The hottest strategy performance system design eig

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We all know that the realization of enterprise strategy depends on the support of enterprise performance management system. The higher the level of performance management of an enterprise, the greater the possibility of realizing the strategic objectives of the enterprise; The lower the level of performance management of an enterprise, the less likely it is to achieve its strategic goals. How to make strategic planning and performance management system form an effective connection, take "strategic performance" as the main line, clarify the linkage between enterprise management systems, and improve the strategic execution of enterprises is a management practice topic of common concern to the business community and the consulting community

the so-called strategic performance management, the view of theorists and consultants is that building a performance management system based on enterprise strategy is a systematic project. In the process of implementing strategic performance management practice, enterprises need to invest a lot of resources. The strategic performance management system mainly includes five aspects:

first, clarify the company's strategy. It mainly includes corporate mission, vision and core values, corporate strategy, business strategy, functional strategy, and the scanning of internal and external environment of the strategy. Clarifying the company's strategy is mainly to formulate a performance management system that can effectively support the company's strategy in the next step, and guide the company's business activities to always focus on the strategy, so as to establish a strategic center organization

second, establish a performance management system and implement the mechanism. The performance management system mainly includes the design of performance evaluation contents such as strategic KPIs, as well as the four links of performance plan, performance implementation, performance evaluation and performance return in the operation of performance management, that is, the enterprise regularly evaluates the previous performance cycle according to the strategic performance management system, evaluates the performance of the management and people in various positions, and compares the evaluation results with personal career development The improvement of personal ability is linked to incentive mechanisms such as salary and welfare

the third is organizational collaboration, including vertical collaboration and horizontal collaboration. Vertical collaboration mainly refers to the vertical consistency of company goals, department goals and position goals, and emphasizes the vertical decomposition of indicators, that is, the communication and collaboration between superiors and subordinates. Vertical collaboration mainly involves the organization structure sorting; Horizontal collaboration mainly refers to the horizontal decomposition of cross department goals through processes, emphasizing the horizontal decomposition of indicators, that is, the communication and collaboration between parallel departments or positions. Horizontal collaboration mainly involves business process optimization

fourth, according to the organizational performance goals and employee post performance goals, establish the qualification system and competency model to improve the strategic implementation ability of the organization and employees

fifth, cultivate a corporate culture that supports performance management. In particular, it is necessary to do a good job of performance coaching and performance communication, which are essential throughout the four links of the performance management system. To do these two jobs well, it is necessary to strengthen the leadership of the middle and senior executives of the enterprise

eight steps of strategic performance system design

1 Draw a strategic map

2 Identify strategic themes

3 Clarify the company's strategy

4 Clarify the Department Mission

5 Establish causal relationship analysis table

6 Implement the company and department indicators

7 Use the value tree model to find the causal relationship

8 Index element design

Step 1: clarify the company's strategy

when implementing strategic performance management, we must first sort out the strategy, and clarify that the main work of the company's strategy is to confirm strategic issues:

- enterprise task system statement

task system mainly includes the mission, vision, core values and strategic goals of the enterprise. The so-called enterprise mission is the role and responsibility of the enterprise in social and economic development, that is, the reason and value of the enterprise's existence. The enterprise mission is relatively stable. Vision is also called vision, that is, what kind of enterprise the enterprise hopes to be in the future. It is the picture that the enterprise will always strive for and hope to achieve. It shows the expectation and pursuit of the organization for the future. Core values are the criteria for the enterprise to judge right and wrong, that is, the criteria for what the enterprise agrees with and opposes. Core values are the code of conduct for all employees of the enterprise. The overall strategic goal is the concretization of the enterprise mission, which is the larger goal pursued by the enterprise

- development strategy pursuit theme

development strategy is also known as group strategy and company strategy. Development strategy mainly describes what the business scope of the enterprise is, the existing business portfolio and the field it plans to enter, the development strategy of growth, maintenance or contraction, the choice of products, regions and customers, whether to adopt a single business or diversification, whether to adopt related diversification or unrelated diversification, etc

- the theme of competitive strategy pursuit

competitive strategy is also called business unit strategy. Competitive strategy mainly describes how each business unit carries out competition, and whether to adopt low-cost, differentiated or centralized competitive means according to strategic advantages and market scope

- the theme of functional strategic demands

functional strategy mainly describes the efforts to enhance competitiveness, such as what measures are taken in finance, marketing, human resources, logistics, production, research and development, procurement and other aspects to support and coordinate the company's strategy and business strategy. Functional strategy emphasizes more concreteness and operability

an organization's task system has long-term stability, and will not change much even in a long period of time. Its development strategy has relative stability, and will not change much in the medium and long term. The competitive strategy needs to be adjusted in time with the changes of market competition, while the functional strategy is the specific measures taken to support and coordinate the company's strategy and business strategy

Step 2: draw a strategic map

after clarifying the strategic objectives of the enterprise, transform a series of assumptions contained in the enterprise strategy into a series of specific causal chains. Draw a strategic map through the causal chain. The idea of strategic map drawing is to use the decomposition method of value tree model and the method of layer by layer analysis to describe the strategic objectives of the enterprise (of course, it can also be KPI indicators. Usually at this stage, KPI indicators have not been refined, so we use strategic objectives to describe the orientation of this kind of composite materials and this kind of vertical fiber strategic map of the enterprise) from top to bottom, in order: finance, customers, internal operations Learn to decompose the logical relationship of the four dimensions of growth layer by layer. The strategic map brings the different measurable goals on an enterprise's Balanced Scorecard into a causal chain, so that the results that the enterprise hopes to achieve are linked to the drivers of these results. Strategy map is a visual representation of the causal relationship between enterprise strategic goals. It integrates the goals of the four levels of the Balanced Scorecard to describe the company's strategy and the path to achieve strategic goals

- at the financial level, it mainly clarifies the measurable financial results produced by the enterprise's business behavior, which reflects the value-added of the company to shareholders

- at the customer level, the focus is on the customers and market segments that the company expects to obtain, and how the company can meet the needs of internal and external customers

- the focus of the internal operation level is to attract and retain customers in the target market and meet shareholders' expectations for financial return. What core business processes must the company be good at and comply with the core values of the company

- the focus of learning and growth is to obtain these breakthrough performance and success, and what kind of core knowledge and innovative spirit the organization and employees need to have. According to the deployment of Anhui provincial Party committee and provincial government, each goal of the Balanced Scorecard generally only needs two performance indicators to accurately express its meaning. We can try to control the goals of each dimension within three. Professor Kaplan and Dr. Norton, the two authors of the balanced scorecard, believe that each level of the Balanced Scorecard needs 4 ~ 7 indicators, and 16 ~ 25 indicators, such as tension, compression, bending, fatigue, peeling force, bending and so on, can basically meet the needs. Among the four levels, the financial level can use 3-4 indicators, the customer level can use 5-8 indicators, the internal operation level can use 5-10 indicators, and the learning growth level can use 3-6 indicators

Step 3: identify strategic themes

use function analysis system technology (fast method for short) to identify and decompose strategic themes. The enterprise value chain usually includes core value chains such as marketing, product development, procurement and supply, production and operation, and customer service. In addition to the core value chain, there are auxiliary value chains such as human resources, it, finance, law, administrative logistics, and corporate culture. We follow the core value chain and auxiliary value chain of the enterprise value chain to identify the relevance of strategic themes and decompose them into various departments, Find out the factors that can drive the strategic themes and goals from various departments

step 4: clarify the Department Mission

when clarifying the department mission, we should pay attention to the following points:

- the department mission is not a simple superposition of all the responsibilities of the Department. It must be able to highly summarize the work content of the Department and clarify the responsibilities and objectives of the Department

- the department mission is the support of each department for the company's strategy, and the department mission must closely focus on the company's goals

- the Department Mission focuses on describing the value, significance, positioning and role of the Department. The process of clarifying the department mission is a process of repeated consultation and discussion with the department heads. The department mission must be convinced by each department head. Clarifying the department mission is to lay a good foundation for the seventh step of implementing the company and department indicators

while clarifying the Department's mission, we also need to optimize the company's value chain process and sort out the organizational structure. Clarifying the department mission, process optimization and organizational structure sorting are carried out at the same time

Step 5: use the value tree model to find the causal relationship

use the value tree model to find the causal logical relationship between the process and the strategic theme. The most suitable tool for causal chain analysis is the value tree model. The value tree model is to find the corresponding logical relationship between goals (or indicators). We list the measurable goals in the company's strategic map, the corresponding key performance indicators, the key driving processes that drive these indicators, and the corresponding key process performance indicators. The contents that need to be clarified include: strategic themes, key performance indicators that can measure strategic themes, key driven process analysis, and preliminary determination of key process performance indicators

step 6: establish a causal relationship analysis table

after the analysis of the value tree model, the causal logical relationship between the originally seemingly disordered indicators has been established. At this time, we can put the indicators into the balanced scorecard. At this step, in fact, we can use indicators to describe the strategic map of the company. In the second step above, we use goals to describe. After the causal relationship is established in the value tree model in the previous step, according to the corresponding relationship of lag/driving indicators in the value tree model diagram, we can fill in those corresponding lag/driving indicators in the causal relationship analysis table

step 7: implement the indicators of the company and all departments

departments are the undertaking entities to realize the company's strategy. When designing department indicators, we should follow the idea of Balanced Scorecard and pay equal attention to the results and process of the realization of the enterprise strategy, with annual indicators and monthly indicators

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