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Using a combination of the commonkads and system dynamics methodologies to make operational the transition between the definition of a joint innovation strategy and its implementation and management.
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Using a combination of the commonkads and system dynamics methodologies to make operational the transition between the definition of a joint innovation strategy and its implementation and management The 4th International Seville Conference onFuture-Oriented Technology Analysis (FTA)12 & 13 May 2011 Sidnei Vieira Marinho Universidade do Vale do Itajaí (UNIVALI) Cristiano Cagnin DG Joint Research Centre Institute for Prospective and Technological Studies
Using a combination of the commonkads and system dynamics methodologies to make operational the transition between the definition of a joint innovation strategy and its implementation and management 1. Introduction • Despite the growing number of publications on Performance Measurement Systems, it can be observed that consensus has not yet been on the stages of their implementation within an organization. • The systematic proposal is composed by four different phases which to optimize the utilization of Balanced Scorecard by methods, tools and author’s contributions of this paper.
Using a combination of the commonkads and system dynamics methodologies to make operational the transition between the definition of a joint innovation strategy and its implementation and management 1. Introduction (Why Balanced Scorecard?) • Studies demonstrate that one of the performance management systems most widely used by organizations is the balanced scorecard. • It is made up of four strategic perspectives and includes some of the subjects that are of greatest importance to implementation of strategy, these are: the transformation of strategy into operational actions; the creation of correlation hypotheses based on cause and effect relationships; the monitoring of both financial and non-financial measures; and alignment and management of the scope of objectives in such a way as to facilitate feedback and strategic learning with the aim of transforming strategy into a continuous process.
Using a combination of the commonkads and system dynamics methodologies to make operational the transition between the definition of a joint innovation strategy and its implementation and management 2. Balanced Scorecard
Using a combination of the commonkads and system dynamics methodologies to make operational the transition between the definition of a joint innovation strategy and its implementation and management 2. Balanced Scorecard
Using a combination of the commonkads and system dynamics methodologies to make operational the transition between the definition of a joint innovation strategy and its implementation and management Phase 1 Organizational Strategy Strategic Diagnostic Phase 2 • Mission • Vision • Values External Environment Internal Environment Phase 3 Cascading the Strategy into Operational Actions Objectives Measures Targets Initiatives Budget Phase 4 Strategic Learning 3. Systematic Proposal
Using a combination of the commonkads and system dynamics methodologies to make operational the transition between the definition of a joint innovation strategy and its implementation and management Identification of strategic questions Analysis of internal environment Analysis of external environment Stage 1 SWOT analysis SWOT matrix Selection of scenarios Description of scenarios Analysis of implications and options Stage 2 Global Business Network Method Selection of initial measures 3. Systematic Proposal (Phase 2 – Strategic Diagnostic)
Using a combination of the commonkads and system dynamics methodologies to make operational the transition between the definition of a joint innovation strategy and its implementation and management CASCADING THE STRATEGY INTO OPERATIONAL ACTIONS STRATEGIC OBJECTIVES MEASURES TARGETS INITIATIVES BUDGET Stage 3: Definition of the Strategic Objectives Stage 4: Construction of the Strategy Maps Stage 5: Selection of the Measures Stage 6: Targets Supervision Stage 7: Strategic Management of Initiatives Stage 8: Strategic Budget 3. Systematic Proposal (Phase 3 – Cascading the Strategy)
Using a combination of the commonkads and system dynamics methodologies to make operational the transition between the definition of a joint innovation strategy and its implementation and management STRATEGY TRANSLATION OF THE STRATEGY STRATEGIC LEARNING CYCLE LEARNING MEETING (DOUBLE LOOP) BALANCEDSCORECARD BUDGET MONITORING CYCLE MONITORING MEETING (SINGLE LOOP) FINANCE INITIATIVES AND PROJECTS ENTER RESOURCES EXIT RESULTS 3. Systematic Proposal (Phase 4 – Strategic Learning)
Using a combination of the commonkads and system dynamics methodologies to make operational the transition between the definition of a joint innovation strategy and its implementation and management 4. Validation (Delphi Method and Case Studies) • Once this system had been defined, its phases and stages were validated using the Delphi method, in order to obtain the opinion of the specialists This implementation of the Delphi method involved specialists from Brazil, Germany, Spain, Canada and Japan. • The systematic proposal has been tested within three case studies .The first case aimed to assess the efficiency of the Brazilian State of Parana in sharing juridical knowledge with citizens to implementation of sustainable policies. • The second case aimed at verifying if the social responsibility measures used by a higher education institution were sufficiently linked to its strategic objectives • The third case took a place in a no-profit organisation and aimed at checking how far its annual budget was directed towards the strategic objectives of the caring population.
Using a combination of the commonkads and system dynamics methodologies to make operational the transition between the definition of a joint innovation strategy and its implementation and management 5. Quantitative and qualitative aspects of the proposal and roles of FTA • The System Dynamics tries to investigate and provide solutions to problems via simulations and modelling embedded in a learning environment. By performing changes in variables, which are controlled to ensure it leads to robust and viable outcomes, one can easily understand how policy or strategy options will resonate in the overall system. • In the same line, the integration and adaption the CommonKADs into the proposal provides an enhanced governance of the system as it enables strategic knowledge in terms of processes and production to be transferred, thus offering robust information and value measures across the system or value chain. • The combination of CommonKADs with System Dynamics provide effectiveness in fostering learning and transferring knowledge since such combination integrates all important elements of an organisation's strategy and operations.
Using a combination of the commonkads and system dynamics methodologies to make operational the transition between the definition of a joint innovation strategy and its implementation and management 5. Quantitative and qualitative aspects of the proposal and roles of FTA
Using a combination of the commonkads and system dynamics methodologies to make operational the transition between the definition of a joint innovation strategy and its implementation and management 6. Conclusions • The systematic proposal was developed based on perceived gaps in the process of implementing the balanced scorecard; • The combination of Delphi and case studies demonstrated both the importance and originality of systematic proposed; • The application of systematic proposal in practice shows that the notion of stakeholder involvement, mutual experimentation and learning, and of a common vision to be pursued across the system is however still neglected; • Embedding FTA enables firms to steer solutions to possible challenges in decision making and implementation processes which include the coordination and mobilization of resources across the value chain.
