HOW TO BUILD A BALANCED SCORECARD©
Summary and Conclusions
e-paper, I have argued
that the BSC must be viewed as part of an organizationís on-going strategic
planning system. Iíve described
that process using a 9-step model that integrates many of the contemporary
elements of effective strategic planning including strategic focus and intent,
critical success factors, core competencies, stakeholder satisfaction (and their
associated result metrics of loyalty and retention), process improvement,
performance measurement, and assessment.
The linchpin in this process
is a focus on stakeholders and their unsatisfied requirements. Understanding who the strategically determined stakeholders
are and the important opportunities for improving their satisfaction forces the
process to move from ubiquitous statements (e.g. ďÖ to be the market
leaderĒ) to tangible and assignable actions directed toward that end.
But integrating these concepts
into a single comprehensive process in the environment of increasing complexity
and chaos requires the use of unfamiliar tools.
Although admittedly tedious, their use is not difficult given proper
facilitation and the use of readily available automation support tools.
The benefits of this approach
can be significant. Done correctly
it draws on the knowledge that is widely dispersed throughout the organization
and integrates that knowledge to arrive at a strategy that best utilizes all of
the organizationís assets: physical, human, and intangible.
Although the allure of a quick solution is ever present, it takes time to
draw together existing knowledge and generate new knowledge where necessary.
But what can be more important to an organizationís survival than a
well-conceived strategy and an associated focused action plan that enrolls the
entire organization in the required course of action that will assure its
Last modified: August 13, 2006