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Balance Scorecard Briefing By Dr.

YF Kou
Date: 09/02/06 & 13/02/06 enue: !"erald #oo"

Linked to Turtle Diagram as Performance indicator 2 types: i) Leading (Future) ii) Lagging (Financial @ past) Three characteristic of Balance corecard (B !) i "ision # $ealistic %eed strategy (e&g& '( (eeting) ) tactical plan (e&g& *perations meeting) +s a learning organi,ation - !hange (anagement 'ndi.idual learning P B P/ / B *rgani,ation learning Learning organi,ation

'n.entory of pro0lem ystem thinking (1th Discipline) st st (ission 2 (ust 0e in 3ritten form (4 thing 4 # From inner) trategic 2 (alaysia (25 to 65 years)7 8apan (455 years) B ! 9 types of measurement:: i Financial (Lagging indicator) ii !ustomer ('nternal ) /;ternal) # +ssets # 45 !&*&P iii 'nternal Business Process ( upporting process) # < &P i. Learning ) gro3th (Learning organi,ation) 'ntangi0le asset 3ith =ood3ill # !ompetition >uman Technology 2 'nterpretation and +nalysis o ?no3ledge 3orker # >a.ing the theory (@hat to do) o /;perience 3orker # omeone 3ho test the kno3ledge (>o3 to do)

To thinkA To sol.eA To impro.e Buality (Csing <D professionally) 'nno.ation # %e3 - !reati.e (make the in.ention 3ork) o Business process re:engineering (BP$) o /;ample: Banking (Lining upA Teller machineA /:0anking) Team formation (By Tuckman) 9& Performing 4& Forming 6& %orming 2& torming +ction research 0y ?enmis ) (c& Taggart (4D<<) o Dou0le Loop Learning Eour goal Team (1 2 F pa;) !ommunication (Feed0ack 3ith factor) Duration (6 2 G months)

!ompanyHs "ision 4

Learning ) =ro3th

# !ompetency (?no3ledge - kill) # Le.el

Pro0lem sol.ing7 <D is essential to the implementation of B !& 4& D4 2 Formation of team (Tuckman: Form 2 torm 2 %orm 2 Perform) Leadership of a !hampion is 0ased on the a0ility The use and practice of the Dou0le loop learning& 2& D2 2 Description of the pro0lem @hat is the pro0lemI 6& D6 2 !ontainment %o similar defect in the future "alidate ('nspect and measurementA test) 9& D9 2 $oot cause analysis Find the pro0lem Csing T$'J (6D pro0lem 3ays of design)

$#%& (pronounced Ktri,K) is a $ussian acronym for LTeoriya Resheniya Izobretatelskikh ZadatchL (MNOPQR PNSNTQR QUOVPNWXWNYZ[\Q] UX^X_)A Theory of solving inventive problems or Theory of inventive problem solving. 't 3as de.eloped 0y =enrich +ltshuller and his colleagues starting in 4D9G& T$'J is a methodologyA tool setA kno3ledge 0aseA and model:0ased technology for generating inno.ati.e ideas and solutions for pro0lem sol.ing& T$'J pro.ides tools and methods for use in pro0lem formulationA system analysisA failure analysisA and patterns of system e.olution (0oth `as:is` and `could 0e`)& T$'JA in contrast to techniaues such as 0rainstorming (3hich is 0ased on random idea generation)A aims to create an algorithmic approach to the in.ention of ne3 systemsA and the refinement of old systems& 'shika3a diagram (+dd: (easurement - /n.ironmental) Brainstorming - %ominal =roup Techniaue (%=T) (Decision making 2 !hoose method) !onduct bLiterature $esearchc is a need (learn from others and the past) /sta0lish bDatac collection b>ypothesisc # may0e (put into test) +sk more auestions 1& D1 2 "erify root cause Bounded rationality # ome 0lockage in the decision making /;tend the kno3ledge # haring G& DG 2 'mplement permanent correcti.e action !hange (anagement F& DF 2 'mplement permanent pre.ent recurrence ystem thinking (/;plore the in.entory of pro0lem) <& D< 2 !ongratulate to the team !ele0rate the bsurprisec 0ring 0y the team& 'ssue is e.ery 3here for impro.ement (%ot a pro0lem yet unless it is not manage)&

>ypothesis: bTestc
P6

'n.entoryK $esoruces
P4 P4 P9

Pro0lems
P2 P6 P2 P1 P9 P1

+ detail analysis of each pro0lem using b>ypothesisc to 0e put into different test&

(anagement =uruHs theory

dd Dr& EF ?ouHs theory

Top

Top

(iddle (Tactical)

Team

*perations

*perations

DemingHs PD!+:: o Plan the organi,ation de.elopment (By >$) o From : (anagers to operators

' )

( D

B ! tailored 3ith B$B!


4& Detection

9& "erify

2& !ommunication

- /ducation (@hy it happenI)

6& +nalysis

Cnderstand the inter:relations 4& Detection (Precico 9 trategic Business units ( BC)) /ach Business Cnit (anger (BC() ha.e a 0usiness unit coordinator (BC!) /ach BC( ha.e its strategic o0eecti.es +ll BC( reports to E Tan 'nternal Business Process (Csing T 4GD9D: 24 processes) 6 (P i& 'B+ ('nternal Buality +udit) ii& !ontinual impro.ement (!') iii& (anagement re.ie3 : ?P' to B ! : : : : : : : : : : : : : : : : : : : : :: : : : : : : :: : : : : : : : : : : : : : 4& : : :(arket :::: ::::::::::::: analysis 45 !*Ps
2& 6& 9& 1& G& F& <& D& : 45& :: Bid ) Tender *rder (anagement Process design Process .erification (PP+P) Production Deli.ery Payment D& @arranty Feed0ack :!ustoemr ::::: ::::::::

: : : : : : : : : : : : : : : : : : : : :: : : : : : : :: : : : : : : : : : : : : < Ps i& Purchasing ii& (aterial recei.ing ) 'ncoming auality control iii& Product inspection i.& !ali0ration control .& Production maintenance ) Tooling management .i& Facilities control .ii& >$ (anagement .iii& B( Documentation Breakthrough performance # Broken a records Dr& 8uran 2 Breakthrough .ia continual impro.ement Plan

::::

Breakthrough 9

$e:skiling # sharpen your sa3 P$*/!/DC$/ (roce** %nterface* ariation

Sy*te "

(eo+le

/ncode 2 Decode !onsensus .ia %=T (%ormal =roup Techniaues)

2& !ommunication (-/ducation) *perations top up to managerial /ach functional manager and BC( need to spell our the o0eecti.es& Cnderstanding bmethodc to achie.e short term and long term strategic& Local action: Departmental actions& 6& +nalysis Break into smaller parts to understand and fi; 0ack& B! # Breakdo3n all the data and fi; up& (ust ha.e b!hangec& Do not maintain b tatus Buoc# impro.ed7 Discontinual of the target # %e3 target& Benchmarking 2 tudy 0est practices& Business Process /ngineering (BP$) 0y (okhtar& To make change 0y inno.ation (things disappeared) G igma proeect: 'mpro.ement direct translate into P)L ($()& /na0lers Dri.ers *0eecti.es $esource K Process /ach milestone has a bDeli.era0le(s)c in a specific timeframe& Balance scorecard is a report card& 'nstrument # (easurement needs:: o !lose:loop feed0ack o Pointer o 'nput o *utput o ensor # $eport (Data) 'nterpersonal# Building bTrustc trategic plan 0y strategist ('n.entor) o %eed an inno.ator to get the in.ention get done Desire 2 omething others ha.e o0tained& Dr& ?ano (4DD5) 6 types of Buality: o /;pectation ((eeting this .ia correctionA impro.ement ) 0reakthrough) 1

o Desire o Delight /sta0lish 2 /;ist no3 ) fore.er there (for a .ery long time) !hallenge 2 + auality management is only to meet the e;pectation (For strategic le.el) Passion 2 +0ility to suffer to achie.e something /conomist 2 3e can sell 0etter if employee salaries is lo3er (& Porter 2 trategic ad.antage o !ost management o Differentiate the 0usiness o Focus on the cost and differentiation