THE STRATEGY FOCUSED ORGANIZATION PDF

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In The Strategy-Focused. Organization, they show how the following five principles transform the. Balanced Scorecard from a tool for performance measurement. 2 How Mobil Became a Strategy-Focused Organization PART ONE: TRANSLATING THE STRATEGY TO OPERATIONAL TERMS 3 4 Building Strategy. Strategy-focused organizations break through this barrier and create an Every employee of a strategy-focused organization understands the strategy and is.


The Strategy Focused Organization Pdf

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4 days ago The Strategy Focused Organization How Balanced Scorecard Companies Thrive In New Business Environment Robert S Kaplan [PDF]. Creating a Strategy. Focused Organization. NRPA Congress. S t b 26 September 26, B b h ll @ lti. [email protected] Research shows that a lot of companies have difficulties to execute the strategies they need to remain in business. One of the reasons is that the strategies, and.

To subscribe to the audio edition: Soundview now offers summaries in audio format.

Call or write for details. To download multiple copies of this summary: Soundview offers discounts for quantity downloads of its summaries. Publisher, George Y. Publications Director, Maureen L. Editor-in-Chief, Christopher G. Published monthly. Periodicals postage paid at Concordville, PA and additional offices.

Translate Strategy into turn, drive customer retention and revenue growth, as well as the internal processes factory management and Operational Terms line programming that contribute to those objectives. Learning and growth — the priorities to create a value, providing the measurement and management climate that supports organizational change, inno- framework for knowledge-based strategies. The arrows in the strategy map show the cause-and- Principle 2: Align the effect relationships between elements in each perspec- tive, clearly displaying how such intangible assets as Organization to the Strategy strategic awareness feed into themes that eventually The Balanced Scorecard provides a powerful frame- yield tangible results.

A Strategy-Focused Organization, however, map and Balanced Scorecard [on the right] breaks down requires more than just having each business unit use its into detail how the theme affects the customer objec- own Balanced Scorecard to manage a great strategy; the tives that result from the theme. In this example, we see strategies and scorecards for all such units should be how sourcing and distribution affect customer objec- aligned and linked with one another.

Align the Organization eight retail divisions, each with its own target audience to the Strategy and retail chain has a real estate division, which continued from page 3 acquires and manages retail properties. The real estate division is a single organization that can be deployed to develop from efficient interactions between those units — the benefit of all eight retail divisions. The company has found that it is and require a corporate role to ensure their most effec- more cost-effective to concentrate such expertise in a tive use; others share common technologies and knowl- single shared services division, rather than have each of edge.

A corporate scorecard should articulate the ration- the retail divisions manage its own capabilities in those ale behind keeping different business units operating critical areas. These units should be aligned through corporate-level strategy: In an ideal world, there shared by all business units.

In the absence of that archi- tecture, shared service units can use the Balanced Organizations can also create synergies by aligning Scorecard in a somewhat different manner, using one of the internal units that provide shared services.

These two models: Successful Balanced Scorecard companies typically first develop scorecards for business units that sell products and serv- Shell Services International ices to external customers, then develop shared service The Shell Services International SSI division of unit scorecards.

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The shared service unit scorecard, which business units it served. This multi-level system was reflects its strategy to support the service agree- achieved largely due to the enhanced measuring ment with the business units. A linkage scorecard, in which the shared service related to the following: Customer feedback from the business units on the performance of the shared service unit. The units from focus on cost-related factors to quality and shared service scorecard defines the relationship.

This service-centric concerns.

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The they can contribute to successful implementation of scorecard enables executives of these functional units to change initiatives. These maps consist of images and build a management approach that motivates their organi- pathways designed to create employee discussions of zations to be customer-focused and competitive.

One such learning map helped Sears develop a vision of its future in retail sales. The map showed a Principle 3: In the age of sequenced, repetitive, task- ronment of the s: Wal-Mart, J. Penney, The based manufacturing jobs, employees did not have to Limited, etc.

The maps were accompanied by tables understand or implement strategy; they simply had to and charts that defined the context for employees to respond to three strategic themes about the company: Employees must be aligned and our team?

Indeed, there are Through use of the map and a series of town hall several critical factors that require intense alignment of meetings, Sears communicated its vision and enabled employees to organizational objectives: Think of a product launch. Develop an understanding of the strategy and rewarding of key employees.

Strategy-Focused Organizations understand that, ulti- 2. Develop download-in to support the strategy. Educate the organization about the Balanced gy, and are often the ones who come up with the inno- Scorecard measurement and management sys- vative ideas that make strategies work. These organiza- tem for implementing the strategy. Provide feedback, via the Balanced Scorecard, processes to align their employees to the strategy: Employees must understand how they can influence the successful implementation of the strategy.

Conference Paper. Nov In contrast to traditional and purely financial criteria for Perforfance evaluation; Organizations started to use the methods which are compatible with the strategy and evaluate the performance with multi-dimensional perspectives.

One of the most well-known of these methods in organizational performance evaluation is the Balanced Scorecard Card. The scorecard is a contemporary, multi-dimensional measurement method with strategic management perspective that measures the performance of private sector firms, public institutions and voluntary organizations.

Balanced scorecard card eavluates performance with financial, customer, internal processes and learning-development dimension. There are also good examples of successfull application of a balanced scorecard in the public sector. However, there are BSC implementation problems in both private and public organizations.

In this study, after explaining performance evaluation in public sector and the balanced scorecard card, the problems encountered in the implementation of the balanced scorecard card in the world and Turkey will be assessed. The product of this research was the BSC, which is an outcomes oriented performance management system that seeks to link the short and long term activities of an organization with the vision, mission, and strategy of the organization through the establishment measurable, consensus-driven goals.

Kaplan and Norton explicitly recognized the systemic inter-relationship within and between four sectors, incorporating both lead and lag indicators, which impact on organisational performance. In their classic model, two of N o v e m b e r 8 , 2 0 1 4 these have an inward oriented dimension, a learning sector and a processes sector, and two an external focus, a customer sector and the traditional financial sector.

The Strategy-Focused Organisation

Performance was measured in four perspectives namely: Financial-summarizes measurable economic consequences of actions taken; Customer-contains measures that "identify the customer and market segments in which the business unit will compete and the measures of the business unit"s performance in these targeted segments"; Internal Business Process-measures the internal processes in which the organization must excel; and Innovation and learning which measures the infrastructure that the organization must build to create long-term growth and improvement.

The performance of the organisation was measured using balance score card model by Kaplan and Norton Relationship between turnaround strategies and organisational performance is influenced by moderating factors such as resource allocation and environmental.

The two variables, that is; revenue generating strategies and cost reduction strategies was tested using the Balance score card model developed by Kaplan and Norton, to determine the effect of turnaround strategies on organisational performance which is hypothesised by the researcher to be positive. Lucy Birir Komen. Many public corporations experiencing decline in performance have opted to implement turnaround strategies to improve their performance.

This study extends previous research findings by seeking to examine the effect of turnaround strategies on performance of Public Corporations in Kenya, by identifying the turnaround strategies adopted in these Corporations, and to determine the effect of turnaround strategies on their performance. To achieve this objective, correlational research was adopted.

The target population comprised public corporations in Kenya. A purposive sample of thirty two 32 corporations was used in the study. A Likert type scale questionnaire was administered to respondents to collect data from the selected public corporations.

Primary data was complemented with secondary data collected from the corporations for the previous three years. Descriptive statistics that is in percentages were used to describe the research variables.

Pearsons product moment coefficient was used to examine the relationship between turnaround strategies and organisational performance and multiple regression was used to establish the effect of turnaround strategies on performance of the corporations. The positive relationship suggests that when declining corporations implement turnaround strategies revenue generating and cost reduction strategies their performance when measured using the balance scorecard measurement tool which measures financial perspective, customer satisfaction, internal business processes and innovation and learning perspectives, will improve positively.

The findings also found that cost reduction strategies had a greater effect on the performance of public corporations in Kenya compared to revenue generating strategies. Therefore, it can be recommended that public corporations need to implement turnaround strategies to turn around declining corporations. The study also recommends areas of further research.

We know that the strategy is a macro-strategic plan, and will only be implemented when defined and pursued in the form of various projects. These themes reflect the views of senior managers about what should be done inside the company to achieve the strategic results. Internal processes create and provide the value to the customers.

Identifying and selecting the strategic process using the cross-efficiency approach based on satisfaction level and extendded balanced scorecard. Mar The strategy is a macro and strategic plan, and will only be implemented when it is defined in the form of various projects. In order to exploit the benefits of lean six sigma projects, these projects should be in line with the strategic goals of the organization.

Organizations should select projects which are compatible with the organization overall goals and fulfill the strategic requirements of the organization. The purpose of this study is to identify the strategic process among the bank facility processes to use it in lean six sigma methodology in order to improve process performance and efficiency using a combination of cross-efficiency and extended balanced scorecard methods.

In the first step, the criteria for selecting the strategic process were identified using the six measures of the balanced scorecard method. In the second step, after collecting information using the cross-efficiency model based on satisfaction level, the bank facility processes are ranked based on the efficiency score. The results show that the ranking of the processes under consideration is carried out without any interference, and one of the processes process 3 is considered as the strategic process to use in the six sigma methodology.

Previous research establishes how BSC can create and report the value of intellectual capital, and provides a framework for integrated thinking Kaplan and Norton, However, this raises a question.

This balance is within the four different BSC perspectives: Improving integrated reporting: A new learning and growth perspective for the balanced scorecard.

Dec Rada Massingham. Purpose The purpose of this paper is to present a new learning and growth perspective for the balanced scorecard BSC that includes more specific measures of integrated thinking and value creation to help improve integrated reporting.

Practical, relevant definitions of these historically vague concepts may improve intangible asset disclosures IAD and increase uptake of the framework. The authors use organisational learning to theorise about the learning and growth perspective of the BSC, within the context of the practice of IAD. The model is designed to be used in tandem with the framework to operationalise integrated thinking.

A new BSC strategy map illustrates how this revised learning and growth perspective interacts with the other three BSC perspectives to create long-term shareholder value through the management and growth of knowledge within an organisation. Practical implications From its roots as a performance measurement system, the BSC has become a widely used strategy execution tool. The framework has struggled to gain traction, but still has value in exploring intangible assets and its disclosure from a systems thinking perspective.

The model is designed to bring an explicit understanding of how to improve integrated thinking for the framework facilitating better measurement, management and reporting of human and structural capital. By doing so, the new model enables a firm to use the BSC to engage with more effectively, which should also be useful for practitioners given the widespread use of the BSC.

The authors demonstrate practical paths to value creation through a range of strategic impacts. The three constructs are critical in the survival of any organization and therefore important for academic inquiry. It provides multidimensional performance evaluations and monitor strength and can help managers to keep track of the execution of activities by employees, measure both financial and non-financial outcomes resulting from their actions and take corrective measure where discrepancies arise.

Kaplan and Norton suggested in their holistic tool of measuring firms performance-Balanced Score Card BSC that financial performance needs to be combined with other measures that will lead to future financial performance and which are non-financial metric which include satisfying stakeholders and customers, growth and survival of business and increased quality and efficiency.

A Research Agenda. May Corporate strategy plays a critical role in the proper functioning of an organization as it provides the blueprint that guides the corporate direction of an organization while governance structure presents an organization with a framework for the distribution of responsibilities and resources to achieve organization performance. While the constructs have been sufficiently studied and documented in various studies separately in relation to organization performance, few studies have been undertaken to study the two constructs together to understand how they jointly explain organization performance.

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This paper presents a review of the extant theoretical and empirical literature on the two constructs in relation to organization performance.

Relevant underpinning theories are reviewed, constructs described and their operational indicators identified and compared with empirical work and emergent knowledge gaps identified.

The paper finally proposes a multidisciplinary based theoretical model suitable to address the gaps identified to advance knowledge in the area and calls upon future research to empirically test the propositions of the study. User-centric design should be an IT vision statement and all IT solutions need to be carried out through the eyes of the ultimate user Berki et al. Response time to failures need to be minimized to maximize reliability and availability. Projects seem to fail when the organization fails to translate vision and mission statements into tangible plans and actions applied at institutional, departmental and project levels Sheriff et al.

BSC translates vision, mission and strategy through objectives and measures to feasible goals and action plans. The Future of the IT Department: Traditional challenges in the relationships between IT departments and business units are no longer accepted by users. IT departments need to actively adopt entrepreneurial mindsets to meet the new market requirements. Some researchers argue that the responsibility for application software is shifting from IT professionals to the users of the software.

It also seems that the IT professionals lack commercial skills to deliver and maintain IT solutions for customer satisfaction and added business value. This paper summarizes the debate on the relationship of IT departments and users engaged in application development.

A survey including open-ended questions, investigated opinions and current practices. The study showed that end-users need appropriate user interfaces for their business needs. Software applications need seamless paths for delivering results to the next step in the business workflow. When the IT department is not able to satisfy user requirements regarding speed, responsiveness, flexibility and adaptability it is likely that today's users may start creating their own applications.

3.Building Strategy Focused Organizations With the Balanced Scorecard

Following the analysis of findings, the paper discusses potential solutions regarding how IT-departments can become more business focused by aligning business activities to organizational strategy and by defining and measuring specified value objectives. It also emphasizes that IT professionals must become more aware of user needs and costs. The proposed solution of this paper is to increase a controlled collaboration between the IT department technical experts and innovative pioneering end users application domain experts for overall added value co-creation.

The underlying idea of our work is that, if properly designed, an MCS is a powerful mechanism supporting the implementation of the business strategy Kaplan, ; Kaplan and Norton, ; Dixon et al.

The MCS has a direct impact on the individuals' behaviour and consequently may bring the overall performance to higher levels. The role of managerial control in innovation processes: Anna Pistoni. In this era of globalisation, the roles of management accountants have evolved from merely keeping records of costs incurred in the factory, to partaking in strategy formulation, implementation and appraisal Kaplan and Norton, ; Horngren et al.

As it is crucial for the management accounting function to adequately support the organisation, the management accounting role has growingly advanced with the progression in size and diversity of activities in organisations.

This study evaluated the influence of six contingent variables - firm size, age, sector, existence of management accounting department, affiliation to foreign entity and public-quotation status - on the effectiveness of management accounting function in Nigerian firms.

Stratified random sampling technique was deployed to obtain the views of Finance Officers with oversight role across major sectors of the Nigerian economy. Statistical tools used in analysis were descriptive statistics, factor-analysis, Kruskal Wallis Test and binary logistic regression. Whilst detecting that contextual variables such as size, age, sector, existence of management accounting department and public-quotation status significantly affect the effectiveness of the management accounting function, affiliation to foreign entity was found not to exert significant influence.

The strongest predictor of the likelihood of operating a very effective management accounting function was the existence of management accounting department. Organisations are encouraged to have separate management accounting department because of additional benefits imbued by specialist management accounting skills.

The BSC further develops in its application, not only as a measure of corporate performance, but extends as an approach in the preparation of strategic plans, by linking business benchmarks with corporate strategy.

According to Rangkuti a simple understanding of the Balanced Score card is a score card used to measure performance with due regard to the balance between the financial and nonfinancial side, between short and long term and involves internal and external factors. Nurhasnah Nurhasnah Rivdya Eliza. Today, thousands of private, public and non-for-profit organizations have implemented the BSC [12], [13]. Martinson et al. PT Sinar Jaya Gemilang is a company engaged in the field of automobile service and maintenance.

This company has a financial application, the application called GBS. This application has a problem that is the difference between the calculation by using the application and calculation by using the manual way. For the BSC model the author uses the internal perspective of the company. The highest is in the domain DS 13, and the lowest is in the domain ME 3. Recommendation for DS domain is provide training users to be able to improve if there is an error in inputting data.

While the advice for the domain ME is conduct financial audits or audit applications more often. Based on the results of authors, the authors advise companies to make improvements to the application, so the problems that occur within in company can be resolved.

Its aim is to reduce the information burden on managers and emphasis on key financial and non-financial indicators that are crucial to the fulfillment of corporate strategy Creamer, The method Balanced Scorecard further than BSC transforms mission and strategy into a comprehensive set of performance indicators that provide a return framework for assessing management and business strategy Kaplan, Norton, To download multiple copies of this summary: Soundview offers discounts for quantity downloads of its summaries.

Publisher, George Y. Publications Director, Maureen L. Editor-in-Chief, Christopher G. Published monthly. Periodicals postage paid at Concordville, PA and additional offices. Translate Strategy into turn, drive customer retention and revenue growth, as well as the internal processes factory management and Operational Terms line programming that contribute to those objectives.

Learning and growth — the priorities to create a value, providing the measurement and management climate that supports organizational change, inno- framework for knowledge-based strategies. The arrows in the strategy map show the cause-and- Principle 2: Align the effect relationships between elements in each perspec- tive, clearly displaying how such intangible assets as Organization to the Strategy strategic awareness feed into themes that eventually The Balanced Scorecard provides a powerful frame- yield tangible results.

A Strategy-Focused Organization, however, map and Balanced Scorecard [on the right] breaks down requires more than just having each business unit use its into detail how the theme affects the customer objec- own Balanced Scorecard to manage a great strategy; the tives that result from the theme. In this example, we see strategies and scorecards for all such units should be how sourcing and distribution affect customer objec- aligned and linked with one another.

Align the Organization eight retail divisions, each with its own target audience to the Strategy and retail chain has a real estate division, which continued from page 3 acquires and manages retail properties.

The real estate division is a single organization that can be deployed to develop from efficient interactions between those units — the benefit of all eight retail divisions. The company has found that it is and require a corporate role to ensure their most effec- more cost-effective to concentrate such expertise in a tive use; others share common technologies and knowl- single shared services division, rather than have each of edge.

A corporate scorecard should articulate the ration- the retail divisions manage its own capabilities in those ale behind keeping different business units operating critical areas. These units should be aligned through corporate-level strategy: In an ideal world, there shared by all business units. In the absence of that archi- tecture, shared service units can use the Balanced Organizations can also create synergies by aligning Scorecard in a somewhat different manner, using one of the internal units that provide shared services.

These two models: Successful Balanced Scorecard companies typically first develop scorecards for business units that sell products and serv- Shell Services International ices to external customers, then develop shared service The Shell Services International SSI division of unit scorecards.

The shared service unit scorecard, which business units it served. This multi-level system was reflects its strategy to support the service agree- achieved largely due to the enhanced measuring ment with the business units. A linkage scorecard, in which the shared service related to the following: Customer feedback from the business units on the performance of the shared service unit.

The units from focus on cost-related factors to quality and shared service scorecard defines the relationship. This service-centric concerns. The they can contribute to successful implementation of scorecard enables executives of these functional units to change initiatives.

These maps consist of images and build a management approach that motivates their organi- pathways designed to create employee discussions of zations to be customer-focused and competitive. One such learning map helped Sears develop a vision of its future in retail sales.

The map showed a Principle 3: In the age of sequenced, repetitive, task- ronment of the s: Wal-Mart, J. Penney, The based manufacturing jobs, employees did not have to Limited, etc. The maps were accompanied by tables understand or implement strategy; they simply had to and charts that defined the context for employees to respond to three strategic themes about the company: Employees must be aligned and our team?

Indeed, there are Through use of the map and a series of town hall several critical factors that require intense alignment of meetings, Sears communicated its vision and enabled employees to organizational objectives: Think of a product launch.

Develop an understanding of the strategy and rewarding of key employees. Strategy-Focused Organizations understand that, ulti- 2. Develop download-in to support the strategy.

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Educate the organization about the Balanced gy, and are often the ones who come up with the inno- Scorecard measurement and management sys- vative ideas that make strategies work. These organiza- tem for implementing the strategy. Provide feedback, via the Balanced Scorecard, processes to align their employees to the strategy: Employees must understand how they can influence the successful implementation of the strategy. Creating Strategic Awareness Homogeneous organizations whose outcomes are easy to Employees must learn about and understand the strat- measure — sales organizations, for example — can egy before they can help implement it.

Executives must focus on a few primary metrics. Using the continued from page 5 Scorecard as a Budget Filter tions must share the outcomes and strategy they are try- ing to achieve.By this tool, companies are offered the possibility to improve the use and application of Key Performance Indicators and score their contracts on operational performance.

Language English English. One such learning map helped Sears develop a vision of its future in retail sales. Balanced scorecard implementation in higher education: By continuing to use this site, you consent to the use of cookies. From The Strategy-Focused Organization. The positive relationship suggests that when declining corporations implement turnaround strategies revenue generating and cost reduction strategies their performance when measured using the balance scorecard measurement tool which measures financial perspective, customer satisfaction, internal business processes and innovation and learning perspectives, will improve positively.

See examples below. The strategies must cover different target audiences, and in particular: country and regional office leadership roles, programme and operations technical roles and field practitioners including Emergency Specialists, Chiefs Field Offices etcetera.

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