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Class Announcements Service Learning Assignment: Progress Report should be completed one week after initial meeting with the client Final Exam 7:00pm April 11, 2014 Assignment #4 due March 24 th ; available on-line
Class Objectives 1. Approaching the implementation of strategy through the Balanced Scorecard (BSC) 2. Using the four perspectives of the BSC in context. 3. Considering objectives, measures and target for BSC implementation in context.
The Balanced Scorecard Financial Perspective How do we look to the firm’s owners? Innovation and Learning Perspective How can we continually improve and create value? Internal Operations Perspective In which activities must we excel? Customer Perspective How do our customers see us?
Balanced Scorecard Strategic Theme: Internal Product Development Financial Customer People & Knowledge Internal Strategy MapObjectiveMeasureTargetInitiative Annual Revenue Growth Percent Revenues from New Products Revenue Growth Grow Revenue from new products +25% 30% xx Innovative Products Customer Retention Share of Account Satisfy Customer Needs for State-of-Art Capabilities 80% 40% Relationship Management Program Gain Sharing Program World Class Internal Product Developmen t Product Functionality Time to Market Accelerate New Product Development #1 in indy. 9 mos. University Liaison/ Technology Transfer Development Cycle Time Reengineering Stable High- Talent Workforce Specialized Competency Availability Key Staff Retention Acquire, Develop and Retain Strategic Skills 100% 95% Competency Model New Hiring Program Supervisory Training Benefits Program Illustrative
Implementation: Objectives Are concise statements that articulate what the organization hopes to accomplish Tell the story of the strategy through the cause-and- effect relationships in each of the four balanced scorecard perspectives The company’s balanced scorecard would typically contain an extensive (3-5 sentence) description of each objective
Implementation: Measures Measures describe how success in achieving an objective will be determined Provide specificity and reduce the ambiguity that is inherent in word statements Specifying exactly how an objective is measured will give employees a clear focus for their improvement efforts
Implementation: Targets Once the objectives have been translated into measures, managers select targets for each measure Targets establish the level of performance or rate of improvement required for a measure Should be set to represent excellent performance Should, if achieved, place the company as one of the best performers in its industry Even more important would be to choose targets that create distinctive value for customers and shareholders
HCS: Context HCS provide customized information systems develop customized information systems that integrate outsourcing with internal support services Characterized by rapid growth as they grow how retain customer intimacy Follow a customer intimacy strategy tailoring services to the precise needs of the client requires retaining expert staff Corporate intellectual assets are firm’s primary competitive advantage success depended on both internal and external relationships
HCS: Issues 1) Operationalizing Strategy Manage growth and maintain culture Customer Intimacy Strategy Human Capital – team of experts 2) Performance Measurement Balanced Scorecard Performance objectives, metrics, etc. 1.Financial - To grow the company 2.Customer - To know and understand customer needs 3.Internal business processes -To encourage and promote knowledge sharing 4.Learning and growth - To maintain an open and collaborative culture
HCS: Balanced Scorecard
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