The Challenge
TeleLink is the leading provider of turnkey network integration services in Bulgaria. As a strategic partner of Cisco Systems, IBM, Microsoft, Juniper, DELL, Huawei, BMC, and others, TeleLink has largely developed its services in the sphere of fixed and mobile telecommunications. The Company has consistently achieved high revenue growth with a five year CAGR of 85%. This growth has been a catalyst for its international expansion into five countries throughout Southeast Europe.
Forem Consulting was selected to develop and implement a balanced scorecard system in line with TeleLink’s corporate strategy. The objective was to develop a pragmatic tool that could be used to strategically measure, analyze, and manage company performance by enhancing informed decision-making in order to increase the potential of providing value to clients and shareholders.
The Approach
Stage 1 – Identification of Strategic Dimensions and Goals
Forem initiated the project with a thorough review of TeleLink’s strategic goals and identification of the Company’s strategic dimension. This was followed by an independent review of the key business processes integrated within the company and within each strategic dimension. Together with company management, Forem facilitated the creation of precisely defined Key Success Factors (KSFs), which correspond to TeleLink’s strategic goals. Each KSF was linked to a dimension and then arranged on a strategic map showing the cause-and-effect relationship between related pairs of KSFs.
Stage 2 – Conceptual Design of the Balanced Scorecard System
Based on the preceding evaluation, Forem consultants and TeleLink management created a carefully conceived set of Key Performance Indicators (KPIs) intended to objectively measure the progress towards achieving the KSFs. KPIs were deliberately designed to facilitate straightforward measurement and analysis. KPIs were documented by defining characteristics such as relative weight, target, method, and frequency of measurement. The strategic map together with the KPI documentation comprises the conceptual design of the Balanced Scorecard System.
Stage 3 – Technical Design of the Balanced Scorecard System
Based on the conceptual design of the system, Forem Consulting utilized data collection tools and a scoring model. Data collection tools were created for each KPI owner to enable the calculation of KPI values. These tools were tailored to accommodate different frequencies of measurement, provide analysis by business unit, and deliver structured data that could be easyily imported into the scoring model.
The scoring model is the technical tool of the Balanced Scorecard System. KPI values are plugged in, data is processed, and results are displayed in various tables, graphs, and dashboards. The structure of the core model includes sections for model settings, raw data, data calculations, reports, graphs, and dashboards. Forem’s model was designed to be highly flexible to the individual characteristics of KPIs, to minimize user action and simplify data input, and to provide thorough, intuitively structured output for analysis.
The Outcome
The Balanced Scorecard System is intended to change the way TeleLink establishes and communicates strategic goals. The adopted methodology and tools provide advisory feedback on how the Company can efficiently achieve its strategic goals and effectively communicate these goals across the entire organisation. The model Forem implemented also provides TeleLink with the possibility of detailed historical analysis through data tables, statistics, graphs and dashboards. This enables companywide challenges to be highlighted using specific KPIs during precise time periods in order to identify the source and cause of problems.
The performance management system has broad support among TeleLink management and will serve as a strategic tool for informed decision making. This empowers TeleLink to take corrective action and ensure problems do not deteriorate client service or stakeholder value.
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