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Implementing UnBalanced Scorecard


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My presentation at Strategy Execution 2013 conference.

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Implementing UnBalanced Scorecard

  1. 1. Implementating UnBalanced Scorecard – A Case Study Tathagat Varma, Strategy Execution 2013 Sr. Director, Conference (c) Yahoo!
  2. 2. Discussion Topics•  Balanced Scorecard•  Strategy Map•  Our Journey•  Challenges•  Results•  Learnings Strategy Execution 2013 Conference (c)
  3. 3. Balanced Scorecard Strategy Execution 2013 Conference (c)h"p://­‐content/uploads/2012/10/BSC-­‐concept-­‐BalancedScorecardReview.com_1.jpg    
  4. 4. Next Generation Testing Conference (c)h"ps://    
  5. 5. Our Journey•  Started in mid-2010 through 2012•  Pragmatic and empirical approach•  Excellence program to reflect KRAs•  KPIs aligned with priorities and goals•  Goals for product and support groups•  QBRs to track and review Strategy Execution 2013 Conference (c)
  6. 6. •  execuHon  to  the   •  strategic  iniHaHves   R&D  center  charter   across  various   and  overall   product  and   organizaHonal   support  groups  in  a   strategy   highly  matrixed   organizaHon   Coordin-­‐ Align   ate   Review   Track  •  effecHveness  of   results   •  status  on   accomplished  on  a   implementaHon  of   quarterly  basis   planned  iniHaHves  
  7. 7. Our approach •  Balanced vs. Unbalanced: “The most valuable use of a scorecard is as a driver of a strategically focused improvement process and as such need not and usually should not be “balanced”” •  Vital Few vs. Trivial Many: “Only a pattern of out-of control situations that cant be resolved by existing recovery processes should be a candidates for scorecard inclusion” •  Financial vs. Non-financial: “OK, Ill admit it right up front: I still dont understand why we need financial measures on a scorecard at all” •  Internal vs. External: “scorecard metrics, taken in their entirety, should be unbalanced in favor of internal or process metrics” •  Leading vs. Lagging: “You can not manage lagging indicators ... they are inherently after-the-fact measures” •  Short-term vs. Long-term: “Long-term objectives run the high risk of inadvertently incenting short-term inaction” •  “In my opinion, most scorecards should be unbalanced toward internal, leading, short-term metrics.” Strategy Execution 2013 Conference (c)h"p://    
  8. 8. Excellence Program•  Delivering world-class performance by applying systems thinking approach to achieve •  a winning culture that promotes continuous learning, personal growth and inter-group collaboration, and makes us “Proud to be a Yahoo!” •  an execution system that supports operating as one product team to achieve agility, faster innovation, meaningful risk-taking and consistent delivery of world-class products with “wow” user experience •  an operational model that makes best usage of company resources to provide a wow experience to employees and leaders Strategy Execution 2013 Conference (c)
  9. 9. Cornerstones of Excellence program were broken down into “strategic horizontal programs”Culture   Innova6on   Execu6on   Opera6ons   FaciliHes   Retain   Survey   IP  Program   Agility   Feedback   Develop   InnovaHon   Dev   Fiscal   Program   Excellence   Discipline   Hire   Technology   Service   SLA   Brand   Thought   Engineering  &   Performance  Leadership   Leadership   OperaHons  
  10. 10. Challenges1.  Unbalancing the Scorecard2.  Vertical vs. Horizontal Goals3.  Organizational changes4.  Execution, Execution, Execution5.  Effectiveness review
  11. 11. Unbalancing the ScorecardBeware:  The  Unbalanced  Scorecard  –  David  P  Norton  
  12. 12. Effectiveness Reviewsh"p://­‐content/uploads/2009/12/AL-­‐2.jpg    
  13. 13. Learnings•  There is no one-size-fits-all•  ‘Balanced’ has limited appeal•  Leadership’s role is critical•  Strategic PMO to coordinate•  Execution is the key•  Trends are more useful•  Constant realignment is needed•  Double-loop learning is beneficial Strategy Execution 2013 Conference (c)
  14. 14. Some parting thoughts•  “If a good scorecard consists of 23–25 measures, all but five of them should focus on customers, internal processes, and learning and growth.” – David P. Norton, 2000•  “Our work in innovation makes clear that unless companies differentiate beyond the norms of the competitive set in which they participate, they cannot get paid a differential return.” – Geoffrey Moore, 2005
  15. 15. References• The_First_Balanced_Scorecard/ How_the_Scorecard_Became_Balanced.htm• of-horizontal-and-vertical-pmo-goals-final• Unbalanced%20Scorecard/unbalanced_scorecard.htm• The_First_Balanced_Scorecard/ BSC_INTRO_AND_CONTENTS.htm• unbalanced_scor.html Strategy Execution 2013 Conference (c)
  16. 16. Tathagat Varma Strategy Execution 2013 Conference (c)