Balanced Scorecard Consultancy and Strategy Mapping
Every organisation has a strategy, some will be closely ‘guarded’ by the senior management team, others will be shared amongst their employees and also perhaps stakeholders and customers. Yet, when it comes to strategy execution, only around 10% of organisations are truly successful. What’s more, within that 10%, only around half of those organisations have employees, who fully understand the strategy and the part they play in helping deliver it.
When it comes to communicating an organisation’s strategic direction, strategy maps and balanced scorecards can play a vital role. In essence, they provide a high-level pictorial view of the organisation’s strategic plan and depict how well the organisation is doing, in terms of delivering against that plan.
A well-crafted strategy map will show the way that an organisation views itself, through the use of perspectives. It will also show the strategic objectives, that if excelled at, will help the organisation deliver on its strategy and vision.
We provide strategy mapping and balanced scorecard consulting services to enable organisations to reassess; where they are today, where they want to be and how they want get there.
This process is achieved through a series of executive interviews / workshops. We work with the client to effectively map out the organisation’s strategy.
Once we have the ‘corporate’ strategy map in place and agreed, it can, if required, be used as the foundation and blueprint to create a series of strategically aligned departmental / business unit strategy maps.
The completed strategy map(s) then becomes the building block for the strategic performance management / balanced scorecard model.
Having completed the strategy map, our balanced scorecard consultants start the process of creating the balanced scorecard, by using the completed strategy map as the blueprint. First, we look at each strategic objective in turn and ask, what is it, that will tell us, how well that particular objective is performing. This typically leads to the creation of a small number of critical success factors, that if achieved (or not) will indicate the overall performance of that specific strategic objective.
We then effectively repeat this process by asking, what is it, that can tell us, how well that particular critical success factor is performing. This in turn, results in the creation of a number of key performance indicators (KPIs).
In effect, the above process creates a performance hierarchy, from the vision, through the perspectives, strategic objectives (taking into account any strategic themes), critical success factors and KPIs.
The next part in the process is to look at each KPI in turn and define its properties. These properties consist of: the target and alarm values, measurement periods, the definition of maximising and minimising type measures and the data source.
In order to ensure that the maximum value is a delivered in a balanced scorecard / strategy map project, dedicated balanced scorecard software must be used. Using a dedicated software tool, enables an organisation to easily communicate the strategy and its performance in executing the strategy to all employees. As a result, employees are better able to understand and engage in the strategy. This organisational ‘buy-in’ will boost employee commitment and ensure that everyone understands how to pull in the same direction. When employees understand that their individual objectives form part of the wider corporate strategy, through a process of strategic alignment, it encourages performance improvement and drives personal achievement.
For more information on balanced scorecard tools please visit our QPR Metrics page.