How to evaluate the effectiveness of the management system used in the company? The right solution is to benchmark it against the best practices used in the leading companies.
The world’s major fully integrated zinc producer (top-5) of metals from polymetallic ores (copper, gold, silver and lead as well) with an extensive network of mines and smelters in four years has built a unified system of performance indicators for the group. The management cautiously called it “based on a Balanced Scorecard“. It needed to be assessed if it had a potential for use as a part of an upcoming strategic management system – the new shareholders’ goals.
In general, two tasks had to be solved:
- To assess the constructed KPIs system in terms of international best practice
- To make recommendations on the integration of the scorecard into the strategic management system of the group
In the course of the project, a comprehensive analysis of the scorecards was carried out on 34 parameters. An audit was also carried out on the preparation, calculation and application of indicators for decision-making. During the analysis and evaluation, the quality of the indicator preparations at the group business units was checked to ensure the reliability and accuracy of the regularly provided values.
To compare the KPIs system with international best practice, an expert with solid experience in the top-3 and other similar leading companies was engaged. Also together with the expert there was conducted a comparative analysis of both the system methodology and sets of indicators, permissible deviations, etc.
To assess the applicability of the KPIs system in strategic management, Norton-Kaplan’s approach known as the Balanced Scorecard (BSC, the core of the strategic management system) was applied. The constructed system of indicators was compared with a collective model of “best practice of BSC for strategic management”, which allowed answering questions about practical applicability, as well as necessary improvements and adjustments.
As a result, the management of the group received the in-depth analysis of the built scorecard – its strengths and weaknesses, benefits and drawbacks in benchmark with global best practice, as well as practical recommendations for improvement.
A separate assessment of the KPIs system concerning its integration into the upcoming strategic management system was prepared with a list of measures along with an action plan for improvements of the KPIs system to succeed its subsequent integration.
Challenges and caveats to overcome:
- The established post-Soviet enterprise management practice was difficult to translate and explain to a foreign expert with a different mentality. This made it difficult to compare qualitatively and deeply with international best practices.
- Fair but thorough requirements of the client for confidentiality of information on strategic management were a real challenge to make accurate recommendations for improving the KPIs system in the context of global best practice.
My work has already helped
to improve management in companies in 11 countries, operating in 137 cities
Building the Strategy Execution System
Implementation of the strategic management tools and methods based on Balanced Scorecard in a metallurgical group – the leading player on the international market.
Managing Operational Risks in a Telecom Holding
Implementing and configuring an operational risk management system to increase operational efficiency in a telecommunications group
Assessment of a KPIs Performance System in the Top-5 International Group
Assessment of the KPI-based performance management system for the Top-5 global fully integrated zinc producer and recommendations for the strategic management
Management Structure Design to Reform the Natural Monopolist
Creating the concept of a vertically integrated management structure for the reform of the natural monopolist
Business Process Optimization in a Large Group
Optimization of business processes to increase operational efficiency of the largest in CIS and Eastern Europe manufacturing holding
Assessment of the Business Strategy for a Development Group
Improving strategic management and fine-tuning the strategy of the construction holding company made it possible to achieve the shareholders’ goals
Supporting a Strategy Execution
Temporary outsourcing of the strategic management functions to the management consultant allowed to keep up the business growth rate and hold leading market position
Investment Management in a Group of Companies
Designing, implementation and fine-tuning of the investment management had enabled business development in the group of companies
Reengineering of Investment Process for Business Development
The investment process optimization with support of a new methodology for the traffic assessment and estimation secured the planned growth
Reorganization and Restructure of an Investment Group
Group reorganization and asset restructurization raised the management to the new level by boosting IRR and increasing capitalization
Finding a Business Strategy for a Leader
Finding and formulating a business strategy for a construction and installation contractor, which not only strengthened its leadership position, but accelerated its long-term business development as well
A Concept to Reform Utility Complexes
The designed concept of reforming regional utilities monopolist laid a foundation for the new integrated group of companies in the utility sector
A Strategy for Growth and Regional Expansion
Finding ways to expand for a unique business and determining the volume of investments, their dynamics and rate of return, as well as contributing to an investment decision
Business Plan for the Leading European Bank
Tweaking of an international bank’s greenfield investments into a wood processing cluster
Reorganizing the Growing Group
The restructuring of the group ensured transparent and effective asset management and enabled shareholders to focus their efforts on the long-term development
Post-Merger Integration
Designing an integrated mechanism for managing a united group and ensuring synergy from the merger of processing companies
Assess a Level of a Strategic Management for Global Investors
The tools were proved in three BRIC countries and after that it was laid as a foundation for the cross-boarder and cross-industry rating, which is supporting the decisions for tens of thousands international investors all over the glob
The Clients Are Saying:
Vitaly’s opinion sometimes dissonates with our well-established ideas, but he knows how to be very convincing
Besides the impeccable content of the study, I would like to note a vivid and convincing presentation of the results. Impressive!
Excellent response to suggestions and comments in the course of the project and an in-depth knowledge of the “Strategy Development” theme. Much was beyond my expectations.
In the project “Strategic Management Design and Implementation” it is especially worth mentioning Vitaly’s commitment, despite the external circumstance. All promises were fulfilled timely and in full. Even a bit more!
We are grateful for the high-quality and honest work and looking forward to new cooperation!
In the “Strategy development” project, the result exceeded expectations in terms of depth and quality. Professionally done work!
The results delivered actually exceeded the required scope: we received a greater degree of detail on the criteria and a more complete list in the questionnaires. The result exceeded our expectations.
I can’t help but praise Vitaly’s determination. The project has always returned on its way to the planned results, despite all the objective difficulties.
Working with Vitaly is comfortable and productive
The consistency and persuasiveness of Vitaly’s actions helped us to carry out a difficult and complex business reorganization without complications. We learn first hand how much a solid experience in a transformation means.
Your musical tastes are so-so, but your vision is impressive, complex and has a long horizon.
Strategic changes are always a challenge. With Vitaly’s participation, we felt confident in their implementation.
Apparently, Vitaly’s experience in the Norton-Kaplan’s company was not in vain. The developed Balanced Scorecard facilitated greatly our long-term management and mobilized leadership.
Thanks to Vitaly, we began to manage the company strategically
We have made organizational changes faster and more efficiently than expected from the start. Everything was very professional.
In developing and implementing the Balanced Scorecard, all the work was done in good faith. Our expectations were either met or exceeded.
Our project was not typical, as it focused on criteria for evaluating the strategic process in a broad context. We are quite satisfied with the result. We received all the information we needed.
Vitaly’s excellent quality is his ability to become quickly integrated into the team and look at the company from the inside, which allows him to achieve maximum results in the task at hand.
Vitaly really knows how to solve complex business problems!
The consistency and persuasiveness of Vitaly’s actions helped us to carry out a difficult and complex business reorganization without complications. We learn first hand how much a solid experience in a transformation means.