Resource Requirements
? People ? Facilities
? Technology ? Equipment and Machinery
Components of a Balanced Scorecard
(with sample metrS
Performance Management
A Guide to Consulting
June 2000
Discussion Objectives
? Provide an overview of current thinking and trends
? Discuss what PM consulting is all about ? Review “what works and what doesn't”
? Ensures the closest “line of sight”possible
Source: Watson Wyatt Best Practices in Performance Management
Performance Consulting
Two dimensions:
1. Total Organization
2. Why doesn't it work so well? What makes it so difficult?
Performance Management
? Translates business vision and strategy in an actionable way by cascading goals throughout the organization
? Cascading and Alignment ? Stakeholder Metrics
2. Employee Review Process
? Engagement and Accountability ? Growth and Achievements
Performance Consulting
Core Organizational Capabilities
Balanced Scorecard
= Why does the company exist?
= Where is it going?
? Size ? Markets ? Products
? Sales ? Locations ? Competitive Challenges
?AFYP ?ROI/ROA ?Surplus Growth
CUSTOMER SATISFACTION
? New sales: new customers ? Additional policies: current
customers ? Market share
BUSINESS PROCESSES
Total Organization Performance
? Cascading and Alignment ? Stakeholder Metrics
The Key Questions of Business Planning
Mission Vision of Future
Strategic Organizational Goals
? Measures both what is done and how it is done
? Aligns
? Department goals with strategic business objectives
? Aligns individuals with the broader organizational/ team context
Objectives of departments and individuals
Bottom-up-approach: Derivation of segment and corporate strategic plans and operating objectives from business unit goals.
? Share Best Practicesresearch
? Review some of the basic planning and project steps
Group Discussion
Answer the following questions:
1. What is performance management? Why do companies have this process?
? SBU Linkages
= How will it get done?
? Values and Operating Principles ? Technology ? Resources
= What must the company be very good at doing?
= How will progress and success be measured?
? Expectations of Stakeholders ? Company Performance
Business Plans are Developed by the Business Units
Strategy of the Corporation
Objectives of the corporation
? Collecting premiums ? Calculating selling price: new product ? New licensing (Region & Corporate) ? Establishing the Business Case for new
Top-down-approach: Derivation of objectives from corporate strategy
Objectives of the region
Asia
Latin
(Europe)
America
Industry
Objectives of the business unit