Appendix A
SUMMARY OF STRATEGY MANAGEMENT
PROGRAM (SMP)
Strategy Development and Implementation Methodology using the Balanced Scorecard
(BSC) And KRA/KPI process
FOR PRIVATE SECTOR
The proposal for Provision of Consulting and Training Services on Strategic direction and
KPI Development and Implementation
We are pleased to propose the following complete framework for the development and
implementation of your organization’s strategic direction and objectives using the Balanced
Scorecard approach.
The proposed workshop facilitations are as follows:
Stage
Pre
SMP ’s Code
SMP 201
workshop
Module
Project Planning
Days
1 day
Data gathering and Fact Findings
Organization and environment analysis
(optional)
Training
SMP 101
Strategic awareness and management and
1 day
performance measurement (KPI process)
(optional)
Workshop
Stage 1:
SMP 202
Strategic Plan Review (Strategic Direction)
2 days
Stage 2:
SMP 203
Strategic Formulation- strategy map and BSC
2 days
SMP 501
prepare strategic document and present to
½ day
CEO
Stage 3A:
SMP 204A
Cascading the Balanced Scorecard
2 days for selected
units
Stage 3B:
SMP 204B
Aligning units and departments’ BSC to
1 day
organization / organization (optional)
Stage 4:
SMP 205A
Review Performance Management System
2 days
and prepare unit and staff KRA/KPI
Stage 5:
SMP 205B
SMP 501
Finalize KRA/KPI Planning Record
2 days
prepare strategic document and present to
CEO
Stage 6
SMP 206A
Prepare Strategic Business Plan
2 days
Stage 7
SMP 206B
Prepare Annual Business Plan
1 day
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Post-
SMP 207A
Workshop
prepare report format and basic system for
2 days
monitoring
stage 8
Stage 9
SMP 207B
Strategy and KRA/KPI Implementation,
1 day
Reporting and Communication Plan
SMP 501
prepare strategic document and present to
½ day
CEO
Stage 10:
SMP 208
Implement BSC Information System
3-6 months
(Optional)
Stage 11
SMP 207C
review strategy, reporting and assessment
I day-quarterly
(optional)
The above is the complete proposal on the training, workshop facilitation and advisory
services.
Pre-workshop - Project Planning (SMP201)
The main outputs of this stage are:
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Project Team Establishment between Consultant & Organization
KPI team for Organization and units
Project Plan & Communication Plan with Deadlines
BSC/BD Steering and Working Committees with roles/functions
KRA/KPI Steering Committee and appointment of Champions and members
Review Organization strategy direction and strategy objectives (BSC) format
The Planning Stage consists of the following steps.
Step
Step
Step
Step
Step
Step
1:
2:
3:
4:
5:
6:
Develop the objectives for the BSC and KPI projects.
Determine the scope of the project application.
Gain CEO and senior management team (SMT) sponsorship.
Build the BSC/KPI core team and KPI Champions.
Formulate the project plan and Committee
Develop a communication plan for the BSC and KPI projects.
BSC/KPI Communication and Training Plans
The BSC and KPI are the change projects and most change projects struggle to succeed, with
lack of knowledge and communication being the main cause of the potential failure.
A carefully constructed communication and training/consulting strategies and plans will prove to
be a great ally in the struggle to enlighten all employees and win support throughout the BSC
and KPI’s processes.
The objectives of the Communication and training Plan strategies are as follows:
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Provide education on key BSC and KPI concepts to all staff.(optional)
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 Generate the engagement and commitment of key stakeholders in the project.
The outcomes of the Communication Plan will be:
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Awareness of the BSC/KPI at all levels of the organisation.
Understanding on key BSC concepts by all managers and officers.
Generate commitment of key stakeholders in the project.
Rapid and effective dissemination of Team Results.
Generate enthusiasm to teams for the BSC/KPI.
Encourage participation by all staff in the process.
Pre-workshop: Data Gathering (SMP201)
The main outputs of this stage are information about external and internal environment that will
provide the basis for a sound Strategic Plan.
This stage involves:
Gathering background materials related to information required in the existing
projects/initiatives and key assignment and programs including international
precedents and models.
Conducting interviews with selected senior managers and key officers.
Providing guidance on environmental scanning. Gathering and compiling of
information will be carried out by identified resources. Sessions will be conducted to
provide the guidelines and information framework, and later to review the outputs.
Review existing strategy, MKRA, KRA and KPI of CEO and prepare draft strategy map
and BSC
Administration of several internal diagnostics tools such as:
o Top Team Survey
o Review of Strategic Strengths
o Organizational Diagnostics/Audit
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Stage 1: Strategic Plan Review for Corporate (Strategic Direction) SMP202
The main output of this stage is the Organization strategic direction and Balanced
Scorecard (revised).
During this stage the Strategic Plan Review Workshop will be conducted for the Top Management
Team to review organization current Strategic Plan with the objective of:
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Confirming or form vision, mission, values, Team Operating Principle (TOP) and
strategy.
Identify Critical success factors (CSF) and Key Result indicators (KRI)
Write down stakeholders and state’s concerns and issues
Revisit organization Mission statement
Review Team Operating Principles and values
Revisit corporate Vision Statements
Identify strategic goals to support vision statement
Identify strategic enablers (the Critical S uccess Factors)
Revisit SWOT analyses
Do an environment scan – analyze current and future
o Markets ( market share, untapped market)
o Customers (segmentation and target group)
o Competitors (strength, weakness and uniqueness)
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Core and potential products and services (road map).
Identify Key Challenges for the next 3 – 5 years
Stage 2: Strategic Formulation (SMP203)
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Identify the top five Shareholders expectation and write the Philosophy Statements
applicable to them (customers – internal / external)
Write Strategic Themes and Objectives related to the goals of organization
A Developing goals and measures in each of the BSC perspectives.
Develop cause-and-effect linkages. Identify the linkages between the goals and form
the strategy map.
Ensure that senior managers and key officers realize the criticality of the linkages and
how their own department fits within the strategy map.
Establish strategic objectives for the goals and measures defined.
Develop the detail strategy using BSC format .
Write Strategic Action Plans to support strategic objectives
Identify the major stages of Strategic Planning Process while reviewing the
strategic elements prevalent in organization set-up
Other activities during this stage include:
 Workshop materials customization
 Completing the Organization BSC documentation
 Getting consensus on the organization BSC
Stage 3A: Cascading the Balanced Scorecard (SMP204)
The main outputs of this stage are the Cascaded Balanced Scorecards for each of major
Department, which will consist of:
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Departmental Operational Objectives and Action Plans
Key Result Areas (KRAs) and Key Performance Indicators (KPIs)
This stage involves:
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Training heads of departments, officers and specialists in Management Planning.
Reviewing and cascade KRAs and KPIs of all manager, specialist and executive positions.
Reviewing Departmental Operational Plan for vertical and horizontal alignment and
compliance to the BSC model for organization and departments
Completing Departmental BSC Documentation
Getting consensus on the Cascaded BSC
Stage 3B: Aligning the unit and Departmental BSC to the organization (SMP204B)
The main outputs of this stage are the Cascaded Balanced Scorecards for each of major
Department, which will consist of:
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Aligned Departmental Operational Objectives and Action Plans
Aligned Key Result Areas (KRAs) and Key Performance Indicators (KPIs) to the corporate
strategy
This stage involves:
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Reviewing and aligning KRAs and KPIs of all managers, specialist & executives positions.
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Reviewing Departmental Operational Plan for vertical and horizontal alignment and
compliance to the BSC model for organization and departments
Getting consensus on the aligned BSC
Stage 4: Review Performance Management System and Prepare Unit and Staff
KRA/KPI ( SMP 205A)
The main output of this stage is a recommendation on how the existing individual performance
planning and appraisal system can be improved for effective implementation of the BSC at the
individual level.
This stage involves:
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Studying the existing systems and job functions
Designing the new Performance Appraisal Form
Recommending the new KRA/KPI system
Preparing BSC for HOD/HOU and all officers
Prepare KRAs and KPIs for all officers in the department/unit
Review organization structure
Stage 5: Finalize KRA/KPI Planning Record (205B)
The main output of this stage is a final KRA/KPI records and all supporting documents. We will
also cover on how to collect and store data, how the performance measurement exercise be
carried out periodically, self assessment by officers and review process.
This stage involves:
 Studying the existing performance measurement system
 Review staff KRA/KPI to cover all critical areas
 Recommending the new Performance Management review System
 Finalise KPI for all managers and executives in each department/unit
 Determine targets, ratings, weight age, measurement and source of data
 Formulate employee Personal development plan (PDP)
 Create measurement formula and OAP for key processes
Formulate Employees Training Plan (PDP)
The main outputs of this stage are:
 Trained resources (identified HR and line officers) in a systematic process of Training
Needs Analysis/Identification (TNA/TNI)
 Training plans for identified positions. Organization’s resources would have the skills to
formulate the training plans for all employees as required.
This stage involves:
 Advising officers in conducting Training Needs Analysis
 Assisting HR in determining Training Needs from data
 Assisting HR in preparing training plans for employees based on a template
Review Business Processes and OAP
The main outputs of this stage are:
 Recommended (To-Be) end-to-end, inter-departmental processes consisting of
Operational action plan, Process Maps and Process Descriptions and areas of
improvements
 Identified process KPIs aligned with organizational and departmental KPIs and targeted
performance
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This stage involves:
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Briefing/Training on Business Process Mapping
Studying and mapping of As-Is processes
Mapping of To-Be processes with identified process KPIs, current performance and
targeted performance
Identifying and recommending areas of improvement (reengineering)
Stage 6: Prepare Strategic Business Plan (SMP206A)
The main output of this stage is a strategic document on the long term plan of an organization
that highlight the strategy direction, objectives and financial for forthcoming years
This stage involves:
 Company strategic analysis
• A corporate direction - mission, vision, goals and team operating principal
• Current products and services
• Current strength and weaknesses
 Environmental scanning
 Financial analysis
•
past performance
• Issues
 Strategic plan
• Strategic map
• Scorecard summary
 Strategic initiatives
 Targets and financial linkages
Stage 7: Prepare Annual Business Plan (SMP206B)
The main output of this stage is a strategic document on the annual business plan of an
organization that highlight the strategy direction, objectives and financial for the year
This stage involves:
Company Analysis
• Brief Explanation of the Business
• Past Accomplishments – business, market and financial
• Company Unique Qualifications
Industry Analysis
• Product type and Trends
• Market Size and Market Needs
• Target markets
Customer Analysis
• Customer Identification/Definition
• Customers segments
• Customer Demographics, Needs Assessment and Decision-Making
• Multiple Customer Targets & Partners
• The Customers’ Customer
Competitor Analysis
• Defining Competition
• Which Competitors to Include in the Analysis
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Describing Competitors and Showing Competitive Advantages - strength and uniqueness
Sales and Marketing plan
• Products and/or Services – marketing mix
• Promotions and Price
• Channel and Place
• Customer Retention
Operation plan
• Everyday Processes (Short-Term Processes)
• Business Milestones (Long-Term Processes)
Financial Plan
• Detailed revenue streams
• Detail capital expenditure
• Detail financial and operating expenses
• Personnel Cost
• Production and manufacturing
 Forecasted cash Flow
• Forecasted Profit and Loss
• Validating Assumptions and Projections
 Sources and Uses of Funds
Appendix
 Develop organization ABP and goals
 Presentation format
 Analysis report
Stage 8: Prepare Report Format, Basic System and Monitoring (SMP207A)
The reporting frame work will accommodate the followings:
• requirement of different levels in the organization and
• the reporting frequency that support timely decision making.
• How the report should reach all relevant staff – using a combination of
intranet, notice board and hard copy
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Workshop
• Prepare framework for reporting performance measure
• Templates for reporting Performance Measure will be discussed
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Training on:
• How to complete these report efficiently
• Set a report frequency – daily, weekly and monthly
• Data gathering and update
Reporting
• Monthly report to the Board and MCM
• Daily and weekly report to CEO and SMT/HOD
• Unit report to staff on monthly basis
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Stage 9: Strategy and KRA/KPI Implementation (SMP207)
The main output of this stage is the development of implementation and communication strategy
that require full involvement and commitment of the CEO and top management in the
organization in the implementation stage
Deep understanding of the organization new direction, strategy, priority initiatives, business,
market, objectives and goals for a massive implementation at all levels
 Prepare implementation master plan
 Prepare communication plan – highlight organization final strategy direction and objectives to
all staff and stakeholders
 Prepare communication plan – communicate result to the organization and strategic partners
 Describes potential risks & barriers to implementation of plan
 Describe key macro assumptions impacting plan
 Specify critical inter-department/unit support required
 Review organization structure and core processes
 Review committee and corporate governance
 Review report format and feedback system
 Review measures dictionary
 Review performance measurement process and assessment
Stage 10: Implement BSC Information System (Optional) SMP 208
Initially we will recommend a simple manual system using excel program. Once the customers
are satisfied with the reporting substance and acceptance of the analysis, we will then
recommend a comprehensive BSC and KPI system
The main output of this stage is a BSC Information System that tracks the progress of
performance against targets that are set for the KPIs at unit, section, department and
organization level. Ideally, the system is fully integrated to the operational systems/database for
full drill down capabilities.
This stage involves:
 Identifying User Requirements
 System Design / Selection
 System Development / Customization
 Installation
 Pilot Run
 Live Run
Duration and complexity of this stage depends on:
 Comprehensiveness of existing operational systems in capturing relevant performance data
 Level of integration of existing systems
 Level of integration required between operational systems and BSC Reporting System
 Level of sophistication required in terms of analysing performance information / KPIs
 Users acceptance to using BSC system for measuring performance
Stage 11: Review annual strategy, reporting and assessment (optional) SMP 207C
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This advisory exercise can be conducted quarterly or half yearly
We will do health check on the implementation of strategy and its application
We will review the KPI report format and data gathering exercise
Review assessment process
Make further recommendation for improvement
Ref: 00 APPENDIX A BSC PROPOSAL PROGRAMS METHODOLOGY PRIVATE PELORUS 03 2011
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