Las 4 Perspectiva de Un Sistema de Negocio

TOMMIE
JOHANSSON
JUAN
MILLN
TALLER:
LAS 4 PERSPECTIVAS DE UN SISTEMA DE
NEGOCIO: PROCESOS, PERSONAL, SERVICIO
A CLIENTES Y ASPECTOS FINANCIEROS.
Copyright: Tommie Johansson 2007
Las 4 perspectivas - procesos,

personal, servicio a cliente y aspectos
financieros de un sistema de negocio
Based on the Balance Scorecard and applied
to the ISO 9000 family of standards
Tommie J. Johansson
Suecia
Breakthroughs in performance...
... require major changes, and that includes
changes in the measurement and management
systems used by an organization.
{
It cannot be accomplished only by

monitoring and controlling financial
measures of past performance
Reliance on summery financial performance
measures are hindering organizations
abilities to create future economic value.
Why important?
oThe
oThe information
information age
age requires
requires new
new
capabilities
capabilities for
for competitive
competitive success.
success.
o develop customer relationships
o introduce innovative products/services
o customized high quality products/services
o low costs and short lead times
o mobilize employee skills and motivation
o deploy information technology
Balanced Scorecard
{
{
Measures
Measures the
the organizations
organizations
performance
performance across
across four
four perspectives:
perspectives:
z
z financial
financial
z
z customer
customer
z
z internal
internal business
business processes
processes
z
z learning
learning and
and growth
growth (personnel)
(personnel)
Internal and external perspectives
Financial
Financial
Customers
Customers
Processes
Processes
Personnel
Personnel
The balance between

{
{
{
short and long term objectives

financial and non-financial measures
outcome indicators and performance
drivers
external and internal performance
perspective
Financial Perspective
Financial
Financial measures
measures are
are valuable
valuable in
in summarizing
summarizing
the
the readily
readily measurable
measurable economic
economic consequences
consequences
of
of actions
actions already
already taken.
taken.
Financial
Financial performance
performance measures
measures indicate
indicate
whether
whether aa companys
companys strategy,
strategy, implementation
implementation
and
and execution
execution are
are contributing
contributing to
to bottom-line
bottom-line
improvement.
improvement. (see
(see ISO
ISO 10014)
10014)
Customer Perspective
Management
Management identifies
identifies the
the customers
customers and
and
market
market segments
segments in
in which
which the
the organization
organization
will
will compete
compete and
and the
the measures
measures of
of performance
performance
in
in these
these segments.
segments.
The
The customer
customer perspective
perspective enables
enables managers
managers
to
to articulate
articulate the
the customer
customer and
and market-based
market-based
strategy
strategy that
that will
will deliver
deliver superior
superior future
future
financial
financial returns
returns
Internal Business Process Perspective

In
In this
this perspective,
perspective, management
management identify
identify
the
the critical
critical internal
internal business
business processes
processes in
in
which
which the
the organization
organization must
must excel.
excel.
These
These processes
processes enable
enable the
the organization
organization to:
to:
{
deliver the value that will attract and retain

customers,
satisfy owners expectations of excellent
financial returns
10
Learning and Growth Perspective

This
This perspective
perspective identifies
identifies the
the infrastructure
infrastructure
that
that the
the organization
organization must
must build
build to
to create
create
long-term
long-term growth
growth and
and improvement.
improvement.
Organizational
Organizational learning
learning and
and growth
growth come
come from
from
three
three principal
principal sources:
sources:
oo People,
People, systems
systems and
and company
company culture.
culture.
The
The far
far most
most important
important resource
resource in
in the
the
organization
organization is
is Competence
Competence (see
(see ISO
ISO 10015)
10015)
11
The framework of a Business

Management system
12
Linking the measures to the strategy
{
{
{
Cause-and-Effect relationships
Outcomes and Performance drivers
Linkage to the financial perspective
13
Cause and Effect Relationship (ex)

Return on
capital
Financial
Customer
loyalty
Customer
On-time
delivery
Process
quality
Process
Process
cycle
cycletime
time
Employees
competence
Internal Business Process
Learning and growth
14
Outcomes and Performance drivers

The outcome measures are more generic
and tend to be lag indicators (operational),
such as Profitability, Customer satisfaction,
Employee turnover etc.
The performance drivers, the lead indicators
(strategic), tend to be unique for an organization
and reflects the strategy, such as Cycle time,
Defect rates, strategic competence etc.
A good business system should have a mix of
Outcome measures and Performance drivers.
15
Linkage to Financials
ItIt is
is easy
easy to
to become
become pre-occupied
pre-occupied with
with such
such
objectives
objectives as
as quality,
quality, cycle
cycle time,
time, innovation
innovation and
and
employee
employee empowerment
empowerment for
for their
their own
own sake.
sake.
These
These objectives
objectives must
must be
be linked
linked to
to outcomes
outcomes
that
that directly
directly influence
influence customers
customers and
and that
that
deliver
deliver future
future financial
financial performance
performance (ISO 10014).
16
The model
17
Model of a process-based QMS

Continual improvement of the
quality management system
Management
responsibility
Customers
Customers
Measurement.
analysis and
improvement
Resource
Management
Requirements
INPUT
Product
realization
Product
Satisfaction
OUTPUT
18
The 4 perspectives and ISO 9001

ISO 9001, clause 7.2
and 8.2.1
ISO 9001
Financial
ISO 10014 Financial
Customers
Customers
Processes
Processes
People
People
ISO 9001, clause 7
ISO 9001, clause 6

ISO 10015
19
People perspective
is mainly about linking the need for
competence to the business plan and
to manage knowledge
20
People
{
{
{
{
Employees competence
Information systems capabilities
Motivation and empowerment
ISO 10015:1999 (2006)
21
Lead
Core employee measures

Results
Employee
Retention
Lag
Core
Measures
Employee
Productivity
Employee
Satisfaction
Enablers
Employees
Competence
Technology
Infrastructure
Climate for
Action
22
ISO 10015:1999 & 2006

Quality Management - Guidelines for
training
23
Quality management - Guidelines

for training
Changes may require an organization to analyze its

competence-related needs.
This standard provides guidance that can help an
organization and their personnel when addressing
issues related to training.
5
001
1
I SO
24
Linking Competence
Business plan
Other
resources
Financial
resources
Others
Human
resources
Competence
Other
needs
Technical
resources
Remuneration
Training
needs
25
ISO 9001:2000
6. Resource Management
6.2 Human resources
Competence, awareness and training

The organization shall
a) Determine the necessary competence for personnel
performing work affecting product quality,
b) Provide training or take other actions to satisfy
these needs,
c) Evaluate the effectiveness of the actions taken,
d)
e) Maintain appropriate records of education,
training, skills and experience.
26
Definitions:
(from ISO 10015)
Competence - application of knowledge,

skills and behaviours in performance
Training - process to provide and develop

knowledge, skills and behaviors to meet
requirements
27
Scope of ISO 10015
These guidelines cover the development,

implementation, maintenance and improvement of
strategies and systems for training that affect the
quality of the products supplied by an organization.
This standard applies to all types of organizations.
5
001
1
I SO
28
Training: a four-stage process

1
Define
training needs
2
Design and
plan training
MONITOR
4
Evaluate training
outcomes
3
Provide for
training
29
1. Defining training needs
#1
#2
#3
#4
#5
Defining the needs of the organization

Defining and analyzing competence requirements
Reviewing competence
Defining competence gaps
Identify solutions to close the competence gaps
Output:
Document - Training needs specification
(part of the Training Plan specification)
30
Purpose of this stage
The purpose of this stage should be to define:

the gaps between existing and required competence;
the training needed by employees.
31
2. Designing and planning training
#1
#2
Defining the constraints

Design the training plan
training methods and criteria for selection
Training plan specification
selection of a training provider
Output:
Document - Training plan specification
incl. criteria and methods for evaluation of outcomes
32
The purpose of this stage should be:

design and planning of actions to be taken;
definition of the criteria for evaluation and monitoring
33
Learning Objectives
{
Cognitive (Knowledge)
Affective (Attitude)
Behavioral (Skills)
Business Impact
34
3. Providing for the training
Providing support
* pre-training support
* training support
* end-of-training support
Outputs:
- Evaluation reports of training outcomes
- Reports from interviews with the trainees
35

supporting trainer and trainee;
monitoring the quality of the training delivered
36
4. Evaluating training outcomes

Has the competence gap been closed by the training?
#1
#2
#3
In the short term...

In the long term...
Collect data and prepare evaluation report
Outputs:
- up-dated individual training record
- evaluation report with description of corrective
and preventive actions
37
Remember ISO 9001/6.2.2

- the organization shall
{
determine the necessary

competence
provide training or take other
actions
evaluate the effectiveness of the
actions taken
38

to confirm that both organizational and training
objectives have been met;
39
Kirkpatrick approach, four levels

for evaluation of training
1.
Reaction
How trainee reacted to training (subjective)

How did trainee feel about the training
Useful in improving instructional techniques,

selection of methods etc
40

1.
2.
Reaction
Learning
What trainee knows as a result of the

training
What skills, knowledge or attitudes
have changed and by how much
Useful for improving task analysis,

knowledge and skills analysis and
selection & design of instructional
methods
41

1.
2.
3.
Reaction
Learning
Behavior
What trainee does differently after

the training
Whether trainee applies knowledge &
skills acquired to the job
What on-the-job performance
improvements occurred as a result of
the training
42

1.
2.
3.
4.
Reaction
Learning
Behavior
Results
Whether on-the-job application of the

knowledge & skills acquired during
training produced measurable results
In the market
At the customers
In the organization
As increased productivity
43
The 2000 ASTD* state of the

industry report
{
{
{
{
77% used level 1

36%
2
15%
3
8%
4
What does it indicate?

* ASTD American Society for Training and Development
44
A five level model

{
Since Kirkpatrick established his

original model, other theorists (for
example Jack Phillips), and indeed
Kirkpatrick himself, have referred to
a possible fifth level, namely ROI
(Return On Investment).
45
46
Monitoring and improving the training

process
Inputs:
- all records from previous stages, and/or
- records from an internal quality audit procedure
Output:
- action plan defining actions, setting deadlines and
assigning responsibilities
47
To ensure that the training process, as part of

the organizations quality system, is being
managed and implemented correctly and that the
process is effective in meeting organizational and
competence requirements.
48
Linking Competence
Business plan
Other
resources
Financial
resources
Others
Human
resources
Competence
Other
needs
Technical
resources
Remuneration
Training
needs
49
Competence acquisition
{
Other needs than training

z
z
z
z
z
z
Recruitments
Consultants
Insourcing
Outsourcing
Taking over a company
Etc
50
Knowledge Management
Companies must learn to invest in and manage

brain-power if they hope to compete in an
economy where, more than ever, knowledge is
what we buy and sell.
-Thomas S. Stewart-
51
52
Business process perspective

is mainly about reducing costs and
continual improvement
53
Business Process Perspective
{
{
{
Time
Quality
Cost
{
{
Conformity
Nonconformity
Efficiency
54
Total Quality Management
Customer
needs
Customer
results
External
supplier
55
Managing the economics of a process

{
all processes within an organization have an

economic effect
these effects will be experienced by the
customer, the organization or both
the organization can measure the effect as
costs of conformity or nonconformity
the customers will indicate the effect by the
level of customer satisfaction
reports about costs and customer satisfaction
should be analyzed to identify causes of any
problem and opportunities for improvement
The costs of the organization

Cost of conformity
cost to fulfill all the stated
and implied needs of
customers in the absence
of failure of the existing
process
Cost of nonconformity
cost incurred due to failure
of the existing process
The Model
Start
Identify / Review
processes
Identify process
activities
Identify factors
affecting Cus.Sat.
Monitor costs
Monitor customer
satisfaction
Plan & implement

improvements
Produce process Produce customer

cost report
satisfaction report
Management
review
Identify
opportunities
yes
no
no
Improvem.
opportunities
identified?
yes
Is proposed
improvement
justified?
Conduct cost /
benefit analyses
Monitoring costs
turn-over
Savings
25 - 30%
3 - 5%
1%
Correction
Control
Prevention
time
Quality Costs
Prevention
Control
Correction
before delivery
instructions
manuals
training
good suppliers
testing
inspections
proof reading
re-work
scrap
after delivery
repair
replace
loss of Image!
60
Customer perspective
is mainly about understanding the
customers needs
61
Monitor Customer Satisfaction

Customer satisfaction can be assessed through:
o verbal survey
o written survey
o suggestion process
o complaint process
o focus groups
o comparison study
o reasons for lost sale
o other methods
Customer Perspective
o
o
o
o
o
o
o
Market share
Customer acquisition
Customer retention
Customer satisfaction
Customer profitability
Image and reputation
Trademark protection
63
Core measures
Market
Share
Customer
Acquisition
Customer
Profitability
Customer
Satisfaction
Customer
Retention
Lead
Lag
64
Market segmentation
{
Identify the customer objectives in

each targeted segment
not just choosing what to do - but
also choosing what NOT to do
65
Financial perspective
is mainly about realizing financial
and economic benefits of the quality
management system
66
Financial strategy
{
{
{
{
{
Revenue growth and mix

Cost reduction
Productivity improvement
Asset utilization
Investment strategy
67
Financial Perspective
o
o
o
o
o
o
o
Revenue
Cash flow
Sales Growth
Cost reduction
Productivity improve
Return-on-capital-employed (ROCE)
ISO 10014:2006
68
ISO 10014:2006
Quality Management - Guidelines for
realizing financial and economic benefits
69
Guiding stars for the review
Addressing top
management
as non-QM
experts
Show
Show me the
Money
Money
70
ISO 10014 aims high

{
To bridge the gap between top

management and the quality
professionals
To assist top management to
understand and implement the
quality management principles
71
Differing perspectives the gap

{
Top managements view of

operations is highly compressed and
expressed in financial terms
Quality professionals is routinely
unable to translate improvement
efforts into financial terminology
72
Importance of the principles

{
How would it be possible to

implement and operate a
management system if top
management doesnt understand
and/or are aware of the principles
that are fundamental to lead the
organization towards improved
performance?
73
Financial and economic benefits

{
Financial benefit is the result of

organizational improvement expressed in
monetary form, and realized by costeffective and motivational management
practices within the organization.
Economic benefit is generally attained
through effective and efficient management
of resources and implementation of
applicable processes for improving the
overall strategic worth and health of the
organization.
74
The scope of ISO 10014

{
This International Standard provides guidelines for

realizing financial and economic benefits from the
application of management principles developed from
the ISO 9000 quality management principles.
It is directed to top management of the organization
and complements ISO 9004:2000 for performance
improvements. It provides examples of achievable
benefits and identifies management methods and
tools that are available to assist with the
achievement of those benefits.
This International Standard consists of guidelines and
recommendations, and is not intended for
certification, regulatory or contractual use.
75
The structure and content

{
Based on the 8 quality management

principles of ISO 9000:2005
Encouraging the process approach to
manage an organization
Presenting a Self-assessment tool
based on the principles
Giving examples of methods and tools
to realize financial and economic
benefits
76
Quality management principles

ISO 9000:2005
a)
b)
c)
d)
e)
f)
g)
h)
Customer focus
Leadership
Involvement of people
Process approach
System approach to management
Continual improvement
Factual approach to decision making
Mutually beneficial supplier
relationship
77
The way to use the guideline
78
The self assessment

{
(annex A)
Maturity level descriptions 1 to 5

z
Level 1 immature organization, the

practice is not found or not yet started
Level 3 approximately 50% occurrence,

the practice is commonly found
Level 5 almost 100% occurrence, the

practice is recognized as best-in-class
79
The self assessment

{
(annex A)
Two different levels of assessment

z
z
One initial 24 questions

Comprehensive - ~80 questions
80
81
82
Use of quality management principles
{
{
{
The principle quoted

P D- C A approach for each principle
A flowchart for each sub-clause
83
Customer focus
{
Organizations depend on customers

for their sustainability. To ensure
sustainability, organizations should
identify and manage the risk of
customer dissatisfaction by
understanding and meeting current
and future customer needs and
expectations.
84
Customer focus, examples of

achievable benefits and tools
85
Leadership
{
Leaders, as top management, direct the

organization to ensure sustainability,
corporate and social responsibility and
governance.
They should establish unity of purpose,
confidence and trust, in a way that balances
the needs and expectations of all interested
parties.
They should create and maintain an
environment that encourages involvement of
people, learning, innovation and
sustainability for achieving the organizations
objectives.
86
Leadership, examples of
87
Involvement of people
{
Employees embody the knowledge

capital and intellectual resource of an
organization.
The full involvement of employees
enables them to utilize their talents and
abilities to contribute to the financial
and economic well being of the
organization.
88
Involvement of people, examples of

89
Process approach
{
A process is a set of interrelated or interacting

activities that transforms inputs into outputs.
It is a mechanism that adds value by
facilitating the successful operation of an
organization.
The systematic identification and
management of the processes employed
within an organization, and particularly the
interactions between such processes, is
referred to as the process approach.
Top management should utilize the processes
established in the organization for effective
planning and control of its operation.
90
Process approach, examples of

91
System approach to management

{
Organizations consist of complex,

interrelated and interacting networks of
processes. Because no activity or
process exists in isolation, it is
beneficial to manage interrelated
processes as a single system.
The system approach to management
facilitates sustainability and adaptation
to change.
92
System approach, examples of

Achievable Benefits
optimized use of available resources
optimized, effective and efficient processes;
reduced time to market
enhanced organizational performance, credibility
and sustainability
93
{
A key factor in successfully sustaining the realization

of financial and economic benefits is an effective
continual improvement process.
This is reliant upon the committement of top
management in the application of all eight
interrelated management principles.
The benefits from the selection and use of the
methods and tools identified in clause 5 become
evident as added value continual improvement
measurements.
It is important to take a holistic view of the needs of
all interested parties to ensure an organization
capable of effective changes for the realization of
continual improvement.
94
S o u r c e s o f O p p o r t u n itie s
f o r I m p r o v e m e n t P la n s
P r o c e ss S te p s
R e v ie w f o r A c tio n
In p u ts
A u d it r e s u lt s
B e n c h m a rk in g o u tp u ts
B ra in s to rm o u tp u ts
C u s to m e r fe e d b a c k
E x te rn a l fa c to rs
- R e g u la to r y
- E m e rg in g te c h n o lo g ie s
- C h a n g e s in th e m a rk e tp la c e
- E n v ir o n m e n t a l/ s o c i a l
A c tio n p la n d e v e lo p m e n t
F in a n c ia l P e rf o rm a n c e
D a ta a n a ly s is
H u m a n R e so u rc e
- A p p ra is a l,
- S a tis f a c t io n fe e d b a c k
- S u g g e s tio n s
A ll o c a t i o n o f r e s o u r c e s
B u d g e t a llo c a tio n s
A p p li c a t i o n o f a l l p r i n c ip l e s a n d
s e le c te d to o l
C a p ita l e x p e n d itu re
C o s t r e d u c tio n t a r g e t s
I d e n t if i c a t i o n o f a c t i o n it e m s
P e r f o r m a n c e t a r g e t le v e l s
P r io ritis a t io n
P ro je c te d s a le s
P r o b l e m s o lv in g ( c o r r e c t iv e a c t i o n )
R e - c o n d u c t i n g s e lf - a s s e s s m e n t a n d
e v a lu a tio n s
R e c o m m e n d a t i o n s f o r im p r o v e m e n t
R e s u lts e v a lu a tio n
R e s u l t s o f F a il u r e m o d e s & e f f e c t s
a n a ly s is (F M E A )
S e lf - a s s e s s m e n t s
R e s u l t o f B u s i n e s s e x c e ll e n c e
m odel B E M
C a s h flo w
S tr a te g ic p la n
S e t a n d c a s c a d e o b j e c t iv e s
T r e n d i d e n t if ic a t i o n
R e s u lts o f b a la n c e d s c o re c a rd
R e s u l t s o f m a n a g e m e n t r e v ie w
O u tp u t
R e s u lts o f S ta tis tic a l p r o c e s s c o n tr o l

(S P C )
S e lf - a s s e s s m e n t r e s u l t s
V a lu e o f g o o d s a n d s e rv ic e s
Y ie ld
I m p le m e n te d A c tio n s = F I N A N C I A L & E C O N O M I C B E N E F I T S
A c h ie v a b le B e n e fi ts
F ig u re 7
im p r o v e d p r o f it a b ili t y
im p r o v e d r e v e n u e s
im p r o v e d b u d g e t a r y p e r f o r m a n c e
re d u c e d c o s ts
im p r o v e d c a s h f l o w
im p r o v e d r e t u r n o n i n v e s t m e n t
95
Factual approach to decision making

{
Decisions should, as far as practical, be based

on evidence.
Knowledge generated from information and
data, derived from measurement of processes
or acquired from other sources, provides an
essential base for enhancing the decision
making capability of the organization.
Knowledge management is an important
element in capturing, protecting and
disseminating information.
96
Factual approach, examples of

Achievable Benefits
improved cash flow
improved return on investment
improved effectiveness of decision making
optimized, effective and efficient processes
and sustainability
97
Mutually beneficial supplier relationship

{
Top management should establish

supplier partnerships that generate
improved and sustained profits for both
organizations.
Partnership between a supplier and the
organization could include cooperative
process improvements, information
sharing, mutual resolution of problems
and product development.
98
Supplier relationship, examples of

Achievable Benefits
reduced costs
improved supply chain performance
reduced time to market
and sustainability
99
Two annexes
A.
Self assessment tool

z
B.
Two simple and effective assessments
Methods and tools

z
Brief summaries
100
Business basics
Revenue
Cost
= Profit
Key areas
{
{
{
{
Customer satisfaction
Better products
Supplier relations
Image and reputation
{
{
{
{
Effective processes
Efficient management
Strategic competence
Less problems
101
The management system

Business
vision
ISO 10014
Profitable
Sustainable
competitiveness
Interested parties
satisfaction
ISO 9004
Efficient
ISO 9001
Customer
satisfaction
Effective
102
Most visible benefits

{
{
{
{
{
{
Optimization of available resources

Increased effectiveness
Improved profitability
Increased competitiveness
Improved communication
Increased support for and confidence
in decisions
103
To sum up
{
{
{
Results are always achieved financially

and/or as a degree of customer
satisfaction
Business processes create the results
People (competence) are the main
resource and the foundation for process
improvement
104
Sources of information
{
{
{
{
{
{
Kaplan R, Norton D: The balanced

Scorecard (HBS Press 1996)
ISO 9000
ISO 9001
ISO 9004
ISO 10014: Guidelines for realizing
financial and economic benefits
ISO 10015: Guidelines for training
105
www.sighard.com
tommie@sighard.com
106

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Las 4 Perspectiva de Un Sistema de Negocio

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TOMMIE

Las 4 perspectivas - procesos,

Copyright: Tommie Johansson 2007

It cannot be accomplished only by

Copyright: Tommie Johansson 2007

Copyright: Tommie Johansson 2007

Copyright: Tommie Johansson 2007

Internal and external perspectives

Copyright: Tommie Johansson 2007

The balance between

short and long term objectives

Copyright: Tommie Johansson 2007

Copyright: Tommie Johansson 2007

Internal Business Process Perspective

deliver the value that will attract and retain

Copyright: Tommie Johansson 2007

Learning and Growth Perspective

Copyright: Tommie Johansson 2007

The framework of a Business

Copyright: Tommie Johansson 2007

Linking the measures to the strategy

Copyright: Tommie Johansson 2007

Cause and Effect Relationship (ex)

Internal Business Process

Learning and growth

Copyright: Tommie Johansson 2007

Outcomes and Performance drivers

Copyright: Tommie Johansson 2007

Copyright: Tommie Johansson 2007

Model of a process-based QMS

Copyright: Tommie Johansson 2007

The 4 perspectives and ISO 9001

Copyright: Tommie Johansson 2007

ISO 9001, clause 7

ISO 9001, clause 6

Copyright: Tommie Johansson 2007

Copyright: Tommie Johansson 2007

Core employee measures

ISO 10015:1999 & 2006

Copyright: Tommie Johansson 2007

Quality management - Guidelines

Changes may require an organization to analyze its

Copyright: Tommie Johansson 2007

Competence, awareness and training

(from ISO 10015)

Competence - application of knowledge,

Training - process to provide and develop

Copyright: Tommie Johansson 2007

Scope of ISO 10015

These guidelines cover the development,

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Training: a four-stage process

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1. Defining training needs

Defining the needs of the organization

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Purpose of this stage

The purpose of this stage should be to define:

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2. Designing and planning training

Defining the constraints

Copyright: Tommie Johansson 2007

Purpose of this stage

The purpose of this stage should be: