The document summarizes a presentation on strategic thinking and alignment. It discusses analyzing the current business landscape using SWOT analysis and translating strategy into operational terms using a balanced scorecard framework. It also provides examples of how two companies, Max India and GlaxoSmithKline, have aligned their human resources strategies to their business strategies.

1. NHRDN Workshop – 1 st October’10 Presented by: P. Dwarakanath Director – Group Human Capital Max India Ltd. “ Strategic Thinking and Alignment”

9. There is Paradigm Shift …. FROM What business are we in? TO What capabilities do we bring to the businesses we are in now that can serve as foundation upon which future businesses can be built?

24. Balanced Scorecard : Four Perspectives The Balanced Scorecard is a way of using financial and non-financial measures to provide a well-rounded perspective on past performances as well as an indication of future performance Financial How do we look against the financial objectives of our owners? Customer How do we look to the customers that we want to attract? Learning & Growth How do we get better at improving? Internal Process What must we excel at for our customers? Main Driver of Performance Secondary Influence Mission Values Vision

25. Balanced Scorecard and Strategy (….1/2) Vision Why we exist? Core Values What we believe in? Mission What we aspire for? Strategy How do we plan to achieve this? Strategic Initiatives What we need to do? Balanced Scorecard Implementation and focus Personal Objectives What I need to do? Satisfied Stakeholders Delighted Customers Effective Processes Motivated People Our desired future state Differentiating activities To-do’s to implement our strategy Measuring & tracking strategic success The Balanced Scorecard provides a framework to translate vision and strategy into operational terms

26. Balanced Scorecard and Strategy (….2/2) The Strategy Financial Perspective If we succeed, how do we look to our shareholders Customer Perspective To achieve my vision, how must we look to our customers Internal Perspective To satisfy our customers, at what processes must we excel Organizational Learning To achieve my vision, how must my organization learn & improve The Balanced Scorecard provides a framework to translate vision and strategy into operational terms

27. BSC: Aligning performance to strategy Measure business performance using a set of key result areas that are based on business drivers and linked to the business strategy Easy communication of strategy throughout the organisation Assist in the close alignment and prioritization of current and proposed strategic initiatives Assist in the definition of objectives and scope for key projects Improved employee satisfaction through aligned reward and recognition schemes and better two-way communication

28. BSC: Key Characteristics The Balanced Scorecard gives a well-rounded perspective to how an organisation manages performance in relation to its strategy 1 Gives managers an ability to view performance in several areas simultaneously 2 Limits the number of measures used, hence makes organization focus on critical measures 3 Lets company examine if changes in one area is at the expense of another 4 Brings diverse characteristics of performance in a single report

34. Performance Management Compliance Training Costs/Employees Employee Satisfaction Surveys Compensation Revenues Turnover Rate Time to Fill Openings Cost per Hire Cycle Time for Appraisal Process Average Employee Training Cost Absenteeism Rate Moving from Measuring What is Measurable….

35. Financial Perspective How Do We Look to Stakeholders? Goals Measures Internal Process Perspective At What Must We Excel? Goals Measures Strategic Capability Perspective How Can We Continue To Improve and Create Value? Goals Measures Customer Perspective How Do Customers See Us? Goals Measures BSM … . To Measuring What is Desirable

36. What is our return on investment in people and people programs? Is our service delivery effective and efficient ? Are our human assets aligned with future needs? Are we reaching our customers? … . Begin by Asking Right Questions

38. The Max India Story

39. Max India: In the Business of Life VISION “ To be one of India’s most admired corporates for service excellence” Life Insurance Protecting Life Healthcare Caring for Life Clinical Research Improving Life Health Insurance Enhances Life Multi-business corporate I Focused on people and service “ IN THE BUSINESS OF LIFE ”

42. Creating Value 1. Knowledge of business reality 3. Building organizational capability 2. Servicing internal and external stakeholders 4. Creating value proposition for employees

43. Turning Great Strategy into Great Performance 1. Keep it Simple, make it Concrete 3. Use rigorous framework, speaks a common language 2. Debate assumptions, not forecasts 4. Discuss resource deployment early 5. Clearly identify priorities 6. Continuously monitor performance 7. Reward and Develop execution capabilities

44. The GlaxoSmithKline Story

47. We undertake our quest with the enthusiasm of entrepreneurs, excited by the constant search for innovation. We value performance achieved with integrity. We will attain success as a world class global leader with each and every one of our people contributing with passion and an unmatched sense of urgency. How we need to behave if we are to achieve our goal ?? GSK’s Spirit

52. Competencies - Leadership Development Clusters “ Love ideas” (Innovative thinking) Together (Engaging and developing others) Be a leader (Leading people) Be bloody amazing (Achieving excellence) Source: GSK in collaboration with CHPD

53. 12 High Performance Behaviours Innovative thinking Information search Creating business solutions Flexible thinking Engaging and developing others Leading people (Leading and inspiring people) Achieving excellence Teamwork Building relationships Developing people Influence Building confidence Communication Enable and drive change Continuous improvement Customer focus Cluster HPB Source: GSK in collaboration with CHPD

54. Winner Takes All… There are 4 kinds of people in this world: People who watch things happen… People who do not know what is happening… People to whom things happen… And a distinguished minority of… People who make things happen

55. Thank You