Management and Leadership Strategy Scorecard

VIEWS: 11,138 PAGES: 6

This document sets forth a balanced scorecard approach to business strategy and serves as a performance management tool to help companies overcome difficulties in executing strategy, correct for over-reliance on financial measures, and recognize the importance of a company’s intangible assets. This document lays out the three primary steps involved in the balanced scorecard approach to business strategy execution. It further provides visual aids and flow charts to help a business implement its business strategy.

More Info
									This document sets forth a balanced scorecard approach to business strategy and
serves as a performance management tool to help companies overcome difficulties in
executing strategy, correct for over-reliance on financial measures, and recognize the
importance of a company’s intangible assets. This document lays out the three primary
steps involved in the balanced scorecard approach to business strategy execution. It
further provides visual aids and flow charts to help a business implement its business
strategy.
                                                                                                    .


Overview
The balanced scorecard approach to strategy execution involves three primary steps:

    1. Pre-Mapping Brainstorm: Thinking through four critical perspectives of business
        strategy.
            a. The Financial Perspective
            b. The Customer Perspective
            c. The Internal Business Process Perspective
            d. The Learning and Growth Perspective
    2. Create a strategy map: This is a one-page graphic depiction of how your company will
        create value by identifying what it must do well to execute the strategy.
    3. Construct a balanced scorecard that includes the following elements:
            a. Goals: The broad essence (like a tag line) of what you are trying to accomplish in
                each perspective.
            b. Objectives: How the goals can be put into operation.
            c. Measures: The criteria used to show evidence of the extent an objective has been
                reached.
            d. Targets: The specific desired level of achievement for the measures.
            e. Initiatives: The actions that need to be taken to achieve the targets.




© Copyright 2013 Docstoc Inc.                                                           2
                                                                                               .


Pre-Mapping Brainstorm

                                      THE STRATEGY
              Consisting of strategic ideas and goals in each of the four perspectives



 Financial Perspective: If we achieve our vision, how will we look to our shareholders?
 [Capture your thoughts here.]




 Customer Perspective: Who are our customers? What do they want? What is our value
 proposition in serving them?
 [Capture your thoughts here.]




 Internal Business Process Perspective: At which processes must we excel in order to satisfy
 our customers?
 [Capture your thoughts here.]




 Financial Perspective: To enable progress toward our vision, how must our organization and
 its employees learn and grow?
 [Capture your thoughts here.]




© Copyright 2013 Docstoc Inc.                                                            3
                                                                                               .


Strategy Map (Replace all highlighted example text below with your own.)

                             Maximizing Profitability & Shareholder Value

                                             Sustained
               Grow                                                              Achieve
                                            double-digit,
            alternative                                                          optimal
                                             net income
             revenue                                                              ROIC
                                               growth
              streams                                                             levels




                                 Enduring Value-Added Relationships

                                     Understand               Service               Being
           Consistently                  and                that pleases          involved
            deliver the              appreciate              and retains       in customer’s
            full-value                customer               customers          community
           proposition                  needs




                          Amazing Products, Stellar Service & Business Savvy

                                       New                  Maximize             Exercise
            Innovative                product               efficiency         best-in-class
           marketing &              development                                governance
                                                               and
              comm.                                           quality               and
                                                                                 controls




                            Well-Prepared & Highly Motivated Workforce
               Hire,                 Employees               Employees            Foster a
             develop,                 know the                have the          culture that
            recognize,               strategy &             info & tools          rewards
            and retain               what they               they need         teamwork &
           great people                must do                to excel           initiative




© Copyright 2013 Docstoc Inc.                                                        4
                                                                                                       .


Balanced Scorecard (Replace all highlighted example text below with your own.)
           Goals                   Objectives            Measures          Targets       Initiatives
                          1. Sustained 2-digit net    1. Net Income       1. 10%+     1. Reduce
        Maximizing           income growth                                               costs
       Profitability &    2. Achieve optimal          2. ROIC             2. Optimal 2. Risk
        Shareholder          ROIC levels                                                 mngmnt.
           Value          3. Increase revenue per     3. Rev. per         3. $300     3. Periodic
                             customer                    customer                        review of
                                                                                         pricing
                          1. Consistently deliver     1. Customer         1. 8-10 on 1. Develop
                             the full value              Satisfaction      10pt scale     and test
                             proposition                 Val. Prop.
        Enduring          2. Understand and           2. Emp./Cust.       2. 95%      2. Develop
       Value-Added           appreciate customer         Comparison          Match       and test
       Relationships         needs                       Testing                        instrument
                          3. Service that delights    3. Customer         3. 8-10 on 3. Develop
                             and retains customers       Satisfaction      10pt scale     and test
                          4. Being involved in        4. $ donations;     4. $1 mil;  4. Assess
                             customer’s                  Paid service        16 hours    comty.
                             community                   hours/emp.                      needs

                          1. Innovative marketing     1. Awards           1. At least   1. Consult
                                & communications         Won               one per
          Amazing                                                          campaign     2. Create
          Products,       2. New product              2. New product      2. 6/year        Innov.
       Stellar Service       development                 Launches                          Teams
        & Business        3. Maximize efficiency      3. Efficiency/      3. 90/90      3. Study
           Savvy             and quality                 Quality Ratio                     trade-offs
                          4. Exercise best-in-class                       4. 100%       4. White
                             governance and           4. Best Practices                    paper &
                             controls                    Implemented                       task force

                          1. Hire, develop,           1. Best Practices   1. 100%   1. White
                             recognize, and retain       Implemented                   paper &
       Well-Prepared         great people                                              task force
        & Highly          2. Employees know the       2. Core          2. 95%       2. Craft
        Motivated            strategy & what they        Competencies     Avg.         CCT w/
        Workforce            must do                     Testing (CCT)                 strategy
                          3. Employees have the       3. Employee      3. 100%      3. Assess
                             info & tools they need      Survey                        needs &
                             to excel                                                  address
                          4. Foster a culture that    4. Org. Culture  4. 95% on 4. Hire
                             rewards teamwork &          Assessment    teamwork        expert
                             initiative                                & initiative    consultant




© Copyright 2013 Docstoc Inc.                                                            5
                                                                                                                                            .



								
To top