This unit applies to an environment where a team is operating in a manufacturing enterprise and the competitive manufacturing strategy of the enterprise is the balanced scorecard. The team leader is required to use balanced score card information to lead, assist and motivate team members and suggest improvements to both team effectiveness and the balanced score card strategy.

This unit requires the application of skills associated with communication, teamwork, problem solving, initiative, enterprise, planning and organising in order to provide leadership in the interpretation, review and strategic response to balanced score card results. This unit has a strong emphasis on identifying and planning required performance measures and requires an ability to use new information to improve performance.

ELEMENT

PERFORMANCE CRITERIA

1. Interpret balanced score card results.

1.1. Identify pattern(s) of performance shown on strategy map

1.2. Identify actions indicated by score card results

1.3. Discuss results with team members and other relevant stakeholders

1.4. Develop required actions with team members

1.5. Develop implementation plans with team members

1.6. Facilitate the implementation of required actions from developed plans

1.7. Follow up on implementation to ensure it occurs as planned

2. Review key performance indicators (KPIs) in the balanced scorecard for the enterprise and the team

2.1. Relate team key performance indicators to strategy map/strategic objective

2.2. Review the actions required by team members to meet each key performance indicator

2.3. Compare current team actions to the optimal actions to achieve strategy

2.4. Discuss with team modifications to key performance indicators which will better meet strategy

2.5. Recommend amendments to key performance indicators to relevant personnel

3. Review reporting systems for balanced scorecard information

3.1. Review reports to ensure information needed by team and enterprise is available

3.2. Review the mix of operational and strategic information to ensure it is appropriate to the needs of the team

3.3. Review information provided for relevance and currency, and that it is meaningful and not excessive.

3.4. Recommend improvements to reports and reporting system as appropriate

4. Lead improvement to team total performance

4.1. Compare actual total team performance with desired total performance using key performance indicators and other balanced scorecard information

4.2. Discuss with team ways of improving total team performance

4.3. Lead processes for improvement in team total performance.

Required skills:

identifying key performance indicators and their application at the team level

analysis

problem solving

teamwork

planning and organising

negotiating

communication

documenting

Required knowledge:

components of the balanced score card including perspectives, feedback loops, metrics and reporting systems

responsibilities of team personnel in a balanced scorecard strategy

The Evidence Guide describes the underpinning knowledge and skills that must be demonstrated to prove competence. It is essential for assessment and must be read conjunction with the performance criteria, the range statement and the assessment guidelines of the relevant Training Package

Overview of assessment requirements

Assessment should occur on the job in an environment where the balanced scorecard is being used to improve manufacturing performance.

What critical aspects of evidence is required to demonstrate competency in this unit?

Evidence of the use of a balanced score card should be available

In what context should assessment occur?

Assessment will need to occur in an organisation which is using or developing a balanced score card approach as a competitive manufacturing strategy

Are there any other units which could or should be assessed with this unit or which relate directly to this unit?

This unit could be assessed concurrently with other relevant units.

What method of assessment should apply?

Assessors must be satisfied that the person can consistently perform the unit as a whole, as defined by the elements, performance criteria, skills and knowledge. A holistic approach should be taken to the assessment.

Assessors should gather sufficient, fair, valid, reliable, authentic and current evidence from a range of sources. Sources of evidence may include direct observation, reports from supervisors, peers and colleagues, project work, samples, organisation records and questioning. Assessment should not require language, literacy or numeracy skills beyond those required for the unit.

The assessee will have access to all techniques, procedures, information, resources and aids which would normally be available in the workplace.

The method of assessment should be discussed and agreed with the assessee prior to the commencement of the assessment

What evidence is required for demonstration of consistent performance?

Generally use of a balanced score card at the team level over a period of time would be needed to generate sufficient evidence. It is unlikely that a single assessment event would provide sufficient evidence and project and portfolio approaches may be appropriate.

What are the specific resource requirements for this unit?

Access to an organisation using the balanced scorecard approach.

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Balanced scorecard

The balanced scorecard is an approach to competitive manufacturing that sets out an enterprise's vision and strategy by establishing and measuring enterprise activity in a number of different perspectives in addition to the normal financial perspective. Other perspective areas are customer, environmental, internal business process and learning and growth. For each perspective area the balanced scorecard emphasises establishing and measuring performance (metrics)..

Actions indicated

Actions indicated may include:

corrective action for poor results

confirming action for acceptable results

taking steps to ensure actions for good results are consistently maintained

changes to performance indicators or performance measurement

Unit Sector

CM Systems

This unit contains employability skills.