Balance Score Cards

Balanced Scorecards

Creating a Balanced Scorecard requires executive commitment and a ‘reasonable’ timeframe. Implementing a Strategy Map and Balanced Scorecard can take 1-3 years.

Rate of change in the business world is accelerating, so organizations must accelerate their strategic performance just to keep up. What this means is – higher performance, more precise focus, and better strategic alignment.

**A Balanced Scorecard must be driven by the organization’s core purpose. The CEO and executive team must make a strong case for change and then communicate it and live it continually.

Change State Table:

Current State Future State Impact

A Balanced Scorecard is a strategic management system that enables organizations to achieve the clarity and alignment necessary to accelerate strategic performance.

 Finance

 Customer and marketplace

 Internal operations

 Learning and growth (people, culture, intellectual property, IT infrastructure)

Effects of a Balanced Scorecard are:

 Clarifying strategy (helps the executive team understand strategy and the interplay between departmental silos, helps employees pinpoint how they contribute to strategic success)

 Translating strategy into action and then executing it (a Strategy Map, combined with a Tactical Action Plan and Implementation, gives a roadmap of how strategy will be translated into action, a Balanced Scorecard is used to stay on track and monitor execution)

 Aligning business units around the Strategy (i.e., constructively breaching/breaking down the walls between silos)

 Communicating the Strategy to all levels (gives each level the opportunity to contribute to organizational success)

 Monitoring and managing strategic execution (helps executives to lead through strategy, rather than becoming embroiled in operational performance – which is better left to managers)

Building a Balanced Scorecard involves the following steps:

 Destination statement (what the organization will be, who...