1. اﻟﺘﺨﻄﻴﻂ اﻻﺳﺘﺮاﺗﻴﺠﻲ
ﺑﺎﺳﺘﺨﺪام
ﺑﻄﺎﻗﺎت ﻗﻴﺎس اﻷداء اﻟﻤﺘﻮازن
All over the world, Human Resources & Managers are
busy, stressed and fire fighting
Are they doing things right? Or doing the right thing ?
March 2005
SAMIR HANAFY P. Eng.
Business Development Consultant
2004
5. What are the key benefits of this principle?
Integration and alignment of Company’s Division to achieve the
desired results through improved organizational capabilities.
Alignment of activities at all levels, to achieve organizations strategic
intent.
Flexibility to react quickly to improvement opportunities
Achieve the organizations Strategy & objectives in the most effective
& efficient way
The ability to focus effort on the scorecards that matter to all
Stakeholders
Establishing clear responsibility and accountability for each
department
5 SAMIR HANAFY, P.ENG
6. What are the key benefits of this principle?
Analysis and measurement of the key process and activities
Identifying the interfaces of key results within and among the
functions of the organization, solving measurement problem.
Focusing on the factors, such as resources, methods and materials
that will improve key activities influencing the scorecards of the
organization.
The effectiveness and efficiency of an organization is improved by
identifying, understanding and Managing a system of interrelated
results needed to achieve strategy ( Balanced Scorecard).
As human development will influence internal process and improve
customer satisfaction which will impact financial indicators.
6 SAMIR HANAFY, P.ENG
10. TOTAL QUALITY BALANCE
Positive interactions with customers cannot be accomplished without understanding,
and then developing, the skills needed to create the most effective human communication
between employee and customer. a better listener, as well as a better communicator to
customers, both verbally and non-verbally. Remember, success depends on your ability to
implement the 'human touch' consistently across business functions.
FACT FEELINGS /
PERCEPTION
Product Service
TANGIBLE INTANGIBLE
اﻟﻤﺤﺴﻮس اﻟﻐﻴﺮ ﻣﺤﺴﻮس
Value to Customer = Real Value + Perceived Value
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12. The Barriers to Implementing Strategy
ﻣﻌﻮﻗﺎت ﺗﻄﺒﻴﻖ اﻹﺳﺘﺮاﺗﻴﺠﻴﺎت
1990 Fortune
Only 10 % of Magazine
01 % ﻣﻦ اﻟﻤﻨﻈﻤﺎت Failure in implementing Strategy
Organization Execute
ﻳﺘﻢ ﺗﺤﻘﻴﻖ إﺳﺘﺮاﺗﻴﺠﻴﺘﻬﻢ
Strategy
Barriers to Strategy Execution
Management
Vision Barrier People Barrier Resource Barrier
Barrier
Only 5 % of Only 25 % of 60 % of
85 % of executives
workforce managers have organizations
teams Spend less
Understand Incentives linked Don’t link budget
than 1hour / month
Strategy To Strategy To Strategy
discussing Strategy
5 % ﻳﺘﻢ ﻣﻌﺮﻓﺘﻬﻢ 52 % ﻳﺘﻢ رﺑﻂ اﻟﺤﻮاﻓﺰ 58 % ﻳﻘﻀﻮن اﻗﻞ ﻣﻦ 06 % ﻣﻦ اﻟﻤﻨﻈﻤﺎت ﻻ
ﺑﺎﻹﺳﺘﺮاﺗﻴﺠﻴﺔ ﺑﺎﻹﺳﺘﺮاﺗﻴﺠﻴﺔ ﺳﺎﻋﺔ ﺷﻬﺮﻳﺎ ﻳﺘﻢ رﺑﻂ اﻟﻤﻴﺰاﻧﻴﺔ
12 ﻟﻤﻨﺎﻗﺸﺔ اﻹﺳﺘﺮاﺗﻴﺠﻴﺔ ﺑﺎﻹﺳﺘﺮاﺗﻴﺠﻴﺔ
13. New Definition of Cash Flow- Working Capital Components
Working
= Sales Revenue
+ Inventory _ Accounts
Payable
Capital Collected (AR)
Suppliers
Cash Flow from Customers
Contractors
Employees
Unsatisfied Customers
Reduce Working Capital Satisfied Customers
Until Satisfied Improve Working Capital
Customer Processing
Order Fulfillment, Shipping
Production Processes
Sales Process
Marketing Process
Sales Revenue- AR Is A Good Measure Of Customer Satisfaction.
Working Capital (Cash Flow) Is A Good Measure Of Overall Business Performance
Identify & Improve Processes to Improve Cash Flow (Pricing, Sales Admin, Order
Admin/Customer Service, Distribution, ………..
13 SAMIR HANAFY, P.ENG
14. Cash to Cash Cycle
ﻣﻘﺎﻳﻴﺲ اﻟﺴﻴﻮﻟﺔ اﻟﻤﺎﻟﻴﺔ آﻤﺆﺷﺮ ﻟﻸداء ﻟﻼهﺪاف اﻟﻤﺘﺰﻧﺔ
Purchase Raw
Materials or merchandise Sell
From Suppliers Product
Days Inventory Days Receivable
Days Payable Cash To Cash Cycle
Pay Suppliers Collect Cash
for Material from Customer
- Working Capital Management
- Capital is tied in Inventory
- Cash to Cash Cycle
Time required for company to convert cash
payment to suppliers of inputs to cash receipts
14 From customers SAMIR HANAFY, P.ENG
23. STRATEGIC PROFILE
• TIME FRAME
• DRIVING FORCE
• BUSINESS CONCEPT
•AREAS OF EXCELLENCE
• FUTURE PRODUCT /SERVICE /MARKET
• FUTURE USER SCOPE
•SIZE GROWTH GUIDELINES
• RETURN/ PROFIT GUIDE LINES
CRITICAL ISSUES
O
VISION • C PE
• U
• C CU RR A
R
VI N
U RRE EN T
ER A
اﻟﺘﺸﻐﻴﻠﻴﺔ اﻟﺨﻄﺔ
CE
RR N T I
ET T / S PL
اﻟﺨﻄﺔ اﻹﺳﺘﺮاﺗﻴﺠﻴﺔ
EN T PR O
T MA OD N
U K C C
O AR DU I
IS R U P
G
SU KE CT LA
TL E T
EW W PRO E
ES T /SE N
T
S
• N NE RA
RV
IC
ST
•N E W
M
E
•
NEW
CURRENT
23 BUDGET SAMIR HANAFY, P.ENG
24. Strategy Focused Organization What is A BALANCED SCORECARD
Management Control System
Vision &
Change Management Strategy
Why?
HR Review & Designed around
• In 1980 10% success rate Budget
of formulated strategy Incentive Reorient • Short Term
• 70% is not bad strategy • Control Oriented
but bad execution • Financial Framework
• Investors find execution
is more important than Plan &
vision Allocate ﺗﻐﻴﻴﺮ اﻟﻔﻜﺮ
• In 82 Brokers estimated
62% tangible assets.
• In 92 it dropped to
38% tangible assets. Strategic Management System
• The book value of tangible
assets accounted for only
10%-15% of market value Translating
The Vision
Designed around
• The intangible assets • Longer Term
- Customers relation Communicating Feedback • Commitment Oriented
Balanced
- responsive operation & & • Strategic View
Scorecard
- Employee capability & Skills Linking Learning
- innovation & IT
- High Quality
- New product Plan &
Allocate
24
26. Strategic Thinking Processاﻟﻔﻜﺮ اﻹﺳﺘﺮاﺗﻴﺠﻰ
• Strategic Thinking
– Is not just to achieve quality – FITNESS TO STANDARD
– It is to achieve – FITNESS TO NEED
– It is to achieve – FITNESS TO FUTURE NEED
• Our Strategic Thinking Process is
– a WORKING MODEL that functions as an engine for ongoing
transformation and growth of the company
– To involve not only top management but all key players in this
process
• It comprises of :
– Definition of the Strategy
– Formulation of Strategy
– Migration of Strategy
– Implementation of Strategy
ﻗﻴﻤﺔ ﺻﻴﺎﻏﺔ ﺗﻌﺮﻳﻒ
ﻣﻀﺎﻓﺔ
ﺗﻌﺪﻳﻞ
26 SAMIR HANAFY, P.ENG
27. The Strategic Management Process
Scan Identify
External Strategic
Environment Factors
• National • Opportunity
• Global • Threats
Implement
Define Formulate Strategy via
Evaluate Current •Mission Changes in
Strategy
• Mission SWOT • Goal • Leadership/Culture
• Corporate
• Goal • Strategy • Human resources
• Business
• Strategy • Information/Contro
• Functional
Scan Internal
Identify
Environment
Strategic
• Core
Competence
Factors
• Strengths
• Synergy
• Weaknesses
•Value Creation
BSC
27 اﻻهﺪاف اﻟﻤﺘﺰﻧﺔ هﻲ اﻟﻄﺮﻳﻘﺔ اﻟﺘﻲ ﻳﺘﻢ ﺑﻬﺎ ﺗﻄﺒﻴﻖ اﻹﺳﺘﺮاﺗﻴﺠﻴﺎتHANAFY, P.ENG
SAMIR
28. Strategic Planning اﻟﺘﺨﻄﻴﻂ اﻻﺳﺘﻴﺮاﺗﻴﺠﻲ
g
nin
an
Pl in
g
c n
e gi an
at G Pl
Str N IN gic Long Term
l N te
o na P LA tra
d iti I C S
a G e d
Tr TE as
RA -B Intermediate
ST on
si
Vi
e
tur
Fu Short Term
Strategy Formulation Starting Point
28 SAMIR HANAFY, P.ENG
29. To Create a Vision Change your Frame of Reference
Vision A mental picture of what the organization should look
like and how it will feel in the future
Mission Statement
A formal statement describing the organization’s
future direction , consistent with values , goals and
objectives of the stakeholders as a group
FROM TO
Today The future
Looking backward Looking Forward
Current circumstances Future success
Past success Future success
Create a Vision , Write Mission Statement
29 SAMIR HANAFY, P.ENG
31. Company Model Innovation from Functionally based
to Alignment based network ( out of the box to line)
Alliance Based Network
Capability based Network
Sales Process Dominated
Sales
Sales
Customer relationship
Customer relationship
Customer relationship
Product Development
Product Development
Product Development
Alliance Partners
Process Dissolved Processes are the business
by Capability
Process Driven
Process sensitive
Sales
Sales/Marketing
Functionally bound
Customer relationship
Production
Sales/Marketing
Finance
Production
Product Development
Finance
Processes drive the business
Processes are acknowledged
But functions dominate
31 Function drive the business SAMIR HANAFY, P.ENG
32. THE NEW STRUCTURE
Process Owner C
U
Process Owner S
Processes T
Process Owner O
M
E
R
S
Centers of
Excellence
Coach Coach Coach Coach
32 SAMIR HANAFY, P.ENG
33. Levels of Strategic Thinking
Corporate level – the umbrella statement
Division level
Strategic Business Unit (SBU) level
Departmental level
Project Team (PT) level
Personal level
Corporate
Division
SBU
Department/ PT
Personal Level
33 SAMIR HANAFY, P.ENG
35. The Defining Strategy Keys
.
The two at the base
represent the
“balanced score card”
of the firm.
VISION
They describe its
strategic framework
for action
SHARED
VALUES
Business
MISSION
Philosophy
Core competencies
Business Goals Balanced Score Card
Objectives (CSF’s)
Measures & Rewards
35 SAMIR HANAFY, P.ENG
36. Kaplan’s Balanced Score Card
Translates vision, mission, shared values,
business philosophy & goals to reflect
How does the SBU look to its stakeholders?
Financial perspective
How do my customers see SBU?
Customer perspective
What must be the SBU excel at?
Internal business perspective
How can the SBU continue to improve and
create value?
Innovation & learning perspective
36 SAMIR HANAFY, P.ENG
37. Kaplan’s Balanced Score Card
Key Objectives, Measures & Rewards – the
Foundations of Strategy
Customer
Perspective
Financial Internal
Creating
Business Business
Value
Perspective Perspective
Innovation
& Learning
Perspective
37 SAMIR HANAFY, P.ENG
39. Develop A Company Business Unit Strategy
Strategy Statements Statement of Company or Business unit
Direction
GOP----------------------------
Cost Reduction----------------
Customers
Shareholders Employees Define unique values that the Company
Promises to deliver to customers, shareholders
And employees.
Why someone would buy from us ,and work for
us and not another company.
Value Added
How to reach the Vision, target market segment
Mission And scope of Business; Needed Capabilities and
Competencies
Desired Future State, How the customer will view
Vision Company in the year 20XX
39 SAMIR HANAFY, P.ENG
41. Develop Business Strategy Need
Customer Strategy
identify market
provide value that customers need
Finance Strategy Operating Strategy
low cost capital deliver value for customers
as needed that company can afford
People Strategy
Right people
right Skills & Competency
right jobs
Doing the right thing
for the right return
41 SAMIR HANAFY, P.ENG
42. 4 Phase- Winning Model Strategic Planning
FORMULATION OF STRATGIES
Vision
Mission External Offensive Defensive
Values Environment Strategy
• Who to attack?
Strategy
• Hide
• Where to attack? Trade Secrets
• When to attack? Strength&weaknesse
• What to attack? •Strengthen
A P Strategy Formulation • How to attack? Internal Structure
Human Resources
C D
Organization
Goals & Objectives
Competitor
Strategy Implementation
Evaluation
Leader
Teams Balanced
Change Scorecard
42 SAMIR HANAFY, P.ENG
43. How to make Strategy Planning Happen
Strategy Should be Aligned with
• Basic Believes & Values
• Leadership & Management Styles
• Thinking Patterns
• Behaviors
• Myths,Symbols and Status Que
• Team Formation & Agenda Meetings
• Organizational Structure
• Process & Systems
• Appraisal Systems
• Reward System
• Information & Knowledge A P
• Education & Training
C D
• Goals Setting & Balanced Scorecards
• Customer Relation Management
43 SAMIR HANAFY, P.ENG
44. Strategy Overview Goals and Plans...
Vision
Vision
Strategic mission
Strategic mission
statement
statement
Strategic Goals //Plans
Strategic Goals Plans
Senior Management
Senior Management
Organization as a whole
Organization as a whole
Tactical Goals/ Plans
Tactical Goals/ Plans
Middle Management
Middle Management
Major Division and Functions
Major Division and Functions
Operational Goals //Plans
Operational Goals Plans
Lower Management
Lower Management
( Department & Individuals People
( Department & Individuals People
… to ensure that Strategy business objectives are
achieved
44 SAMIR HANAFY, P.ENG
47. The Science of measurement
Cause Effect
How often and how Linked
How is it impacting
Well is it used in To
The Business
The field
Leading Indicators Lagging Indicators
Skill, Knowledge Revenue,Margin
Effort Satisfaction
Activity Loyalty
Coaching Delegation Retention
Empowerment Repeat Business
Stronger Relations
CRM
Follow up Bottom line BSC
Surveys Tracking Performance
47 Comparison
49. WHY Cause & Effect Matrix?
To build and create Cause and Effect (C&E) Matrix
To review the steps to create a C& E Matrix
To link C&E Matrix to Process Map and other tools
Y = F(X)
Output Input
Effect Cause
Symptoms Problem
Monitor Control
Dependent Independent
Control the X’s to achieve the Y
Objectives Measures Target Action
Strategy Plan
Indicators
49 SAMIR HANAFY, P.ENG
52. Customer Value Proposition
اﻟﻘﻴﻤﺔ اﻟﻤﻀﺎﻓﺔ ﻟﻠﻌﻤﻼء
Value = Actual + Perceived
Value = Product / Service attributes + Image + Relationship
Function Quality Price Time
Safety Return rate Value for $ Responsiveness
Delivery Convenience
Service Performance Innovative Meeting schedule Personal advisor
Cost reduction Quality of personal Cost reduction
Production Quality Brand Name Knowledge
Awareness Company Flexibility
Error rate Management Contractual
Staff Team spirit
Building Availability
Advertising
Market share
52 SAMIR HANAFY, P.ENG
54. (EQA) European Quality Award
EFQM Model for Business Excellence
EFQM =European Foundation for Quality Management
Management People
90 points 9 % satisfaction
90 points 9 %
Process Business
Leadership Policy/Strategy Customer Results
140 points
100 points 80 points 8 % satisfaction 150 points
14%
10 % 200 points 20% 15%
Resources Impact on
90 points 9 % Society
60 points 6 %
Enablers 500 points (50 %) Results 500 points (50 %)
54 SAMIR HANAFY, P.ENG
55. TQM AWARD MALCOLM BALDRIGE 7 POINTS
System
5- Management of
Driver Process Quality(140)
6- Quality Business
Results(180)
4-Human Resources
development &
1-Senior Executive
Management(150)
Leadership (95)* 7-Customer focus
&
3-Strategic Quality Satisfaction(300)
Planning (60)
2-Information
& analysis(75)
* 1994 Balgdrige Criteria – National Institute of Standards
55 & Technology, total 1000 points SAMIR HANAFY, P.ENG
56. Baldrige Guidelines (Customer Focus & Satisfaction)
300 POINTS
1-Customer Expectation
Current & Future(35 PTS)
How Company interact
& relate to customers
And use information How Commitments
Gained from customers are Evaluated
To Improve CRM process & Improved
responsiveness
2-Customer Relationship 3-Commitment to
Management (65 PTS) Customer (15 PTS)
4- Customer Satisfaction Determination (30 PTS)
5- Customer Satisfaction Results (85 PTS)
6- Customer Satisfaction Comparison (70 PTS)
Customer Focus & Satisfaction (300 PTS)
1- Customer Expectation Current & Future (35 PTS) Each of the Six Items will be classified
2-Customer Relationship Management (65 PTS) In Three dimensions
3-Commitment to Customer (15 PTS) A- Approach
4- Customer Satisfaction Determination (30 PTS) D- Deployment
5- Customer Satisfaction Results (85 PTS) R- Results
6- Customer Satisfaction Comparisons (70 PTS) SAMIR HANAFY, P.ENG
57. 2-1Manage 2-2Manage 2-3Manage
Operations Customers Innovation ROIC
Effect
2-Internal Process Perspectives Cause & Effect
Effect
Causes Alignment
Teamwork
1-3 Company Organizational Capital Culture
Leadership
Causes CRM
1-2 Company Information Capital IT
Skill
1-1 Company Human Capital Knowledge
1-Learning & Growth Perspectives Cause & Effect Values
57 SAMIR HANAFY, P.ENG