الخميس، 7 أبريل 2011

BSC Glossary & Acronym

↔↕ :Double Feedback Loop

ARIS :Architecture of Integrated Information System. Graphical display (representation) language for Process (1.SADT ,2.ARIS).

Assessment & Evaluation : assess the current organization situation (AS IS ) before BSC Implementation .Evaluate the organization situation after BSC Implementation.

Activity-based cost / management :(ABC/M) An alterative to

traditional accounting methods, providing an activity view of

where overhead is assigned in businesses( Cost Centers), reducing the general distortion often suffered .This model, introduced by Professors Bob Kaplan and Tom Johnson, has grown to be an understood method for costing products and services in the Global co.1990.

Balanced Scorecard (BSC) : A formalism, methodology, and

framework that translates strategy to actionable and measurable

objectives. Following four perspectives, BSC balances these objectives among nonfinancial and financial, leading and lagging, operations and finance, as example. This methodology allows for all

parts of the organization to know and understand their contribution

to strategy.

Carefully selected set of quantifiable measures (Metrics / KPI’s/Barometer / Thermometer/Ruler) derived from an organization strategy. The Measures selected for BSC represent a tool for leaders to use in communicating to employees & External Stakeholders. The outcomes & performance drivers (Leading Indicators e.g. Customer Satisfaction Questionnaire )by which the organization will achieve its mission& strategic objectives. F : Financial Perspective ,C: Customer Perspective , IP : Internal Process (Operation-Innovation) Perspective & E : Employee Learning & Growth Perspective ( HCM : Human Capital Management , ICM : Information Capital management & OCM : Organization Capital Management.

Balanced ?( out of BSC) :1.Balance between S-T/ L-T Objectives

2. Balance between Financial / non- Financial measures .

3. Balance between Lag / Lead Indicators.

4. Balance between Internal / External Performance.

But balance of weight of each perspective is not a must. Usually Financial Perspective relative weight 40-70 % & other 3 perspectives relative weight 10-20 %.

Benchmarking :Comparing metrics between companies or peer

organizations.

Cascading the scorecard : The action of driving objectives, measures, targets, and initiatives into the organization and through

multiple levels.

Cause and effect : The effect of recognizing the relationship

among strategic themes and their impact on one another.

Champion : A person who is tasked or has taken the role of motivating ,articulating change and organizing business transformation.

Competence(Competences) : cluster of related abilities, commitments, knowledge, and skills that enable a person (or an organization) to act effectively in a job or situation.(KSA /KESAA )

Core competency (Competencies) :The basic set of capabilities and habits a corporation has that is unique to its personality and skills. Cluster of extraordinary abilities or related 'excellences' that a firm acquires from its founders, after consistent striving over the years, and which cannot be easily imitated. Core competencies are what give a firm one or more competitive advantages, in creating and delivering value to its customers in its chosen field. (core capabilities or distinctive competencies/ core rigidities).

Data obesity : A phenomenon in which organizations are flooded

with data at all levels and cannot use it or understand its value.

DSS :Decision Support System

ESM :Executive Strategy Manager

Information starved : A phenomenon in which organizations are

unable to discover relevance in the information they have to work

with.

Initiatives : The key programs an organization must undertake to

enable objectives to be achieved. Some take the form of change

programs like ISO 9001 or leadership training.

Key performance indicators(KPIs): Known in the industry as essential measures that are critical for strategic or tactical realization.

Lagging indicator : A measure(s) that is identified only after an

event occurs.

Leading indicator : A measure(s) that can indicate the result of an

event prior to it occurring.

Learning adoption cycle :The process of moving an organization

through four phases:

1. Trigger phase. An event that forces everyone to take a second

look at solving problems.

2. Education phase. The process of learning of solutions to the

existing problems to answer the question ,“What is it?”

3. Pilot phase. The process of testing the solution in a small unit or

section of the organization to answer the question ,“Does it

work for me?”

4. Production phase. The process of moving into a sustainable enterprise model with the question ,“Can it work continuously?”

Measure (Metric): A quantifiable formula whose variables define what needs to be measured and monitored in order that a target is

achieved.مسطرة – بارومتر - ترمومتر

Mission (Mission Statement): Why an organization exists and what it is charged with. A mission statement defines why an organization exists; the organization's purpose

Objective : A goal to be achieved that is SMART :Specific, Measurable, Actionable ( Achievable or Agree Upon ),Realistic & has Time Frame (ends in a period of time) :results in an achievement

( Deliverables interim & final / Results / Output).

OLAP : An on-line analytic processing. Database methodology that

is a way to view multidimensional information. Software exists to

ease this process.

Operation :How ?

Operational Excellence (OE) :Doing an activity well.

Organizational resilience (Flexibility ) :The innate ( inherent – intrinsic ) ability of an organization to take change and make change without destroying the key strategic themes it is targeted toward .The strength in an organization that can change its strategic themes and see it reflected in actions and corresponding performance measures.

Performance measure : The methods to align ( Make Parallel) performance results to measures and to manage this process.

Performance measure dictionary : A document that collects,

describes, and manages all the descriptions and connections in a

set of measures of performance of a corporation.

Perspectives (P.) : BSC describes four main perspectives to consider in formulating strategic directions:

1. Financial perspective. Key financial objectives that define the

overall strategic themes achievement.

2. Customer perspective. Issues of value, competency, and customer related objectives.

3. Internal perspective. Operational, channel, and group objectives

that lead and support the financial and customer goals.

4. Learning and growth perspective. The objectives that feed all other

perspectives as the foundation (Enabler) for mobilizing and sustaining the organization is strategy realization .Prospectus شفاف – يرى من خلال

Return on Investment (ROI): In the private sector, the annual financial benefit after an investment minus the cost of the investment. In the public sector, cost reduction or cost avoidance obtained after an improvement in processes or systems, minus the cost of the improvement.

Rollover Function :features & functions give a good analytical picture.

SADT : Strategic Analysis & Design Technique. Graphical display (representation) language for Process (1.SADT ,2.ARIS).

SAP : Systems , Applications & products in Data Processing. ERP Solution ( Program – Software).

Software :

1.Microsoft Excel ( Spread sheet Solution e.g. Open Office. Org 3.1) with enabled Macros.

2. TAQAT ™ e-Strategic Business Management Suite www.taqat.com.eg info@taqat.com.eg TAQAT hotline: 010-909-808-5

Eng. Hesham Shata ,Business Development Manager ,

Mobile: 010-441-9969

3.QPR : www.qpr.com

Quality , Process & Results .Arabic Language Support .

4.ERP/SAP/SEM : Strategic Enterprise Management

5.ERP/SAP/CPM :Corporate Performance Management

SPACER : Safety ,Agenda ,Code of Conduct ,Expectations & Roles / Responsibilities .

SWOT :Strengths, weaknesses, opportunities, and threats ( 4th analysis التحليل الرباعي) analysis A method and framework of strategic competitive analysis that outlines strengths ,weaknesses, opportunities, and threats in the marketplace.

Strategy (S.):* Why ? strategy answers why? question.

Strategy is a dynamic process

Strategy (S.):3 categories : 1.Corporate S. ,2.Business S. & 3.Functional S.

STRATEGIC PLANS Fail is due to inadequate:1.Implementation Planning 2. Leadership Communication 3.Buy-in engagement / Rewards 4.Time & or Resources

Successful strategy 3 elements :- 1.Focus 2.Divergence 3.Compelling (convincing – persuasive )Tagline

Strategic Management (4 factors model) :1.Strategic Planning (External Environment) 2. Organization Structure & Culture

3. Strategic Control (Internal Environment) 4.Resources Demand & Allocation .

SBU :Strategic Business Unit

Strategic paradox (contradiction) النشاز:The syndrome in which the management team of an organization believes that strategy is being executed in one fashion while the real activities of an organization are performed

counter or different to the strategy.

Strategic positioning : Performing similar activities differently

while capturing customer attention and value ( Competitive Edge).

Strategic theme (Strategic Thrust{ force – power}):Key strategic objectives for differentiation ,focus , and market dominance (Sustainability).

Strategic variable: Key drivers and assumptions to strategy

themes that, once changed or altered, can affect the validity of the

strategy.

Strategy mapping :The process of linking all the strategic objectives

within the four perspectives into a cause-and-effect map.

Tactics :What ?

Target : A numeric or nonnumeric value representing a desired

result.

Task-relevant leadership :The leadership qualities that fit the

necessary skills required to complete a task.

Task-relevant readiness : The combination of characteristics that,

if taken together, forms the basis of being ready for transformation.

The elements that make this readiness are:

• Collect the ingredients to project ignition.

• Align the program to the organizational personality.

• Educate the enterprise.

• Move from agreement to commitment.

Threshold: (عتبة – حد ) A specified numerical value of a performance metric. Thresholds are often used to indicate changes from red to yellow to green (or other colors) in displays of performance data.

Value Proposition (Proposal- Offer) (Customer Value Proposition) : Usually associated with products and services, this is the emotional, symbolic, and practical residue after a customer envisions payment for a product or service. is the unique added value an organization offers customers through its operations; the logical link between action and payoff that the organization must create to be effective. Three aspects of the proposition include Product/Service Attributes (Performance/ Functionality considerations such as quality, timeliness or price), Image and Relationship.

Value: (1) Benefit per unit cost; (2) one of several general guiding principles that are to govern all activities.

Value-added (Added Value): Those activities or steps that add to or change a product or service as it goes through a process; these are the activities or steps that customers view as important and necessary.

Values : In contrast to a mission, which is why an organization exists,

the values are about how an organization wishes to exist.

Vision :The sight of the mind. An organizational vision is the

statement of what an organization sees as the state of the future.

What is GFSI

What is GFSI

The Global Food Safety Initiative (GFSI) is a non-profit making foundation, created under Belgian law in May 2000. The daily management of GFSI is undertaken by The Consumer Goods Forum.

GFSI benchmarks existing food standards against food safety criteria, and also looks to develop mechanisms to exchange information in the supply chain, to raise consumer awareness and to review existing good retail practices.

What does GFSI do?

Primarily Benchmarking

Within GFSI, benchmarking is a “procedure by which a food safety-related scheme is compared to the GFSI Guidance Document,” a copy of which can be found on www.globalfoodsafetyinitiative.com. The process is intended to be executed in an independent, unbiased, technically proficient and transparent manner. The GFSI Board Benchmarking a scheme successfully means that all recognized schemes have a common foundation of requirements which should provide consistent results, in regard to the common requirements applied during the audit, but the benchmarked schemes cannot be considered as equal.

Reductions in audits through common acceptance

Under the umbrella of GFSI, 8 major retailers came to a common acceptance of the GFSI benchmarked food safety schemes in June 2007.

Each scheme has now aligned itself with common criteria defined by food safety experts from the food business, with the objective of making food production and manufacture as safe as possible. As a result, this will also drive cost efficiency in the supply chain and reduce the duplication of audits. The GFSI vision of ‘once certified, accepted everywhere’ became a reality. In addition to the original retailers Carrefour, Tesco, ICA, Metro,
Migros, Ahold, Wal-Mart and Delhaize who agreed to reduce duplication in the supply chain through the common acceptance of any of the four GFSI benchmarked schemes, many other food service, retail and manufacturing companies have now joined this approach.

While GFSI encourages businesses within the retail, food service and manufacturing sectors to choose GFSI recognized schemes, these businesses can make individual choices whether or not to implement the program. Whilst choosing a GFSI recognized scheme may be a large investment for a business initially, the number of audits is expected to be reduced significantly after implementation. Additionally, an outside customer may require specific audits, but under the GFSI framework only one scheme would be required.

ISO 22000:2005: Control Measure

ISO 22000:2005: Control Measure إجراءات السيطرة

*Clause 8.2 Validation of control measure combination's.

* Annex C (informative) Codex references providing examples of control measures,

Including prerequisite programmes and guidance for their selection and use.

* Introduction: - Communication along the food chain is essential to ensure that all relevant food safety hazards are identified and adequately controlled at each step within the food chain. This implies communication between organizations both upstream and downstream in the food chain. Communication with customers and suppliers about identified hazards and control measures will assist in clarifying customer and supplier requirements (e.g. with regard to the feasibility and need for these requirements and their impact on the end product).

* Introduction: - Hazard analysis is the key to an effective food safety management system, since conducting a hazard analysis assists in organizing the knowledge required to establish an effective combination of control measures.

* This International Standard allows an organization (such as a small and/or less developed organization) to implement an externally developed combination of control measures.

* Definition 3.7 control measure: (Food Safety) Action or activity that can be used to prevent or eliminate a food safety hazard (3.3-Food Safety Hazard: biological, chemical or physical agent in food, or condition of food, with the potential to cause an adverse health effect) or reduce it to an acceptable level.

* Definition 3.12 Monitoring: conducting a planned sequence of observations or measurements to assess whether control measures (3.7) are operating as intended

* Definition 3.15 Validation: (Food Safety) Obtaining Evidence That the Control Measures (3.7) managed by the HACCP plan & by the operations PRPs (3.9) are capable of being effective.

*Definition 3.9: PRPs: operational prerequisite programme PRP (3.8) identified by the hazard analysis as essential in order to control the likelihood of introducing food

Safety hazards (3.3) to and/or the contamination or proliferation of food safety hazards in the product(s) or in the processing environment

  • Internal Communication 5.6.2 .i: knowledge regarding food safety hazards and control measures;
  • 7.3.5 Flow diagrams, process steps and control measures
  • 7.3.5.2 Description of process steps and control measures
  • The existing control measures, process parameters and/or the rigorousness with which they are applied, or procedures that may influence food safety, shall be described to the extent needed to conduct the hazard analysis (see 7.4).
  • External requirements (e.g. from regulatory authorities or customers) that may impact the choice and the rigorousness of the control measures shall also be described.
  • 7.4.1 General: The food safety team shall conduct a hazard analysis to determine which hazards need to be controlled, the degree of control required to ensure food safety, and which combination of control measures is required.
  • 7.4.4 Selection and assessment of control measures: Based on the hazard assessment of 7.4.3, an appropriate combination of control measures shall be selected which is capable of preventing, eliminating or reducing these food safety hazards to defined acceptable levels. In this selection, each of the control measures as described in 7.3.5.2 shall be reviewed with respect to its effectiveness against the identified food safety hazards. The control measures selected shall be categorized as to whether they need to be managed through operational PRP(s) or by the HACCP plan.
  • 7.4.4.c : its place within the system relative to other control measures;
  • 7.4.4. d. : the likelihood of failure in the functioning of a control measure or significant processing variability;
  • 7.4.4. f :whether the control measure is specifically established and applied to eliminate or significantly reduce the level of hazard(s);
  • 7.4.4.g: Control measures categorized as belonging to the HACCP plan shall be implemented in accordance with 7.6. Other control measures shall be implemented as operational PRPs according to 7.5.
  • 7.5. Establishing the operational prerequisite programmes (PRPs)

b: control measure(s) (see 7.4.4);

  • 7.6.1 HACCP plan

b) Control measure(s) (see 7.4.4)

  • 7.7 Updating of preliminary information and documents specifying the PRPs and the HACCP

e) Control measures (see 7.3.5.2).

  • 7.10.3.2 Evaluation for release

b) evidence shows that the combined effect of the control measures for that particular product complies with the performance intended (i.e. identified acceptable levels as identified in accordance with 7.4.2);

  • 8: Validation, verification and improvement of the food safety management system 8.1 General: The food safety team shall plan and implement the processes needed to validate control measures and/or control measure combinations, and to verify and improve the food safety management system.
  • 8.2 Validation of control measure combinations : Prior to implementation of control measures to be included in operational PRP(s) and the HACCP plan and after any change therein (see 8.5.2), the organization shall validate (see 3.15) that a) the selected control measures are capable of achieving the intended control of the food safety hazard(s) for which they are designated, and b) the control measures are effective and capable of, in combination, ensuring control of the identified food safety hazard(s) to obtain end products that meet the defined acceptable levels. If the result of the validation shows that one or both of the above elements cannot be confirmed, the control measure and/or combinations thereof shall be modified and re-assessed (see 7.4.4). Modifications may include changes in control measures (i.e. process parameters, rigorousness and/or their combination) and/or change(s) in the raw materials, manufacturing technologies, end product characteristics, methods of distribution and/or intended use of the end product.
  • 8.5.1 Continual improvement: Top management shall ensure that the organization continually improves the effectiveness of the food safety management system through the use of communication (see 5.6), management review (see 5.8), internal audit (see 8.4.1), evaluation of individual verification results (see 8.4.2), analysis of results of verification activities (see 8.4.3), validation of control measure combination's (see 8.2), corrective actions (see 7.10.2) and food safety management system updating (see 8.5.2).