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
- Preparations include studying company strategy, going through the existing method of achieving strategic goals, performance dashboards etc.
- Three days workshops for the leadership team to convert strategy into actionable initiatives. Outcomes include Corporate level dashboards including Objectives, KPIs, Initiatives etc.
- Cascading to business units e.g. Marketing, Sales, Manufacturing, Quality, Supply Chain, IT, HR, Finance etc. through workshops
- Automating BSC through visualizing Strategy Map, Objectives, KPIs, Strategic initiatives etc. on QuickScore with Spider Impact®.[/fusion_text]
- Using BSC Dashboards to drive monthly performance review
- Tweak and refine KPIs after six months
- Once established, incorporate BSC KPIs into Organization’s performance management system for individuals
- CEO Leadership
- Establish Balanced Scorecard (BSC) as the only way to measure the success of the organization in delivering on the strategy
- 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.
- Address Fear – Implementing BSC can unsettle some senior executives. The CEO needs to take them into confidence
- Patience – BSC implementation is a journey. The technical part gets over in 3 months but results start taking shape after a year
- Technology adoption – Automate Balanced Scorecard through using an appropriate tool e.g. Spider Impact®.
- Strategy Management Office – Establish a Strategy Management Office
- Cascade – Cascade BSC principles, at least up to the level of Managers, across the organization
- 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
