Strategic KPIs and Scorecards

Using KPIs and scorecards to drive performance improvement

EARLY BIRD OFFER SAVE $550

19 - 20 May 2014 Stamford Plaza

BRISBANE

22 - 23 May 2014 Sir Stamford Circular Quay

SYDNEY

26 - 27 May 2014 Stamford Plaza

MELBOURNE

29 - 30 May 2013 Adina Apartment Hotel

PERTH

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Akolade’s Strategic KPIs and Scorecards 2 Day Masterclass provides participants with an understanding of how to construct and use Scorecards and Key Performance Indicators to improve organisational performance while simultaneously seeking to improve stakeholder, customer and employee satisfaction.

This practical course, uses a detailed case study and takeaway templates to illustrate the steps you will follow in constructing and implementing modern scorecards and KPIs.

This course aims to:

• Educate participants about modern management systems that use scorecards and KPIs to drive performance.

• Provide a ‘how to’ framework for the development of effective organisational scorecards and KPIs.

• Show how strategy maps are developed and used to create KPIs

• Review modern scorecard software options.

• Assess the impact improved data availability and effective reporting can have on individual and business performance.

• Explore and consider the issues involved in developing a performance driven culture.

• Discuss successful implementation approaches.

• Identify opportunities for participants to apply the knowledge they have gained in the course within their organisations

COURSE FACILITATOR

Dr. Michael Court, B.Ec, MBA, Ph.D, Managing Director, Balanced Scorecard Australia

Senior Associate, US Balanced Scorecard Institute

T | 61 2 9247 6000 F | 61 2 9247 6333 E | info@akolade.com.au W | akolade.com.au

Following nearly 15 years as a CEO in both the public and private sectors, for the past 18 years Michael has been helping public and private sector organisations in Australia and South East Asia to develop and implement strategic performance and management systems that are based on the use of balanced scorecards and KPIs.

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COURSE OVERVIEW ABOUT YOUR COURSE LEADER

The use of Corporate Scorecards and KPIs has become the major driver of performance improvement for all types of organisations over the past 2 decades. But it is common for organisations to fail to get the most out of their investments in the development of their scorecards and KPIs. Recent Australian and West Australian Auditor-General Reports indicate that despite legislation requiring government agencies to develop and report against KPIs, most of the government agencies that were audited were lacking effective KPI systems. Whilst there are no similar large scale audits of private sector KPI systems, there is no reason to suspect that the situation is any different. Indeed anecdotal information suggests that the situation may be worse.

The common causes for ineffective KPI systems are the lack of a systematic connection between the organisation’s KPIs and its strategic framework and the absence of a coherent management system which systematically develops and uses KPIs as a major driver of organisational performance. This course focuses on showing course participants how to construct modern organisational scorecards and to use them in developing and managing effective KPIs.

The course uses a detailed case study to work through the steps necessary to build an organisational scorecard and effective KPIs, focusing on how to use KPIs to drive organisational performance through the use of stretch targets, threshold performance levels, Strategy Budgets and systematic Performance Initiatives.

It includes:

• A review of the emergence of modern corporate management systems that use scorecards and KPIs, and why they have emerged

• Turning existing Strategic Plans into the frameworks for organisational scorecards and KPIs

• Constructing Corporate Strategy Maps

• Deriving effective KPIs from Corporate Strategy Maps

• Connecting KPIs with Performance Measures and Measurement Sets

• Using KPIs to drive organisational performance through the use of Targets, Strategy Budgets and Performance Initiatives

• Getting the maximum value from scorecard systems and KPIs by cascading scorecards throughout an enterprise

• Using modern software systems

• Setting up and maintaining a scorecard and KPI system

TRAINER PROFILE

Dr. Michael Court, B.Ec, MBA, Ph.D, Managing Director, Balanced Scorecard Australia

Senior Associate, Balanced Scorecard Institute

Michael is a pioneer and leading expert in Balanced Scorecard management, development and implementation

who consistently achieves acclaim for his practical training style and expertise.

His current activities include the delivery of public balanced scorecard training programs in Melbourne, Sydney, Adelaide, and Singapore and balanced scorecard consultancies in all Australian capital cities as well as Singapore, Vietnam, Thailand, Papua New Guinea and Mongolia.

Michael’s early career was in economics and accounting with one of KPMG’s Australian predecessors and then the Reserve Bank of Australia. He subsequently completed an MBA at the University of Washington and the Advanced Management Program at the Australian Staff College. He occupied senior executive positions in financial management in both the public and private sectors, culminating as Finance Director and then Secretary of the SA Health Commission. After completing a Ph.D in strategic management, including research periods at the University of Washington and the London School of Economics, he was the inaugural CEO of a private hospitals and health services group and was later appointed as CEO of a new Statutory Authority. After 7 years of growth, Michael established his own management consultancy practice in 1994 specialising in the development and implementation of strategic management and scorecard systems.

Michael’s public training courses have attracted clients from all industries and most SE Asian countries.

Michael’s recent consulting clients have included:

Australia

• Arden Anglican School, NSW

• ARIA, NSW

• Australian GP Network, ACT

• Australian Submarine Corporation, SA

• Brisbane Boys College, Qld

• CARA, SA

• Hunter Valley TAFE, NSW

• Intervet Schering Plough, VIC

• National Prescribing Service, NSW

• RABQSA, NSW

• Rema Tip-Top, WA

• SouthWestern TAFE, VIC

• Spendvision, VIC

• St Vincent’s De Paul, SA

SE Asia

• Bank of Indonesia

• Central Electricity Grid Company, Mongolia

• Continental Tires, China

• Dai-ichi Life Insurance Company, Vietnam

• Darhan Metallurgical Plant, Mongolia

• Police and State Services Credit Union , PNG

• Singapore Institute of Manufacturing Technology

• Ulaanbaatar Electricity Distribution Company,

T | 61 2 9247 6000 F | 61 2 9247 6333 E | info@akolade.com.au W | akolade.com.au

WHO SHOULD ATTEND

The following will find this course of significant value:

• Chief Executive Officers

• General Managers

• Senior Level Executives

• Divisional Managers

• HR Managers

• Corporate Planners

• All Staff who have Scorecard and KPI responsibilities

COURSE OUTLINE

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PROGRAMME DAY ONEGETTING THE MOST OUT OF KPIs AND SCORECARDSSession 1: Understanding the basics of KPIs and ScorecardsSuccessful KPIs don’t exist in a vacuum. They are a product of effective management systems that use modern balanced scorecards to drive organisations towards the achievement of clearly stated objectives. Session 1 will review modern performance management systems and look at examples of modern enterprise scorecards and their associated KPIs. The focus is on how modern scorecards work and especially:• What are Key Performance Indicators?• Why are they used?• How should they be selected?

Session 2: Reviewing and redeveloping your corporate strategy Constructing corporate Scorecards requires a number of steps. The first step is to review the enterprise strategy to make sure that the Scorecard and its associated KPIs will be moving the enterprise systematically towards the achievement of both its long-term and short-term objectives. This requires reviewing the enterprise’s current Strategic and Business Plans and if necessary redeveloping them in a form that will facilitate linked Scorecard and KPI development. Session 2 will use the case study to illustrate the processes that are used for doing this:• Reviewing and confirming (or redeveloping) the main strategic directions for the Enterprise (if necessary using strategic assessment tools);• Reviewing and confirming (or redeveloping) the enterprise’s stakeholder and customer value propositions. • Confirming the Enterprise’s Mission, Vision and PD (Plan Destination); Session 3: Building the Corporate Strategy Map (CSM)The next step in constructing an Enterprise Scorecard is to turn the elements of the enterprise strategy into a Corporate Strategy Map. Strategy Maps are an intrinsic part of modern scorecards which facilitate the development of effective KPIs. Session 3 will again use the case study to work systematically through the processes of constructing a Corporate Strategy Map:• Developing the Enterprise’s ‘ Scorecard Perspectives’;• Developing the Enterprise’s main Strategic Themes and Results Statements;• Developing short term and long term Theme Objectives;• Constructing the Corporate Strategy Map Session 4: Developing meaningful KPIs Meaningful KPIs have a number of characteristics:• They provide enterprise management with the information necessary to enable them to successfully drive the enterprise;• They meet stakeholder needs and expectations for information about the enterprise’s performance;• They provide motivation to staff and should be a major component of staff reward and remuneration systems;• They are an important component in an enterprise’s reputation.Modern management systems link KPIs with the achievement of the Enterprise’s short and long term objectives. Sounds simple - but isn’t, and few organisations do this well. Session 4 will work through the process of developing meaningful KPIs using ‘KPI Commentaries’.• Finalising the short and long term corporate objectives• Choosing the KPIs

PROGRAMME DAY TWOUSING KPIs AND SCORECARDS FOR BEST RESULTSSession 5: Understanding KPIs and performance measuresMost organisations possess lots of performance measures, which usually have targets associated with them. The targets are meant to either motivate staff or indicate minimum levels of acceptable performance. KPIs are the specially chosen subset of performance measures (usually ‘results’ measures) that are seen to be ‘key’ to the successful operation of the organisation. For results measures to be useful, they need to be connected with a range of other measures - of resource usage, process efficiencies, outputs, operating environments, etc. Choosing what to measure and how to measure has proven to be very difficult for most organisations, as has how to interpret the information produced by measures and how to minimise the number of measures that are necessary for good management. Session 5 will review some of the common methodologies for choosing and interpreting performance measures and provide some takeaway templates. The focus is on: • Performance measurement development models and how to use them• Measurement sets

Session 6: Using KPIs to drive performanceUsing KPIs to drive performance improvement requires the careful setting of stretch targets for the organisation and the determination of associated minimum levels of acceptable performance. But besides setting targets and thresholds, considerable attention must be given to HOW and WHEN the targets are intended to be achieved, what budget provisions need to be made, and what initiatives have to be undertaken. Session 6 looks at:• The science and art of using KPIs to set performance targets and thresholds• Using Performance Improvement budgeting• Choosing Performance Improvement initiatives

Session 7: Getting maximum value from your Scorecard and KPI systemMuch research has been undertaken to establish why some organisations that use scorecards and KPIs do better than others that also use scorecards and KPIs. It is suggested that there are 2 areas which help organisations get maximum value from their scorecards: • Using modern software systems: the last decade has seen the rapid development of sophisticated software systems that allow organisations access to timely and highly visual reporting of scorecard data which greatly facilitates managerial decision-making, and• Cascading scorecards throughout the organisation: the development of secondary scorecards for lower management levels and individual performance appraisal schemes that are linked with the corporate scorecard.Session 7 will review current best practices in these 2 areas of rapid development.

Session 8: Implementation & change - making it happenThe factors influencing the successful development and implementation of KPI management systems will be discussed, based on the course leader’s experience:• Getting organisational buy-in for a performance culture• Establishing implementation mechanisms• Training and ongoing mentoring• Making it happen workshop - participants apply what they have learnt in the course and create an action plan for their own organisation.

T | 61 2 9247 6000 F | 61 2 9247 6333 E | info@akolade.com.au W | akolade.com.au

MASTER CLASS INFORMATION8.00am – Registration opens 8.30am – Start of Masterclass 4.30pm – End of Masterclass Morning, afternoon tea and lunch will be provided for all delegates

What our past delegates have to say

Michael is extremely knowledgeable and was able to help me identify how the “Jigsaw” fits together and that we have all the pieces

Grant Cowan, Business Analyst, State Trustees Limited

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VIP CODE STRATEGIC KPIS AND SCORECARDS

T | 61 2 9247 6000 F | 61 2 9247 6333 E | info@akolade.com.au W | akolade.com.au

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IMPORTANT NOTE: Attendance will only be permitted upon receipts of full payments. Please note that programme and speakers are subject to change without notice. Akolade will not be responsible for any event re-scheduled or cancelled.

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2 Day Masterclass

BRISBANE19 - 20 May 2014Stamford PlazaMargaret StPh: +61 7 3221 1999

PERTH29 - 30 May 2014Adina Apartment Hotel33 Mounts Bay RoadPh: +61 8 9217 8000

SYDNEY22 - 23 May 2014Sir Stamford at Circular Quay93 Macquarie St.Ph: +61 2 9252 4600

MELBOURNE26 - 27 May 2014Stamford Plaza111 Little Collins StreetPh: +61 3 9659 1000

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