Carlson Companies

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• Carlson Companies
• Performance Management
• Our Journey to performance management one bite at
  a time.
• Sept 6th 2007
• Joe Dehler VP Business Process Improvement

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Confidentiality

• Carlson Companies is a private company and most
  of the information regarding Carlson Companies
  and its businesses is non-public information. We
  understand that you will comply with normal
  business obligations regarding this non-public
  information.

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Carlson Companies Inc.

• Company Overview
• Carlson Companies is one of the largest privately
  held corporations in the United States, with
  operations in more than 140 countries and more
  than 192,000 people employed under its family of
  brands.
• Carlson Companies is a leader in providing
  superior business and personal services and
  solutions to two distinct customer groups
  Corporate clients and Consumers.

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Carlson Companies Inc.

• Company Overview
• In 1938, Curtis L. Carlson established the Gold
  Bond Stamp Company which eventually changed its
  name to Carlson Companies to reflect its
  diversification.
• Today, Carlson Companies continues to build upon
  the cornerstone set nearly 70 years ago
  developing relationships with corporate and
  consumer clients.

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Carlson Companies Vision

• To be the most respected private company in the
  world.

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• But Boss" I think it will take 2 years to get to
  where you think we are
• Been there Done That, Some have been there few
  have done that

What do I really have?
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2001 The Perfect Storm

• It is now more important than ever that we
  choose to build a culture of improvement so that
  our company can improve efficiency, increase
  profit, and strengthen our brands for our
  long-term growth. MCN, September 2001

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The Journey
Socialize the bsc process
Launch Process management
Hire Black Belts
Launch Finance Projects
1st Green Belts Trained
Joe Joins Carlson
Install Oracle Financials
Launched Shared Services
2001
2002
1999
2000
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We survived the storm now what do we do?
greatwork
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Is All Improvement good?

• Yes but.
• are we working the things that are most
  important?
• Are we closer to what we are trying to become

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• We have been building a performance management
  system
• We have?

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MANAGING PERFORMANCE END TO END
Strategy mapping drives scorecard metrics
process design
One unified strategy
Strategy
One common improvement method Six sigma
Improvement
Process Management
Corporate knowledge
Scorecard
All pieces of the system contribute to corporate
knowledge and all pieces of the system are
informed by corporate knowledge
Common metrics to measure performance
How do we measure it?
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Carlson Balanced Scorecard MEASURES THAT MATTER
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What is a Balanced Scorecard?

• The Balanced Scorecard is a Framework that helps
  organizations Translate Strategy into Operational
  Objectives that drive both Behavior and
  Performance

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Why use a Balanced Scorecard?

• Focus on what is important
• Translate Strategy
• Align Leadership
• Prioritize effort
• Measure performance
• Align Capacity
• Balance (Finance, Customer, Process and People)
• Produce Results

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What Questions does a Balanced Scorecard Help
Answer?

• Do we currently measure the factors that are
  critical to our success?
• Are we using our resources effectively?
• Are we responsive and innovative to changing
  requirements?
• Will today's activities result in the outcomes we
  desire?
• Are we meeting / exceeding customer expectations?

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Balanced Scorecard Perspectives
Finance .Deliver our Family of Businesses
Customer . . . Satisfy the Customer
Process . . . Work Smarter, Not Harder
People . . . Build the Team
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Why be Balanced?
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Why be Balanced?
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Why be Balanced?
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Balance Alignment is Important
CUSTOMER
FINANCE
PROCESS
PEOPLE
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Becoming Strategy Focused
Strategic Clarification
Strategic Focus
Strategic Execution
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Strategic Clarification

• Vision
• Mission
• Values

What am I looking at? What should it look like?
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Strategic Focus

• Strategic Objectives
• Strategy Map

What are the must win battles? What priorities
must be set?
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Scorecard Development

• Measures (Leading / Lagging)
• Targets
• Actuals

What are the measures that matter? How will we be
measurable and actionable?
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Strategic Execution

• Projects Identified
• Project Plans
• Timelines
• Owners
• Metrics

Owner? What is the approach we will follow? What
projects should be launched? Do we need Six Sigma
expertise?
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Mission Why we exist
Core Values (Credo) What we believe in
Vision What we want to be
Carlson BSC
Strategy Our game plan
Strategy Map/Balanced Scorecard Translate, Focus,
Align
Initiative Portfolio Sets priorities for actions
required to succeed
Personal Objectives What I need to do to make a
difference
Strategic Outcomes
Model adapted from Kaplan Norton, The Strategy
Focused Organization, Page 73
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Carlson Balanced Scorecard

• Build the Team

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Carlson Balanced Scorecard

• Work Smarter, Not Harder

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Carlson Balanced Scorecard

• Satisfy the Customer

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Carlson Balanced Scorecard

• Deliver Our Family of Businesses