Stork Webinar | Business Scorecards.pdf
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The webinar focuses on improving asset management performance using balanced scorecards, outlining strategies, purposes, and key performance indicators (KPIs). It emphasizes alignment across organizational levels and the importance of both financial and non-financial measures for effective performance management. The session also covers the benefits of implementing a balanced scorecard approach to navigate challenges in asset management and enhance organizational coherence.
![MAINTAINING A BETTER WORLD
Example: Balanced Score cards facilitate in the Asset Management Strategy roll out in the organization. They are based on
the good proven concepts.
AN EXAMPLE
Goals, Objectives → Key Performance Indicators → KPI Traceability → KPI Formula → KPI Ownership → KPI Targets → KPI Horizon
Coporate
Perspective
Corporate
Goals
Corporate
Objective
AM Goal AM Objectives
Data
Source
for
KPI
KPI
DC
Prepared
(name)
KPI
DC
Approved
(name)
KPI
DC
Contact
Manager
(name)
2022
2023
2024
2025
2026
2027
2022
2023
2024
2025
2026
2027
Opex Variations KPI ID 001 Lagging CFO E&P % Monthly
OpEx Variation = Total OpEx Budget Actual
(YTD) / Total Approved Budget Cost (YTD)
CMMS, ERP
Capex Variations (year on year) KPI ID 002 Lagging CFO MNT % Monthly
CapEx Variation = [(Total CapEx Budget
Actual (YTD)] / [Total Approved Budget Cost
(YTD)]
Return on Capital Investment Employed (ROCE) KPI ID 003 Lagging E&P E&P Ratio Yearly ROCE= [(EBIT)]/ [(Total Capital Employed)]
Return on Investment (ROI) KPI ID 004 Lagging CFO E&P Ratio Yearly
ROI= (Gain from Investment - Cost of
Investment) / (Cost of Investment)
Total Maintenance Cost KPI ID 005 Lagging MNT MNT $ Monthly EN 15341
Total Preventive Maintenance Cost KPI ID 006 Lagging MNT MNT $ Monthly EN I5341
Total Corrective Maintenance Cost KPI ID 007 Lagging MNT MNT $ Monthly EN 15341
Retrun on Assets (ROA) KPI ID 008 Lagging CFO E&P % Monthly
ROA= [ (Net Income during Period t)] /
[(Total Assets at the end of Period t)] x 100
Asset Replacement Value (ARV) KPI ID 009 Lagging CFO OP $ Yearly EN 15341
Total Energy Used KPI ID 010 Lagging MNT MNT $ Monthly EN 15341
KPI Actual (Yearly)
Optimized
costs,
revenues
and
diversify
investments
Corporate Strategy
Asset Management
Strategy
Susstainable
Financial
Performance
KPI
ID
Type
KPI Definition Card
Annual Budget
Controls
O&M Cost
Optimization
Financial
Susstainable
Financial
Performance
Remarks/ Notes /
Management Review
Comments
Asset Management Strategy - Balanced Scorecard (2023-2028) Ver 1.0.1
Main
Accountable
Measurement
(Unit/Scale)
Frequency
of
Reporting
(Weekly,
Monthly,
Yearly)
KPI Formula
Key Performance
Indicators (KPIs)
Sub
Accountable
(Business
Unit)
KPI Targets](https://image.slidesharecdn.com/storkwebinar-businessscorecards-231018124239-971528bb/85/Stork-Webinar-Business-Scorecards-pdf-12-320.jpg)
Stork Webinar | Business Scorecards.pdf
- 1. Webinar BUSINESS SCORECARDS Improving Asset Management performance using Business Scorecards The webinar starts at 12.00h p.m. CET. You can post your questions through the Q&A button in the Zoom-menu. During the webinar all participants are on 'mute’.
- 2. SUPPORT THE ENERGY TRANSITION DECARBONIZE EXISTING ASSETS STORK PROVIDES OPERATIONS & MAINTENANCE SERVICES ACROSS MULTIPLE INDUSTRIES
- 3. MAINTAINING A BETTER WORLD INTRODUCTIE PRESENTATOREN MAINTAINING A BETTER WORLD Principal Consultant @Stork Joris Grimbergen Yousuf Hasani Senior Consultant @Stork
- 4. MAINTAINING A BETTER WORLD Challenges & Opportunities The purpose of Balanced Scorecards The big picture – Asset Management Strategy Some important concepts Definition of goals, objectives Definition of Balanced Scorecard Historical background of BSC development and current version Translating and cascading strategy Examples to show how BSC works MS Excel Based, KPI Definition Card, Use of BI Benefits & success factors Suggested Reading / References CONTENTS MAINTAINING A BETTER WORLD
- 5. MAINTAINING A BETTER WORLD CHALLENGES & OPPORTUNITIES… MAINTAINING A BETTER WORLD Available Technical Staff ROI and Profitable Targets Increasing Energy prices Financial Risk Scarcity of raw materials Stringent Regulations Asset Risk CO2 Emission reduction
- 6. MAINTAINING A BETTER WORLD The Balanced Scorecard is a management system that provides stakeholders with a comprehensive measure of how the organization is progressing towards the achievement of its strategy (strategic management). Balances financial and non-financial measures Balances short and long-term measures Balances performance drivers (leading indicators) with outcome measures (lagging indicators) Contain just enough data to give a complete picture of organizational performance… and no more! Leads to strategic focus and organizational alignment PURPOSE … MAINTAINING A BETTER WORLD
- 7. MAINTAINING A BETTER WORLD THE BIG PICTURE … MAINTAINING A BETTER WORLD Asset Management Strategy Initiation Defining Alignment Standardize and Practice Getting Results Review and Update Vision, purpose, values, strategic initiatives for asset portfolios Map the enterprise strategy, define goals, objectives, KPIs, success criteria Vertical and horizontal alignment, create an aligned workforce, processes. Practice at operational levels, harmonize, sustain. Monitor, measure, analyze, review the performance. Conduct internal and external business scans (e.g. SWOT, PESTEL)
- 8. MAINTAINING A BETTER WORLD Goals represents the abstract thinking of leadership. They are long term aspirations in alignment to the business progression and reshaping.. Objectives enables the achievements of goals and are; specific, measurable, attainable, realistic and time bound. HBR Publications THE DEFINITION …
- 9. MAINTAINING A BETTER WORLD 1st Gen 2nd Gen 1990s to Present Balanced Scorecard - Perspectives • Financial, • Customer • Internal Processes • Growth & Learning • Financial • Customer • Internal Processes • Growth & Learning Get Control beyond Finance Drive Business Performance 3rd Gen • Financial • Customer • Internal business perspective • Innovation and Learning Manage strategies and Improve Alignment 4th Gen • Triple Bottom Line (Social, Financial and Environmental) • Stakeholders • Internal Processes, Digitalization • Innovation, Learning and Growth Agile, responsive & value driven Balanced Scorecard - Perspectives Refinements are done to assist leadership in rising business needs and challenges; DEVELOPMENTS AND REFINEMENT IN BSC …
- 10. MAINTAINING A BETTER WORLD Alignment: Enterprise level → Functional level → Operational level Enterprise or Corporate Level Functional / Tactical Level Operational Level Our Focus EN 15341 Stork AMT (R) BSC (Norton & Kaplan) TRANSLATING & CASCADING STRATEGY …
- 11. MAINTAINING A BETTER WORLD TRANSLATING & CASCADING STRATEGY … External Stakeholders Location Regulations, requirements Business Model Internal Process Severity Utilization and performance Targets Age of Business Units KPIs Level 1 Level 2 Level 2 Level 1 Level 2 Level 3 Level 3 Leading Indicators Lagging Indicators KPIs: Influencing Factors → Leading Vs Lagging Indicators → Business Scorecards Business Scorecards Each Perspective: Financial Perspective Customer Perspective Internal Business Perspective Growth & Learning Perspective
- 12. MAINTAINING A BETTER WORLD Example: Balanced Score cards facilitate in the Asset Management Strategy roll out in the organization. They are based on the good proven concepts. AN EXAMPLE Goals, Objectives → Key Performance Indicators → KPI Traceability → KPI Formula → KPI Ownership → KPI Targets → KPI Horizon Coporate Perspective Corporate Goals Corporate Objective AM Goal AM Objectives Data Source for KPI KPI DC Prepared (name) KPI DC Approved (name) KPI DC Contact Manager (name) 2022 2023 2024 2025 2026 2027 2022 2023 2024 2025 2026 2027 Opex Variations KPI ID 001 Lagging CFO E&P % Monthly OpEx Variation = Total OpEx Budget Actual (YTD) / Total Approved Budget Cost (YTD) CMMS, ERP Capex Variations (year on year) KPI ID 002 Lagging CFO MNT % Monthly CapEx Variation = [(Total CapEx Budget Actual (YTD)] / [Total Approved Budget Cost (YTD)] Return on Capital Investment Employed (ROCE) KPI ID 003 Lagging E&P E&P Ratio Yearly ROCE= [(EBIT)]/ [(Total Capital Employed)] Return on Investment (ROI) KPI ID 004 Lagging CFO E&P Ratio Yearly ROI= (Gain from Investment - Cost of Investment) / (Cost of Investment) Total Maintenance Cost KPI ID 005 Lagging MNT MNT $ Monthly EN 15341 Total Preventive Maintenance Cost KPI ID 006 Lagging MNT MNT $ Monthly EN I5341 Total Corrective Maintenance Cost KPI ID 007 Lagging MNT MNT $ Monthly EN 15341 Retrun on Assets (ROA) KPI ID 008 Lagging CFO E&P % Monthly ROA= [ (Net Income during Period t)] / [(Total Assets at the end of Period t)] x 100 Asset Replacement Value (ARV) KPI ID 009 Lagging CFO OP $ Yearly EN 15341 Total Energy Used KPI ID 010 Lagging MNT MNT $ Monthly EN 15341 KPI Actual (Yearly) Optimized costs, revenues and diversify investments Corporate Strategy Asset Management Strategy Susstainable Financial Performance KPI ID Type KPI Definition Card Annual Budget Controls O&M Cost Optimization Financial Susstainable Financial Performance Remarks/ Notes / Management Review Comments Asset Management Strategy - Balanced Scorecard (2023-2028) Ver 1.0.1 Main Accountable Measurement (Unit/Scale) Frequency of Reporting (Weekly, Monthly, Yearly) KPI Formula Key Performance Indicators (KPIs) Sub Accountable (Business Unit) KPI Targets
- 13. MAINTAINING A BETTER WORLD KPI CARDS USING POWER BI MAINTAINING A BETTER WORLD BI can be used to develop KPI Cards KPI Cards acts as a documented and approved cards for the record keeping KPI cards enable control from the management side KPI cards provides basis for the analysis and can be customized in EAM. KPI ID 002 Sustainable Financial Performance
- 14. MAINTAINING A BETTER WORLD Balanced Scorecard ensure effectiveness of Asset Management System. Forces alignment of strategies, goals, objectives and measure of success Enables a coherent performance management system. Provides ownership with clear line of sight BENEFITS OF USING BSC Alignment Enterprise to Asset Management Strategy Balanced Score Cards Coherent Performance Management One way of thinking across organization Provides Line of sight, ownership Good Governance Assist leadership in subjective reviews. Compliance to AM Objectives
- 15. MAINTAINING A BETTER WORLD Broadly, use of Balanced Scorecards ensure; AM Strategy to become more agile and responsive towards challenging and fast paced changing business environment Good governance Compliance to AM Goals and AM Objectives SUCCESS FACTORS Challenging and Volatile Markets
- 16. MAINTAINING A BETTER WORLD SUGGESTED READING … MAINTAINING A BETTER WORLD Whitepapers - Stork
- 17. > QUESTIONS?
- 18. RECORDED WEBINARS > www.stork.com/recorded-webinars CONTACT US > [email protected] NEXT WEBINARS SERIES ON CONNECTIVITY THANK YOU FOR PARTICIPATING Ecosystems (NL) 22 NOV Enabling Technologies (EN) 20 DEC TiAM 2024 pre-view (NL) 17 JAN
- 19. > THANK YOU FOR YOUR ATTENDANCE