BPM3MeasureandControl

1、Topic3.Businessprocesscontrolling1.BalancedScorecardandKeyPerformanceIndicators2.Criticalsuccessfactorsandbusinessprocessprioritization3.Businessprocesscontrol4.ActivitybasedcostingBalancedScorecardandKeyPerformanceIndicatorsBusinessperformanceassessmentisimportantbecause:•Ifyouaretryingtocontrolsomething,youshouldbeabletomeasureit.Aslongassomethingisnotmeasured,nobodypaysattentiontoit•Employees’behaviorisorientedonassessmentBalancedScorecardandKeyPerformanceIndicators•Grosssales•EBIDTA•Netprof。

2、it•ROIC•ROA•ROEFinancialapproachSetofindicatorsIntegralindicatorBalancedScorecardandKeyPerformanceIndicatorsEconomicValueAdded:EVA=NOPAT–WACCxCENOPAT–NetOperatingProfitAfterTaxWACC–WeightedaveragecostofcapitalCE–CapitalEmployedCapitalEmployed=TotalAssets−CurrentLiabilitiesBalancedScorecardandKeyPerformanceIndicatorsTraditional(financial)managementcontrolsystemhasthefollowingdisadvantages:-Lackofrelevanceofinformationfordecisionmaking;-Thetaskoffinancialcontroliscontrarytothetaskofstrategicplanni。

3、ng;-Emphasisoninformationreceivedintheaccountingsystemthatcorrespondswithlegallyestablishedrequirements;-Anincorrectinformationaboutcostdistributingandcontrolofinvestments.Traditionalcostcontroldoesnotanalyzethecausesforcostsoccurrence;-Providingincompleteinformationtoemployees.Mostemployeesdonotseethecloselinkbetweencompanyfinancialperformanceandresultsoftheirwork;-Insufficientattentiontotheenvironmentoftheenterprise;-Focusoncurrentperformance-Value-producingactivitieshindering.BalancedScorecar。

4、dandKeyPerformanceIndicatorsBalancedScorecardandKeyPerformanceIndicatorsBalancedScorecardCollaborativeprovidesthefollowingdata:•Only5%oftheworkforceunderstandsthestrategyofthecompany.•Only25%managersreceivecompensationdirectlyrelatedtothestrategy.•60%oforganizationsdonotlinkbudgetstostrategy.•86%ofleadershipteamsspendlessthananhouramonthtodiscussstrategyBalancedScorecardandKeyPerformanceIndicatorsStrategy-executionPyramidEXECUTIONStrategy-executiongapBalancedScorecardandKeyPerformanceIndicatorsT。

5、hebalancedscorecard(BSC)isasystemofbusinessperformancemanagementandmeasurementinareasthatarecrucialtoitssuccessBalancedScorecardandKeyPerformanceIndicatorsBSCFrameworkBalancedScorecardandKeyPerformanceIndicatorsPerspectiveBSCtaskLearninganddevelopmentCompetenciesandskillsthatweshouldobtain,developandmaintain,which...willenableustodevelopamodeloforganizationalculturethatwillmotivateusto...Internalprocessesperformourprocessesforcreatingandprovidingproductsandserviceswhich...Customerswillsatisfyour。

6、customersfor...Financerevenueandprofitgrowingtomeetourshareholders’interestBSCperspectivesconnectionBalancedScorecardandKeyPerformanceIndicatorsBalancedScorecarddesign:BalancedScorecardandKeyPerformanceIndicatorsBalancedScorecarddesign(continuation):BalancedScorecardandKeyPerformanceIndicatorsBSCCause-and-EffectDiagramwithARISBalancedScorecardandKeyPerformanceIndicatorsTheBalancedScorecardexampleBalancedScorecardandKeyPerformanceIndicatorsFinancialobjectivescandifferconsiderablyateachstageofabus。

7、inesslifecycIe:•Growth•Sustain•HarvestBalancedScorecardandKeyPerformanceIndicatorsGrowthbusinessesareattheearlystagesoftheirlifecycle.Theyhaveproductsorserviceswithsignificantgrowthpotential.Tocapitalizeonthispotential,theymayhavetocommitconsiderableresourcestodevelopandenhancenewproductsandservices;constructandexpandproductionfacilities;buildoperatingcapabilities;investinsystems,infrastructure,anddistributionnetworksthatwillsupportglobalrelationships;developcustomerrelationshipBalancedScorecard。

8、andKeyPerformanceIndicatorsProbablythemajorityofbusinessunitsinacompanywillbeinthesustainstage,wheretheystillattractinvestmentandreinvestment,butarerequiredtoearnexcellentreturnsoninvestedcapital.Thesebusinessesareexpectedtomaintaintheirexistingmarketshareandperhapsgrowitsomewhatfromyeartoyear.BalancedScorecardandKeyPerformanceIndicatorsSomebusinessunitswillhavereachedamaturephaseoftheirlifecycle,wherethecompanywantstoharvesttheinvestmentsmadeinthetwoearlierstages.Thesebusinessesnolongerwarrants。

9、ignificantinvestment–onlyenoughtomaintainequipmentandcapabilities,nottoexpandorbuildnewcapabilities.BalancedScorecardandKeyPerformanceIndicatorsForeachofthethreestrategiesofgrowth,sustain,andharvest,therearethreefinancialthemesthatdrivethebusinessstrategy:•Revenuegrowthandmix•Costreduction/productivityimprovement•Assetutilization/investmentstrategyBalancedScorecardandKeyPerformanceIndicatorsRevenuegrowthandmixrefertoexpandingproductandserviceofferings,reachingnewcustomersandmarkets,changingthepr。

10、oductandservicemixtowardhigher-value-addedofferings,andrepricingproductsandservices.Thecostreductionandproductivityobjectivereferstoeffortstolowerthedirectcostsofproductsandservices,reduceindirectcosts,andsharecommonresourceswithotherbusinessunits.Fortheassetutilizationtheme,managersattempttoreducetheworkingcapitallevelsrequiredtosupportagivenvolumeandmixofbusiness.Theyalsostrivetoobtaingreaterutilizationoftheirfixedassetbase,bydirectingnewbusinesstoresourcescurrentlynotusedtocapacity,usingscarce。