The ever more complex and chaotic business environment presents a set of unprecedented challenges to executives. Many if not most companies are falling short in realizing aspirations formulated in companies’ strategic intent and objectives. There are huge gaps between aspirations and actual performance. Many executives are struggling with the issue of how to effectively close the performance gaps. One effective way to address the challenges is by implementing a Strategy-driven Balanced Scorecard (S-BSC) that transforms strategy into operationally tangible targets, drives the implementation and fosters continuous improvement.
Strategy-driven Balanced Scorecard (S-BSC) must be developed with full considerations of company business context, aspirations and strategies to achieve aspirations. It measures strategy implementation enabling executives to identify shortfalls and trigger actions. It helps raise awareness around a set of common goals throughout the organization and enables a flexible and coherent representation and control of the entire enterprise starting with the Corporate Scorecard cascading through the entire organization where individual organization entity’s strategies are aligned with the overall corporate strategy. It has a set of pragmatic and comprehensive measurements for transforming strategy into actions with closed-loop continuous monitoring and improvement covering four dimensions of business and organization aspects. The four dimensions are elements of a cause-and-effect relationship which communicates the meaning of the strategy to the organization.
Strategy-driven Balanced Scorecard (S-BSC) covers four dimensions of business and organization aspects: Financial, Customer, Internal Business Process and Learning and Growth dimension. It applies three key principles (“Balanced” Approach, Key Number of Measures and Cause-and-Effect Relationship) for linking company strategies with actions and satisfying executives’ information needs. The six major elements (external and internal measures, outcome and driver measures, objective and subjective measures) within it form a well-balanced performance management system. The Strategy-driven Balanced Scorecard (S-BSC) is an effective system and tool for Performance Management as a critical step in strategic planning cycle. With each strategic planning cycle, the Balanced Scorecard is updated to reflect modifications in strategic focus. It institutionalizes critical data gathering and analysis processes throughout the organization, thereby enabling more robust data mining practices to support decision making.
We have developed a proven Strategy-driven Balanced Scorecard (S-BSC) methodology and approach based on world class best practices and extensive hands-on consulting experience. The S-BSC is a proven effective management tool for executives across industries to ensure successful strategy implementation.