Palladium Group Announces 2014 Winners Of The Palladium Balanced Scorecard Hall Of Fame For Executing Strategy®
BOSTON, Oct. 30, 2014 /PRNewswire/ -- Celebrating its fifteenth annual ceremony, Palladium Group, Inc. announced today new inductees into the 2014 Palladium Balanced Scorecard Hall of Fame for Executing Strategy. The ceremony honoring award winners opened Palladium's annual Global Summit, taking place in Boston on October 29-30.
The Hall of Fame honors organizations that have achieved outstanding performance using the Balanced Scorecard, a strategy management framework created by Palladium founders Drs. Robert Kaplan and David Norton. Past honorees include 194 organizations from nearly 40 countries, including corporations, government entities, and non-profits.
Palladium CEO John McClellan said, "Fourteen winners, twelve countries, five continents: These are organizations that have achieved true mastery. Joining the Hall of Fame is a prestigious global honor, awarded to a very limited number of elite organizations who have achieved and sustained breakthrough performance through use of the Kaplan-Norton Strategy management system."
The 2014 winners are:
ARASCO Feed – ARASCO Feed, a division of Saudi Arabian agricultural giant ARASCO, led the company's implementation of the Balanced Scorecard as the first business division to adopt the framework four years ago. Since then, their return on capital employed has grown by nearly 300%, the number of markets served has multiplied seven fold, on-time delivery has grown by one third, and staff turnover has dropped by 25%. ARASCO Feed is leading the way toward a more secure and sustainable future for the region.
BNDES – When the Brazilian economy entered a new development cycle in 2007, the Brazilian Economic and Social Development Bank (BNDES) played a fundamental role in stimulating the expansion of industry and infrastructure in the country. By balancing the objectives of expanding disbursements and of maintaining financial sustainability, BNDES achieved a default rate of less than 1 percent. Since 2007, BNDES has created an average of 4.2 million jobs a year, increased disbursements on innovation projects from $144 million USD to $3.2 billion USD in 2013, and grew the number of small and mid-sized businesses they support by over six-fold.
Brisa – Brisa, a Turkish tire manufacturer and distributor, began using the Balanced Scorecard in 2003, but determined in 2010 that internal implementation challenges had limited its potential. After an in-depth self-examination, Brisa updated their vision, restructured their planning process, and reduced the KPIs underlying their scorecard from 1,300 to 400. Since 2010, net sales revenue grew 65% and net profit grew by 250%, customer satisfaction grew by 20%, and the rate of undesirable production incidents was cut nearly in half.
Britam – Britam, a leading diversified financial services group in Eastern Africa, introduced the Balanced Scorecard in 2008. The scorecard has enabled the Group to link corporate strategy with key performance indicators for each of its companies, divisions, and departments across the Group, and to link strategy to individual employees. Since 2009, assets have grown by 143% and gross revenue has grown by 187%, customer retention has doubled, the company has expanded into seven additional countries, and employee satisfaction has grown by nearly 20%.
Gerencia de Centrales Nucleoelectrica - Mexico's Laguna Verde Nuclear Power Plant implemented the Balanced Scorecard in 2008, enabling alignment of operational measures and strategic objectives. Immediate benefits included a reduction in "wasted" time spent in meetings, better prioritization of and follow-up on issues, and improved performance and root cause analysis. Since 2008 the unit cost of production has declined by 34%, EBITDA has more than doubled, customer contracts have grown by over 30%, reliability and safety have increased, and training and quality of work life have improved for the work force.
Dubai Airport Free Zone Authority - The Dubai Airport Free Zone Authority (DAFZA) contributes to growth of the United Arab Emirates' economy by attracting foreign direct investment. In 2010, new entrants in the regional free zones market threatened DAFZA's number one market position, spurring the introduction of the Balanced Scorecard. Between 2010 and 2013, growth in revenue increased from 2% to 42%, the rate of customer turnover decreased by half, customer dissatisfaction decreased by 15%, and employee dissatisfaction decreased by 29%.
Government of New Brunswick - In 2011, the Government of New Brunswick, Canada undertook a significant "Government Renewal" exercise with the stated goal: "To ensure the Government of New Brunswick is able to provide appropriate and affordable services to the citizens of New Brunswick." The benefits of selecting the Balanced Scorecard to achieve this goal began to show up in the first quarter of the first reporting year and the results have been impressive: over the past two years the cost per capita of delivering services has dropped by nearly 5%, the job quality index has improved by 5%, private sector job growth has swung from a negative to a positive, the expense budget is running a surplus, and employee engagement has grown by 18%.
Jeddah Municipality - The second largest city in Saudi Arabia, Jeddah faces challenges common to modern cities: population growth, environmental stress, infrastructure challenges, and bureaucracy. It became apparent that a strategy, and a methodology to execute it, were needed to break through the limitations it was facing. Since adopting the Balanced Scorecard, the level of citizen satisfaction with city services has improved by nearly 300%, dengue fever has nearly been eradicated, evaluation of city cleanliness has improved 80%, the percent of cleaning projects completed has doubled, and employee satisfaction has more than doubled.
Kelda Water Services (Defence) - Kelda Water Services is a public-private partnership that provides potable water, treats waste water, and provides fire-fighting systems to more than 1,000 locations in the UK. In 2009 Robert Marrill, formerly of Hall of Fame winner HSBC Rail, became CEO and elected to use this framework to transform an underperforming business. Over the first four years of implementation the IRR grew by 20%, profitability of new business ventures grew over 400%, the volume of water not sold at the end of a period was reduced by 35%, and human capital readiness increased by 30%.
Ministry of Interior – MOI is been the federal authority dedicated to fully integrating all police and security systems in the UAE. Following the successful implementation of the BSC in two of the seven emirates (Abu Dhabi Police and Dubai Police, both members of the Hall of Fame), MOI committed to implementing the BSC across the entire Ministry. Since 2009, MOI has achieved hard benefits such as the reduction of road collision casualties, the reduction in crime, a reduction in residency violators, along with high levels of public satisfaction. Road fatalities dropped by 18%, serious crime dropped by 7%, the percentage of the public not feeling safe and secure dropped by 34%, and electronic readiness grew by 30%.
Mtel – Facing an intensely competitive, saturated market and continuous technology change, Mtel, one of three national telecom operators in Bosnia and Herzegovina, decided that the only path to success was to focus on strategy and change management. They adopted the Balanced Scorecard in 2011 and, since then, have enjoyed success by retaining or improving their market leadership position of 35% in fixed telephony, 42% in mobile telephony, 23% in broadband market, and 23% in bundled services. Since 2011 they have enjoyed a 54% growth in revenue from new services, new service customers have more than doubled, time to market has improved by 25%, and employee loyalty has improved by 20%.
Ozarks Electric Cooperative – Ozarks Electric Cooperative is a member-owned electricity provider serving several counties in Arkansas. A downward trend in member satisfaction – Ozarks Electric's most valued performance metric – prompted their adoption of the Balanced Scorecard in 2008. Since then Ozarks Electric has achieved a three-year average American Customer Satisfaction score of 92 and set a national record of 96 in 2012. Planning is now implemented cross-departmentally to accomplish long-term, unified goals. Affordability has improved by 100%, the number of dropped calls per month has been reduced by two thirds, the length of time a customer is without power during a service disruption was reduced by 73%, and lost work days dropped to zero.
Savant Pharm – Upon launching a new vision in 2005 – to generate higher margins for pharmacists and more affordable drugs for end consumers – Argentinian pharmaceutical company Savant adopted the Balanced Scorecard to manage and measure intangible assets and develop new internal capabilities. Growth resulted from focus on international business development, innovative market segmentation, and continuing efforts to provide more and better products. After eight years of BSC use (2005-2012) and completion of two successive strategic plans, Savant multiplied its revenue twelve-fold. Over this same period the number of active clients grew by a factor of ten, overall equipment effectiveness doubled, revenue per employee grew by 3.5 times, and employee satisfaction reached 80%.
TCS Business Process Services – In the nine years since its 2005 launch, Business Process Services, a division of Tata Consultancy Services, has moved from a new entrant to the Indian market leader. Aspiring to become the number one player in the world, it plans to continue its focus on realizing the full financial value of strategy through robust execution. These aspirations led to the adoption of the Balanced Scorecard in 2012. Since then, revenue has grown by 44%, share of global market has grown by 57%, its customer base has grown by 59%, cost savings via internal efficiency has improved by 134%, and the percentage of critical roles that were filled organically increased by over 300%.
ABOUT PALLADIUM
Palladium Group, Inc. is the global leader in helping organizations solve pressing strategy execution challenges. We are dedicated to understanding and addressing the strategic issues that drive successful results. Founded by Dr. Robert S. Kaplan and Dr. David P. Norton, we help clients achieve superior performance through a set of integrated consulting services. We deliver tangible results, building enduring internal capabilities with supporting technologies and education programs. Our approach combines expertise in proven strategy execution with integrated change management and leadership development programs. Our methods include the Execution Premium Process™ (XPP™), the Kaplan-Norton Balanced Scorecard™, and other best-practice frameworks that translate concepts into programs that deliver measurable results. The benefits of our approach are demonstrated in the Balanced Scorecard Hall of Fame for Executing Strategy®, which recognizes organizations that improve performance through outstanding execution. Our offices located throughout the Americas, Europe, the Middle East, and Asia-Pacific enjoy a successful track record with over 700 clients. www.thePalladiumGroup.com
SOURCE Palladium Group, Inc.
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