BSC Master Class For PLN Sesi 5

Workshop on :
BALANCED SCORECARD
MASTERCLASS TRAINING
(Sesi 5)
Copyright ©
GML Performance Consulting. All Rights Reserved
ABOUT THE FACILITATOR
Djunaidi Baharudin
• Chief of Strategy and Execution Solutions of GML Performance Consulting
• Management consultant specializing on Performance Measurement,
BSC-Based Strategic Planning and Business process Management
• Master of Business Administration from PPM School of Business & Management
• International Certified in Balanced Scorecard, from BSC Institute & George Washington
University
• Facilitator for Certified Human Resources Program Executive (CHRPE), BSC Master Class
Training, Certified Strategy Execution Professional (CSEPR), Strategic Initiative
Management Office (SIMO)
• Extensive professional experience in strategic management and applying BSC in various
industries , public and private sector
• Extensive professional experience in Industrial research/ survey of various product/
services and customer / employee satisfaction & loyalty
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BALANCED SCORECARD
MASTER CLASS TRAINING
1 SESSION E.
Strategy
Development Operationalizing Your Strategy
5 2 April 7, 2021
Monitor, Learn
& Adapt
Strategy
Mapping
09.00 – 11.30 WIB
Leadership,
Comitment in
Becoming an SPFO
PT. GML PERFORMANCE CONSULTING
Head Office:
Artha Gading Niaga Blok B No. 24 – 25 Jl.Bulevar Artha Gading, Kelapa Gading Barat, Jakarta 14240.
Phone : +62 21 4585 0861 ( Hunting ), Fax :+62 21 4585 0862 Email : gml@gmlperformance.co.id
4 3 Branch Office :
Operational Organization Surabaya, Wisma BII Jl. Pemuda no.60-70 lt.7 Ruang 716 Surabaya 60271
Planing Aligment Phone :+62 31 5355633 fax :+62 31 5355622. Email : gmlsurabaya@gmlperformance.co.id
Medan, Jl. Imam Bonjol No.16DGedung Mandiri Lt.2 Medan 20112
Phone :+62 61 77828359/30002345, Fax :+62 61 732 5926 Email :
gmlmedan@gmlperformance.co.id
www.gmlperformance.com
This document is strictly confidential and intended solely for the information of the client to whom it addressed
No part of this document may be reproduced without prior written from the client and GML
Copyright ©
3
Ground Rules untuk Peserta Workshop
BSC Master Class
1. Gunakan nama asli peserta pada akun Zoom masing-masing agar
mempermudah komunikasi dengan Fasilitator.
2. Selama Fasilitator menjelaskan materi, peserta diharapkan tidak
mengaktifkan audionya atau pilih opsi ‘mute’ speaker.
3. Peserta dapat mengaktifkan audionya kembali (unmute) jika Fasilitator
mempersilahkan peserta untuk bertanya atau membuka sesi diskusi.
4. Maksimalkan fitur ‘Chat’ untuk menghubungi admin jika membutuhkan
bantuan terkait hal teknis dalam workshop.
5. Peserta diharapkan menggunakan Laptop saat mengikuti workshop
sehingga transfer materi /file untuk aktifitas selama workshop serta
‘share screen’ oleh peserta jika diperlukan, dapat dilakukan dengan
efektif.
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4
BSC MASTER CLASS
Module Topic
Vision, Mission, Destination, Strategy and BSC Alignment

• Sustainable competitive edge in the 21 Century
Session A • 5 Phases in Strategy and Performance Management Cycle
• Vision, Mission & values
• Blueprint of Strategy Development Process
Strategy Mapping, Value Proposition, KPIs, CSFs, Initiatives Chaters

• Framework in Strategy Mapping
Session B • 3 Types of Strategy Map based on Value Proposition
• 3 Types of KPIs
• Aligning Critical Success Factors and Initiatives
Cascading Corporate / Company BSC

• Cascading Framework
Session C
• Steps in Cascading to Division
• Vertical Alignment Matrix
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BSC MASTER CLASS
Module Topic
Horizontal Alignment, Service Level Agreement, and Individual Alignment

• Horizontal Alignment Matrix
Session D
• Service Level Agreement
• Individual Performance Alignment
Operationalizing your Strategy

• Prioritizing your Strategic Initiatives
Session E
• Initiative Charter
• Aligning Strategic and Operational Budgeting
• Enterprise Initiative Management
Risk Management and Change Management

• Different Categories of Risk
Session F • Integrating Strategy, Risk and Performance Management
• Change Management Pitfalls in BSC implementation
• Change Management Tips
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SESSION 4: OPERATIONALIZING YOUR STRATEGY
1.
Strategy
Development
5. 2.
Monitor,
Strategy
Learn & Leadership Mapping
Adapt Commitment
in Becoming
an SPFO
4. 3.
Operational Organization
Planning Alignment
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Operational VS
Strategic Review
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OPERATIONAL REVIEW MEETINGS
o Review of recent departmental, functional and financial or operational short

term performance
o To address immediate problems that must be solved
Examples :
Department Operational Meeting’s topic

Sales Sales pipeline, recent closing, customer
opportunities, customer complaints
Operations Production problems, maintenance and repair
schedules, equipment breakdown or downtime,
supplier problem, distribution and delivery problems
Purchasing Lead time, quality, delivery performance of suppliers

Finance Short term cash flow issues, receiveable, late
payment to suppliers
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STRATEGIC REVIEW MEETINGS
o Examine Key Performance Indicator achievement and Strategic Initiatives
implementation
o To assess progress, barriers and risk associated with the implementation of the
strategy
o Example : Growth in targeted market segment, cross selling sinergy among unit
business, implementation of transformation system.
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STRATEGIC REVIEW
Strategic
Objective
KPI Strategic
KPI Strategic
KPI Initiative
Strategic
KPI Initiative
Strategic
Initiative
Initiative
How are we How are we

performing against performing against
our Targets? our Milestones?
• Key Issues
Target • Implication Milestone
• Risk
• Action
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OPERATIONAL VS STRATEGIC
REVIEW MEETINGS
Operational Strategic
Frequency Daily, Weekly, Monthly Monthly or Quarterly
Participants Single department BOD, cross department, subject
matter specialist
Topic Operational short-term Strategic related performance
performance
Characteristics Short, focused, action oriented Relatively longer, high level
overview, strategic perspective
Goal Solve problems Review performance &

corrective action
Source of data Operational dashboard BSC dashboard
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TUJUAN JANGKA PANJANG :
MEMBANGUN “A HIGH PERFORMANCE TEAM-BASED CULTURE”
DI DALAM SETIAP FUNGSI
Tips Leadership
o Menunjukkan komitmen yang kuat terhadap prinsip-prinsip SPFO
o Memberikan penghargaan untuk meningkatkan kinerja. Tujuannya untuk
“Merayakan Kesuksesan”
o Menghindari “Finger Pointing and Blame”.
o Menyarankan“Chronic Poor Performers” di luar pertemuan
o Mendorong ide-ide untuk menutupi kesenjangan (gap) kinerja – pada proses,
orang atau sistem?
Strategi → Masalah / Issues → Perbaikan

o Memanfaatkan pertemuan untuk mengidentifikasi Pemimpin “Masa Depan”
o Catat dan monitor action plan
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Example of KPI Game
(Adapted From Harvard Business Review Case Study)
In a distribution company, a CEO set a KPI which measured percentage of

customer emails responded in 24 hours. Failure in meeting the KPI would result
in posting of staff’s name on “Wall of Shame”. But the staff immediately figured
out that “Customer Respond Time’s” starting point was defined as the time
when an email was opened, instead of when it was sent by customer. The KPI
Game started. When they were busy, the staff purposely not opened their
emails. Customer Respond Time looked good and the staff were not put on Wall
of Shame. But customer complains went up. This resulted in customers moving
to competitors.
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PELAJARAN PENGUKURAN KINERJA
“As soon as performance measures are used as a means of

Blame, the people being measured begin to manage the
measures rather than performance. Incidents are reported
selectively. Data are manipulated and presented in ways that
make them look favourable. Individuals seek to undermine the
measurement system.”
Andy Neely “Measuring Business Performance”,

The Economist Books.
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TEMPLATE FOR ACTION PLAN
NO BSC Objective ACTION PLAN

OVERVIEW:
ACTIONS:
1.
2.
3.
4.
WHO:
WHEN:
COST: l
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ACTION PLAN – EXAMPLE OF DETAIL
NO BSC Objective Action Plan

1 Improve scoring in OVERVIEW: We need to develop a strategy to better educate the
community public communities to better track “fake Rupiah notes.”
awareness survey
about
Our strategy will entails mapping the understanding level across
understanding of
Indonesian regions, and develop communication plan by partnering
“fake Rupiah notes”
with local banks or branches of national banks.
ACTIONS:
1. Review survey results to identify regions that need more
attention in terms of extensiveness of fake note distribution
and poor public awareness
2. Identify local partners to work with in developing
communication plan
3. Implement communication plan
4. Review the results and plan for further interventions if
needed
WHO: 1-3, JH & JT, 4 EM to review
WHEN: 20/03/2004 – 20/05/2004
COST: Rp. 50,000,000.00
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STRATEGIC TEST & ADAPT MEETINGS
o Discuss whether the strategy is working and whether its

fundamental assumptions remain valid
o Assess changes in the competitive and external environment
o Consider new ideas and opportunities
Meeting output :
o Can be only to ‘reaffirm’ the existing strategy or change the
strategy map
o Replacing some KPIs with new ones
o Update targets
o Reprioritizes strategic initiatives
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Monitoring with Dashboard Management
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BALANCED SCORECARD
MONTHLY GOVERNANCE CYCLE
1 2
BSC Admin BSC Admin
collect enter
data data into the
(1-5 of the system
month) (7-8)
SIMO coordinate 3 BU/Dept Heads

Monthly BSC review data in the
Meeting to review system, make
achievement and comments and
action plans (11- 4 action plans
15)
BU/Dept Heads (8)
communicate
previous achievement
and next actions plan
to subordinates (10)
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IMAGINE THE FOLLOWING CIRCUMSTANCES….
Managing Performance of One Single Company
Strategy Map KPI Ach.

o The number of KPIs to
Financial Net Profit
Revenue
monitor is typically less than
Cost vs. Budget
30
Customer
CSI o No need to aggregate data
from lower level scorecards
On-time Delivery
Internal Business Process Quality Index
into upper lever one
% of Yield o Amount of data to manage is
Inventory Level quite small
Learning & Grow th People Competency
Netw ork Dow n-time
Leadership Rating
So….. no need for a sophisticated tool

→ just using the MS Excell will do
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IMAGINE THE FOLLOWING CIRCUMSTANCES….(CONT’D)
What if we cascade to Stratey Map and Scorecards to plenty of units and do the
aggregation manually…?
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….And The Issues Are
o People would be bogged down to data collection and not to data

analysis.
o Do it manually will be time-consuming
o Hampering down strategic decision-making process
o Difficult to share the scorecard results to others
o Difficut to foster a creative environment for collaboration
o Difficult to ensure data security
Company-wide strategy execution process requires a proper automation

tool!
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THE BENEFITS OF AUTOMATED BSC
“Enterprises that choose to ignore IT during the design and implementation of the BSC
[Balanced Scorecard], will fail to embed the BSC in the organization.”
Gartner Group, 2001
Enhance the communication Reduce paper-based

of strategy implementation data collection & reports
Feedback on strategy
implementation
BSC Secured data access
is more easily propagated Software
Use the software to Opportunity to leverage

Verify cause & effect relationship the usage of existing
Develop strategy mapping database system
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A GUIDANCE TO SELECT
A BSC SOFTWARE
• Technical Aspects
• Software Design
• Supported operating system and
• User interface design database
• Number of scorecards and measures • Scalability
• Cause and effect relationships
• Deployment time • Security
• Access management
• Secured data communication
• Reporting and Analysis
• Drill-down capabilities • Vendor Credibility
• Supporting flexible reporting • Public listed or family owned?

• Number of applications deployed
• “What-if” analysis
• After sales services
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QPR Scorecard
A web-based application that enables effective collaboration
on the implementation of balanced scorecard
Main features:
Sharing Company and Division Strategy Map and BSC on the web
Customized and flexible BSC modeling
No limitation in the number of scorecards and measures
Performance early warning system through e-mail alert
Enhance user collaboration using on-line action plan and comment
Easy-to-understand graphical visualization
Multilevel security systems
Audit trail: record the trace of data alteration to ensure good governance
Briefing Booklet: create and share your own BSC reports
Support integration with external data sources through SQL import and OLAP import
Electronic data entry approval
“I was very impressed with the new QPR Collaborative Management Software. Within minutes of opening the
software for the first time I was able to update and navigate my own Strategy Maps and cascaded ScoreCards.
Any organization wishing to successfully execute their strategy with the Balanced Scorecard would be well-
advised to use QPR Collaborative Management Software."
[Paul R. Niven, author of best selling the "Balanced Scorecard Step by Step: Maximizing Performance and
Maintaining Results" and "Balanced Scorecard Step by Step for Governments and Nonprofits]
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INFRASTRUCTURE CONFIGURATION
LOCAL AREA
Server
REMOTE AREA
Development Clients
Web
•App. Server Client
•Database
•Web Server
Internet
Internet
Web
Client
Web Clients (End Users)
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DATA INTEGRATION WITH QPR SCORECARD
Development Web
Client Client
Client Layer
Application Web
Server Server
Server Layer
Interface
Corporate Scorecard
Datawarehouse Database
(SQL, Oracle, (SQL, Oracle,
etc.) etc.)
Wide-Database Layer
Interface Interface Interface
Accounting Production Sales

Transactional Data Layer
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DIFFERENT TERMS, SAME SUBSTANCE
Enterprise Performance Corporate Performance Business Performance

Management (EPM) Management (CPM) Management (BPM)
“…the concepts and tools “…the methodologies, “…the organizational
you need for setting your metrics, processes and approach to assess and
strategic direction and systems that monitor and monitor performance in
achieving the benefits of your manage the performance of relation to set goals and
strategic vision” an organization” objectives”
SAP Gartner Cranfield University
Business Performance Management is a series of organizational processes

and applications designed to optimize the execution of business strategy
(Wayne Eckerson; The Data Warehousing Institute, 2006)
…. although people use different terms, they all point to the same
substance as Strategy Performance Focused Organization
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THREE TYPES OF PERFORMANCE DASHBOARD
Operational Dashboard
Provide detailed information that’s meant to monitor
core operational processes, typically Monitoring Analysis Managing
on an intra-day basis.
Example: monitor services in a call center
Tactical Dashboard
Utilized to track performance as compared to some
targets (budget plans, forecast) over longer period
to support analysis
Monitoring Analysis Managing
Example: analyzing customer buying pattern after
launching a new customer program
Strategic Dashboard
Monitor the implementation of strategy as indicated Monitoring Analysis Managing
by attainment of some strategic objectives,
Example: dashboard to monitor Balanced Scorecard
The main purpose/focus
Keep it at adequate level
*Source: Wayne E. Eckerson; Performance Dashboards, 2006
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Initiative Management
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SO = Strategy Objective
KPI = Key Performance Indicator
SI = Strategy Initiative
Ach = Achievement
MANAGING INITIATIVE
Q =Quarter
SO SO SO1
KPI Q1 Q2 Q3 Q4 KPI KPI1
Target Ach= Target 1
Area Measurement
Ach> Target
Target
Target
Target
Target
Ach<
Ach< Target
Target
Jan March Jun sept Dec
Improvement
Area
SI SI1 SI2 SI3 SI4
SI11 SI21
Year N-1 Year N Year N+1
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HIGH POLITICS ORGANIZATION (HPO):
COMMON APPROACH TO BUSINESS PROBLEMS
YES NO
APAKAH BERHASIL?
JANGAN
APAKAH GARA2 KAMU?
DIRUBAH
NO
YES
NO APAKAH ORANG KAMU BODOH
LAIN TAU? *#@>!!
SEMBUNYIKAN! YES NO KAMU SIAP

DIHUKUM?
KASIAN DEH LO
$#@! ~*%$ YES
BUANG AJA!
APAKAH KAMU BISA
MENYALAHKAN ORANG LAIN?
NO YES
NO PROBLEM
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MANAGING INITIATIVE
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WHAT IS INITIATIVE/PROJECT PORTFOLIO MANAGEMENT?
Project Portfolio Management is the continuous process of identifying, selecting and
managing a portfolio of initiatives/programs/projects in alignment with key performance
metrics and strategic business objectives
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ENTERPRISE INITIATIVE/PROJECT MANAGEMENT
CHALLENGES KEY CHALLENGES ADDRESSED BY EPM
How do I prioritize initiatives across my organization?
Can we complete the project on time and on budget?
Do we have the right people working on the right projects?
74% of all IT projects fail, come in over budget, or run past the original deadline. Every
year, $75 billion is spent on failed IT projects in the U.S.
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Source: The Standish Group
ENTERPRISE PROJECT MANAGEMENT
WHAT DRIVES THE NEED?
Business Challenges IT Challenges
• Justifying using resources, taking • Aligning IT initiatives with overall

initiatives organizational strategy
• Aligning resources with organizational
needs • Bridging the gap between IT and
• Building proven processes to handle business unit owners
ever-changing business needs and to
support organizational needs • Enabling effective communication
• Implementing best practices to among dispersed teams
leverage “lessons learned”
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There Is No Particular Order
Start Top Down Or Bottom Up
Portfolio
Management
Do The Right
Create Things
Manage Select
Plan Do Things Right

Project
Management
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Create
Standardize the collection of all work across the enterprise
Create Select Plan Manage
• Capture all requests, from

work orders to strategic
projects
• Standardize metrics,
valuation criteria and
templates
• Control investments through
governance workflow
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Select
Invest in project portfolios that align with strategic priorities
• Objectively prioritize business drivers and

drive consensus
• Derive varying priority scores to evaluate
competing investments
• Identify portfolios that align with strategy
and maximize ROI
• Utilize advanced portfolio analytical
techniques to reach the Efficient Frontier
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Plan
Finalize project delivery roadmap based on resource availability

• Identify resource gaps across
the planning horizon
• Finalize release roadmap and
headcount requirements to
maximize resource utilization
• Search for team members
with availability and assign to
project
• Finalize plan and baseline
before moving into execution
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Manage
Measure and track performance at the project and portfolio level
• Collaborate to effectively deliver

selected projects
• Proactively monitor portfolio
performance and visualize trends
• Drill down to the project level to
assess risks, issues and status
• Track and compare budget, actual and
forecast values
• Take corrective actions to improve
project performance
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EPM Solution Deployment Best Practice
1 2 5
1 Capture the project request and build detailed business 4 Capacity analysis and detailed project planning
case.
2 Select the optimal project portfolio 5 Track and manage the project to a successful conclusion
3 Export selected projects to Project Server 2007
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Aligning Strategic with
Traditional Budgeting
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LINKING BALANCED SCORECARD STRATEGIC WITH
TRADITIONAL BUDGETING
STEP 1. BALANCED SCORECARD STEP 3. BUDGETING
(OPERATING BUDGET + STRATEGIC BUDGET)
STEP 2. STRATEGIC INITIATIVES CHARTER
45
STRATEGIC INITIATIVES CHARTER
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Workshop on :

Vision, Mission, Destination, Strategy and BSC Alignment

Strategy Mapping, Value Proposition, KPIs, CSFs, Initiatives Chaters

Cascading Corporate / Company BSC

Horizontal Alignment, Service Level Agreement, and Individual Alignment

Operationalizing your Strategy

Risk Management and Change Management

o Review of recent departmental, functional and financial or operational short

Department Operational Meeting’s topic

Purchasing Lead time, quality, delivery performance of suppliers

How are we How are we

Goal Solve problems Review performance &

Strategi → Masalah / Issues → Perbaikan

In a distribution company, a CEO set a KPI which measured percentage of

“As soon as performance measures are used as a means of

Andy Neely “Measuring Business Performance”,

NO BSC Objective ACTION PLAN

NO BSC Objective Action Plan

o Discuss whether the strategy is working and whether its

SIMO coordinate 3 BU/Dept Heads

Managing Performance of One Single Company

Strategy Map KPI Ach.

Netw ork Dow n-time

So….. no need for a sophisticated tool

o People would be bogged down to data collection and not to data

Company-wide strategy execution process requires a proper automation

Enhance the communication Reduce paper-based

Use the software to Opportunity to leverage

• Supporting flexible reporting • Public listed or family owned?

Web Clients (End Users)

Accounting Production Sales

Enterprise Performance Corporate Performance Business Performance

SAP Gartner Cranfield University

Business Performance Management is a series of organizational processes

The main purpose/focus

Keep it at adequate level

*Source: Wayne E. Eckerson; Performance Dashboards, 2006

KPI Q1 Q2 Q3 Q4 KPI KPI1

Target Ach= Target 1

Jan March Jun sept Dec

Year N-1 Year N Year N+1

SEMBUNYIKAN! YES NO KAMU SIAP

How do I prioritize initiatives across my organization?

Can we complete the project on time and on budget?

Do we have the right people working on the right projects?

Business Challenges IT Challenges

• Justifying using resources, taking • Aligning IT initiatives with overall

Plan Do Things Right

Create Select Plan Manage

• Capture all requests, from

Create Select Plan Manage

• Objectively prioritize business drivers and

Create Select Plan Manage

Create Select Plan Manage

• Collaborate to effectively deliver

3 Export selected projects to Project Server 2007

STEP 2. STRATEGIC INITIATIVES CHARTER

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