A Balanced Scorecard System Solution Paper

Transcription

1 istrategi BSC A Balanced Scorecard System Solution Paper January 15, 2009 Copyright 2008 by Knowledge Base Sdn Bhd. All rights reserved.

2 Table of Contents Why Automate?... 4 Introduction to istrategi... 5 istrategi Software Highlights... 6 Interactive Strategy Map... 6 Multiple Scorecard and Cascading... 6 Measure and Strategic Objective maintenance... 7 Cause and Effect... 7 Alert Notification, Traffic Lighting & Trend Analysis... 7 Personalized Measure Dashboards... 8 Navigator View... 8 Initiative Management... 8 Gantt Chart... 9 Task/Activities definition... 9 Web-based Data Entry Form & MS Excel Import function Target Setting and Scoring Packaged Reports Built-in Report Writer Drill-Down Analysis IIAA Reporting Role-Based Security and Data Auditing Bundled with free Graphical ETL tool Multi-Lingual Support Online Help Scalability & Cutting Edge Technology Built-in Performance Appraisal Module Degree Reviews Seamlessly Integrated KPI and Competency Model Appraisal Goal /Objectives Management Competency Dictionaries Best Practice 5 level Competency Rating Process istrategi Product Fact Sheet Full compliance with BSCol BSC Software specification istrategi Online Flash Demonstration Knowledge Base Sdn Bhd. Private & Confidential 2

3 Hardware and System Software Requirements Knowledge Base BSC Automation Methodology and Approach Summary and Conclusions Appendices Frequently Asked Questions Knowledge Base Sdn Bhd. Private & Confidential 3

4 Why Automate? Automation means using a purpose-built Balanced Scorecard software to fully computerize the Balanced Scorecard instead of using manual approach or using conventional tools such as Excel of Powerpoint. Automation also provides the abilities to integrate measure data from source system to BSC database. The success of a Balanced Scorecard implementation depends on its continuous usage and sustaining it. The balanced scorecard application provides the high-level strategic feedback and performance measurement/management application for an organization. By automating the Balanced Scorecard, it reinforces the methodology. Automation adds structure and discipline to implementing the Balanced Scorecard system, helps transform disparate corporate data into information and knowledge, and helps communicate performance information. An automated balanced scorecard that has been deployed across the enterprise offers an organization an unsurpassed communications platform for feedback and information sharing. Often looked upon as the strategic knowledge management system within an organization, a scorecard focuses on proactive communication for addressing problems earlier and pursuing business opportunities faster and more effectively than traditional management models. In short, automation helps people make better decisions because it offers quick access to actual performance data Knowledge Base Sdn Bhd. Private & Confidential 4

5 Introduction to istrategi Operationalize, Monitor and Improve Your Performance istrategi BSC is user-friendly yet comprehensive BSC software to manage, monitor and operationalize your organization strategy. istrategi empowers users to communicate and collaborate with the owners and contributors of the organization strategy to ensure that the goals can be met, and if not, what action can be taken to correct it. istrategi can consolidate all relevant scorecard information up to senior management and the board level to provide them with a balanced view of performance. Initiatives identified to support your strategy can be easily created, deployed and tracked to monitor key operational. istrategi BSC leverages the data, knowledge and best practices in your existing systems and provides your management team with a sharpened focus on Balanced Scorecard reporting for improved executive insight, decision-making and accountability The results are clear: communication of strategy throughout the organization, alignment of actions to strategy, effective strategy implementation and increased value from enhanced organizational with the istrategi BSC. istrategi is developed with simplicity in mind and is designed top-down based on BSC methodology and thus is designed to be intuitive and user-friendly.. Alternatively, istrategi also supports the traditional KPI/KRA/CSF methodology preferred by some organizations. With istrategi, you can simple make better decisions!! 2008 Knowledge Base Sdn Bhd. Private & Confidential 5

6 istrategi Software Highlights Interactive Strategy Map With interactive strategy maps, user will be able view Strategy maps and its components with traffic lights visually. From the strategy maps, you can drill down by clicking the relevant strategy objective or measure. Multiple Scorecard and Cascading With istrategi can you can create scorecards for multiple organizations. For each organization it allows you to create multiple scorecards which can be cascaded down e.g. you can create Corporate Scorecard, Divisional Scorecard, Departmental Scorecard and Personal Scorecard. istrategi also supports multiorganization, which means you can create as many organizations and under each organization it can have multiple cascaded scorecards Knowledge Base Sdn Bhd. Private & Confidential 6

7 Measure and Strategic Objective maintenance Users can define and maintain objectives and measures easily. istrategi also allows sharing of objectives and measures across various scorecards. Cause and Effect Cause and Effect view enables to understand the causal relationships and impact analysis between Objectives and even it can be correlated to measures. Alert Notification, Traffic Lighting & Trend Analysis istrategi can publish alerts notification via or istrategi portal e.g. if user wants to be notified if a certain measure turns RED. With Alerting management and Exception based reporting, istrategi can highlight problem areas quickly for swift resolution Knowledge Base Sdn Bhd. Private & Confidential 7

8 Personalized Measure Dashboards Users can create and setup their own personalized dashboards such a subscribe and publish approach so that only the relevant measures to the user can be shown in a single screen. Navigator View With Navigator view, you will be able to view the performance measures of a single scorecard in just one screen. You can filter to show only those metrics showing e.g. Red or Yellow or both. Initiative Management Initiative management is crucial for realizing strategic objectives. With istrategi you can monitor performance of each individual initiatives (projects and activities) and objectives Knowledge Base Sdn Bhd. Private & Confidential 8

9 Gantt Chart The initiative management graphically tracks and manages the status of all initiatives and subordinate tasks with Gantt charts and links to existing project management systems. The status of the initiatives will be indicated as a traffic light color. Task/Activities definition For each initiative, multiple tasks can be created. For each task you can maintain and monitor budget, resources, timeline and milestone and completion status. Alternatively instead of creating tasks, you can attach MS Excel or MS Project document at the initiative Knowledge Base Sdn Bhd. Private & Confidential 9

10 Web-based Data Entry Form & MS Excel Import function istrategi provides a built-in web-based data entry forms to capture data manually. It also provides import facilities to import data from Excel and this can be scheduled to run automatically. istrategi is fully integrated and leverages on Pentaho ETL, a free data extracttransformation tool to extract data, transform and load from operational systems to BSC database. Target Setting and Scoring With istrategi, users can setup multiple target such as Business As Usual, Best- Practice and even Forecast value. Strategic Objectives and Measures can be weighted by relative importance. istrategi provides advanced scoring algorithms so that you can fine tune for your organization. Assessments can be done qualitatively or quantitative Knowledge Base Sdn Bhd. Private & Confidential 10

11 Packaged Reports istrategi is bundled with many packaged reports developed using LogiReport, a free and easy to use report designer and publisher. LogiReports generates webbased HTML reports. Reports can be exported to PDF or Excel format. Built-in Report Writer Users can now develop ad-hoc reports based on the standard views provided by istrategi. The LogiReport comes with a comprehensive Reporting Designer called Report Studio provides a full development platform for developers to quickly and easily build reports complete with crosstabs, drilldown and drill-through, charting, data grouping, interactive sorting and paging, aggregation and other calculations, export functionality, and much more.. istrategi can also be seamless integrated with other report writer such as Crystal Report or Microsoft Reporting Services 2008 Knowledge Base Sdn Bhd. Private & Confidential 11

12 Drill-Down Analysis istrategi provides the facility to integrate any third-party application or documents seamlessly. Users can perform detail analysis by slice and dice on measures/kpi using EIS, OLAP or pivot table analysis using MS Excel. For instance, a measure called Gross Profit can be further analyzed by Products, Projects or by location. With istrategi intelligent links, you can seamless link by launching any third-party EIS or OLAP software including Microsoft Analysis Services, Qlikview or K-Base own OLAP tool called Analytica. istrategi provides unlimited links for each measure/kpi. IIAA Reporting istrategi provides facility to capture IIAA analysis. IIAA Report is based on BSCol best practice to improve governance. For measures/kpi, it recommends 4 types of analysis i.e. Issues, Implication, Action and Accountability Knowledge Base Sdn Bhd. Private & Confidential 12

13 Role-Based Security and Data Auditing istrategi BSC Software - Solution Paper istrategi built-in strong security features and data auditing to ensure unauthorized users do not access or tamper the data. Even if authorized users tampers the data, the source can be identified including the previous and updated data values using the data auditing features. Bundled with free Graphical ETL tool. With istrategi, you also get a free easy to use graphical ETL tool called Pentaho Data Integrator to automate the population of data from various source systems to BSC database. Alternatively you can also use other third-party products likes Microsoft Integration Services Knowledge Base Sdn Bhd. Private & Confidential 13

14 Multi-Lingual Support istrategi provides multi-lingual support, which means users can select the language of choice whether to run the application either in English or Bahasa Malaysia. istrategi language dictionary is stored in XML database at the application server. User scan edit the caption to suit their company requirements. istrategi provides a built-in XML editor for users to edit the resource dictionary. Online Help istrategi comes with a web-based online help in English. Should the user wishes to modify the online help to suit their local language requirement, istrategi can provide an automatic help generator tool which can generate HTML help files from MS Word document in a single click Knowledge Base Sdn Bhd. Private & Confidential 14

15 Scalability & Cutting Edge Technology istrategi is 100% web-enabled application built on Microsoft.NET technology. istrategi can work with popular database such as SQL Server Standard Edition, SQL Server Express Edition (Free) and MySQL (free). istrategi BSC is highly scalable and can support hundreds of BSC users Knowledge Base Sdn Bhd. Private & Confidential 15

16 Built-in Performance Appraisal Module One of the major challenges organizations are facing today is the linking of Reward / Appraisal to the KPI Performance. There is a constant need for the Staff / Human Capital to be motivated, reviewed and rewarded. This is crucial for the organizations to move ahead and execute strategies to attain organizational vision and mission. Most of the Balanced Scorecard Systems grossly ignore this important part of the success. istrategi is perhaps the only BSC System that integrated Performance Management with the Performance Appraisal in a SINGLE product thus enabling organizations to rapidly align, develop, motivate, source, and maintain a high-performance workforce. With seamless integration istrategi gives users the visibility to maximize the performance of your people and drive business results and ultimately achieving organizational vision and mission. Our Integrated performance appraisal provides following benefits: Bridge the Strategy/Execution Gap Align employees to strategic goals across the organization and track goal progress to drive accountability. Cultivate Top Talent Identify high-potential employees and develop and reward them to increase retention. This also allows to us understand the low performing staffs and look at the skill advancement needs to raise their competency 2008 Knowledge Base Sdn Bhd. Private & Confidential 16

17 360 Degree Reviews Get a more complete picture of performance Collect feedback from superiors, subordinates and yourself to better understand competency gaps and development needs. Seamlessly Integrated The Individual KPI s will automatically be populated from the personal Scorecard. This saves a lot of time and effort in data entry. This will also avoid data duplicacy Knowledge Base Sdn Bhd. Private & Confidential 17

18 KPI and Competency Model Appraisal The performance appraisal is based on the performance of KPI s as well as individual Competencies. This is a HYBRID Model to ensure that individuals are appraised based on their KPI performance and also based on their competency. Users can set the weightage / percentage of KPI and Competency model to be considered in the appraisal. Like 85% from the KPI performance and 15% from the Competency. Goal /Objectives Management Align all employees around a common set of goals. Create, align, and monitor goals across the organization to ensure onstrategy execution Knowledge Base Sdn Bhd. Private & Confidential 18

19 Competency Dictionaries Provides a easy guidelines to setup competencies libraries. istrategi by default supplied with a pool of competency dictionaries and continue to provide free updates to dictionaries. Best Practice 5 level Competency Rating Process For all competencies in the dictionary, a definition is provided. Each competency also includes a proficiency scale that indicates the full range of expression of the competency. Most proficiency scales have five levels. Each proficiency level is described in terms of behavioural indicators. The behaviours at each level of the scale are illustrative rather than definitive; that is other examples of behaviour are possible. Each competency scale is cumulative which means that, although behaviours from lower levels are not repeated at higher level, they nonetheless apply Knowledge Base Sdn Bhd. Private & Confidential 19

20 istrategi Product Fact Sheet Proactively manage and monitor your company strategy by managing strategic objectives, initiatives and measures Create multiple scorecards and cascade from Corporate, SBU, Department to individual level Create visual and interactive strategy maps Display Cause and Effect diagram Display Trend Charts to show actual vs target Define, assign and monitor strategic initiatives with detail tasks and budget allocation Enable exception based visualization using Traffic-Lighting Define commentary fields to capture qualitative information Define relative importance and provide various scoring options 2008 Knowledge Base Sdn Bhd. Private & Confidential 20

21 Monitor the progress by Accountability Generate standard & ad-hoc reports using built-in report engine Web-form to manually capture data not in operational system Built-in automatic data extraction and loading utility supporting most source databases. Supports any popular relational database 2008 Knowledge Base Sdn Bhd. Private & Confidential 21

22 Full compliance with BSCol BSC Software specification istrategi is fully compliant to the BSC software specification guidelines established by Balanced Scorecard Collaborative (BSCol) which is the organization led by Prof. Kaplan and Norton. Source: Balanced Scorecard Collaborative 2008 Knowledge Base Sdn Bhd. Private & Confidential 22

23 istrategi Online Flash Demonstration For a online demonstration of istrategi, please visit Knowledge Base Sdn Bhd. Private & Confidential 23

24 Hardware and System Software Requirements Following is the hardware specification for BSC Software: Server Client PC o Single CPU - Intel Xeon 4Ghz o Min. 4GB RAM o 10/100 NIC o DVD-Writer and Tape Drive o 2 X 70 GB Hard Drive o 15 color monitor o Other standard configurations like: 3 button mouse, key board etc o System Software For number of users exceeding 30, we propose Windows Server 2003 else Windows XP Professional or Windows Vista Business should suffice. For number of users exceeding 30, we propose SQL Server Standard Edition else SQL Server Express Edition (which is free) should suffice. Internet Information Services (IIS) enabled. Internet Explorer (IE) version 7 and above. Windows.NET framework 1.1 and 2.0 installed. o Pentium IV and above o Internet Explorer (IE) version 7 and above Knowledge Base Sdn Bhd. Private & Confidential 24

25 Knowledge Base BSC Automation Methodology and Approach Knowledge Base has solid experience and proven track record in implementing Performance Management and Balanced Scorecard systems. We use a rapid implementation approach to develop the BSC application within less than 4 weeks. Cost savings can be achieved using our rapid BSC implementation methodology. Knowledge Base can help take the risk out of your Scorecard implementation, and deliver to you a truly flexible and scalable performance management system that meets your continuously changing performance management needs in a timely fashion. Knowledge Base uses a 7 steps approach in deploying the BSC software. Step 1: Validate BSC Specifications K-Base will validate and verify the BSC specifications with the client or from their consultants. It is imperative that the BSC Design and Development is completed before embarking on automation. Step 2: Data Analysis & Technical Environment Preparation The objective of Data Analysis is to identify the availability and also ascertain the quality and integrity of the measure data from the source systems. If the data is not available or partially available or the quality of data is in question, then decision need to be made whether to capture the data manually data using istrategi web-based data entry screen. The target computing environment also need to be assessed to ensure it meets the physical requirements to install the BSC software e.g. Server, Network, System Software, 2008 Knowledge Base Sdn Bhd. Private & Confidential 25

26 Licensing etc. The deliverables called the Data Analysis Report will cover the findings of Data sources for each measures and the method required to extract data into the KPI Server. The document will have analysis summary report of various measures present in the source system. It will clearly state the number of measures with complete data, partial data, missing data or a new measure. The report will also cover the availability status for all the measures as well as for individual measures. Step 3: Install and configure BSC Software K-Base will install and configure the BSC software. The scorecards will be created and populated. User will be created and their application and scorecard privileges assigned. Step 4: Data Integration Identify the sources of the data for the measures mapping into the scorecard system and build and test the data extraction programs. This includes job automation scripts to automatically run the job at given internal. Step 5: Training K-Base will conduct both User and Administration training. The training will be hands-on. K-Base will use the client s scorecards as part of the workshop to automate using BSC Software. Step 6: Review/Feedback Users will review the scorecards and provided feedback. The entire application is tested. Step 7: Production The BSC software will rollout into production. End users will be using the system by viewing the scorecards live Knowledge Base Sdn Bhd. Private & Confidential 26

27 Summary and Conclusions The balanced scorecard is a proven management approach that delivers bottom line results and enables strategy to be communicated and aligned at all levels of an organization. The key to any successful scorecard implementation is the automation of the methodology through an enterprise deployable application. Without automating the process, the opportunity to fully leverage the financial and organizational benefits of the balanced scorecard methodology is severely limited. Organizations recognizing the benefits of that a fully enterprise-wide balanced scorecard system can deliver need to identify the appropriate solution that can address their needs. First, a solution needs to embody and represent the concepts and frameworks in the methodology as outlined in the book, The Balanced Scorecard. Second, a solution must provide the right technical features for scorecard analysis and assessment yet leverage an underlying architecture which allows deployment and management of the application to many users. Such a packaged solution will help to ensure that the software application reinforces the management philosophy and can properly deliver the functionality to support today s distributed organizations. In conclusion we can draw up a series of recommendations for implementing a balanced scorecard support system. The BSC must be enterprise deployable: To all levels of the organization, accessed by many users, across mixed platforms & IT infrastructures (including the Web!). The BSC must link the vision to strategic objectives and measures and show cause and effect of relationships: More than a list of measures, from vision to strategy to objectives to measures using drill-down and cause and effect diagrams. The BSC must allow creation and linkage of organizational and personalized scorecards: Create and manage scorecards across business units and build individual scorecard portfolios. The BSC must support both quantitative and qualitative information: The numbers are important, but the commentaries add real meaning. The BSC must enable dynamic communication: More than a reporting vehicle it is a strategic feedback system. It must support feedback loops, dialogue, comments, personalized assessments and initiative management. The BSC must be easy to set-up and maintain: Standard implementation features with security and user access definitions Knowledge Base Sdn Bhd. Private & Confidential 27

28 Appendices Frequently Asked Questions Q1. What is istrategi? istrategi is a Balanced Scorecard software which enable you to automate all your organization s balanced scorecard reporting needs. It provides both quantitative and qualitative way to capture data and perform root cause analysis. Q2. What are the technical requirements to run istrategi application? istrategi is a web-based application and it requires Windows 2003 Server or Windows XP Professional with IIS enabled. Client requires a Microsoft IE Browser version 7 or above. Microsoft.NET framework 1.1 installed. Q3. What is the difference between istrategi Professional and Standard edition? Standard edition provides the capability to use one company with up to 10 scorecards. Professional edition enables you to create unlimited companies and unlimited scorecards. Q4. How is istrategi software licensed? We price it several ways either by number of users or site license. If the number of users exceeds 150, then KBase will provide a site licensing, which means even if the number of users increase, the price will be always the same. This is useful for large organizations. Q5. How is the security handled in istrategi? istrategi has implemented features similar to C2 security. All users and passwords are encrypted and stored in the database. Users are assigned privileges which scorecard, which strategic objectives and measure they can access. Ownership can be assigned to objectives. Application access can be monitored by auditing features and auditing report is provided. Past data can be protected from unauthorized changes. istrategi has implemented separate login for scorecard creation and user administration. As such istrategi security features are resilient. Q6. Why and when I should adopt using BSC software such as istrategi vs. MS Excel. MS Excel is only good if managing one scorecard where cascading is not required and perhaps for a very small number of users. Whereas BSC Software are purpose built, because of web-based it can be accessed anywhere; all you need is a web-browser. BSC Software can handle many 2008 Knowledge Base Sdn Bhd. Private & Confidential 28

29 scorecards, perform cascading, provides security on who can access which scorecard which cannot be achieved with Excel. Q8. How is data entered in istrategi? istrategi provides web-based data entry screen to enter measure data. Alternatively, it also provides capability to import from Excel or CSV files. For more complex integration, Pentaho ETL is used to automate, extract and load data from source system to BSC system on periodic basis. Q7. What features are unique to istrategi compared to other BSC Software? istrategi is the most cost effective software in the market today, less than half compared to international brand. istrategi caters well for clients in Asia, since istrategi is developed locally in Malaysia and support is not an issue compared to international products. istrategi includes the last mile solution i.e. employee performance management and performance appraisal. istrategi is packaged with a free report writer for users to develop custom reports and also packaged with graphical ETL tool at no cost if there is a need to integrate with external systems. istrategi provides powerful alert management features which competition sells as individual modules. istrategi can also be further customized to suit individual organization needs or to integrate with existing application. istrategi smart features such as Digital Affirmation is a simple yet powerful policy to ensure staff enters measure data within time and ensure the correctness of the data Knowledge Base Sdn Bhd. Private & Confidential 29

30 Q8. What databases are supported on istrategi? istrategi supports Microsoft SQL Server database. It supports various edition of SQL Server including SQL Server Express edition which is free and can support for up to 50 users. Above 50 users, we recommend SQL Server Workgroup or SQL Server Standard Edition. Migration is also seamless from SQL Server Express to SQL Server Standard edition. <<End of document>> 2008 Knowledge Base Sdn Bhd. Private & Confidential 30