Why use the Balanced Scorecard?

  • Translate strategy to action, making strategy everyone’s job
  • Manage the intangible assets e.g. customer loyalty, innovation, employee capabilities
  • Leverage cross functionality without changing the structure of the business
  • Measure what matters: the critical few vs. the important many — in real-time and in anticipation, not just after the fact
  • Create a daily management system for the day-to-day navigation of the business

How to create a successful system?

  • Reach cross-functional agreement on strategic direction
  • Understand the cause and effect of linkages between strategy/process capability
  • Translate the strategy into staff’s “everyday speak”
  • Identify the measures of success; critical strategic initiatives; and process drivers
  • Set up accountability contracts
  • Cascade the Scorecard into the organization

What can you expect?

  • Alignment and focus of the organization around a common purpose and strategic direction
  • A set of balanced metrics
  • Resource prioritization and allocation
  • An on-going feedback mechanism to make real-time, mid-course adjustments to priorities
  • An effective audit and improvement mechanism for the organizational sources of strategy critical data
  • “Now I understand how I contribute to the business strategy — and the bottom line!”

 



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