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Team B4

Team B4. Winning Strategy 1: Strategy Deployment Plan. Contents. Overview of BSC Comparison of BSC , Policy Deployment ( Hoshin Kanri ) & Business P rocess Re-Engineering Overview of organizational Strategy Recommended Deployment of Strategy using BSC Summary Conclusion References.

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Team B4

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  1. Team B4 Winning Strategy 1: Strategy Deployment Plan

  2. Contents • Overview of BSC • Comparison of BSC ,Policy Deployment (HoshinKanri) & Business Process Re-Engineering • Overview of organizational Strategy • Recommended Deployment of Strategy using BSC • Summary • Conclusion • References

  3. Overview of BSC • Created in 1992 by Kaplan and Norton • A holistic method of measuring organizational performance • Complements traditional financial assessment methods • Balances short term activities with long term plans • Functions as a strategy deployment tool

  4. BSC Philosophy • BSC is based on four (4) premises: • Finance • Clients • Internal Processes; and • Learning and Growth

  5. FINANCIAL PERSPECTIVE • Analysis of financial performance (Reports & Ratios) • Determining company financial health • Addresses issues such as profitability, ROCE, sales figures, liquidity, debt figures, etc. CLIENTS PERSPECTIVE • Focuses on customers needs • Assesses how well products/services fulfill consumers requirements • Market Segmentation & Customer Surveys

  6. INTERNAL PROCESSES • Concerned with operational activitieswithin the organization • Analyzes how efficiently and effectively they function • Aims to ensure they work towards attaining organizational goals LEARNING AND GROWTH PERSPECTIVE • Examines how much organizational learning occurs within the company • Concerned with employees growth and skills development

  7. HOW DOES THE BALANCED SCORE CARD WORK? • Analysis is done on each perspective • The requirements for each are defined • The cause & effect relationship between them is expressed in a strategic map • Here, organizational goals and objectives, defined action plans and performance indicators selected are reflected. • The BSC may be used alongside other strategic development methodologies.

  8. Pro’s and Con’s of BSC • Clarifies and translates vision and strategy. • Communicates and link strategic objectives and measures. • Helps plan, set targets and align initiatives. • Enhances strategy feedback and learning in division • Overly abstract Balanced Scorecard goals are easy to reach but hard to quantify • Implementation of the balanced scorecard is time consuming • Balanced Scorecard does not include direct financial analysis of risk management Pro’s Con’s

  9. COMPARISON OF BSC, HOSHIN KNARI (POLICY DEPLOYMENT) AND BPR

  10. Mitigating the Downside of BSC BSC disadvantages can be mitigated in the following ways; • Combining BSC with a complimentary deployment tool e.gHoshinKanri • Ensuring that strategic objectives are S.M.A.R.T • Making effort to avoid measure bias. i.e using the same measurement for different objectives • Carrying out analysis of Risk Management i.e opportunity cost should be considered

  11. Overview of Strategy Increase market share in Europe Actions and costs • Research European market pricing structure, discounts, distribution, competition, product and safety specifications etc. Identify a distributor who could take on the European sales and handle any future expansion of the market. Need new computerized finance package for Euros and to reduce Finance workload (estimated cost £25,000) • Identify successful European promotional campaigns and put together a winning promotions strategy. Increase marketing spend to £250k. • Increase price of both products by approximately 2.5% (in line with inflation).

  12. Actions and Costs contd. • Reorganize the Leisure sales team to three external sales representatives and three internal sales people to handle client follow-up by taking on two new salespeople and take on a European sales representative in the Rescue/Military sales team. • Continue to invest in new technology costing an estimated £150k on capital expenditure. • Reorganize Finance and HR departments by moving wages and salaries manager into the Finance department. Reduce the remaining clerical staff in HR to a total of one

  13. ORGANIZATIONAL VISION To be the second largest inflatable boat Production Company in Europe in 5 years and start to expand in the U.S. market.

  14. RECCOMENDED STRATEGY DEPLOYMENT USING BSC

  15. Summary • The Organizational objectives have been clearly outlined for each perspective • Specific targets were defined • Performance Measures are suggested • The action steps stated in the strategy were highlighted as initiatives

  16. Conclusion • The BSC can be efficiently used in the deployment of this selected organizational strategy • It will allow for the clarification and translation of the company vision • As well as provide feedback to enhance the organizational learning process

  17. References • Asan, S.S & Tanyas, M(2007) Integrating HoshinKanri and the Balanced Scorecard for Strategic Management: The Case of Higher Education. Total Quality Management,18(9)Pp. 999 –1014 • Pettus, M.L (2006) Utilizing Capabilities to Increase Stakeholder Wealth: A Balanced Scorecard Approach. Competition Forum, 4(1) pp. 15 • Brewer, P., (2003) Putting Strategy Into The Balanced Scorecard. Articles Of Merit 2003 Competition. Pp.1-11 • Salterio, S. & Webb, A., (2003)The balanced scorecard. CA Magazine, 136 (6) Pp. 3 • Kaplan, R.S., & Norton, D.P., (1996) Using the balanced scorecard as a strategic management system. Harvard Business Review. Pp. 75-85 • White, T. (2012) Balanced Scorecard - Advantages and Disadvantage. [Online] http://tamarawilhite.hubpages.com/hub/Balanced-Scorecard-Pros-and-Cons. Access Date: 1st February, 2012. • Shin, M & Jamella, D.F (2002) Business process re-Engineering and performance Improvement: The case of chase Manhattan bank, Business Process Management, 8(4). Pp. 351-363

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