Of Course I have a Balanced Scorecard Copyright (CIGNA Corporation).

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Bennett Cummings
10 years ago
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1 Of Course I have a Balanced Scorecard So now what? 1

2 CIGNA Govt. Services Wholly owned subsidiary of CIGNA Corporation Contracted Carrier for Centers for Medicare & Medicaid Services (CMS) since 1966 Part B Carrier for North Carolina DME Carrier for Jurisdiction C 2006 and 2008 TNCPE Achievement Award Winner ISO 9000:2008 Certified Zero Nonconformances for 3 consecutive years 2

Centers for Medicare & Medicaid Services (CMS) since 1966 Part B Carrier for

3 CGS Balanced Scorecard Journey 2005 Utilized Hoshin Strategic t Planning Model 2006 Balanced Scorecard deployed at Executive Lead Team (ELT) Level 2007 Balanced Scorecards deployed to each department in organization 2008 Balanced Scorecard aligned from ELT operational plans to front-line employee Annual Performance Objectives (APOs) Department level Operational Plans roll up and align to overall CGS Scorecard

organization 2008 Balanced Scorecard aligned from ELT operational plans to front-line employee Annual

4 The Balanced Scorecard Performance management report with financial and non-financial performance measures Concept already utilized in one way Method to track metrics Report Card Various formats You may use something different that s OK! 4

already utilized in one way Method to track metrics Report

5 Introducing LeTCI Lemonade Founded d in 2009 to support neighborhood h demand d for alternate to Criteria Kool-Aid (main competitor) Originally had 4 employees Malcolm, Katie, Will, and Mom Expanded operations to include 6 other neighborhood children Work broken down across 4 departments: t purchasing, mixing, sales, and marketing Core Competency Mom s secret recipe Strategic Advantage located at corner of busy neighborhood intersection Strategic Challenges competing priorities (homework), and limited potential for growth (can t cross street) 5

across 4 departments: t purchasing, mixing, sales, and marketing Core Competency Mom s secret recipe Strategic Advantage located at

6 Sample LeTCI Lemonade BSC 6

7 Project #1 Fill in Process Pillar for the LeTCI Lemonade scorecard 7

8 LeTCI Completed Organizational BSC 8

9 BSC Deployment Now we have it, how do we deploy it? Cascading Scorecards Depends on size and makeup of organization Overall Organizational Departmental Team level el 9

10 Cascading Scorecards LeTCI Lemonade Overall Scorecard Organizational Scorecards Purchasing Mixing Marketing Sales Current Products Future Products 10

11 What is an Operational Plan? Focus on how to achieve strategic objectives, but also should be customized to meet the specific needs of each organization and function Identifies short-term (i.e. 1 year) activities to support achievement of the long-term strategic plan Completed operational plans will align to Master Balanced Scorecard 11

the specific needs of each organization and function Identifies short-term (i.e. 1

12 What is an Operational Plan? Addresses four questions: Where are we now? Where do we want to be? How do we get there? How do we measure our progress? 12

13 Roll it up! Departments below Master BSC owns something on Master BSC People doing the work should be doing the measuring 13

14 Project #2 You are the Mixing Department at LeTCI Lemonade What would be on your operational plan or Scorecard? 14

15 Mixing Department BSC 15

16 Leading and Lagging Indicators End-Process Measures Results derived from repeatable processes Leading Indicator In Process Measures used to identify opportunities to make adjustments before end process results are measured (4-Up Charts). Lagging Indicator Measure that changes after process demonstrates a pattern or trend 16

opportunities to make adjustments before end process results are measured (4-Up

17 Leading Indicators End Process Results Mixing Production Timeliness Order Backlog Accuracy/Timeliness of supply orders Overall Order Timeliness Mixing Production Timeliness 17

18 4-Up Charts Monitors results from BSC and provides root cause analysis of metric misses Monitor and trend data associated with repeatable processes Track leading indicators Statistical Process Controls (SPC Charts) 18

data associated with repeatable processes Track

19 Leading Indicator 4-Up Sample 19

20 Project #3 Make a 4-Up Chart for the Mixing Department 20

21 Management Review Effective way to review processes Who should review what? Sr. Leaders own Master BSC Operations managers own their individual processes Everyone takes ownership at appropriate levell ISO Management Review Meetings 21

22 Nonconformance Policy Organizational Policy to take action Apply definition of NCF to more that just operational metrics Applicable to anything worth measuring! 22

23 CGS NCF Definitions Dots 23 Red: Intended goal is missed by 5% or more or metric is unattainable. A red dot meets the CGS definition of a critical-nonconformance and requires an entry into Intelex. Yellow: Intended goal is missed by less than 5% signifying g that the metric is at risk. This meets the CGS definition of a minor nonconformance which is not required to be logged in Intelex. If the metric is missed by 5% or less consecutively for two months, this meets the CGS definition of a major-nonconformance and requires an entry into Intelex. Green: Goal has been met or exceeded; no nonconformance is present.

24 Root Cause Tools Pareto Analysis 5-Why Analysis Fishbone (Cause and Effect)Analysis 24

25 Pareto Analysis Technique to help identify most effective process changes Uses Pareto Principle By doing 20% of the work you can generate 80% of the advantage of doing the entire process 25

26 Pareto Example 26

27 5-Whys Problem solving method to get to root of the problem Work backward from the end result by asking Why? 27

28 5 Why Example For 50% of the lemonade pitchers not ready on time, bugs or other debris contaminated the product. Why did this happen? Pitchers were left open outside Why were the pitchers left open outside? Employee training unsuccessful Why was employee training unsuccessful? Do not have documented policy Why no documented policy? Corrective Action = Create Policy and Educate Staff 28

29 Fishbone Diagram Used to identify many possible causes for a problem Means to organize ideas into categories 29

30 Fishbone Example ENVIRONMENT Business operates outdoors creating risk for bugs PROCESS DOCUMENTATION No policy exists Contaminated Pitchers New employees were not trained TRAINING QA not performed on this process QUALITY ASSURANCE 30

31 What else. Part of Annual Strategic Planning Process Revisit BSC Make sure measures align to new direction Relevant? 31

32 Questions?

Policy Deployment. Policy Deployment. Turning Theory Into Action. Hoshin Kanri. Heinrich Moormann. Strategy Deployment EN_071124.

Policy Deployment. Policy Deployment. Turning Theory Into Action. Hoshin Kanri. Heinrich Moormann. Strategy Deployment EN_071124. Policy Deployment Hoshin Kanri Policy Deployment Turning Theory Into Action Page 1 What is Policy Deployment? Policy Deployment or Hoshin Kanri Hoshin Kanri was developed in the 1950s in Japan in order