executing strategy has become the corporate challenge … · executing strategy has become the...

1 IMF-TGS Executive Workshop ©2003 Balanced Scorecard Collaborative, Inc. • bscol.com

Executing strategy has become the corporate challenge of our times

•“Strategy has never been more important”Business Week

•“Less than 10% of strategies effectively formulated are effectively executed”Fortune Magazine

•“The problem is that our age’s fascination with strategy and vision feeds the mistaken belief that developing the right strategy will enable a company to rocket past competitors. In reality, strategy is less than half the battle. .. In the majority of cases – we estimate 70% –the real problem isn’t [bad strategy]…. It’s bad execution.”

Why CEOs FailRam Charan and Geoffrey Colvin Fortune (6/21/99)


How does the Balanced Scorecard influence the creation of value?

—A measurement system designed to influence behavior should describe the strategy.

—A good Balanced Scorecard “tells the story” of the organization’s strategy.

The Basic Premise:

Measurement Motivates

“If you can measure it, you can manage it.”

“It’s not what you expect … it’s what you

inspect.”

“What you measure is what you get.”

“If you measure me illogically, do not be

surprised, if I behave illogically.”


Balanced ScorecardHelping Organizations Build Strategy-Focused Organizations

• Led by Kaplan and Norton

• Specialists in strategy implementation

• Over 500 BSCol-led Balanced Scorecard Implementations

• Leading-edge tools, methodologies, and approaches

• Undisputed leader in Balanced Scorecard conferences, consulting, and training markets

Balanced Scorecard Collaborative

Expertise and experience to drive strategy execution and results

Kaplan Norton


The five principles of the Strategy Focused Organization are central to the ongoing process of managing value creation.

• Strategy Maps• Balanced Scorecards

Translate the Strategy into

Operational Terms

Make Strategy a Continual

Process

• Link Budgets and Strategy• Strategic Learning• Analytics and Information

Systems

Mobilize Change through Executive

Leadership

• Mobilization• Governance Process• Strategic Management

• Corporate Role• Business Unit Synergies• Support Unit Synergies

Align the Organization to the

Strategy

Making Strategy Everyone’s Job

• Strategic Awareness• Personal Scorecard• Balanced Paychecks


MISSIONWhy we exist

VISIONWhat we want to be

STRATEGYOur game plan

RESULTS

SatisfiedCONSTITUENTS

Delighted CUSTOMERS

Efficient and Effective

PROCESSES

Motivated & Prepared

WORKFORCE

ALIGN THE ORGANIZATION WITH THE STRATEGYCascade strategic priorities to business units and support functions

MAKE STRATEGY EVERYONE’S EVERYDAY JOBPrepare and motivate people to execute their role

MOBILIZE CHANGE THROUGH EXECUTIVE LEADERSHIPCreate and sustain the case for change

MANAGE STRATEGY AS A CONTINUAL PROCESSIntegrate operations into the strategic management system

TRANSLATE THE STRATEGY INTO OPERATIONAL TERMSDevelop the corporate Balanced Scorecard

The Strategy-Focused Organization (SFO) achieves results by linking vision and strategy to action


Financial

To succeed financially, how should we appear to our shareholders?

Customer

To achieve our vision, how shouldwe appear to our customers?

Internal Business Processes

To satisfy our shareholders and customers, atwhat business processes must we excel?

Strategic Enablers

Upon which key assets must we draw toexecute our value-creating processes?

Outcomes

Drivers

Strategy is a hypothesis based on cause and effect relationships, defined by drivers which will create desired outcomes.

What is the Balanced Scorecard framework?


What is a Balanced Scorecard?

•a framework—that describes the strategy of an organization

across four perspectives (Financial, Customer, Internal Processes, Learning and Growth)

•a communication system—that bridges the gap between goals set by

senior executives and front line workers whose performance is ultimately responsible for reaching them

•a measurement system—that reports on past operating performance

and the drivers of future performance

•a process—for implementing and managing organizational

change


Objectives for IMF IT Balanced Scorecard Initiative

>Clarify and build consensus around the IT strategic plan

>Align IT organization with keystrategic objectives

>Help IT organization determine and focus on the measures that matter

>Communicate IT strategy and progress to its key stakeholders in the IMF organization

>Provide a mechanism that rewards and recognizes the contributions made by IT staff

TGS leaders recognize that improving its performance requires various changes across the organization.

9Style Guide- sdf- 4.18.03IMF-TGS Executive Workshop TGS Balanced Scorecard Report 1Q05

Inte

rnal

Pro

cess

es

Executive Directors, Management, and Fund Staff agree that TGS effectively supports the Fund’s work

IMF IT Balanced Scorecard 1Q05 ReportC

usto

mer

Innovative Services and Solutions

Consultative Customer Relationships

Lear

ning

an

d G

row

th

of T

GS

Sta

ff

Fin

anci

al

Res

ourc

es

Effective and Efficient Operations

I1: Provide reliable andconsistent service

I2: Deliver specified level of service in the most cost-

effective way possible

I4: Segment, understand, and address complex customer needs

I5: Collaborate with customers to develop new solutions

I6: Investigate the potential value of leading edge

technologies and work practices

C1: “Maintains an Effective and Efficient Work Environment”

C2: “Understands Staff and Institutional Needs”

C3: “Is Easy to Do Business With”

C4: “Provides New and Innovative Services”

L3: Provide the Appropriate Tools and Information to “Get the Job

Done”

L1: Maintain and Enhance Skills and Knowledge

L2: Nurture a Customer Focused, Solutions Oriented Culture

F1: Strive to Maintain a Baseline Budget

F2: Manage Expenses versus Plan

I3: Establish and maintain mutually agreed upon expectations

Updated 04-Nov-2004 2:42 PM


IT Core ServicesSeptember 2004

4. Telephone Services (IC)

5. Network Services

5.1 Core Network (IR)

5.2 Server Services (IR)

5.3 Storage Services (IR)

5.4 Print Services (IM)

6. Remote Access

Services (IR)

7. E-mail Services (IR)

8. Workstation Services (IC)

2. Application Maintenance

(ST)

2.1 EDF (IE)

2.2 iFIN (IF)

2.3 FACTS (IF)

2.4 HR/Payroll (IF)

2.5 Document Management

(IM)

2.6 IMF.ORG & Portal (IM)

2.7 Other applications

Support

9. Client Services (IC)

9.1 Help Desk Services

9.2 Centralized Message

Center

9.3 Network Administration

10. Creative Services (IM)

11. Document Distribution

Support (IM)

12. IT Security (IR)

3. Infrastructure

Development (IR)

1. Application Development

(ST)

1.1 Enterprise Info. Program

(IE/IM)

1.2 Adm/Fin Info Program

(IF)

Development

Other

Services

Infrastructure

Services

Application

Services


5.1 Core Network Services: Mini-Scorecard

Network Traffic Indicators

57.1%

27.3% 24.1%20.4%

25.2%

700

815775 750

840

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Mar-04 Apr-04 May-04 Jun-04 Jul-04

0

100

200

300

400

500

600

700

800

900

1000

Gig

aByt

es

Peak Segment Trunk Utilization

Peak Total BandwidthLinear (Peak Total Bandwidth)

99.97% 99.97%

99.92%

100.00% 100.00%

99.50%

99.60%

99.70%

99.80%

99.90%

100.00%

Mar-04 Apr-04 May-04 Jun-04 Jul-04

2.957

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

FY05

$ (M

illio

ns)

VolumeCost

Annual Costs of Core Network Services

Core Network Availability

Satisfaction

Discussion

• Costs: This includes Annual Meetings (IT463I) and Network Operations/ Engineering projects of IT9810 and IT940C,

• Volume: Indicators are produced from Concord’s network statistic report – part of IT Service Availability Report

• Quality: Core network availability is produced from the IT service availability report and focuses only on core network components (i.e., switches, routers, DNS/ DHCP, directory)

• Satisfaction: This indicator, from a user’s perspective, probably indicates ALL IT services, however it’s being represented here as a measurement for this.

25%

45%

13%11%

5%

0%

10%

20%

30%

40%

50%

VerySatisfied

Satisfied Neither Dissatisfied VeryDissatisfied

Overall satisfaction on maintaining a reliable network

Quality


12. IT Security Services: Mini-Scorecard

Effectiveness of IT Security (%)

98.6%

98.0%

100%100%100%100%100%

97.00%

97.50%

98.00%

98.50%

99.00%

99.50%

100.00%

Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Jul-04

Annual Costs of IT Services

1.870

0.0

0.5

1.0

1.5

2.0

2.5

3.0

FY05

Cost

Satisfaction

Discussion• Costs: IT Security Services costs are

comprised of projects related to Network Security Operations and Disaster Recovery costs. Projects IT9410 and IT9019 respectively.

• Quality: For this ¼, the effectiveness of the Fund’s IT security defenses deviated from their normal 100% when they were breached by the Sasser worm which entered the network on May 1 via a remote connection. After numerous actions were taken to mitigate the impact of the worm, the situation was brought under control just after the start of prime time at 8:30 a.m. Thereafter, patches were immediately re-applied to the servers that were still vulnerable to the virus. Due to severe corruption of the NAS server by the worm (supports files services), this server only recovered at 11:30 a.m. It should be noted that the server patches to address this worm were removed a few days before the infection due to problems encountered. In July, an infection by the Mydoom.M virus was experienced because there was no protection available from the antivirus vendors at the time of the virus outbreak. Filters were put into place manually on our SMTP gateways and on the internal mail servers to block the virus until the pattern files were released by the antivirus vendors. As a result of these security breaches, a vendor resource was reassigned from the Server Team into the Network Security Group.

30%

41%

13%11%

5%

0%

10%

20%

30%

40%

50%

VerySatisfied

Satisfied Neither Dissatisfied VeryDissatisfied

Satisfaction of safeguarding the Fund’s network from viruses, SPAM, external attacks

Virus Alerts – Overall number of virus threats on the Internet (#)

42

67

100

89

71

53 50

5.9 5.8 5.76

5.55.8 6

0

20

40

60

80

100

Jan-04

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

# V

iru

s al

erts

0

1

2

3

4

5

6

7

Ter

aByt

es

Overall number of virus detected on the Internet(#) Total DR data backed up

Quality

Volume

executing strategy has become the corporate challenge … · executing strategy has become the...

Documents