strategy and change 4

8/8/2019 Strategy and Change 4

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Session 4

Strategy and Analysis

STRATEGY AND CHANGE


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THE FIRST STEP IN CHANGE IS

STRATEGY..


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STRATEGY IS ABOUT DIRECTION


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THE FIRST STEP OF STRATEGY

DETERMINATION IS ANALYSIS..


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HERE WE NEED TO CHOOSE A MODEL

FOR ANALYSIS..


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THEN FACILITATE VISION AND

STRATEGY..


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Classically planning dealt (essentially) withthe following:

Diagnostics (mostly referred to asenvironmental scanning andorganization diagnostic studies)

Classification (the most common

technique used was the so called SWOTanalysis);

Setting strategic objectives;

Developing implementation plans

CLASSICAL PLANNING


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The BSC addresses the weaknesses of theclassical strategic planning approach as wellas most performance management systems;

It provides an integrated visioning, planning,strategizing and performance managementprocess;

Implementation is facilitated by cascadingthe scorecard from enterprise to individuallevel, thereby ensuring optimal integrationand alignment.

CLASSICAL PLANNING


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THE BSC TO FACILITATE VISION AND

STRATEGY..


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Communication Tool

Strategic

Management System

Measurement

SystemBalanced Scorecard


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The name Balanced Scorecard reflects the

Balance between

short- term and long-term objectives

financial and non-financial measures

lagging and leading indicators

external and internal performance

perspectives.

THE BSC DEFINED


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Step 1:

Clarify the Vision

Clarify the Mission or Strategic Value

Proposition.

THE BSCPROCESS


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Step 2:Create strategic objectives in the

four perspectives to realize the

Vision and Mission

THE BSC PROCESS


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Financial Perspective:

Balance revenue growth and efficiencies

Customer

Perspective:

Differentiate your organization from competitors.

Internal Process Perspective:

Identify operational, customer-relationship, and innovation

processes to support your customer and financial goals

Innovation and Learning Perspective:

Define the skills, technologies, and corporate culture neededto support your strategy.

THE BSCPERSPECTIVES


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Strategic Objectives in FinancialStrategic Objectives in Financial

Long-term Shareholder

Value

Revenue Growth

Improve Cost Structure

Increase Asset Utilization

Cost Efficiency

Expand Revenue

Opportunities

Enhance Customer Value


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PricePrice AvailabilityAvailability BrandBrandServiceServiceQualityQuality

Customer AcquisitionCustomer Acquisition

Customer SatisfactionCustomer Satisfaction

Customer RetentionCustomer Retention Customer ProfitabilityCustomer Profitability

Market ShareMarket Share

Strategic Objectives in CustomerStrategic Objectives in Customer


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Human CapitalOrganization

Capital

Information

Capital

Skills

Knowledge

Attitude

Systems

Database

Networks

Culture

Leadership

Organization

Development

Strategic Objectives in Learning and GrowthStrategic Objectives in Learning and Growth


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THE BSC MAP LOGIC

Cost Efficiency

Long-term Shareholder Value

Revenue Growth

Price Availability BrandServiceQuality

Operations

Management

Processes

Human Capital

Customer

Management

Processes

Innovation

Processes

Regulatory

and Social

Processes

Organization Capital Information Capital

Financial

Customer

Internal Process

Learning & Growth


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Step 3:

Define performance

measures for objectives

or goals

THE BSCPROCESS


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BSC DEFINED

Causal Relationship

Vision


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Step 4:Set up a reporting and

communication system

THE BSCPROCESS


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Dashboard

Plan

DoReview


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THAT LEAVES YOU WITH A SET OF

INDIVIDUAL INITIATIVES (PROJECTS) THAT

TELLS YOU WHAT YOU NEED..


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THE CHANGE NEED (FOCUS)..


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THE CAPACITY NEED


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THE PEOPLE NEED


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THE CHANGE

PROJECT AS

SOCIO-

TECHNICAL

EFFORT


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?

ORGANIZATION CULTURE


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CultureCulture The Way We Do Things HereThe Way We Do Things Here

Patterns of behaviour and practicesPatterns of behaviour and practices

Artefacts (physical environment)Artefacts (physical environment)

ValuesValues

BeliefsBeliefs

Belief systemsBelief systems

Underlying assumptionsUnderlying assumptions


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Patterns of behaviour and practicesPatterns of behaviour and practices

Artefacts (physical environment)Artefacts (physical environment)

We often observe thisWe often observe this



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ValuesValues

BeliefsBeliefs Belief systemsBelief systems

Underlying assumptionsUnderlying assumptions

To make assumptions aboutTo make assumptions about

thisthis



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Organization

cultureYour project



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Culture

Navigation

Individual

competence, and

engagement

Leadership

Climate



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Positive:Positive:

CreativityCreativity

InnovationInnovation

EngagementEngagement

Performance excellencePerformance excellence

Long term sustainabilityLong term sustainability



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Negative:Negative:

DirectionlessDirectionless

DeDe--motivationmotivation

Self destructiveSelf destructive



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Organization Culture Determines:Organization Culture Determines:

How the need for change is perceivedHow the need for change is perceived

How the need for change is internalizedHow the need for change is internalized

How responsive the organization is toHow responsive the organization is to

changechange

How individuals think, and behaveHow individuals think, and behave The long term sustainability of theThe long term sustainability of the

business and projectsbusiness and projects



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VIDEO PRACT1


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EXERC

ISE


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Five Minutes

strategy and change 4

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