1. Perspectives, Objectives, & Measures

2. Objectives
At the end of the lecture, the participants will be able to:
Choose the right perspectives for a Strategy Map
Identify the fundamentals in creating strategic objectives
Differentiate lead and lagging measures

3. Scope Choosing Perspectives Creating Performance Objectives
Creating Measures

4. Choosing Perspectives

5. Choosing Perspectives
The choice of perspectives for your Strategy Map and Scorecard should be based on what is necessary to tell the story of your strategy and create a competitive advantage for your organization.
Some organizations have even customized their own perspectives.
Competitive advantage creates value for the company

6. Different Perspectives?
Financial
Customer
Internal Process
Learning and Growth
Businesses
Customer
Internal Process
Learning and Growth
Financial
Non-Profit
Impact
Customer
Core Process
Support Process
PGS
Core Competencies
Internal Process
Learning and Growth
Resources
US ARMY

7. Remember…
Whatever perspectives you choose, it must tell the story of your organization’s strategy

8. Performance Objectives

9. Performance Objectives
Performance Objectives consist of statements that describe the specific things we must perform well for a successful strategy
these are strategic choices that we have made from the many options we have.
It addresses gaps that we have to fill to achieve our goal.

10. Filling the Gaps ? ? ? ? ? ? ? ? PRESENT FUTURE
TRANSFORMATION
PRESENT
FUTURE
Goal
Goal = Performance
Gaps ? ? ? ? ? ? ?
Present Performance ?
If we are going to state how
we will fill the gaps it
becomes our objectives.

11. How do we know what the Gaps are?
It may involve using studies, theoretical frameworks, or making hypotheses to determine the cause-and-effect relationships.
In the AFP, we frequently use the DOTMPLF framework to guide us in looking for the gaps on issues/problems.

12. Developing Objectives for Financial
How should we appear to our shareholders?
For businesses the usual financial objectives would involve profitability or growth
For Non-profit Organizations, objectives are more about the effective and efficient use of resources or in increasing the pie.

13. ? ? Government (Operational Level) Customer Reliable Transport
More Flights ? ?
Internal Process
More available spares
Learning &
Growth
Crew Skills
Barcoding system
Financial
Improve Programming

14. Developing Objectives for Customer
How should we appear to our customers?
It must be clear
Who is your target customer?
What is your value proposition?
Objectives usually fall under:
Operational Excellence (price, convenience, quality)
Product Leadership (functionality, brand image)
Customer intimacy (solutions offered, driving the customer’s success, relationship)

15. Value prop: A lethal force
A lethal Force/Option
Customer: Joint Force
(TF, UCs)
Value prop: A lethal force
Improve Core Capabilities
Increase Training Activities
Increase PAF Budget

16. Developing Objectives for Internal Process
What process should we excel at?
Operations Management Processes
relate to the basic, day-to-day routine processes
Customer Management Processes
understanding and customizing to customer’s needs
Innovation Processes
something new
Regulatory and Social Processes
adherence to standards/laws
Ex. JRRS, SOPS, Policies

17. Developing Objectives for Learning & Growth
To achieve our vision, how will we sustain our ability to change and improve?
Human Capital
closing skills gap, training, recruitment, retention, succession plan
Information Capital
Improve technology infrastructure
Leverage technology
Increase knowledge management and information sharing
Gather, share, and use information effectively
Organizational Capital
Culture- beliefs and expectations shared by an organization’s members

18. Creating performance measures

19. What are Performance Measures?
Performance Measures  determines whether we are meeting the objectives and moving toward the successful implementation of the strategy

20. Leading and Lagging Measures
Lagging indicators are output-oriented but hard to improve or influence. They are consequences of actions previously taken.
Leading indicators are measures that drive the results in the lagging indicators. They predict performance of lagging indicators.

21. 2010 PH Elections
2016 PH Elections

22. Examples Objectives Leading indicators Lagging Indicators
Improve Physical Fitness
-personal time spent for physical activities
-attendance to Taebo/Takbo
-calories intake
PFT results
Increase pool of applicants
-number of info drives conducted
-extent of areas reached for info drive
-number of applicants/examinees
Enhance knowledge of airmen on PAF doctrines
-time spent for reading doctrines
-accessibility/availability to PAF doctrines
-number of doctrines published
-evaluation of airmen’s knowledge (exam, survey)

23. Performance Measures Scorecard measures should be
linked to your strategy
quantitative
accessible
easily understood
counterbalanced
relevant
based on a definition shared by all involved.
Performance measures must capture the essence of the goals/objective.

24. Example Acquire Equipment VS Sustain Equipment
Procure/Supply the Equipment
Procure and Maintain Equipment
Measure the number of Equipment accepted
Measure the number of Equipment accepted, OR rate, effectiveness, and future requirements.
How do we quantify values? How can we say we have improved on our military values?

25. Objective in Lag measure/s
Lag measure  lead measures
Lead Measures  Initiatives
Initiatives  activities

26. Reminders..
Measures should contain a mix of lead and lagging indicators
Performance measures requires making difficult choices among a vast number of possible metrics

27. RECAP
Choosing Perspectives
Performance Objectives
Creating Measures

28. End of Presentation..