Presentation on theme: "Dr. Ahmed Fahmy Galal Presented by: Reham el Kaliouby."— Presentation transcript:
Dr. Ahmed Fahmy Galal Presented by: Reham el Kaliouby
Restoring Your Organizational Voice with Strategic Conversations What is the meaning of a Strategic Conversation? - Has a purpose related to the strategic direction of the organization - It is about one or more elements of the strategic planning loop - Leads to action - Quality of this conversation is a critical factor in organizational change and performance i.e. it is strongly related to organizational performance (Delta Point, 2010).
Restoring Your Organizational Voice with Strategic Conversations The Balanced Scorecard: - Tells the story of your strategy - Reflects your chosen hypothesis - Leads to as many questions as it does answers Strategic Conversation: - Begins after developing the strategy map - Details cause& effect linkages in the Balanced Scorecard. - Questions & challenges your plan assumptions - Employees should be encouraged to join in.
Restoring Your Organizational Voice with Strategic Conversations Examples: - You believed that employee training would lead to greater innovation. Has that happened & to what extent? - Did the increase in customer loyalty show a corresponding increase in return on capital as you predicted? Start questioning the validity of your assumptions that are the base of your cause & effect linkages throughout the Scorecard It is these conversations that are generated by questioning assumptions that lead to real breakthroughs
Do Performance Measures Remain the Same? Ask Questions: - Will we have a chance to change our measures? - Should we change our measures? Yes, measures could be changed for a no. of reasons: - Abandoning of strategy, based on Scorecard results. - Reviewing of performance measures (at least annually) to test their validity in light of current & anticipated business conditions.
Do Performance Measures Remain the Same? Types of Changes: - Method of calculation to capture real meaning of event under investigation. - Measure’s description, to improve employee understanding. - Measure’s frequency for collecting data ex. Measuring employee satisfaction semi annually instead of monthly. Steps for Change: - Advertise. Everyone should know about your intention for change. - Give employees the opportunity to provide feedback regarding these adjustments.
Example & Conclusion At Caterpillar’s Wheel Loaders and Excavators Division (WLED) in Aurora, Ill., significant revisions have been made in both organizational structure and performance measures. This was because Caterpillar changed its overall corporate structure from a "functional bureaucratic" organization to a "profit center" organization and instituted performance measures appropriate to the new structure. Since then, the division has achieved outstanding success and continuous improvement (Hendricks, Defreitas, & Walker, 2010). The Balanced Sco0recard is about learning about: your strategy, your assumptions, your value proposition Measures will not always tell you what you want to hear. Do not treat alterations from your plan as defects. Simply question more to learn about your business.
References Delta Point. (2010). Strategic Conversation Development Program. Retrieved June 6, 2010 from http://www.strategic- conversation.com.au/html/dev__strategic_conversation.ht ml http://www.strategic- conversation.com.au/html/dev__strategic_conversation.ht ml Hendricks, James A.; Defreitas, David G.; &Walker, Delores K. (2010). Changing Performance Measures at Caterpillar. Cengage Learning. Retrieved June 6, 2010 from http://college.cengage.com/accounting/resources/students /readings/hendricks.htm http://college.cengage.com/accounting/resources/students /readings/hendricks.htm