The document discusses developing and implementing a balanced scorecard. It provides an overview of the balanced scorecard framework, including its key components like objectives, measures, targets, and initiatives. It emphasizes that the balanced scorecard should be used not just to monitor performance but to execute strategy by aligning the organization, initiatives, and operations. To be effective, the balanced scorecard requires linking strategic objectives and measures across financial, customer, internal process, and learning and growth perspectives. Culture, storytelling, agility, co-creation, and active reviews are identified as important factors for making the most of the balanced scorecard.
4. What is the Balanced Scorecard?
Objective Measure Target Initiative
Financial
Objective Measure Target Initiative
Customer
Objective Measure Target Initiative
Learning & Growth
Objective Measure Target Initiative
Internal Process
Mission
and
Vision
5. Do You Use the BSC to…
Set expectations?
Manage by objectives?
Monitor operational performance?
Report results?
If that is all then you are not making the
most of your Balanced Scorecard
9. A System for Strategy Execution
Develop strategy
Align
organisation
Execute
initiatives and
operations
Monitor
performance
Review and learn
10. What’s Great
• Links purpose to actions
• Enables critical thinking
• Enhances collective
understanding
• Provides focus
What’s Not
• Becoming bogged down
in detail
• Hard to maintain
• Emphasis on targets
rather than outcomes
• Oversimplifying
11. Do You Use the BSC to…
Set expectations?
Manage by objectives?
Monitor operational
performance?
Report results?
Can you make more use of your
Balanced Scorecard?
Develop a hypothesis?
Generate an action plan?
Share expectations?
Communicate your
strategy?
12. BSC in a Complex World
Complicated Complex
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13. 1 Culture is Critical
“On average, culture is 8 times more
influential on performance variance
than strategy.”
Source: Michael Henderson, “Get Tribal!”, Cultures at Work (2011)
18. Make the Most of Your BSC
Culture is critical for
success
Tell the story of your
strategy
Treat the BSC as a
hypothesis, not a
fixed plan
Design the BSC with
your customers,
communities and
stakeholders in mind
Actively engage with
your BSC
Make the BSC an
execution system,
not only a dashboard
19. The Balanced Scorecard is a framework
that enables organisations to translate
strategy into a set of linked objectives
that drive behaviour and performance.
What is the Balanced Scorecard?