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How does your employee performance management system, including feedback to employees, support high-performance work and contribute to the achievement of your action plans How well does your employee performance management system support a customer and business focus How well do your compensation, recognition, and related reward and incentive practices reinforce a high-performance work climate and a customer focus
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6 Process Management (Ability to identify and manage key processes)
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How well do you design these processes to meet all the key requirements How well do you incorporate new technology, organizational knowledge, and the potential need for agility into the design of these processes How well do you incorporate cycle time, productivity, cost control, and other efficiency and effectiveness factors into the design of these processes How do you implement these processes to ensure they meet design requirements
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How well are you able to determine the final results as they re measured against the business plan commitments
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The dialogue from Alice in Wonderland illustrates the importance of vision As Alice confronts the Cheshire Cat, she asks, Would you tell me, please, which way I ought to go from here That depends a good deal on where you want to get to, replies the catWith the vision expressed as a place you want to reach at a future point in time, it becomes easier to identify the pathways to get thereThe organization expects its leaders to share a vision of the future because knowing the company has a clear direction is motivating and gives a sense of security to the organization
Manager s Guide to Business Planning
System Perspective Area
Strengths Weaknesses (What is the (What is the organization doing organization doing well ) poorly )
Gaps to Fill (What must be improved immediately to support effective execution )
Leadership Strategic Planning Customer Focus Measurement Workforce Process Management Results
Exhibit 4-2 Summary table for Baldrige execution planning
Balanced Scorecard
Introduced in 1992 The Balanced Scorecard was written by Robert Kaplan and David Norton and is regarded as the most commonly used framework for ensuring that companies can execute their strategies Today, about 70% of the Fortune 1,000 companies use an approach that employs either the Balanced Scorecard or some other vehicle to help manage performance The scorecard format contains a central list of metrics/measurements, as explained below, which are drivers of the organization s success These categories include areas such as financials, people, operations, suppliers, customers, and support systems The numbers should measure not just important outcomes, but also the focus areas that influence or drive those outcomes
Balanced Scorecard Model
Vision Statement The vision statement is set in the center of a balanced scorecard as a way to create a unified view of the future It should be a compelling statement of what the company is striving to be and do in the marketplace at a future point in time that everyone in the company can relate to
Execution Is the Key
Focus areas for the vision statement Coupled with the vision statement, these are the focus areas for the company These focus areas can be considered the high-level drivers of the business The classic categories include:
Financial Perspective: How does the company look to its stakeholders Strategies: Grow revenues by 15% Metric/Measurement: Revenue and gross margin targets/actual versus targets Customer Perspective: How does the company look to its customers Strategies: Increase customer retention and satisfaction rates Metric/Measurement: Customer retention/turnover rate Internal Business Processes Perspective: What business processes must the company excel at Strategies: Improve the new product development and selling processes Metric/Measurement: Core processes listed/percent of reengineered processes People and Learning Perspective: How can the company improve its net talent value Strategies: Become the employer of choice Metric/Measurement: Retain best talent/involuntary turnover rates
Other Categories for Consideration: I Growth and Innovation: New product/service introductions Strategies: Introduce specific products/services ahead of the competition Metric/Measurement: Actual versus planned Core Capabilities: Unique capabilities to strengthen Strategies: Identify specific capabilities to focus on, eg, product marketing Metric/Measurement: Number of new customers
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