Strategic continuum



PV215 - 8
2


PV215 - 8
3
(C) J. Plamínek

PV215 - 8
4


PV215 - 8
5


PV215 - 8
6


PV215 - 8
7


PV215 - 8
8


PV215 - 8
9
Yin_yang_vision_strategy.png
A vision without a plan
is just a dream.
A plan without a vision
is just a drudgery.
But a vision with a plan can change the world.

PV215 - 8
10
* DSI – Developing Strategic Interval
here and now
(C) J. Plamínek

PV215 - 8
11

Period when company benefits from current competitive advantage
To do so, it has defined products or services, processes and secured all necessary resources
Company generates profit for owners and to secure enough resources to ensure development in other
strategic continuum intervals
Workers directly realize current strategy
Managers only monitor and tune the performance
Leaders do not interfere

PV215 - 8
12


PV215 - 8
13


PV215 - 8
14
* DSI – Developing Strategic Interval
primary focus
secondary focus

PV215 - 8
15


PV215 - 9
16
I ... intention (goal, objective, milestone)
I
I
I
I
I
I
I
I
I
I
Lecture Introduction

PV215 - 9
17
Change Vector
SQ
T
>
How to track the change?
DC...Deming Cycle
Change vector

PV215 - 9
18
}To know WHAT to do is not enough
}It is important to know WHETHER and HOW we are doing
}Therefore MbC operates with system of indicators on every level of management
◦in accordance with development of company and people, the target values for indicators are
determined that enable continuous monitoring and management of improvement
}Balanced Score Card utilization
SQ
T
Change vector

}Balanced Score Card (BSC)
◦introduced in 1990’s by Robert Kaplan and David Norton
◦reaction to popular cost-cutting projects
}Cost-cutting Projects substantially improved cost-related financial indicators in fiscal year
◦and consultancy companies made well getting good profit share
}However, in next years cost-cut companies
◦have seen a huge drop in their performance
◦loose much of their ability to react to changes (stability)
◦become less vital, i.e. able to continuously succeed
}Therefore BSC
◦introduced new kinds of indicators to existing ones to connect corporate strategy with all
operational areas of within the enterprise
PV215 - 9
19
Balanced Scorecard

finanční ukazatele jsou pro většinu lidí málo srozumitelné, neodráží výsledky v jednotlivých
úlohách na dostatečné úrovni podrobnosti
Robert Kaplan a David Norton poukázali, že zásadní zlepšení finančních ukazatelů firmy může být
předzvěstí problémů s konkurenceschopností a navrhli doplnění finančních ukazatelů o ukazatele
nefinanční.
Aby celý systém fungoval musí ukazatele měřit něco, co má smysl vzhledem k cílům, jichž má firma
dosáhnout. Tyto cíle musí být definovány, pak vývoj ukazatelů indikuje

PV215 - 9
20
TOP management
financial indicators
revenues   ->   profit/loss       <-      costs
customer indicators
number of new customers
average size of order
new products ratio
number of loyal customers
...
internal processes indicators
average time to market
number of complaints – quality
product cost
service innovation pace
...
learning and growth indicators
competencies/resources
abilities   attitudes   qualities
all managers
Balanced Scorecard

arrows stands for causality relationships

PV215 - 9
21
TM
FI
CI
IPI
LGI
all M
req_pos_yy.png
Balanced Scorecard

}BSC is tool primarily for managers
◦but also communication mean with leaders, owners, shareholders
PV215 - 9
22
}BSC may be foundation of monitoring system
shareholders, owners, ...
Feedback
Balanced Scorecard

}System of Corporate Ideas
}Strategic Continuum
◦OSI, FDSI, SDSI, TDSI
◦to enable to seek for and define new step changes
◦to prevent confusing the presence and the future strategies
}Living strategic Frame
}Change vector
}Balanced Scorecard
◦
}
PV215 - 8
23