Sharing Session on Organizational Performance

1. Sharing Session on Organizational Performance Jakarta, 3 September 2013

2. Sharing Session Organizational Performance Why organizational performance? • In today's climate of extreme external environment uncertainty, organizationsare not likely to thrive with anything less than a highly focused measurement system • To answer the inevitable "How are we doing?" an organization must have measures in place to ensure performance improvements are actually materializing • Best practices organizationsuse measures to communicate goals to staff, to identify early warning signals of problems, and to decide what corrective actions are needed • By providing timely and comprehensive performance information, managers may pinpoint the root cause of problems more quickly, set standards and targets, and better assess strategic value and effectiveness • Along these lines, forward thinking leaders establish performance measurement as a dynamic system, poised to transform their organizationinto a lean, more customer-responsive operation

3. Sharing Session Organizational Performance What are best practices organizations doing on organizational performance? Summary ... Reinforce strategic clarity for the performance measurement mission Mobilize the people drivers behind the numbers Extract a comprehensive evaluation of business performance through a balanced scorecard Build support for performance measurement through customized, ongoing communications Strenghten ongoing high performance through frequent recognition and rewards Integrate performance measurement, planning, budgeting, and financial consolidation processes to achieve successful strategy implementation Leverage technology to facilitate continuous performance reporting Source: Global Best Practices (globalbestpractices.pwc.com)

4. Sharing Session Organizational Performance Typical framework Vision and Mission Strategic Assessment Strategy Map Balanced Scorecard Strategic Initiatives Implementation Monitor and Adjust

5. Sharing Session Organizational Performance Typical BSC implementation steps Source: Global Best Practices (globalbestpractices.pwc.com)

6. Sharing Session Organizational Performance Sample of outcome and actitvity measures

7. Sharing Session Organizational Performance Typical score card structure Organization wide scorecard Examples: Customer satisfaction, employee satisfaction, net profit, ROI Department scorecard Examples: unit revenue, procurement effectiveness, training programs coordinated Individual scorecard Examples: sales target, number of trainings attended, coaching session conducted

8. Sharing Session Organizational Performance Importance of IT for monitoring and reporting activities IT Infrastructure

9. Sharing Session Organizational Performance Case study (1/2) Maintain sustainable and strong financial position Finance (Firm) Increase revenue Strong cashflow Attract new client Increase existing client loyalty Client Enhance brand Manage service delivery Manage risk Improve sales process Strengthen thought leadership in the market Process (Firm) Manage Knowledge People Strengthen staff quality Strengthen values

10. Sharing Session Organizational Performance Case study (2/2)

11. Thank You Sharing Session Organizational Performance