Strategy Process with Balanced Score Card 15 February 2013 IBE250

Balanced Score Card The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. It was originated by Drs. Robert Kaplan (Harvard Business School) and David Norton as a performance measurement framework that added strategic non-financial performance measures to traditional financial metrics to give managers and executives a more 'balanced' view of organizational performance. strategic planning and management system The balanced scorecard is a management system (not only a measurement system) that enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results. When fully deployed, the balanced scorecard transforms strategic planning from an academic exercise into the nerve center of an enterprise. The balanced scorecard retains traditional financial measures. But financial measures tell the story of past events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success. These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and innovation."

Story of modern company Adapted from Robert S. Kaplan and David P. Norton, “Using the Balanced Scorecard as a Strategic Management System,” Harvard Business Review (January-February 1996): 76.

Free Strategy Mapping software Screen shots, Training videos, etc.

In-house development Olsen and Sætre (in ERP for SMEs) state, “To be able to perform system design, the overall strategy and goals of the company must be clarified.” Also, – Inefficiencies in current process may become apparent when these are mapped into process diagrams and discussed by the organization. – An information needs analysis may show deficits in existing data base structures, and expose the importance of agreeing on a basic terminology for the SME: What is an order, a due date, a delay?

QFD (Quality Function Deployment) House of Quality Quality Function Deployment – is a ”system for designing a product or servcie, based on customer requriements, with the participation of members of all funcitions of the suplier organization. – ”Trinnvis kvalitetsplanlegging” - TKP (Asbjørn Aune - Kvalitetsstyrte bedrifter) Originated in Japan in 1972 – Mitsubishi Kobe (skipyards) – Further developed by Toyota and its suppliers – Used in practice by many leading organizations A system for the design of a product or service – with focus on the customers needs

QFD QFD team must answer – Who, What and How – (Who) Hvem er kunden? Hvem vil ha fordel (benefit) av ’dette’? – (What) Hva trenger kunden? – (Why) Hvordan skal behovene tilfredstilles (satisfied)? Results – the house of quality provides structure to the design and development cycle. Key is focusing on customer requirements, collecting this information It can increase initial planning time, but the overall design and redesign time will be reduced. HoQ (House of quality) process fig 4.6 and 4.7

Fig 4.6 og 4.7 Implementing/breaking down the goals Hvordan? Hva?

HoQ -wikipedia House of Quality is a diagram, resembling a house, used for defining the relationship between customer desires and the firm/product capabilities. It is a part of the Quality Function Deployment (QFD) and it utilizes a planning matrix to relate what the customer wants to how a firm (that produces the products) is going to meet those wants.

House of Quality (Se også utlagte dokumenter fra SPIQ NTNU og HiST) Free HoQ Templates: plates/qfd-and-house-of- quality-templates/ HoQ tutorial: qfd/qfd-hoq-tutorial.swf

HoQ tutorial

Example By- og Boligministeriets udviklingsprojekt (Danmark) ”Projekt Hus” af Temagruppe 5 - Nye byggekomponenter.

QFD progresses through: 1.”seven new planning tools”, 2. value analysis, 3. experimental design, 4. statistical process control