Balanced Scorecard Development
Our Balanced Scorecard development and implementation services cover all the key stages required to implement the Balanced Scorecard in your organisation. We offer extensive experience in assisting organisations to:
- Develop corporate level balanced scorecards
- Cascade to corporate levels Balanced Scorecards
- Develop Balanced Scorecards for functional areas, e.g. IT and HR
- Integrate the Balanced Scorecard with your Performance Management System
We facilitate and help clients to work through a process that can be thought of as five integrated phases.
- Phase 1 - Strategic Focus
- Phase 2 - Translate Strategy
- Phase 3 - Organisational Alignment
- Phase 4 - Cascade Strategy and Objectives to All Employees
- Phase 5 - Performance Management – A Continual Process
Analytix Consulting’s approach to the performance management and measurement facilitation is based upon the foundation of strategic objectives and supporting performance measures, and focuses attention on the critical few measures that drive success. We will assist to eliminate non-essential measures that add complexity and cost, as well as to test if selected measures can be measured at all, and to help identify sources, or to assist in defining initiatives to continuously improve the measurement process and infrastructure.
Step-by-step Development of the corporate level Balanced Scorecard, involving:
- Vision and strategy facilitation, assisting management and teams to reach consensus on strategic goals, and to map the strategic destination for their particular organisation or business unit.
- The deliverable is a clearly defined, agreed upon strategy map, cause, and effect linkages, objectives, measures, targets, ownership and initiatives.
- Developing performance objectives and measures
- Finalising strategic performance measures and developing cause and effect linkages.
- Setting targets and prioritising initiatives.
- Embedding the Balanced Scorecard in the organisation’s management system
- Cascading the balanced scorecard to build organisational alignment
- Using the balanced scorecard to strategically allocate resources
- Linking rewards to performance: The balanced scorecard and compensation
- Sustaining Balanced Scorecard Success
- Reporting balanced scorecard results
Our Balanced Scorecard Development approach makes provision for the development of strategy maps. The strategy map will depict the cause and effect relationships between different strategic objectives, linking the innovation and learning perspective, to the operational perspective to the customer perspective and ultimately financial perspective, for various themes.
"In 1992, Robert S. Kaplan and David P. Norton began publicizing the Balanced Scorecard through a series of journal articles. In 1996, they published the book The Balanced Scorecard. Since the original concept was introduced, Balanced Scorecards have become a fertile field of theory, research and consulting practice. The Balanced Scorecard has evolved considerably from its roots as a measure selection framework. The Balanced Scorecard is a performance planning and measurement framework, with similar principles as Management by Objectives, which was publicized by Robert S. Kaplan and David P. Norton in the early 1990s." Wkipedia.
“The Balanced Scorecard is a powerful framework to help organisations rapidly implement strategy by translating the vision and strategy into a set of operational objectives that can drive behaviour, and therefore, performance. Strategy-driven performance measures provide the essential feedback mechanism required to dynamically adjust and refine the organisation's strategy over time. The Balanced Scorecard concept is built upon the premise that what is measured is what motivates organisational stakeholders to act. Ultimately all of the organisation's activities, resources, and initiatives should be aligned to the strategy. The Balanced Scorecard achieves this goal by explicitly defining the cause and effect relationships between objectives, measures, and initiatives across each perspective and down through all levels of the organisation. Developing a Balanced Scorecard is the first step in creating a Strategy-Focused Organisation.” Bscol
Depending on the scope of work and terms of refererence, typical deliverables of a Balanced Scorecard programme implementation project may include:
- Line up the strategy with critical strategic initiatives and or program areas
- Line up the business process with strategies and business plan objectives
- Line up mission and department objectives with individual and team accountability
- Reduce the number of key metrics to ensure that the corresponding reliable pieces of data are greater than multiple metrics that are unreliable pieces of data
- Involve group members with responsibility in the deployment of scorecard metrics
- Make sure team metrics cut across organizations to ensure cross-functional goals
Our Balanced Scorecard consultancy delivers real business benefits:
- Drive better performance
- Implement strategy
- Help ensure that you have the right measures
- Encourage balanced performance
- Point out what’s missing
- Encourage good management
- Communicate—they tell the story