BSC 2005.10.15
BSC : vs. BSC SEM Managing Strategy SFO BSC HR
1.,,. 2.. 3.. 4.,, /. 5.,,. 6.,. 7. (strategic intent). 8.. 9.. Source: Hax/Majluf (1996) 14
1 2 3 4 / Source: Gluck et al. (1980) 157
I (SBU) (Strategic Planning: Portfolio Management) (Corporate Strategic Planning) (Strategic Management) (Budgeting/Controlling) (Long term Planning) (Shareholder Value) ( ) (Balanced Scorecard) (Value Based Management) : Hax/Majjluf (1984) PWC (1998) CFO
BCG Matrix ( )? + - + - ( )
BCG Matrix ( ) ( )? + - + - ( )
( ), Profit
Portfolio I II IV III Horvath (2002) 396 0.5 1.0 2.0 4.0 ( ) =
BCG Matrix CSF Product Lifecycle / Source: Szyperski (1980) 81
BCG Portfolio 22% 20% 18% Question Marks Stars 16% Market Growth 14% 12% 10% 8% Dogs Cash Cows 6% 4% 2% 10x 4x 2x 1.5x 1x 0.5x 0.4x 0.3x 0.2x 0.1x Relative Market Share Source: Steinmann/Schreyogg (2000) 210
Planning Perspectives Corporate Strategy Internal Scrutiny STRATEGY FORMULATION Environmental Scan Corporate Strategic Thrusts and Performance Objectives Horizontal Strategy and Vertical Integration Revisited Resource Allocation and Portfolio Management Budgeting Guidelines Strategic and operational Budgeting Budgeting Consolidation and Approval Mission Business Strategy Internal Scrutiny Proposed Strategy, Programs, and Budgets Environmental Scan Business Budgeting Functional Strategy Internal Scrutiny Proposed Strategy, Programs, and Budgets Environmental Scan Functional Budgeting Source: Hax/Majluf (1998)
Source: Porter
FCF Source: CFO (1998) 61
( ) WACC (Weighted Average Capital Costs): EBITDA: Earning before interest, taxes, and depreciation and amortization (,, )
Resource Based View of the firm : (sustainable abnormal return ) = : (SWOT) Porter? / (physical and intangible assets and capability) =, Knowledge, Teamwork ( ) Source: Collis/Montgomery (1995)
- (Core Competencies),,,, -,,, 1:,, 2: 3: 4: 5: 6:
? (market based theory) : (resource based view) : : (2002) 67
SWOT, 1960/70 SWOT S W,,, O T Cf. Andrews (1971) Hax/Majluf (1988) 17 (2000) 41, 180 Source: (2004) 15
II Institutional Economy (Budgeting/Controlling) (Long term Planning) TC Vertical Disintegration (SBU) (Strategic Planning: Portfolio Management Diversification) (Corporate Strategic Planning) (Porter) (Strategic Management) Core Competence (Shareholder Value) Cooperation (N/W-Organization) RBV : HR, KM ( ) (BSC) (VBM) ABC/ ABM
(Profit)= (revenue)- (cost) : (Profit)= Max Max = Max -Min! 1. Max 2. Min
+
Mintzberg (1994) The Fall and Rise of Strategic Planning (HBR, 1994 Jan.-Feb.) (strategic planning) (strategic thinking) (strategic management) (strategy as a coherent, unifying, and integrative pattern of decisions) : 1960 : ( ) : ( ) ->., ( ) (Mintzberg )., -> ( ). ( ) ): (->?) Source: Mintzberg (1994)
/( ) ( :. (-> ) -> / ( :?). => -> => -> 5 ). (, ),, -> Source: Mintzberg (1994)
( ) /.. : Mintzberg (1994)
BSC / 1992 (HBR) 1993 (HBR) 1996 (HBR) 1996 (CBR) 1996 ( ) 2000 (HBR) 2000 ( ) 2001 (IBJ) 2004 ( ) 2004 (HBR) BSC Linking BSC to Strategy BSC Strategy Maps SFO SFO Using BSC as Strategic Management System Strategy Maps Intangible Asset, Growth, 4 Perspective, Innovation & Learning Learning & Growth, Managing Process, Project, Treasy/Weaserma concept 5, Strategy Maps 5 (,, )
(+) ( - ) ( - ) (+) (+) ( - ) (+) Source: Kaplan/Norton
BSC BSC BSC Benchmark IRR (Cash Flow)
( ),,. (what) (how) (What) (How)
Innovation Innovation Temporary Monopoly (, ) Innovation /
( ) SEM process BIC BPS BCS CPM SEM process SEM process = Source: SAP
Management Cycle Feed forward Feed back Wild (1974)
SEM Business Analytics Strategic Enterprise Management External communication Strategy Management Performance Measurement Business Planning & Simulation Business Consolidation Stakeholder Relationship Management Manage strategy of Enterprise / Business Units (BU) to create long-term value Manage performance of BU to improve short-term results Objectives, Targets, Initiatives Cascade targets to lower Bus.Units 3-5 year Strategic planning Strategy update Strategic Planning Evaluate scenarios Mid-term planning B/S, I/S, Cash Flow Strategy analysis and assessment Business Analytics Risk estimation Strategy & Business Mgmt. Financial Analytics CRM Analytics SCM Analytics PLM Analytics HR Analytics Forecast Adapt business operations based on results from Business Analytics Optimize business processes across functions to improve overall business performance Measure performance Performance Management Adapt operations Business process optimization Detailled operational planning Transactional processing (R/3, CRM, SCM,...) Suppliers Customers business processes Source: SAP
VBM-BCS-ABM Source: et al. (2004) 103
BSC: VBM Risk Management Balanced Scorecard Strategy (VBM) Objectives Initiatives Risk Management VBM KPIs ROCE, DCF, EVA, etc Financial Top-KPIs Strategic Success Factors (SSF) Risks have an impact on the results of KPIs Risk-Analysis Risk-Assessment Risk-Handling Risk-Controlling Early Warning Generic Value Drivers Revenues Growth, Margins, Tax Rates, WACC Business specific Value Drivers Quantification of Risks by specific methods outside of SAP SEM. Risk Category Risk-Group A Risk 1 Risk 2 Risk-Group B Risk 3 Early Warning Indicators (Measures) Source: SAP
SEM CPM
Managing Strategy: Four Process Balanced Scorecard feedback Source: Kaplan/Norton (1996) /
BSC best practices
BSC / BSC.
Knowledge / / Break down Innovation BSC
Source: HR HR? (High-Performance) -HR HR- (Alignment) -HR, HR (Compensation) - (Personnel) -
HR HR (PMS) (CMS) ( / ) Merit Pay System Feedback EVP ( ) Fit, Source:
Source: (High Performance Work System: HPWS) Modern View Business Needs Management Needs Traditional View Road Map / ( ),,
From Strategy to Process Performance What comes after Business Intelligence? - Helge Hess (IDS Scheer AG) 1. Process 2. Monitoring, Analysis and Optimization of Process 2.1 CPM Business Intelligence 2.2 Corporate Governance CPM 2.3 Process Performance 2.4 Six Sigma 2.5 Outsourcing Service Level Agreements 2.6 Process 3. CPM 3.1 Process Mining 3.2 Reactive Proactive: Right-Time-Monitoring 3.2.1 (Organigramm) Dynamic Organization Analysis 4. Business Process Portal (Integration)
Portfolio Low Process Performance High Controlling HR Innovation IT Low High