Balanced Scorecard: Executive Motivation


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Why a Balanced Scorecard Project? Overview of Executives motivation.

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Balanced Scorecard: Executive Motivation

  1. 1. Balanced Scorecard Implementation Project: Overview of client motivation
  2. 2. Presentation objectives If you are an Executive or a valuable member of senior management team, you probably ask this question: What are the right conditions for diving into a strategic project of such magnitude as is the BSC implementation?
  3. 3. Right Conditions for BSC project The leader of the company / division /  function (or entity) wants to plan in the medium-long term in order to provoke quantum (or at least significant) performance leaps
  4. 4. Right Conditions for BSC project The entity management team is in some  way diverse in competencies, in culture, in character, in age and this diversity creates barriers
  5. 5. Right Conditions for BSC project The planning is, according to a leader’s view,  either inexistent or ineffective The leader wants the plan to be managed  through time and be the basis of discussion (beyond budget)
  6. 6. Right Conditions for BSC project The leader prefers empowerment to control  The leader prefers team collaboration to  one-to-one management The leader likes analysis, numbers, proofs, a  scientific approach
  7. 7. General Results of BSC project Normally the implementation of the BSC speeds up the capability of a company to reach its desired targets The larger the company, the larger the growth rate desired, the larger the gains from the BSC project
  8. 8. General Results of BSC project Clients say that BSC implementation process accelerates the achievement of incremental gains by an average of 20-30% The satisfaction rate of BSC implementation among executives grows tremendously from doubts and lack of support in the beginning to a highest satisfaction and excitement by the end of the project
  9. 9. General Results of BSC project The BSC approach serves exceptionally well as:  a strategic project management and change management tool  a communication tool  a control tool  a tool to manage strategic trade offs  a deployment tool  a framework for converting strategy into action
  10. 10. BSC as a Project management and Change management tool Improve the level of collaboration of  decisions and information sharing on strategic objectives, indicators and improvement projects Improve the transparency level of the team  discussions
  11. 11. BSC as a Project management and Change management tool Bring in the discussion other managers,  normally not included in the team, because they have specialist knowledge Push the team to re-think the entity  strategy Push the team to formalize the strategy 
  12. 12. BSC as a Communication and Empowerment tool Improve collaboration between functions  Empower first, second and third line  management Improve the information flow vertically, i.e.  from the top to the bottom of the organization
  13. 13. BSC as a Communication and Empowerment tool Improve the relationship between first lines  and lower management layers Make sure that everybody in the company  knows what the strategy is about and in what way they contribute Improve the communication of the strategy  and its development towards the outside world (e.g. board, shareholders, stakeholders, buyers)
  14. 14. BSC as a Control tool Improve the quality of information and set relevant indicators on: ○ Business environment ○ Customers ○ Internal weaknesses ○ Key strengths ○ Development of strategic projects
  15. 15. BSC as a Planning tool Increase the reliability of forecasts  Clearly understand the drivers of business  results Be capable of analyzing periodically and in a  structured way the development of the strategic plan
  16. 16. BSC as a Deployment tool The team has just formed, most managers, or  some key ones, are new The historic group has been there forever, but  needs to define new directions, previously unexplored Strong growth targets  Opportunity and desire to overcome competitors  due to bad economic times
  17. 17. Concluding Thoughts The Balanced Scorecard is the most sound, systematic, and developed approach to Strategy Execution BSC implementation is a project of high magnitude, responding to organization strategic challenges and bringing strategic results.
  18. 18. Concluding Thoughts Strong executive leadership, substantial knowledge transfer, clarity of organizational strategy, and availability of an implementation framework are among the key requirements for the Balanced Scorecard project to take off.
  19. 19. Concluding Thoughts For more on: power of BSC Approach   BSC implementation project prerequisites, teams, time outline, challenges, and pitfalls  role of external consultants go to our website
  20. 20. About the Authors Francesco Zingales – BSC Specialist, Facilitator for Strategic Plan implementation. Contact Francesco LinkedIn Profile Igor Starodubtsev, BSC consultant at Contact Igor LinkedIn Profile
  21. 21. Autours’ Profiles Francesco Zingales – BSC Specialist (Msc. Chemical Engineering, PhD in Strategic Decision Making Processes). Francesco Zingales has completed in September 2005 his PhD in strategic decision making processes, with a special focus on the Balanced Scorecard approach, after 4 years of applied research, teaching and practitioner activities at INSEAD Business School in Fontainebleau (Paris). FZ has participated, in the last 3 years, to several facilitation/consulting projects in application of the Balanced Scorecard methodology in different industries such as food, services, utilities, entertainment and manufacturing. Key companies serviced, all at top management levels, have been Sodexho Group, Sodexho Italy, Iveco, ATAC, ACEA, LVMH. FZ has carried out several corporate, business unit and functional level projects in large organizations, which gives him the capability to choose the best approach in each different setting. FZ has built experience both by working in a leading consulting firm on BSC practice as a senior manager for 2.5 years, both bringing original knowledge from his studies. This makes him a perfect candidate to manage and implement BSC projects. Scorecard Partner is a niche consulting practice focused exclusively on providing guidance, help, and support for clients implementing the Balanced Scorecard approach to Strategy Execution. Our mission is to be a leading focused provider of expertise and support to bring this revolutionary Strategic Management tool to organizations willing to develop strategic discipline, overcome execution challenge, learn, grow and change.