Balanced Scorecard for Strategy Execution

Balanced Scorecard for Strategy Execution 2018-10-26T10:04:19+00:00
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Balanced Scorecard for Strategy Execution

Implementing Strategy through Balanced Scorecard Methodology

Balanced Scorecard (BSC) is a widely accepted management system to implement the strategy that results in performance management in organizations across various industries. Having experienced the wonderful results of BSC approach, we strongly recommend this management system to our clients.

We follow the Balanced Scorecard approach to set, track and achieve your key business strategies and objectives through tracking four key aspects: Customer, Financials, Internal Process, Knowledge & Learning. We must point out that BSC is a very easy to understand concept but needs experienced skilled people to implement it right. Following a wrong measure can lead the whole organization on an undesirable, and often irreversible, path.

Balanced Scorecard Engagement

  1. Preparations include studying company strategy, going through the existing method of achieving strategic goals, performance dashboards etc.
  2. Three days workshops for the leadership team to convert strategy into actionable initiatives. Outcomes include Corporate level dashboards including Objectives, KPIs, Initiatives etc.
  3. Cascading to business units e.g. Marketing, Sales, Manufacturing, Quality, Supply Chain, IT, HR, Finance etc. through workshops
  4. Automating BSC through visualizing Strategy Map, Objectives, KPIs, Strategic initiatives etc. on QuickScore – a tool from Spider Strategy
  5. Using BSC Dashboards to drive monthly performance review
  6. Tweak and refine KPIs after six months
  7. Once established, incorporate BSC KPIs into Organization’s performance management system for individuals
  1. CEO Leadership
    1. Establish Balanced Scorecard (BSC) as the only way to measure the success of the organization in delivering on the strategy
    2. Drive Change – BSC implementation brings Awareness, Desire, Knowledge for change.  Strategic Initiatives then enhance organization’s abilities and routing resources commitment to Initiatives through budgeting cycle brings reinforcement.
    3. Address Fear – Implementing BSC can unsettle some senior executives. The CEO needs to take them into confidence
  2. Patience – BSC implementation is a journey. The  technical part gets over in 3 months but results start taking shape after a year
  3. Technology adoption – Automate Balanced Scorecard through using an appropriate tool e.g. QuickScore from Spider Strategy
  4. Strategy Management Office – Establish a Strategy Management Office
  5. Cascade – Cascade BSC principles, at least up to the level of Managers, across the organization
  6. Communicate – Communicate profusely about the principles and advantages of BSC across the organization
  • Premium on Execution – Translate strategy into action for frontline
  • Organizational Alignment – Row the boat in the same direction
  • Balance – Keep the performance management system balanced
  • Focus – ZERO distraction
  • Measurement – Fail fast and change to win
  • Preparation – Future proof organization
Balanced Scorecard for Strategy Execution

Balanced Scorecard Implementation

A mid size multinational Pharmaceutical Company

This provides a lot of clarity in terms of cross-functional working in matrix approach. The best parts of a workshop are that people are involved from all departments & all levels and SMART KPI’s are set with Brainstorming. In my opinion, this will provide phenomenon results/growth and will be sustainable for years.
—According to the COO

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Strategy Maps

Knowledge

Balanced Scorecard

Communicating Strategy with the Balanced Scorecard

David Norton – Balanced Scorecard framework

Using the Balanced Scorecard in Nonprofit Organizations

Books by Robert S. Kaplan and David p. Norton
  • The Balanced Scorecard: Translating Strategy Into Action
  • The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment
  • Alignment: Using the Balanced Scorecard to Create Corporate Synergies
  • The Execution Premium: Linking Strategy to Operations for Competitive Advantage
Other Books
  • Balanced Scorecards and Operational Dashboards with Microsoft Excel by Ron Person
  • Balanced Scorecard Step–by–Step: Maximizing Performance and Maintaining Results by Paul R. Niven
  • Balanced Scorecard: Step–by–Step for Government and Nonprofit Agencies by Paul R. Niven