IN2004B- M1- Organizational Indicators
Carlos Rafael Gómez
Created on September 12, 2024
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IN 2004 B
IN 2005 B
IN 2006 B
Cuadro de mando integralIndicadores de desempeñoTableros de control
Indicadores organizacionales
VisiónMisiónFODAEstrategia de negocio
Análisis estratégico
M1 - Organiztional Indicators
What would you consider as a business indicator?
Thanks
Team
Data
Dashboards
Timeline
Comparison
Process
Balanced Scorecard
Image
Quote
Referencias
Key Performance Indicators
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Index
Paul R. Niven
"The BSC tells the story of your strategy"
Balanced Scorecard (BSC)
Balanced Scorecard (BSC)
Ref (3); pg. 5
- Inicialmente, un énfasis en el desempeño fianciero de las organizaciones sin considerar otros aspectos.
- 1992 - Robert Kaplan (Profesor de Harvard) y David Norton (Consultor) publican el artículo " The Balanced Scorecard - Measures that Drive Performance".
- Una mejor visión del desempeño de las organizaciones a través de 4 perspectivas, balance entre indicadores.
Contexto
Wider perspective on performance
1992 - Robert Kaplan y David Norton
Emphasis on financial performance
Ref (3); pg. 5
Background
01 BSC Perspectives
Includes objectives related to customer's expections on flexibility, time, quality, and price.
Define inficators conidering the following: a) Who is the customer?b) What is the organization's value proposition?c) What do customers expect from the organization?
Customer
Considers objectives related to the performance of primary value chain functions.
Key processes are identified. The organization must focus on such processes to create value for its customers.
Internal processes
Comprises objectives related to competency development, work environment, technology infrastructure, etc.
This perspective is fundamental to BSC. The objectives in this perspective drive the other three perspectives.
Learning and Growth
Encompasses objectives ralated to profitability, productivity, stock pricing, etc.
The measures in this perspective indicate whether the strategy is producing tangible results ($).
Finance
04
06
05
07
02
03
Step 7
Stay on track
Step 6
Travel
Step 5
Plan time and resources
Why should BSCs be used?
The processes of developing a BSC and planning a trip to a particular destination share some similarities...
01
Step 4
Map the route
Step 1
Select a destination
Step 2
Agree on the type of trip
Step 3
Agree on the route
Tabla tomada de (3)
The BSC process
Activity 5
Activity 4
Activity 3
Activity 2
Initial BSC
Activity 1
Activities down the road
OBJECTIVES
Figure - BSC's elements
PERSPECTIVE
INITIATIVES
INDICATORS AND GOALS
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step 1
For each perspective you must define...
Initiatives (programs, projects, actions)
For each indicator set short and long term goals
For each objective one (or more) performance indicators
Strategic objectives
Example
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Beneficios
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Ayuda a entender cómo ejecutar una estrategia.
Ejemplos
Objetivos
Facilitar la administración estratégica
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Definición
"Es parte de un sistema que permite traducir la estrategia en acción" (3).
"Lo escencial de la estrategia es identificar qué no hacer" - Michael Porter
Balanced Scorecard
Strategy Maps
What is a strategy map?
Ref (3); pg. 5
- Companies find difficult to connect strategies and objectives in the 4 perspectives.
- 2000 - Kaplan and Norton publish the article "Having Trouble with your Strategy? Then Map It"
- The combination of BSC and strategy maps are fundamental to strategic management.
Background
A visual tool that illustrates a company's objectives and the relationships between them. It's a key component of the balanced scorecard methodology and can help organizations:
- Communicate their vision
- Understand cause and effect
- Explore steps to achieve objectives
- Test hypotheses
Strategy Map
Ref (4); pg. 102
- How many perspectives to include?
- Where to get the information from?
Developing a strategy map
Ref (4); pg. 106
- Human resources
- Core values
- Benchmarks
Learning and Growth
- Operation reports
- Benchmarks
- Consultancy services
Internal processes
- Sales/ Marketing
- Consultancy services
- Performance reports
Customer
- Annual report
- Performance reports
- Benchmarks
Finance
VisionMission Strategy
Ref (4); pg. 139
- Is a visual representation, in one page, of what must be done in each of the 4 perspectives to effectively execute a strategy.
- It comprises clearly stated objectives (starting with verbs).
- Provides clarity and is a powerful communication tool which identifies objectives to succed.
Do not forget it, a strategy map...
- Increase on-line consultancy services
- Keep staff motivated
- Increase the number of operations
- Improve price competitiveness
- Train employees in office management software
- Ensure customer satisfaction
- Keep technology updated
- Improve customer support
- Maximize company's value
- Reduce costs and improve operational efficiency
- Increase sales
- Optimize service processes
- Improve work environment
Develop the strategy map for a notary's office. Some relevant objectives below:
Collaborative practice
Activity 5
Activity 4
Activity 3
Strategy Map
Activity 2
Initial BSC
Activity 1
Activities down the road
Beneficios
Ejemplos
Objetivos
Definición
Mapas estratégicos
How can we know the objectives in the strategy map are beign achieved?
Key Performance Indicators (KPI)
“What is not defined cannot be measured. What is not measured, cannot be improved. What is not improved, is always degraded”.William Thomson Kelvin
KPIs
Explain this using the ASP model
Why are indicators needed?
Control
Execution
Planning
Indicators
Metric
"A KPI is a metric but a metric is not necessarily a KPI" (2).
Indicators vs metrics
Indicators vs Metrics
Metrics provide specific, quantifiable measurements that can be directly calculated and analyzed, often focusing on performance in concrete terms. Indicators offer insights into trends, performance, and relationships, often derived from qualitative data or calculations that represent broader organizational health. They serve to inform strategic decisions rather than serve as standalone quantitative measures.
Performance indicators are data and calculations that measure the activities, behaviors, and performance of a business, organization, or product. They can be used to track progress towards business goals.
What is a Performance Indicator?
- Validity: the indicator must show the actual behavior of the measured variable.
- Stability: the indicator must be defined, calculated and interpreted always in the same way (comparissons and trends).
- Simple interpretation.
- Show trends along time.
- Sensitive to changes.
- Easy to gather and process data.
- Quick to update.
Some characteristics of KPIs
Functions...
When compared to goals and benchmarks, existing gaps signal opportunities.
Improvement
Communicate organizational priorities. Indicators must drive strategy aligned behaviors.
Communication
Allow the identification and control of organizational resources.
Control
Un indicador retrasado (lagging) mide el resultado del desempeño al final de un periodo, tiene una orientación hacia el pasado porque nos muestra las consecuencias de lo que ya se hizo. Un indicador adelantado (leading) mide el desempeño de los factores que son críticos ahora, para obtener un resultado deseado en el futuro
Empezar con analogía de bostezos y preguntas durante clase. Ref (4) pg. 144
¿Líder o seguidor?
Usar analogía de preguntas y bostezos (leading) y ECOAS (lagging)
Un indicador retrasado (lagging) mide el resultado del desempeño al final de un periodo, tiene una orientación hacia el pasado porque nos muestra las consecuencias de lo que ya se hizo. Un indicador adelantado (leading) mide el desempeño de los factores que son críticos ahora, para obtener un resultado deseado en el futuro
¿Líder o seguidor?
Source: https://dictionary.cambridge.org/us/dictionary/english/
A lagging indicator is a measure that relates to events or developments in the past, not to changes that have taken place since those events or developments. A leading indicator shows what a situation will be like in the future rather than showing what it is like now or has been like in previous weeks, months, etc.
Leading or lagging?
Tabla tomada de (4).
Leading or lagging?
Group activity
Desempeño del proceso de recaudación de fondos de una asociación de apoyo a niños en situación de calle
Rentabilidad del negocio para una empresa mediana mayorista de abarrotes
Nivel de servicio al cliente de una empresa que fabrica envases de plástico y entrega regionalmente
Rotación anual de personal en una empresa de manufactura
Productividad mensual de una línea de producción de muebles
Para los siguientes conceptos sugiere al menos un indicador cuantitativo adelantado (leading) y un indicador de resultados (lagging):
- Strategy map
How to define/identify indicators?
- Clarify the meaning of indicators.
- Enables communication between creators and users.
- Serves as a future reference.
- Becomes the main input for those designing organizational dashboards.
Documentation
https://www.lean.org/the-lean-post/articles/the-value-of-key-performance-indicators-in-a-lean-transformation/
Targets
Iniciar esta sesión con analogía sobre deportes sin target, futbol sin portería, basketball sin canasta, golf sin hoyos ni banderas. Ref (4) pag 180
Types of targets
- Annual
- Early warning
Short term
- 3 to five years
Medium term
- 10 to 30 years
- Make a destination posible
Long term
Activity 5
Indicators and Targets
Activities down the road
Activity 4
Activity 3
Strategy Map
Activity 2
Initial BSC
Activity 1
Initiatives
"Initiatives are programs, activities or projects that will take place to meet the targets" (4).
What are they?
Examples
What's next?
What's next?
Personal BSC
Activity 5
Indicators and Targets
Activities down the road
Activity 4
Activity 3
Strategy Map
Activity 2
Initial BSC
Activity 1
Funciones
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Control, comunicación y mejora.
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Características
Válido, sensible y simple
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Tipos
Leading vs Lagging
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Definición
"Métrica que mide una actividad de negocio contra una meta" (1).
Generalmente conocidos como indicadores claves del desempeño o KPIs
Indicadores
"Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat" . - Sun Tzu
Dashboards
Herramientas
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Diseño
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Tipos
Estratégicos, tácticos y operacionales.
Definición
Dashboards
"Just as race car drivers rely on dashboards to do their job, managers are increasingly dependent on dashboards to operate their organizations." (2).
Dashboards
Design clues
Taken from (3)
Scorecards vs Dashboards
Dasboard Evolution
Taken from (2).
Dashboard content by hierarchical level
Taken from (2).
Taken from (2).
Analysis time across management levels
Metrics by business unit and dashboard category
Taken from (2).
Tomado de (2).
Common Visualisation Elements
Enfatiza la magnitud del cambio a lo largo del tiempo, enfoca la atención en tendencias.
Gráfica de área
Para comparación de categorias o para hacer generalizaciones rápidas de los datos.
Gráfica de barras
Se usan para representar la reducción progresiva en los datos, tal como las etapas en un proceso de ventas.
Gráfica de embudo
Adecuada para representar cambios a lo largo del tiempo.
Gráfica de líneas
Efectiva para mostrar la contribución de segmentos como porcentaje de un todo.
Gráfica de pay
Se usa para identificar la relación entre dos variables.
Gráfica de correlación
Dashboard
Actividad 5
Balances Scorecard final
Indicadores y metas
Actividades
Actividad 4
Actividad 3
Mapa estratégico
Actividad 2
Balances Scorecard inicial
Actividad 1
4. Paul R. Niven. (2006). Balanced Scorecard Step-by-Step : Maximizing Performance and Maintaining Results: Vol. 2nd ed. Wiley.
3. Ron Person. (2009). Balanced Scorecards and Operational Dashboards with Microsoft Excel. Wiley.
2. Nils H. Rasmussen, Manish Bansal, & Claire Y. Chen. (2009). Business Dashboards : A Visual Catalog for Design and Deployment. Wiley.
1. Eckerson, W. W. (2010). Performance dashboards : Measuring, monitoring, and managing your business. ProQuest Ebook Central https://ebookcentral.proquest.com
Referencias
01 Anexos