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