The document discusses how the balanced scorecard framework can help organizations link daily operations to strategic goals. It provides that strategic goals are often not achieved because operational objectives are not aligned with strategic objectives, resources are focused on short-term needs, and management focuses on quarterly results rather than long-term strategy. The balanced scorecard framework creates common ground between strategic and operational performance management by defining objectives and standards, allocating resources, analyzing results, and taking corrective actions through its four phases of planning, implementation, analysis, and adjustment.
2. What is the best strategic model that helps
you to link everyday organizational
performance with core values?
Balanced Scorecard Model
Undoubtedly, ‘The Balanced Scorecard'
3. The balanced scorecard framework assists
you to:
Link strategy to everyday performance
Create a common ground between the
strategic and operational performance
management
Solve issues such as lack of alignment,
misallocation of resources, short-term
focus, and failure to perceive risk, among
other things
Balanced Scorecard Model
4. Balanced Scorecard Model
Typically, organizations independently manage their long-
term strategic performance from their short-term
operational performance.
Long-term strategic performance
short-term operational
performance
5. Balanced Scorecard Model
A frequent, unintentional result?
Strategic
objectives
Operational
objectives
Not Achieved! Achieved!
6. Balanced Scorecard Model
Typically, strategic objectives are not achieved because:
• Operational objectives
are not aligned with the
strategic objectives
1
• Resource allocation
priorities are given to
short-term needs
2
• Most of management’s
time is focused on the
urgency of achieving
quarterly results
3
• Short-term success
masks the risk of
achieving the strategy
4
7. With the advent of the balanced scorecard,
the common ground between strategic and
operational performance management is
created but the struggle to articulate exactly
what that common ground is and how it works
persists.
8. Performance Management Framework
The performance management framework (“balanced scorecard framework”)
provides that common ground and lays down a foundation upon which a
successful performance management program can be established.
9. Performance Management Activities
Defining objectives
and standards
Allocating
resources and
taking actions to
achieve the
objectives
Analyzing and
reporting on results
results
Taking necessary
corrective actions
to mitigate risk and
ensure success
Performance Management comprises 4 major sets of activities:
10. The performance
management framework
aligns with the Deming
improvement cycle of Plan-
Do-Check-Act
The framework also aligns
with the four sets of
performance management
activities called phases in the
framework
Each of the 4 phases of the
framework has two
components - strategic and
operational, and in both
components, they have the
same name but different
activities
Performance Management Framework
11. 11
03. Check Phase
The Check phase is for
measuring results and
analyzing performance.
04. Act Phase
The Act phase is where the action
is taken by management based
on the performance analysis
provided in the Check phase.
01. Planning Phase
Planning is the phase where
performance objectives and
standards are defined,
articulated and communicated
to the rest of the organization.
02. Do Phase
The Do phase is where the
action is taken to achieve the
stated objectives at the
targeted performance levels.
Performance Management Framework
Plan-Do-Check-Act Phases
13. The interface between the strategic and
operational components of each phase of
the performance management framework is
where success or failure is determined.
Performance Management Framework
The Interface
14. The framework identifies the practices and
methods such as maps, portfolio, scorecards
and governance used to manage the
strategic-operational interface within each
phase of the framework.
Performance Management Framework
The Interface
15. 15
Governance
Governance is used in the Act phase to
establish policy and provide forums –
typically, operational and strategy review
meetings - for management risk analysis
and decision-making.
Portfolio
Portfolio is used in Do phase to collect, prioritize,
select, authorize and manage strategic,
operational and process improvement projects
Scorecard
Scorecards are used in Check phase to document and report on operational and strategic measures and
performance analysis and the roll-up relationship between operational and strategic measures
Maps
Maps, strategic and operational, used in Plan phase provide a proven and easy-to-use mechanism for articulating
and managing the objectives and their interrelationships and alignment
INTERFACE
Performance Management Framework
The Interface
16. Performance success means:
1. Organization’s short and long-term goals are achieved
2. Daily operations function smoothly
Effective performance management must address both the strategic
and operational aspects of performance
Performance Success
Maintaining the balance determines the Success or Failure
17. Corporater provides all the core elements related to the
Balanced Scorecard, including strategy maps, perspectives,
objectives, KPIs and actions.
Corporater Balanced Scorecard offers all of this on a single
platform so you can manage at all levels of your
organization, including strategic, tactical and operational.
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