.com/s/Scorecard2013
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• Words
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• through inappropriate means
„ 10
12. Kaplan & Norton
“The formulation of great strategies is
an art, and it will always remain so.
But the description of strategy should
not be an art. If people can describe
strategy in a more disciplined way,
they will increase the likelihood of its
successful implementation.”
For more info:
http://www.surveymonkey.com/s/Scorecard2013
„ 12
13. What is a Balanced Scorecard?
• A
Measurement
System?
• A Management
System?
• A
Communication
For more info:
Tool?
http://www.surveymonkey.com/s/Scorecard2013
„ 13
14. Components of a Balanced Scorecard
• Strategy Map • Scorecard
• Strategic
• THEME • THEME Objectives •
• Measures • Targets • Initiatives
• Financial
• Financial • F1 - Improve Returns Return on Investment
Revenue Growth
15%
+10%
Finance 2000
Global Re-
• F2 - Broaden Revenue Mix
Deposit Service Cost Engineers
• F3 - Reduce Cost Structure Change -5%
• Perspective
Share of Segment 20% Sales & marketing
• Customer C1 - Increase Customer Customer Retention 95% Reorganization &
• Customer
Satisfaction With Our Products Training
& People
• Perspective C2 - Increase Satisfaction
“After the Sale”
New Product Revenue 10%
• Internal I1 -Understand Our Customers
I2 -Create Innovative Products
Cross-Sell Ratio 9%
QFD Project
Channel Mix Change Customer Database
I3 -Cross-Sell Products TBD
• Internal
Service Error Rate Global Service
• Perspective I4 -Shift Customers to Cost- Request Fulfillment
Time
<1% Training Program
Effective Channels <2 days
I5 -Minimize Operational
Problems
I6 -Responsive Service
For • Learning
more info: • L1 - Develop Strategic Skills Skills Coverage 100% HRMS
• Learning
• L2 - Provide Strategic Info Employee Satisfaction 80% Knowledge
Perspective Management
http://www.surveymonkey.com/s/Scorecard2013 • L3 - Align Personal Goals Revenue per Employee System
„ 14
15. “Balanced”…Reflecting a “Natural Cause
& Effect Logic” of Performance
• And Realize the Vision
• Financial /
Mission
Success • To Drive Financial/Mission Success...
• Customer
Benefits • Needed to Deliver Unique Sets of
Benefits to Customers...
• Internal • To Build the Strategic Capabilities..
Capabilities
For more info:
http://www.surveymonkey.com/s/Scorecard2013
• People: Knowledge, Skills, Systems, and Tools • Equip our People...
„ 15
17. RESULTS =
STRATEGY X EXECUTION
For more info:
http://www.surveymonkey.com/s/Scorecard2013
„ 17
18. Need
Both
For more info:
§ Vision
without
ac-on
is
merely
a
dream.
http://www.surveymonkey.com/s/Scorecard2013
§ Ac-on
without
vision
just
passes
the
-me.
§ Vision
with
ac-on
can
change
the
world.
§
~
Joel
A.
Barker
„ 18
19. What Leaders Do
Execution Gap
STRATEGY Turning Goals EXECUTION
into Actions
Ram Charan said:
70% of strategic failures
are due to poor execution
For more info:
of leaders.
http://www.surveymonkey.com/s/Scorecard2013
“Why CEOs Fail” Fortune June 21, 1999
„ 19
20. The Challenge: Ability to Execute
• Leadership without the
discipline of execution is
incomplete and ineffective.
Without the ability to execute
all other attributes of
leadership become hollow
• Larry Bossidy Chairman, Honeywell
For more info:
International
http://www.surveymonkey.com/s/Scorecard2013
„ 20
21. Charan & Bossidy on Execution
Leaders who execute focus on a very few
clear priorities that everyone can grasp.
—Execution: The Discipline of Getting Things Done
For more info:
http://www.surveymonkey.com/s/Scorecard2013
• 21
„ 21
22. General Electric - The Power of Focus
• 1980 § 45+ business units
§ $25.5 billion revenue
• Jack Welch (CEO) announces that GE will
• 1981 leave any business line where they cannot
hold the leadership position or a very
close 2nd place
• 2000 • 12 business units
• $129.8 billion revenue
For more info: • 40-fold increase in stock price
http://www.surveymonkey.com/s/Scorecard2013 S&P 500 by more than
• Outperformed
three times over the two decades
„ 22
23. Create Goals with 1
• Discipline Line-of-Sight
• Organizational Level WIGs
• WIG 1 • WIG 2 • WIG 2
• 3 WIGs • 2 WIGs • 3 WIGs
• Division A • Division B • Division C
• 3 WIGs • 3 WIGs • 2 WIGs
For more info:
• Unit 1 • Unit 2 • Unit 3
http://www.surveymonkey.com/s/Scorecard2013
„ 23
24. Three Types of Measures
• Lagging • provide an historical look at past
performance.
• Leading • provide indicators that are predictive
of future results.
• Must drive the lag measures
• Should be sensitive enough to move
every week
• Behavioral, not quick lag measures
• Real-Time • show where things are right now.
For more info: • They allow corrective action to be taken
immediately to affect the outcome.
http://www.surveymonkey.com/s/Scorecard2013
• 23
„ 24
27. Hold Each Other Accountable
• Follow-through is the
cornerstone of execution, and
every leader who s good at
executing follows through
religiously.
• Following through ensures
that people are doing the
things they committed to do.
For more info:
Larry Bossidy,
http://www.surveymonkey.com/s/Scorecard2013
Execution: The Discipline of Getting
Things Done
• 4727
„