Balanced Scorecard Introduction Prepared By:-Six Sigma Team From Strategy Formulation to Strategy Execution

Expectations Awareness including understanding of approach / Concept. The utility and benefits Implementation Roadmap overview From Strategy Formulation to Strategy Execution KPI’s: The OMI Process BB-FZE Corporate & Functional OMI Next Step: Individual KPI’s Q & A Plan

. The Balanced Scorecard Focuses on Factors that Create Long-Term Value Traditional financial reports look backward – Reflect only the past: spending incurred and revenues earned – Do not measure creation or destruction of future economic value The Balanced Scorecard identifies the factors that create long-term economic value in an organization, for example: – Customer Focus: satisfy, retain and acquire customers in targeted segments – Business Processes: deliver the value proposition to targeted customers innovative products and services high-quality, flexible, and responsive operating processes excellent post-sales support – Organizational Learning & Growth: develop skilled, motivated employee objectives provide access to strategic information align individuals and teams to business unit Processes Customers People

Objectives What do you need to accomplish to achieve your Strategy? Measures How will you measure each objective? Measures help to tell your strategic story in concrete terms through the use of a Scorecard or KPI Target (Base/Plan/Stretch) Base = Current level of Performance (last year) Plan = Planned level of improvement (budget) Stretch = Optimum level of performance typically based on an Internal or External Benchmark Initiatives Initiatives are a step change improvement in how you operate your business. What do I need to do to close the gap on this objective? An initiative can be something new is a change, addition or deletion to an existing process. Scorecards: The OMI Process… … a structured approach to turn strategy into action

Objectives, Measures & Initiatives (OMI) process to establish KPI’s  ALIGNMENT  Meet Board’s expectations  Well established & recognized approach & methodology  Easier & more simple to implement / other methods  Consistent framework across the Company  NO SUBJECTIVITY

The OMI process into action

Strategy Map STRATEGIC GOALS 2013~2014 That supports our 5 year plan Objective Internal Processes Customer Financial Ensuring stewardship of the trust and assured financial strength We will enable our people To deliver the strategic processes That provide a uniquely satisfying customer experience Learning & Growth Objective

Measures (KPI’s)

The scorecard format… …Four perspectives

Initiatives…

What is an Initiative ? Initiative is: -A consistent Approach (Project Charter) -Team based -Phased (if necessary) -Clear (Scope) -Reviewed on a regular basis -Quantifiable & Verifiable Deliverables -Communicated / various Channels Initiatives are ChampionedPrioritized / Business Objectives Initiatives are Championed & Prioritized / Business Objectives  Initiative is not: Just do it Just do it Part of task / job description Part of task / job description To address discipline issues To address discipline issues Initiative has: -An Initiative Leader -A Process Owner -A Timeline (plan & stretch) -A Problem Statement (under Project Charter) -A Goal Statement (under Project Charter) -A Road Blocks Identification (under Project Charter)

KPI’s Process… Corporate Scorecard (Strategy Map, KPI’s & Initiatives) Individual KPI’s Five Year Strategy Plan Managers’ KPI’s (Mainly from Functional scorecard) Functional Scorecards (Strategy Map, KPI’s & Initiatives) …use the Four perspectives: Finance, Customer, Processes and Learning & Growth

Functional Scorecards Corporate Scorecard (Strategy Map, KPI’s & Initiatives) ProcurementSales Logistic Support Units IT Products & Mark. FinanceHR It’s just the beginning! Thank U Good Luck