Balanced Scorecard Quotes

A Strategy, no matter how beautifully crafted, has to be executed by and with the people. Therefore, Invest in the people. Communicate the vision and strategy to them. Give them the opportunity to demonstrate how their day-to-day activities contribute to the organisation's strategy

IMAGINE ENTERING THE COCKPIT of a modern jet airplane and seeing only a single instrument there. How

You may create a inspirational & visually resplendent strategy map but without accountability its value is specious

An unprofitable company must not be doing work useful to society. Perhaps its products are lousy or maybe is badly run. In any case, the balance sheet is both a managerial and moral scorecard.

To achieve such intense strategic focus the organizations had instituted comprehensive, transformational change. They redefined their relationships with the customer, reengineered fundamental business processes, taught their workforces new skills, and deployed a new technology infrastructure.

Performance measure. Throughout this book, the term performance measure refers to an indicator used by management to measure, report, and improve performance. Performance measures are classed as key result indicators, result indicators, performance indicators, or key performance indicators. Critical success factors (CSFs). CSFs are the list of issues or aspects of organizational performance that determine ongoing health, vitality, and wellbeing. Normally there are between five and eight CSFs in any organization. Success factors. A list of 30 or so issues or aspects of organizational performance that management knows are important in order to perform well in any given sector/ industry. Some of these success factors are much more important; these are known as critical success factors. Balanced scorecard. A term first introduced by Kaplan and Norton describing how you need to measure performance in a more holistic way. You need to see an organization’s performance in a number of different perspectives. For the purposes of this book, there are six perspectives in a balanced scorecard (see Exhibit 1.7). Oracles and young guns. In an organization, oracles are those gray-haired individuals who have seen it all before. They are often considered to be slow, ponderous, and, quite frankly, a nuisance by the new management. Often they are retired early or made redundant only to be rehired as contractors at twice their previous salary when management realizes they have lost too much institutional knowledge. Their considered pace is often a reflection that they can see that an exercise is futile because it has failed twice before. The young guns are fearless and precocious leaders of the future who are not afraid to go where angels fear to tread. These staff members have not yet achieved management positions. The mixing of the oracles and young guns during a KPI project benefits both parties and the organization. The young guns learn much and the oracles rediscover their energy being around these live wires. Empowerment. For the purposes of this book, empowerment is an outcome of a process that matches competencies, skills, and motivations with the required level of autonomy and responsibility in the workplace. Senior management team (SMT). The team comprised of the CEO and all direct reports. Better practice. The efficient and effective way management and staff undertake business activities in all key processes: leadership, planning, customers, suppliers, community relations, production and supply of products and services, employee wellbeing, and so forth. Best practice. A commonly misused term, especially because what is best practice for one organization may not be best practice for another, albeit they are in the same sector. Best practice is where better practices, when effectively linked together, lead to sustainable world-class outcomes in quality, customer service, flexibility, timeliness, innovation, cost, and competitiveness. Best-practice organizations commonly use the latest time-saving technologies, always focus on the 80/20, are members of quality management and continuous improvement professional bodies, and utilize benchmarking. Exhibit 1.10 shows the contents of the toolkit used by best-practice organizations to achieve world-class performance. EXHIBIT 1.10 Best-Practice Toolkit Benchmarking. An ongoing, systematic process to search for international better practices, compare against them, and then introduce them, modified where necessary, into your organization. Benchmarking may be focused on products, services, business practices, and processes of recognized leading organizations.

This report, by its very length, defends itself against the risk of being read. —Sir Winston Churchill Statesman 1874–1965

Information is a source of learning. But unless it is organized, processed, and available to the right people in a format for decision-making, it is a burden, not a benefit. —William Pollard Historian

Hoshin Kanri Business Methodology The balanced scorecard had its origins in Hoshin Kanri, so it is appropriate to examine this business methodology. As I understand it, translated, the term means a business methodology for direction and alignment. This approach was developed in a complex Japanese multinational where it is necessary to achieve an organization-wide collaborative effort in key areas. One tenet behind Hoshin Kanri is that all employees should incorporate into their daily routines a contribution to the key corporate objectives. In other words, staff members need to be made aware of the critical success factors and then prioritize their daily activities to maximize their positive contribution in these areas.

the traditional form of Hoshin Kanri, there is a grouping of four perspectives. It is no surprise that the balanced scorecard perspectives are mirror images (see Exhibit 1.8). As with the balanced scorecard, Hoshin Kanri can be improved with the introduction of employee satisfaction and environment and community. EXHIBIT 1.8 Similarities between Hoshin Kanri and Balanced Scorecard Perspectives

balanced scorecard approach advocated by Kaplan and Norton or the value-based management approach of Stern Stewart in the nineties,

Thomas Edison once said, “One might think that the money value of an invention constitutes its reward to the man who loves his work. But speaking for myself, I can honestly say this is not so . . . . I continue to find my greatest pleasure, and so my reward, in the work that precedes what the world calls success.

A positive strategy should focus on innovation.

Table 11-2: Prioritization Using Weighted Criteria Scoring

OKRs have much in common with other popular strategy execution frameworks like Hoshin Kanri, Balanced Scorecard (BSC), and Management by Objectives (MBO). Leaders should always examine if OKRs are the right tool for them. Often leaders that say they “need” OKRs but are actually better off using an adjusted version of one of the alternative frameworks above.

If those at the top are not energetic leaders of the process, change will not take place, strategy will not be implemented, and the opportunity for breakthrough performance will be missed.

The Balanced Scorecard (BSC) provides managers with the instrumentation they need to navigate to future competitive success.

Only 7 percent of U.S. line employees (and 3 percent in the United Kingdom) had their personal goals linked to strategy.

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