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BALANCED BUSINESS 
SCORECARDS – BUILDING, 
IMPLEMENTING, ALIGNING AND 
SUSTAINING 
CHARLES COTTER 
3-6 NOVEMBER 2014
TRAINING PROGRAMME OVERVIEW 
 Introduction and Background 
 Defining the fundamental concepts 
 Defining the 4 perspect...
ORIGIN AND HISTORY OF THE BSC 
 It was originated by Drs. Robert Kaplan & David Norton (Harvard Business 
School) as a pe...
MODERN APPLICATION OF THE BSC 
 The “new” balanced scorecard transforms an organization’s strategic plan from 
an attract...
BSC MEASURES
OBJECTIVES OF THE BSC 
 Enables organizations to clarify their vision and strategy and translate them 
into action. 
 Al...
BSC PERSPECTIVES/DIMENSIONS 
 The balanced scorecard suggests that we view the organization 
from four (4) perspectives, ...
ILLUSTRATION: BSC 
PERSPECTIVES/DIMENSIONS
LEARNING, INNOVATION AND 
GROWTH PERSPECTIVE 
 Strategic question: 
 “To achieve our vision, how will sustain our abilit...
COMPONENTS OF LEARNING, 
INNOVATION AND GROWTH
BUSINESS (INTERNAL) PROCESS 
 Strategic question: 
 “To satisfy our shareholders and customers, what business processes ...
CUSTOMER PERSPECTIVE 
 Strategic question: 
 “To achieve our vision, how should we appear to our customers?” 
 Examples...
FINANCIAL PERSPECTIVE 
 Strategic question: 
 “To succeed financially, how should we appear to our shareholders?” 
 Exa...
DEFINING FUNDAMENTAL 
 Balanced Scorecard (BSC) 
 Strategic Planning 
 Strategic Plan 
 Strategic Management and Execu...
PURPOSES OF THE BSC 
 Articulate the business's vision and strategy 
 Identify the performance categories that best link...
STRATEGIC UTILITY AND FUNCTIONAL 
VALUE OF BSC’S 
 Clarify or update a business's strategy 
 Link strategic objectives t...
4-STEP STRATEGIC MANAGEMENT 
PROCESS
STRATEGY MAPPING 
 Strategy maps are communication tools used to tell a story of how 
value is created for the organizati...
ILLUSTRATION: STRATEGY MAP
SYNDICATE GROUP LEARNING 
ACTIVITY 1 
 Refer to page 25 in Learner Guide 
 By means of a cost-benefit analysis, develop ...
BEST PRACTICE GUIDELINES FOR 
 #1: BSC is aligned with organization’s strategic business plans 
 #2: BSC is future-focus...
BEST PRACTICE GUIDELINES FOR 
BSC 
 #8: BSC generates meaningful business intelligence which informs business 
planning a...
SYNDICATE GROUP LEARNING 
ACTIVITY 2 
 Refer to page 27 in Learner Guide 
 Critically evaluate your organization’s curre...
HIERARCHY OF BALANCED 
SCORECARD COMPONENTS 
 The balanced scorecard is a strategic planning and management system that 
...
ILLUSTRATION: HIERARCHY OF 
BALANCED SCORECARD COMPONENTS
THE 9-STEP BSC BUILDING AND 
IMPLEMENTING PROCESS
STEP 1: ASSESSMENT - INTERNAL AND 
EXTERNAL STRATEGIC ASSESSMENT 
 Step one of the scorecard building process starts with...
THE NATURE OF THE BUSINESS 
ENVIRONMENT – V-U-C-A
A WINNING STRATEGY 
 CAPITALIZE ON STRENGTHS 
 MINIMIZE WEAKNESSES 
 EXPLOIT OPPORTUNITIES 
 COUNTERACT THREATS
SYNDICATE GROUP LEARNING 
ACTIVITY 3 
 Refer to pages 32-34 in Learner Guide 
 By utilizing a SWOT Analysis Matrix and P...
STEP 2: STRATEGY - CUSTOMER VALUE, 
STRATEGIC THEMES AND RESULTS 
 In Step Two, elements of the organization’s strategy, ...
STRATEGIC THEMES 
 Strategic themes are the main, high-level business strategies that form the basis for the 
organizatio...
STRATEGIC RESULTS 
 Each theme has a “strategic result” associated with it - this is a statement of a desired 
end-state....
SYNDICATE GROUP LEARNING 
ACTIVITY 4 
 Refer to page 38 in Learner Guide 
 Refer to the preceding learning activities. A...
STEP 3: OBJECTIVES - STRATEGY 
ACTION COMPONENTS 
 The strategic elements developed in Steps one and two are 
decomposed ...
SYNDICATE GROUP LEARNING 
ACTIVITY 5 
 Refer to page 40 in Learner Guide 
 Refer to the preceding learning activities. A...
STEP 4: STRATEGY MAP - CAUSE-EFFECT 
 In Step Four, the cause and effect linkages between the enterprise-wide 
Strategic ...
EXAMPLE: STRATEGY MAP
EXAMPLE: STRATEGY MAP
SYNDICATE GROUP LEARNING 
ACTIVITY 6 
 Refer to page 43 in Learner Guide 
 Refer to the preceding learning activities. A...
STEP 5: PERFORMANCE MEASURES - 
MEASURES AND TARGETS 
 Leading and lagging measures are identified 
 Lagging indicators ...
GOOD PERFORMANCE MEASURES 
 Provide a way to see if our strategy is working 
 Focus employees' attention on what matters...
5 STEPS TO FIND THE RIGHT 
MEASURES
SYNDICATE GROUP LEARNING 
ACTIVITY 7 
 Refer to page 48 in Learner Guide 
 Refer to the preceding learning activities. A...
STEP 6: INITIATIVES - STRATEGIC 
PROJECTS 
 Strategic Initiatives are developed that support the Strategic 
Objectives. 
...
STRATEGIC PROJECT ACTION PLAN 
(TEMPLATE)
SYNDICATE GROUP LEARNING 
ACTIVITY 8 
 Refer to pages 49-50 in Learner Guide 
 Refer to the preceding learning activitie...
STEP 7: PERFORMANCE ANALYSIS - 
SOFTWARE, PERFORMANCE REPORTING AND 
ANALYSIS 
 The implementation process begins by appl...
SYNDICATE GROUP LEARNING 
ACTIVITY 9 
 Refer to page 51 in Learner Guide 
 Demonstration of the software applications fo...
STEP 8: ALIGNMENT - CASCADING TO 
UNIT AND INDIVIDUAL SCORECARDS 
 The organizational level scorecard (the first Tier) is...
3-TIER BALANCED SCORECARD 
CASCADING
SYNDICATE GROUP LEARNING 
ACTIVITY 10 
 Refer to page 53 in Learner Guide 
 Refer to the preceding learning activities. ...
STEP 9: EVALUATION - STRATEGY 
RESULTS AND REVISED STRATEGIES 
 During this evaluation, the organization tries to answer ...
STRATEGY EVALUATION – BSC 
FRAMEWORK
SYNDICATE GROUP LEARNING 
ACTIVITY 11 
 Refer to page 55 in Learner Guide 
 Refer to the preceding learning activities. ...
SUSTAINING THE BSC 
 Critical implementation success factors 
 Applying the control process
10 CRITICAL IMPLEMENTATION SUCCESS 
FACTORS 
 Balanced Scorecard is a transformation journey and change initiative, not a...
10 CRITICAL IMPLEMENTATION 
SUCCESS FACTORS 
 Align the organization, systems and employee performance around 
strategy t...
APPLYING THE CONTROL PROCESS
SYNDICATE GROUP LEARNING 
ACTIVITY 12 
 Refer to page 58 in Learner Guide 
 Refer to the preceding learning activities. ...
CONCLUSION 
 Summary of the key learning points 
 Questions 
 Conclusion 
 Good luck with the building, implementing, ...
CONTACT DETAILS 
 CHARLES COTTER 
 084 562 9446 
 charlescot@polka.co.za 
 LINKED IN 
 TWITTER: Charles_Cotter
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Balanced Scorecard - building, implementing, aligning and sustaining for optimal strategic results

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Balanced scorecard

  1. 1. BALANCED BUSINESS SCORECARDS – BUILDING, IMPLEMENTING, ALIGNING AND SUSTAINING CHARLES COTTER 3-6 NOVEMBER 2014
  2. 2. TRAINING PROGRAMME OVERVIEW  Introduction and Background  Defining the fundamental concepts  Defining the 4 perspectives of the Balanced Scorecard (BSC)  Building a business case for BSC  Diagnosis of Best Practice guidelines  Applying the 9-step, BSC building and implementing process  Sustaining the BSC
  3. 3. ORIGIN AND HISTORY OF THE BSC  It was originated by Drs. Robert Kaplan & David Norton (Harvard Business School) as a performance measurement framework that added strategic non-financial performance measures to traditional financial metrics to give managers and executives a more 'balanced' view of organizational performance.  These non-financial metrics are so valuable mainly because they predict future financial performance rather than simply report what’s already happened.  Their article (1996), describes how the balanced scorecard can help senior managers systematically link current actions with tomorrow’s goals, focusing on that place where, in the words of the authors, “the rubber meets the sky.”  Predecessors to the BSC:  Tableau de Bord (Dashboard)  Early Metric-Driven Incentives (MDIs)
  4. 4. MODERN APPLICATION OF THE BSC  The “new” balanced scorecard transforms an organization’s strategic plan from an attractive, but passive document into the "marching orders" for the organization on a daily basis.  It provides a framework that not only provides performance measurements, but helps planners identify what should be done and measured. It enables executives to truly execute their strategies.  Given the insight and wisdom provided by Kaplan & Norton, the balanced scorecard is a management system (not only a measurement system) that enables organizations to clarify their vision and strategy and translate them into action.  It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results.  When fully deployed, the balanced scorecard transforms strategic planning from an academic exercise into the nerve center of an enterprise.
  5. 5. BSC MEASURES
  6. 6. OBJECTIVES OF THE BSC  Enables organizations to clarify their vision and strategy and translate them into action.  Aligns business activities to the vision and strategy of the organization  Provides a balanced view of the organizational value and performance  Enables business planners to identify what should be done and measured, thus enabling effective execution of business strategies  Provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results  Monitors organization performance against strategic goals
  7. 7. BSC PERSPECTIVES/DIMENSIONS  The balanced scorecard suggests that we view the organization from four (4) perspectives, and to develop metrics, collect data and analyze it relative to each of these perspectives: Learning, Innovation and Growth Business (Internal) Processes Customer Financial
  8. 8. ILLUSTRATION: BSC PERSPECTIVES/DIMENSIONS
  9. 9. LEARNING, INNOVATION AND GROWTH PERSPECTIVE  Strategic question:  “To achieve our vision, how will sustain our ability to change and improve?”  Examples (measurable indicators):  Time to develop new generation of products  Life cycle to product maturity  Time to market versus competition  Is there the correct level of expertise for the job?  Employee turnover  Job satisfaction  Training/Learning opportunities  Value Outcome:  Organizational knowledge and growth capacity
  10. 10. COMPONENTS OF LEARNING, INNOVATION AND GROWTH
  11. 11. BUSINESS (INTERNAL) PROCESS  Strategic question:  “To satisfy our shareholders and customers, what business processes must we excel at?”  Examples (measurable indicators):  Cycle time  Unit cost  Yield  New product introductions  Number of activities per function  Duplicate activities across functions  Process alignment (is the right process in the right department?)  Process bottlenecks  Process automation  Value Outcome:  Efficiency PERSPECTIVE
  12. 12. CUSTOMER PERSPECTIVE  Strategic question:  “To achieve our vision, how should we appear to our customers?”  Examples (measurable indicators):  Percent of sales from new products  On time delivery  Share of important customers’ purchases  Ranking by important customers  Delivery performance to customer  Quality performance for customer  Customer satisfaction rate  Customer percentage of market  Customer retention rate  Value Outcome:  Customer satisfaction
  13. 13. FINANCIAL PERSPECTIVE  Strategic question:  “To succeed financially, how should we appear to our shareholders?”  Examples (measurable indicators):  Cash flow  Sales growth  Operating income  Return on Equity (RoE)  Return On Investment (ROI)  Return on Capital Employed (RoCE)  Financial Results (Quarterly/Yearly)  Value Outcome:  Financial performance/profitability
  14. 14. DEFINING FUNDAMENTAL  Balanced Scorecard (BSC)  Strategic Planning  Strategic Plan  Strategic Management and Execution  Steps in Strategic Planning and Management  Strategy Mapping CONCEPTS
  15. 15. PURPOSES OF THE BSC  Articulate the business's vision and strategy  Identify the performance categories that best link the business's vision and strategy to its results (e.g., financial performance, operations, innovation, employee performance)  Establish objectives that support the business's vision and strategy  Develop effective measures and meaningful standards, establishing both short-term milestones and long-term targets  Ensure company-wide acceptance (ownership) of the measures  Create appropriate budgeting, tracking, communication, and reward systems  Collect and analyze performance data and compare actual results with desired performance  Take action to close unfavourable gaps
  16. 16. STRATEGIC UTILITY AND FUNCTIONAL VALUE OF BSC’S  Clarify or update a business's strategy  Link strategic objectives to long-term targets and annual budgets  Track the key elements of the business strategy  Incorporate strategic objectives into resource allocation processes  Facilitate organizational change  Compare performance of geographically diverse business units  Increase company-wide understanding of the corporate vision and strategy
  17. 17. 4-STEP STRATEGIC MANAGEMENT PROCESS
  18. 18. STRATEGY MAPPING  Strategy maps are communication tools used to tell a story of how value is created for the organization.  They show a logical, step-by-step connection between strategic objectives (shown as ovals on the map) in the form of a cause-and-effect chain.  Generally speaking, improving performance in the objectives found in the Learning & Growth perspective (the bottom row) enables the organization to improve its Internal Process perspective Objectives (the next row up), which in turn enables the organization to create desirable results in the Customer and Financial perspectives (the top two rows).
  19. 19. ILLUSTRATION: STRATEGY MAP
  20. 20. SYNDICATE GROUP LEARNING ACTIVITY 1  Refer to page 25 in Learner Guide  By means of a cost-benefit analysis, develop a business case for BSC. Viability Feasibility Sustainability  Present a summary of group discussion
  21. 21. BEST PRACTICE GUIDELINES FOR  #1: BSC is aligned with organization’s strategic business plans  #2: BSC is future-focused, adopting a strategic, medium to long-term approach  #3: BSC is pro-active, sensitive and responsive to (internal and external) environmental change and trends  #4: BSC enjoys company-wide acceptance (ownership) of the measures and processes  #5: BSC is organized, well-coordinated and systematic approach  #6: BSC is a collaborative and partnering effort (managers have co-opted business partners to the process)  #7: BSC is integrated (with other business management and administrative) and cohesive process BSC
  22. 22. BEST PRACTICE GUIDELINES FOR BSC  #8: BSC generates meaningful business intelligence which informs business planning and supports strategic decision-making  #9: BSC integrates both scientific (metrics and analytics) and artistic (planning) principles  #10: BSC utilizes cutting-edge and innovative technology and software  #11: BSC is continuously monitored, reviewed, evaluated and adapted  #12: BSC yields a positive business ROI, with tangible/demonstrable outcomes and impact – creates sustainable competitive advantages and organizational change  #13: BSC incorporates strategic objectives into resource allocation processes e.g. financing/budgeting  #14: BSC is a logical and rational process making use of cause-effect logic
  23. 23. SYNDICATE GROUP LEARNING ACTIVITY 2  Refer to page 27 in Learner Guide  Critically evaluate your organization’s current Balanced Scorecard processes and systems against the best practice criteria.  Identify gaps and recommend improvement strategies.  Present a summary of group discussion
  24. 24. HIERARCHY OF BALANCED SCORECARD COMPONENTS  The balanced scorecard is a strategic planning and management system that helps everyone in an organization understand and work towards a shared vision.  Starting at high “strategic altitude”, Mission, Vision, and other planning elements are translated into desired Strategic Results.  The organization’s “Pillars of Excellence”, or Strategic Themes, are selected to focus effort on the strategies that matter the most to success.  Strategic Objectives are used to decompose strategy into actionable components that can be monitored using Performance Measures.  Finally, Strategic Initiatives translate strategy into a set of high-priority projects that need to be implemented to ensure the success of strategy. Once the strategic thinking and necessary actions are determined, annual program plans and projects can be developed and translated into budget requests.
  25. 25. ILLUSTRATION: HIERARCHY OF BALANCED SCORECARD COMPONENTS
  26. 26. THE 9-STEP BSC BUILDING AND IMPLEMENTING PROCESS
  27. 27. STEP 1: ASSESSMENT - INTERNAL AND EXTERNAL STRATEGIC ASSESSMENT  Step one of the scorecard building process starts with an assessment of the organization’s Mission and Vision, challenges (pains), enablers and values.  The following strategically-relevant items form the scope to be scrutinized by business managers:  The company'smission statement  The company's strategic plan/vision  The financial status of the organization  How the organization is currently structured and operating  The level of expertise of their employees  Customer satisfaction level  Tools:  SWOT Analysis  PESTEL Analysis
  28. 28. THE NATURE OF THE BUSINESS ENVIRONMENT – V-U-C-A
  29. 29. A WINNING STRATEGY  CAPITALIZE ON STRENGTHS  MINIMIZE WEAKNESSES  EXPLOIT OPPORTUNITIES  COUNTERACT THREATS
  30. 30. SYNDICATE GROUP LEARNING ACTIVITY 3  Refer to pages 32-34 in Learner Guide  By utilizing a SWOT Analysis Matrix and PESTEL analysis, perform an environmental scan/analysis of both the internal and external environments for your organization. Internally, identify organizational strengths and weaknesses and externally identify opportunities and threats.  In particular, focus on the following key organizational factors:  Strategy (plan, vision and mission)  Finances  Customer  Internal business processes  Learning and growth (people and skills)  Present a summary of group discussion
  31. 31. STEP 2: STRATEGY - CUSTOMER VALUE, STRATEGIC THEMES AND RESULTS  In Step Two, elements of the organization’s strategy, including Strategic Results, Strategic Themes and Perspectives, are developed by managers to focus attention on customer needs and the organization’s value proposition.
  32. 32. STRATEGIC THEMES  Strategic themes are the main, high-level business strategies that form the basis for the organization’s business model.  Reference to themes as “pillars of excellence”.  The strategic themes are very broad in scope.  They apply to every part of the organization and define what major strategic thrusts the organization will pursue to achieve its vision.  A strategic theme is an area in which your organization must excel in order to achieve your vision.  Themes also represent deliberate strategic directional decisions made by the leadership team.  Taken together, one can look at the proposed set of strategic themes and ask this question: “If we excel in these 3-4 areas, will we achieve our vision?” and receive a resounding answer of “Yes!”
  33. 33. STRATEGIC RESULTS  Each theme has a “strategic result” associated with it - this is a statement of a desired end-state.  The result is stated in such a way that you will clearly recognize success when you see it.  Strategic results are measurable and explicitly defined using outcome language.  Examples include:  Business Growth  Operational Excellence  Customer Service Excellence  Innovation  Sustainability  The strategic differentiator lies in the strategic result - the specificity of the result gives guidance to organizational transformation.  Can be measured by compound measures of current and future-looking indicators.
  34. 34. SYNDICATE GROUP LEARNING ACTIVITY 4  Refer to page 38 in Learner Guide  Refer to the preceding learning activities. Apply step 2 of the BSC Building and Implementing process by developing a strategic value proposition for your organization.  Concentrate on the following key dimensions:  Strategic Themes  Associated strategic results  Present a summary of group discussion
  35. 35. STEP 3: OBJECTIVES - STRATEGY ACTION COMPONENTS  The strategic elements developed in Steps one and two are decomposed into Strategic Objectives, which are the basic building blocks of strategy and define the organization's strategic intent.  Metrics must also be aligned with the company's strategic plan.  The metrics set up also must be S-M-A-R-T
  36. 36. SYNDICATE GROUP LEARNING ACTIVITY 5  Refer to page 40 in Learner Guide  Refer to the preceding learning activities. Apply step 3 of the BSC Building and Implementing process by formulating strategic objectives for your organization. Ensure that these objectives comply with the SMART criteria.  Present a summary of group discussion
  37. 37. STEP 4: STRATEGY MAP - CAUSE-EFFECT  In Step Four, the cause and effect linkages between the enterprise-wide Strategic Objectives are formalized in an enterprise-wide Strategy Map.  The previously constructed theme Strategy Maps are merged into an overall enterprise-wide Strategy Map that shows how the organization creates value for its customers and stakeholders.  Apply cause-effect logic  A Strategy Map highlights that delivering the right performance in the one perspective (e.g. financial success) can only be achieved by delivering the objectives in the other perspectives (e.g. delivering what customers want) - basically creating a map of interlinked objectives  It allows companies to create a truly integrated set of strategic objectives on a single page. LINKS
  38. 38. EXAMPLE: STRATEGY MAP
  39. 39. EXAMPLE: STRATEGY MAP
  40. 40. SYNDICATE GROUP LEARNING ACTIVITY 6  Refer to page 43 in Learner Guide  Refer to the preceding learning activities. Apply step 4 of the BSC Building and Implementing process by crafting a 1-page strategy map for your organization. Ensure that the strategy map uses cause-effect logic and establishes interdependent linkages.  Present a summary of group discussion
  41. 41. STEP 5: PERFORMANCE MEASURES - MEASURES AND TARGETS  Leading and lagging measures are identified  Lagging indicators are typically “output” oriented, easy to measure but hard to improve or influence  Leading indicators are typically input oriented, hard to measure and easy to influence  Expected targets and thresholds are established  Baseline and benchmarking data is developed  Key Performance Indicator (KPI) and Performance Measure Development
  42. 42. GOOD PERFORMANCE MEASURES  Provide a way to see if our strategy is working  Focus employees' attention on what matters most to success  Allow measurement of accomplishments, not just of the work that is performed  Provide a common language for communication  Are explicitly defined in terms of owner, unit of measure, collection frequency, data quality, expected value (targets), and thresholds  Are valid, to ensure measurement of the right things  Are verifiable, to ensure data collection accuracy
  43. 43. 5 STEPS TO FIND THE RIGHT MEASURES
  44. 44. SYNDICATE GROUP LEARNING ACTIVITY 7  Refer to page 48 in Learner Guide  Refer to the preceding learning activities. Apply step 5 of the BSC Building and Implementing process by developing performance measures for your organization. Ensure that these performance measures comply with the criteria for good measures.  Present a summary of group discussion
  45. 45. STEP 6: INITIATIVES - STRATEGIC PROJECTS  Strategic Initiatives are developed that support the Strategic Objectives.  To build accountability throughout the organization, ownership of Performance Measures and Strategic Initiatives is assigned to the appropriate staff and documented in data definition tables.  Development of strategic project plans
  46. 46. STRATEGIC PROJECT ACTION PLAN (TEMPLATE)
  47. 47. SYNDICATE GROUP LEARNING ACTIVITY 8  Refer to pages 49-50 in Learner Guide  Refer to the preceding learning activities. Apply step 6 of the BSC Building and Implementing process by developing initiatives (strategic projects) for your organization. Utilize the provided Action Plan template.  Present a summary of group discussion
  48. 48. STEP 7: PERFORMANCE ANALYSIS - SOFTWARE, PERFORMANCE REPORTING AND ANALYSIS  The implementation process begins by applying performance measurement software to get the right performance information to the right people at the right time.  Automation adds structure and discipline to the system and helps people make better business decisions.
  49. 49. SYNDICATE GROUP LEARNING ACTIVITY 9  Refer to page 51 in Learner Guide  Demonstration of the software applications for step 7 of the process.  Present a summary of learning sights of software applications.
  50. 50. STEP 8: ALIGNMENT - CASCADING TO UNIT AND INDIVIDUAL SCORECARDS  The organizational level scorecard (the first Tier) is translated into business unit or support unit scorecards (the second Tier) and then later to team and individual scorecards (the third Tier).  Cascading translates high-level strategy into lower-level objectives, measures and operational details and is the key to organization alignment around strategy.  The organization alignment should be clearly visible through strategy, using the strategy map, performance measures and targets, and initiatives.  Scorecards are used to improve accountability through objective and performance measure ownership and desired employee behaviours are incentivized with recognition and rewards.
  51. 51. 3-TIER BALANCED SCORECARD CASCADING
  52. 52. SYNDICATE GROUP LEARNING ACTIVITY 10  Refer to page 53 in Learner Guide  Refer to the preceding learning activities. Apply step 8 of the BSC Building and Implementing process by cascading Tier 1 strategies to Tiers 2 and 3 for your organization.  Present a summary of group discussion
  53. 53. STEP 9: EVALUATION - STRATEGY RESULTS AND REVISED STRATEGIES  During this evaluation, the organization tries to answer questions such as:  Are our strategies working?  Are we measuring the right things?  Has our environment changed?  Are we budgeting our money strategically?
  54. 54. STRATEGY EVALUATION – BSC FRAMEWORK
  55. 55. SYNDICATE GROUP LEARNING ACTIVITY 11  Refer to page 55 in Learner Guide  Refer to the preceding learning activities. Apply step 9 of the BSC Building and Implementing process by evaluating the Balance Scorecard for your organization. Ensure that the fundamental evaluation questions are addressed.  Present a summary of group discussion
  56. 56. SUSTAINING THE BSC  Critical implementation success factors  Applying the control process
  57. 57. 10 CRITICAL IMPLEMENTATION SUCCESS FACTORS  Balanced Scorecard is a transformation journey and change initiative, not a once off project - ensure that you have designed a Change Management plan which should run parallel to the Balanced Scorecard.  Maintain a committed and engaged leadership - change should be driven from the top  Develop an organizational culture based on results by establishing a strategy management office  Focus the organization on strategy by holding review meetings organized around strategy  Enhance individual accountability for results through objective ownership
  58. 58. 10 CRITICAL IMPLEMENTATION SUCCESS FACTORS  Align the organization, systems and employee performance around strategy through a rewards and recognition programme  Create a performance, results oriented culture  Link budget formation, cost accounting and performance results  Emphasize continual improvement  Link key organization initiatives to the balanced scorecard development process
  59. 59. APPLYING THE CONTROL PROCESS
  60. 60. SYNDICATE GROUP LEARNING ACTIVITY 12  Refer to page 58 in Learner Guide  Refer to the preceding learning activities. Describe how you will ensure sustainability and continuous improvement of the BSC Building and Implementing process for your organization. Ensure that you include the critical success factors and the control methods and process that will be followed.  Present a summary of group discussion
  61. 61. CONCLUSION  Summary of the key learning points  Questions  Conclusion  Good luck with the building, implementing, aligning and sustaining your BSC.
  62. 62. CONTACT DETAILS  CHARLES COTTER  084 562 9446  charlescot@polka.co.za  LINKED IN  TWITTER: Charles_Cotter

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