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This document discusses the evolution of Amanco's use of a sustainable balanced scorecard as an internal strategic management tool over several stages:
1) An initial scorecard with metrics tied to financial perspectives.
2) Adoption of a balanced scorecard in the 1990s addressing financial, customer, internal and learning perspectives but not sustainability.
3) Evolution to a sustainable balanced scorecard in the 2000s integrating sustainability into existing perspectives or with an additional perspective.
Amanco's scorecard continued developing over time to better link sustainability to strategy, value creation, and ultimately executive compensation.
This document discusses the evolution of Amanco's use of a sustainable balanced scorecard as an internal strategic management tool over several stages:
1) An initial scorecard with metrics tied to financial perspectives.
2) Adoption of a balanced scorecard in the 1990s addressing financial, customer, internal and learning perspectives but not sustainability.
3) Evolution to a sustainable balanced scorecard in the 2000s integrating sustainability into existing perspectives or with an additional perspective.
Amanco's scorecard continued developing over time to better link sustainability to strategy, value creation, and ultimately executive compensation.
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This document discusses the evolution of Amanco's use of a sustainable balanced scorecard as an internal strategic management tool over several stages:
1) An initial scorecard with metrics tied to financial perspectives.
2) Adoption of a balanced scorecard in the 1990s addressing financial, customer, internal and learning perspectives but not sustainability.
3) Evolution to a sustainable balanced scorecard in the 2000s integrating sustainability into existing perspectives or with an additional perspective.
Amanco's scorecard continued developing over time to better link sustainability to strategy, value creation, and ultimately executive compensation.
Авторское право:
Attribution Non-Commercial (BY-NC)
Доступные форматы
Скачайте в формате PPT, PDF, TXT или читайте онлайн в Scribd
Evolution of an internal strategic management tool
Professor Doug Cerf
Donald Bren Graduate School of Environmental Science and Management Environmental Accounting &Financial Management (ESM 284) Spring 2007 Evolution of an internal strategic management tool
• Stage #1 Metrics tied to strategy
– Metrics financial – Investments in long-term capabilities and customer relationships were not critical for success • Stage #2 Balanced Scorecard (the early 90’s) – Financial, customer, internal processing, learning and growth perspectives – Investments in sustainability were not critical to create shareholder value • Stage #3 Sustainable balanced scorecard (mid 2000) – Evolves over time within a firm as we observe in the Amanco case
Printed on recycled paper-actually
better, not printed at all Sustainable Balanced Scorecard
• Possible methods to integrate sustainability
into Balanced scorecard – Sustainability aspects integrated in the existing four standard perspectives. – An additional perspective added to take environmental and social aspects into account – A separate scorecard should only be used to augment the previous two options Printed on recycled paper-actually better, not printed at all Sustainability Scorecard System
• “Our strategy is the best for sustainable
creation of value” » Amanco’s founder
• Simultaneously maintain a sustainable
strategy and an increase in profitability – Earnings increased from $520 to $700 million from 2001 to 2006
Printed on recycled paper-actually
better, not printed at all • Amanco executive started the World Business Council for Sustainable Development – Coined the term eco-efficiency • Adding greater value to goods and services while using fewer resources and generating less waste and pollution – Developed GHG accounting and reporting standard with the World Resource Institute Printed on recycled paper-actually better, not printed at all • Evolution of Amanco’s sustainable scorecard follows….
Printed on recycled paper-actually
better, not printed at all Amanco’s first Sustainability scorecard (2001) • Class discussion of Exhibit 7 • Identify perspectives • Explain the level of integration of sustainability • Objectives in each block – Translated into action plans – Details responsibility – Determine necessary resources need for each objective • Action plans revised quarterly • Action plans thoroughly discussed with middle management
Printed on recycled paper-actually
better, not printed at all Amanco’s Triple Bottom Line Sustainability Strategy Map (2002) • Previous version did not present the triple bottom line concept as an element for competitive advantage, development and value creation • Class discussion of Exhibit 8 • Strategy management committee met quarterly to learn from the scorecard • Link of sustainability scorecard to compensation to improve accountability Printed on recycled paper-actually better, not printed at all Revised Sustainability Strategy Map (2005) • Class discussion of Exhibit 9 • Connect sustainability scorecard to value creation • Economic value added – profits after subtracting the expected return to shareholders • Goal to increase EVA $4.6 million per year beginning in 2005 • Local sustainability scorecards developed in countries and divisions – Local scorecards aligned with corporate scorecard
Printed on recycled paper-actually
better, not printed at all Linking Sustainability to Compensation • Managers must be motivated to act upon new information • Financial, environmental and social metrics have significant influence on employee awards • Employees that do not reach the target do not receive the reward for that dimension • Compensation link sporadically implemented because labor laws varied by country Printed on recycled paper-actually better, not printed at all Selected Indicators (Exhibit 10) • For each indicator the unit, source, responsible party, methodology, frequency and classification are determined • Indicators – Economic • Change in economic value added – Social • External ranking of the 150 best places to work – Environmental • Savings as a result of environmental efficiency