YR 2013
Performance Excellence
Strategic Planning & the Balanced Scorecard
Strategy in Action!!
The Balanced Scorecard
Lean Model / Strategic Planning / BSC
Vision,
Mission,
Quality Policy,
Core Values
Vision
Mission
Quality Policy
Core Values
Strategic Business Planning Annual
(September Time Frame)
Strategic Business Planning
X-Ray Industries, Inc.
Annual Strategic Business Planning
Session
(Annual)
X-Ray Industries
Balanced
Scorecard
Monitor every third
Monday of the Month
Report Out BSC
results Quarterly
Business Units
Strategic
Business
Planning Session
Annual
Strategic Initiatives
Strategic Business Planning
Business Unit determine frequency as needed
Action Plans
Report Out
Action Plan Status
Strategic Initiatives
Action Plans
X-Ray Industries
One Page Translator
X-Ray Industries
Action Plans To
Support Initiatives
X-Ray Industries
Review Rocks /
Report Status
Determine Quarterly
Initiatives
X-Ray Industries
One Page Translator
X-Ray Industries
Action Plans To
Support Initiatives
Business Unit
Initiatives
Business Unit
Action Plans To
Support Initiatives
Business Units
Review Rocks /
Report Status
Determine Quarterly
Initiatives
Business Unit Rocks
Business Unit
Action Plans To
Support Initiatives
Business Unit Initiatives Support the
Corporate Direction as defined the
Annual SBP Sessions by
·
Corporate Initiatives
·
Customer Needs
·
Technology
·
Capacity / Resource Needs
Business Unit
Identifies
Performance
Indicators to
support BSC
Monitor every third
Monday of the Month
Report Out BSC
results Quarterly
1033 2.0 Director, Corporate Quality 11/28/2012
Performance Excellence
Business Unit Initiatives Support the
Corporate Direction as defined the
Annual SBP Sessions by
·
Corporate Initiatives
·
Customer Needs
·
Technology
·
Capacity / Resource Needs
Strategic Planning Process
The Strategic Planning
Process has been formally
documented and inputted
into the Quality Management
System.
This document is numbered
1033.
1033 is an auditable
procedure.
Performance Excellence
Strategic Planning Process
Purpose
Why we exist –
Beyond making money
To reduce the potential danger to
human life by ensuring the integrity
of our customers' products
Core
Ideology
Core Values
The few essential tenets that
is non-negotiable within the
organization, timeless and
unchanging.
Honesty, Integrity and Responsibility,
Service Focused Treating People with
Respect, Dignity, and Fairness
Commitment to Excellence, Individual
and Team Initiative, Personal and Team
Safety
September Timeframe
Vision
To be the leading NDT and
Surface finishing company in
the world
Mission
A competitive World
Class Organization
utilizing Continuous
Improvement
methodologies and
Employee Involvement in
support of our Core
Values and meeting
Customer’s Expectations
and our Financial
Commitment to the
Stakeholders
The Strategic Planning starts with;
1.
2.
3.
4.
5.
the purpose of the Organization
the Vision
Mission
Core Values
Quality System.
These documents and values define
the heart of the organization and who
they are. They are critical to the
foundation of the Strategic Business
Planning Sessions.
Performance Excellence
Strategic Planning Process
X-Ray Industries, Inc.
Annual Strategic Business
Planning Session
(Annual)
Sept Timeframe
X-Ray Industries
Balanced Scorecard
X-Ray Industries
Strategic Rocks
September Timeframe
X-Ray Industries
Action Plans To
Support
Initiatives
As illustrated through the process flow
Strategic Rocks are developed at the
Corporate level and are assigned deadlines
and targets. (these rocks are measured /
monitored using the Balanced Scorecard
(BSC)).
This process takes place in September and is
presented to the Business Unit Leaders
during a SBP meeting lasting 3 – 5 hours.
Business Unit Leaders have the opportunity
to ask questions for clarification of the rocks
and get direction for the upcoming year.
Performance Excellence
Strategic Planning Process
X-Ray Industries, Inc.
Annual Strategic Business
Planning Session
(Annual)
Sept Timeframe
Business Units
Strategic Business
Planning Session
X-Ray Industries
Strategic Rocks
September Timeframe
X-Ray Industries
Action Plans To
Support
Initiatives
X-Ray Industries
Balanced Scorecard
Business Unit
Identifies Performance
Indicators to support BSC
Monitor every third
Monday of the Month
Report Out BSC
results Quarterly
Performance Excellence
At the conclusion of the Annual September
meeting held by Corporate, the Business Unit
Leaders are assigned a date in which they
must present their Strategic Planning
Initiatives to support Corporates direction.
These initiatives include:
1. Safety
2. Quality
3. People / Human Resources
4. Performance Excellence
5. Cost Management
6. Financial
7. Strategic Growth
8. Systems Requirements
Strategic Planning Process
Business Units
Initiatives
September Timeframe
Business Unit
Action Plans to
support
Initiatives
Business Unit Initiatives Support the
Corporate Direction as defined by the
Annual SBP Sessions by;
·
Corporate Initiatives
·
Customer Needs
·
Technology
·
Capacity / Resource Needs
Every initiative has an action plan identifying
1. Action
2. Champion
3. Date Open
4. Date Closed
5. PE Category
6. Status
7. Comments / Results
Performance Excellence
Strategic Planning Process
X-Ray Industries
Review Rocks /
Report Status
Determine Quarterly
Initiatives
Business Units
Review Rocks /
Report Status
Determine Quarterly
Initiatives
Every Business Unit conducts
a formal Midyear review,
members of the Corporate
Team Participate in order to
see progress and offer
assistance to ensure BU
success.
Quarterly Report Outs
X-Ray Industries
Strategic Rocks
Business Unit Rocks
X-Ray Industries
Action Plans To
Support Initiatives
Business Unit
Action Plans To
Support Initiatives
Business Unit Initiatives Support the
Corporate Direction as defined by the
Annual SBP Sessions by
·
Corporate Initiatives
·
Customer Needs
·
Technology
·
Capacity / Resource Needs
Performance Excellence
Strategic Planning Process
Report Card
The above graphic illustrates a report card that will grade each
Business Unit on their performance as it relates to the
Strategic planning and the Initiatives.
Performance Excellence
Strategic Planning Process
Core
Ideology
Core Values
The few essential tenets
that is non-negotiable within
the organization, timeless
and unchanging.
Honesty, Integrity and Responsibility,
Service Focused Treating People with
Respect, Dignity, and Fairness
Commitment to Excellence, Individual
and Team Initiative, Personal and
Team Safety
Purpose
Why we exist –
Beyond making money
To reduce the potential danger to
human life by ensuring the integrity
of our customers' products
Vision
To be the leading NDT and Surface
finishing company in the world
Mission
A competitive World
Class Organization
utilizing Continuous
Improvement
methodologies and
Employee Involvement in
support of our Core
Values and meeting
Customer’s Expectations
and our Financial
Commitment to the
Stakeholders
Strategic Planning Roadmap
Strategic Planning Process
SWOT
Strengths
Weaknesses
Certified Personnel
Employee Loyalty
Nadcap Certifications
Prime Certifications
Quality System
Safety System
Ability to Train Internally
Company Commitment to grow the business
Financial Position
Overall Leadership
Customer Focused
Employee / People Focused
Core Values
Capacity (Multiple Processes)
Synergies Between Business Units
Business Launches (equipment , processes, certifications)
Corporate Support
Communication top down
Employee Knowledge, understanding the commitment of the
core values
Performance Excellence
6S Management By Site
Lack of understanding of the financials
Customer engagement
Performance Reviews (IPP vs Performance measures)
Succession & Development
Resistance to change
Landing new business / opportunities
Personnel documentation (performance, attendance & etc)
Contract Review Process & the understanding of the risks
Reputation
More 1:1 with Business Unit Managers
Forecasting Model
Lack of Training (Cross)
Lack of qualified personnel in the market place (to hire)
Strategic Planning Process
Opportunities
Growth in UT (Composites)
Growth in non-core NDT Methods
Performance Excellence
6S Management By Site
Improved Communications
Continuous Improvement
Mid-Level Leadership “from a growth and Learning”
perspective
DR / CR in Hampton & Zeeland
Automation in Zeeland
PCC in Cleveland
Additional Business / Acquisitions
Sales focus / Cleveland / Troy / South Carolina
N-Ray Replacement
Leadership Training
Customer Engagement
Capital Investment
Conversion to new processes (RT, CT vs DR &etc)
Growth through additional locations
Better utilization with IT systems(software) training
Better utilizations of Best Practices
Standardization of asset tagging
Better means of forecasting manpower dynamics / trainees
Improve Forecasting Models
Thermography Opportunities (Chromalloy, Alcoa, PCC)
SWOT
Threats
Customer Contracts (Lack of LTA’s)
Economy
Competition
Customer Downsizing/Closings
Customers losing market share
New Competition “players”
Key Individuals leaving the company
Not meeting financial expectations
Escapes (reputation, human life, suspect product)
Lack of Revenue prohibiting raises
Environmental (compliance, spill, waste water)
Silver process that are in our LTA’s
Year – over – Year pricing concessions / demands
Strategic Planning Process
“Rocks”
The Strategic Rocks are
measured in the Balanced
Scorecard as “P2 Strategic
Initiatives”.
Strategic Planning Process
3 Year
Metrics
Date: YR2015
“Rocks”
1 Year
Metrics
Date: YR2013
F1 Revenue:
F2 Operating Income:
F3 Conversion on Sales:
Growth in Revenue
F1 Revenue: $$
F2 Operating Income: $$
F3 Conversion on Sales: %
Key Thrusts (Top 3 – 5)
Key Initiatives (Top 5 – 10)
1. Pursue growth strategy:
Continue to expand XRI’s footprint
Co-location Model
Stand-alone facilities
2. Grow our markets in Thermography &
Training/Consulting
3. Convert from film to digital when
supported by Customers & Primes
4. Living Performance Excellence and
Supplier Excellence Alliance in all
divisions throughout X-Ray Industries
Safety Management System
Quality Management System
Human Resources
Performance Excellence / SEA
Cost Containment
Continuous Improvement
Growth
System Requirements
Financial Performance
Technology Enhancements
Strategic Planning Process
“Rocks”
X-Ray Industries, Inc. Top 5 Goals
1.
2.
3.
4.
5.
Customer Focus & Quality Management System
Workforce Engagement & Development
Safety & Environment
Growth Opportunities
Achieve Financial Results
Vivid Description of the Future
Global provider across Industries
The go to company in our key services (NDT / Nadcap Special Processes along with Consulting
& Training) – the market comes to us based on market and size.
Profitable growth through acquisition and expansion into world markets with NDT and Special
Processes without compromising our core values.
Employer of choice – respects employees and provides for an environment of advancement
and development, sense of security, and competitive wages and benefits.
The BSC is
Designed inline with the
initiatives
from the
Sept SBP
Meeting
Strategic Planning Process
The Balanced Scorecard
Strategic Planning Process
The Balanced Scorecard Methodology used at X-Ray Industries, Inc. was
developed by Robert Kaplan & David Norton, professors at the Harvard
Business School.
The concept behind the Scoreboard is to translate Strategic Planning into an
actionable model to monitor and measure an organizations performance as
it relates to their strategic business planning.
There are four perspectives:
However they are
These perspectives
1.Financial
measured from the
are built from the
2.Customer
bottom up!
top down!
3.Process
4.Learning & Growth
Measured
Built
Balanced Scorecard
The Balanced Scorecard
Lean Model
This model has been
designed as our Lean
Model as you can see the
criteria for Performance
Excellence, Supplier
Excellence Alliance and the
Balanced Scorecard have
been aligned.
The lean assessment tools
have been identified under
the Performance Indicators
category, aligning with the
Business Plan, BSC, PE.
Performance Excellence
The Balanced Scorecard
Balanced Scorecard (BSC)
The 2013 BSC has been
designed using the
“rocks” that were
initiated from the
Strategic Business
Planning meeting in
Sept 2012, and will
measure the years
Strategic Planning
Initiatives as set by the
Corporate Team and all
Business Units.
Performance Excellence
The Balanced Scorecard
Balanced Scorecard (BSC)
Take notice that all BSC
perspectives (Financial,
Customer, Process and
Learning & Growth)
have now been clearly
aligned with the
Performance Excellence
criteria.
Performance Excellence