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CMP: Implementing strategy: Processes and Indicators (19BBA40009)

General information

Type:

OP

Curs:

3

Period:

S semester

ECTS Credits:

4 ECTS

Teaching Staff:

Group Teacher Department Language
Ed: 1 Miguel Angel Heras Forcada Operaciones, Innovación y Data Sciences ENG

Group Teacher Department Language
Ed: 2 Miguel Angel Heras Forcada Operaciones, Innovación y Data Sciences ENG

Previous Knowledge


It is necessary a basic knowledge of Strategy and Operations Management.

Workload distribution

- Faculty presentations/lectures.20 hours.
- Case study preparation, presentation and feedback. 25 hours
- Design Thinking Simulation. 15 hours
- Balanced Scorecard Simulation. 15 hours
- The Food Truck Challenge Simulation. 5 hours.
- Independent work: Reading comprehension and reflexion. 20 hours
- Company presentations and discussion. 3 hours
- Video discussion. 2 hours


COURSE CONTRIBUTION TO PROGRAM

In today's economy, firms must adapt the design and execution of their strategies to fast-changing circumstances. That is why flexible implementation of strategy with which the whole organisation is aligned has become a key priority for firms.

Various studies show that: (1) under 10% of correctly-formulated strategies are successfully implemented; (2) the cause of business failures lies not in the design of strategy but in its execution. The conclusion to be drawn is that when it comes to strategy, execution is more important than design. Strategy implementation must draw on the lessons that the economic crisis is teaching us. One of these is the need to find ways of anticipating how financial indicators will move. Another lesson is the need for a flexible, well-aligned strategy, something that requires integration between performance measurement systems and processes.

There are basically two tools for implementing strategy: Processes and Indicators. In this course, we will study the Process-based Approach and the design and implementation of a Performance Measurement System, with the aims of simultaneously cutting costs and boosting flexibility, service and quality.

For innovation in a company to be efficient and effective and to generate an innovation culture that fosters innovation everywhere, we have to measure it. Also to be successful with a startup we need to find the indicators which are key for these companies.

Course Learning Objectives


1. Study the process focus as an organisational model that orients the firm towards clients.

2. Analyse the elements that make up Business Process Management and the value provided by its implementation.

3. Explain the KPI concept and present the features of a "good" indicator.

4. Introduce the concepts of Indicators and Performance Measurement Systems as the tools for strategy implementation.

5. Design the causal model for strategy implementation using a performance measurement system and study the balanced scorecard as a reference in the design and implementation of a performance measurement system.

6. Learn the Design Thinking innovation process to design a performance measurement system.

7. Study the Strategy Map concept and design one using the design thinking innovation process.

8. Develop Strategic Indicators from the Strategy Map.

9. Cascade strategic indicators into operational indicators.

10. Measuring the innovation process and the innovation strategy's implementation through innovation indicators.

11. Simulate management team decisions on the strategy implementation using a specific simulation.

12. Make clear the importance of Metrics in the success of a startup. Study the startup Indicators.

13. Identify resistance to change when implementing a performance measurement system and learn how to overcome such resistance.

Competences

7. Comprehension of the complexity of the local and global contexts
3. Taking decisions / making judgments
18. Teamwork and collaboration
2. Application of knowledge to achieve results
6. Strategic thought, systematic thought
4. Conveying information and/or knowledge
1. Knowledge acquisition, comprehension and structuring

Relation between Activities and Competences

7 3 18 2 6 4 1
Case discussions, practical exercises and participation              
Team reports on a case studies              
Harvard Simulation: Implementing Strategy.The Balanced Scorecard              
Strategy Implementation Simulation based on Design Thinking Methodology              
Harvard Simulation: The Food Truck Challenge              

CONTENT

1. Processes in organisations and the value they provide.

2. Business Process Management as an organisational model.

3. How to transition from a structure based on departments to Process-based Management.

4. Indicators and Performance measurement Systems or Scorecards.

5. Early Warning Indicators. Key Performance Indicators, KPIs.

6. Measuring the Innovation Process: Innovation Indicators.

7. The Fourth Generation Balanced Scorecard Model.

8. Strategy Maps as a Model and Tool to transform intangible assets into tangible ones.

9. Design Thinking applied to the Strategy Implementation

10. Integrating Performance Measurement Systems and Business Process Management.

11. Operational Indicators and Dashboards.

12. Implementing Performance Measurement Systems: Lessons from experience.

13. Aligning people within the organisation. Change Management.

14. Harvard Simulation: Implementing Strategy.The Balanced Scorecard

15. Startup Metrics for Startup Models: Customer Development Model, Business Model Canvas, Lean Startup and the "Pirates" Model.

Relation between Activities and Contents

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Case discussions, practical exercises and participation                              
Team reports on a case studies                              
Harvard Simulation: Implementing Strategy.The Balanced Scorecard                              
Strategy Implementation Simulation based on Design Thinking Methodology                              
Harvard Simulation: The Food Truck Challenge                              

Methodology

The methodology is highly participatory and action-oriented. It combines presentations and class discussions and requires constant interaction with and by participants, as well as group work on cases and exercises. This work is mainly carried out in class, with student groups simulating a company's senior management team. The professor develops the theory and facilitates/guides team discussion.

During the Course we will run three simulations. One simulation will be based on the Design Thinking methodology applied to the design of a Performance Measurement System, another is a Harvard Simulation to implement a corporate strategy and the third will create prototypes based on metrics.

Consistent, quality class participation is expected. Participants will have the opportunity to express their ideas during the lectures and during case discussions, exercises, debates and readings.

ASSESSMENT

ASSESSMENT BREAKDOWN

Description %
Case discussions, practical exercises and participation 20
Team reports on a case studies 40
Harvard Simulation: Implementing Strategy.The Balanced Scorecard 10
Strategy Implementation Simulation based on Design Thinking Methodology 20
Harvard Simulation: The Food Truck Challenge 10

Assessment criteria

The evaluation is mainly based on students' class work, in which they simulate the deliberation of management teams.

The grading and performance standards will entail the following aspects:

- Case study reports, practical exercises and simulations completed in class: 30%
- Participation (*): 20%
- Quiz: 20%
- Report on the simulation of strategy implementation: 10%.
- Final assignment: 20%. A final report including and improving all the different teamwork outputs carried out as part of this course.

(*) Participation comprises class attendance, oral presentations from case studies, individual contributions during the sessions and individual and team exercises.

Bibliography

Bibliography:

- Anand, S. (2016), Execution Excellence. Making Strategy Work Using the Balanced Scorecard. John Wiley & Sons, New Jersey.

- Barrows, E. y Neely, A. (2012), Managing Performance in Turbulent Times. Analytics and Insight. John Wiley & Sons, New Jersey.

- Bititci, U.S. (2015), Managing Business Performance. John Wiley & Sons, New Jersey.

- Hammer, M and Hershman L.W. (2010), Faster Cheaper and Better. The 9 Levers for Transforming Ho Work Gets Done. New York: Crown Business.

- Harmon, P. (2014). Business Process Change: A Business Process Management Guide for Managers and Process Professionals. New York: Elsevier.

- Jeston, J., Nelis, J. (2014). Business Process Management: Practical Guidelines to Successful Implementations. New York: Routledge.

- Maurya, A. (2016), Scaling Lean. Mastering the Key Metrics for Startup Growth. Penguin.

- Niven, P.R. (2014), Balanced Scorecard Evolution. John Wiley & Sons, New Jersey.

- Parmenter, D. (2015), Key Performance Indicators. Developing, Implementing, and Using Winning KPIs. John Wiley & Sons, New Jersey.

Additional bibliography or material:

- Heras, M., Sierra, V. and Cusumano, J. (2006), "A Set of Requirements For Analysis of Performance Measurement Systems", presented at the Fifth International Conference on Performance Measurement and Management.

- Kaplan, R.S. and Norton, D.P. (2008), The Execution Premium. Linking Strategy to Operations for Competitive Advantage. Boston, Massachussets: Harvard Business Scool Publishing.


Links

http://www.brint.com/BPR.htm
http://kpilibrary.com/
https://kpiinstitute.org/
http://www.processexcellencenetwork.com/
http://fcbpartners.com/
http://www.bain.com/management tools/home.asp
http://www.balancedscorecard.org/
http://www.som.cranfield.ac.uk/som/cbp/
http://www.thepalladiumgroup.com/
https://2gc.eu/#
https://www.tesla.com/

CURRICULUM
Miguel Ángel Heras (miguelangel.heras@esade.edu )

He holds a PhD in Business Administration from Universitat Ramon Llull, an MBA from ESADE and an undergraduate degree in Industrial Engineering from Universidad Politécnica de Barcelona. He is an Associate Professor in the ESADE Department of Operations Management, Innovation and Data Sciences.

Prof. Heras has also held various management positions in different Philips Group companies in several EU countries in the Production, Logistics, Organisation and IT areas.

He also served as Director for the senior management consulting firm, Roland Berger, and led an Esprit International Research Project analysing the balanced scorecards of 200 Spanish firms.

He has designed and teaches the "Implementing Strategy: Maps and Measures" course as part of the EMBA programme as well as the "Implementing Strategy: Processes and Indicators? course in the BBA, "Executing Corporate Innovation and Startup Strategies in the Master in Innovation & Entrepreneurship programme and ". He is also a professor in ESADE's Advanced Management Programme.

Prof. Heras' PhD thesis was titled, Calidad e Indicadores. Una aportación a la Implantación de Sistemas de Indicadores ("Quality and Indicators. A Contribution to the Implementation of Performance Measurement Systems?). He has also authored numerous articles and given presentations on process-based management and performance measurement systems.

He also serves as a senior management consultant to design and implement strategy through balanced scorecards and process-based management. Prof. Heras is the author of a model to implement a process-based performance measurement system and is currently working on implementing the Design Thinking methodology to resolve complex (wicked) business problems.

Timetable and sections

Group Teacher Department
Ed: 1 Miguel Angel Heras Forcada Operaciones, Innovación y Data Sciences

Timetable Ed: 1

Group Teacher Department
Ed: 2 Miguel Angel Heras Forcada Operaciones, Innovación y Data Sciences

Timetable Ed: 2