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Strategic Innovation - Tools and Techniques

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Learn how to execute strategic innovation in an organization using the available tools and techniques including the balanced scorecard.

You will see:
- > How strategic innovation can be addressed within the balanced scorecard methodology

- > How it can be executed with an integrated strategic planning and performance management system

To read the first part of this two-part series on "strategic innovation", please click here - http://bit.ly/2K4J63b

Acknowledgment:
Originally written by Dan Montgomery and Gail Stout Perry for the Whitepaper titled "STRATEGIC INNOVATION" published by Corporater. Read the exclusive whitepaper here - http://bit.ly/2JN94ra

Published in: Technology
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Strategic Innovation - Tools and Techniques

  1. 1. Connecting Strategic Innovation To Your Balanced Scorecard STRATEGIC INNOVATION – TOOLS AND TECHNIQUES
  2. 2. 2 We will see:  How strategic innovation can be addressed within the balanced scorecard methodology  How it can be executed with an integrated strategic planning and performance management system. For organizations in which innovation is critical to fulfilling the mission and achieving the vision, this is a powerful approach to assure innovation is fully embedded into an overall business strategy. SUMMARYPREFACE
  3. 3. A strategy-based balanced scorecard offers a way to value, encourage and manage all aspects of innovation.
  4. 4. 4  In a balanced scorecard-based approach to strategic innovation, you must always start with strategy  You are not innovating for the sake of innovating, but building a core capability that allows you to provide value for a defined customer value proposition Read the first part of the two series presentation on Strategic Innovation!
  5. 5. WHY THE BALANCED SCORECARD? A strategy-based balanced scorecard system: • Involves the collaborative development of an organization’s “Story of the Strategy” • Identifies the connection between creative capacity, efficient product development processes, improved customer and stakeholder value, and financial outcomes
  6. 6. • The balanced scorecard uses four strategic perspectives – Finance, Customer, Internal Process & Organizational Capacity • These perspectives are complementary but distinct lenses for looking at organizational strategy and performance • The use of perspectives allows the organization to build a model of how the “intangible” factors interact with the more “tangible” factors to create an innovative, sustainable organization that can adapt resiliently to change STRATEGIC PERSPECTIVES
  7. 7. STRATEGIC PERSPECTIVES
  8. 8. 8 PERSPECTIVES The Four Balanced Scorecard Perspectives FINANCE INTERNAL PROCESS The activities at which the organization must excel in order to provide value for customers, stakeholders, and ultimately, those who foot the bill. CUSTOMER/STAKEHOLDER In a business, customers see the business’ products and services as a way to satisfy needs and desires at an appropriate price. ORGANIZATIONAL CAPACITY The foundation of the other perspectives – the physical infrastructure, culture, tools and technology, knowledge and skills, and information systems required to create, plan, design, and deliver products and services to customers and stakeholders. STRATEGIC PERSPECTIVES In a business, the financial system is viewed to provide ROI by owners, investors and analysts.
  9. 9. 9 The logic of how a strategy-based balanced scorecard is developed, starting at the high- altitude of mission and vision and linking strategy, step-by-step, to tactical operations. Innovation usually first shows up at the altitude of Strategic Themes. STRATEGIC THEMES
  10. 10. 10 Strategic Theme • A strategic theme is a major “pillar” that directly supports achievement of the vision and mission of the organization • A good theme contains a linked set of strategic objectives that touch on all four of the scorecard perspectives Strategic Objectives • These linked objectives tell the story of how innovation contributes to the Mission and Vision, and forms the basis for communication • Innovation becomes strategic when it is fully integrated into the fabric of the organizational planning and management process Strategic Innovation • Organizations typically have several strategic themes or focus areas, such as: Operational Excellence, Sustainability, Growth, or Strategic Partnering. Innovation can be a strategic theme, as well. INNOVATION AS A STRATEGIC THEME
  11. 11. 11 Innovation can be viewed through each of the four perspectives of the balanced scorecard, for example: A financial standpoint A customer and stakeholder standpoint A process standpoint An organizational capacity standpoint Innovation means to provide value –expressed in financial terms Innovation means developing and deploying new products, services, or business models that create increased value for customers or clients, and address the concerns of stakeholders. Innovation means creating and managing a well-understood process for evaluating, fostering, and deploying promising ideas. Innovation requires a blend of leadership, culture, skills, and organizational structures that encourage new ideas to be generated. INNOVATION THROUGH THE FOUR PERSPECTIVES
  12. 12. 12 DID YOU KNOW?
  13. 13. 13 INNOVATION STRATEGY MAP
  14. 14. 14EXECUTION OF STRATEGIC INNOVATION • In a strategy-based balanced scorecard system, measures are a means, not an end. • Develop and link strategic objectives on the strategy map to develop strategically important measures • Identify and prioritize organizational initiatives that will “move the needle” on your strategic performance • Align and link operational components of the organization with strategic components.
  15. 15. 15 The entire innovation process should be integrated into the strategic performance management system to ensure the less glamorous ‘perspiration’ aspects receive as much focus as the ‘inspiration’ aspects. INTEGRATING STRATEGY WITH INNOVATION
  16. 16. 16 Get free and full access to the exclusive whitepaper on Strategic Innovation by Gail Perry and Dan Montgomery!
  17. 17. DELIVERING BETTER BUSINESS OUTCOMES CORPORATER BUSINESS MANAGEMENT PLATFORM www.corporater.com

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