Balanced Scorecard: How is yours working?

If the balanced scorecard works, why doesn’t everyone experience the same positive results? While an estimated 65% of companies have embraced the tool, a much lower number have experienced significant benefits. Many companies wonder whether it’s really as good as they’ve heard. It’s probably for the same reason that most companies failed to execute their strategies prior to implementing the scorecard.

The question we need to be asking is “How effectively was the scorecard implemented?”

If you’re looking for some ideas on why you’re not seeing the results you need, ask yourself these questions:

– Does every person in the company understand the direction, and how they contribute to it?
– What level of support does your CEO and executive give?
– Do you use the scorecard to cascade executive direction to teams and individuals?
– Is your strategic planning cycle ongoing and integrated with other functions within the company (ERM, Research)?
– Is strategy an ongoing conversation in your company, do you plan through the scorecard?
– Do you manage through your scorecard? Is it the framework for your reporting?

Balanced scorecarding, as with strategy, is all about people. If people don’t understand the strategy, they can’t execute it. Once you have created the direction at the board level and executive levels, the work begins with creating clarity within your work force and then building alignment to the direction.

Strategic planning: Say NO to the annual one night stand

Creating strategic advancement through planning

For many companies, strategic planning has become a regulatory “one night stand.” It HAS to be done, let’s get it over with. An outside consultant is brought in and you engage in a painstaking planning marathon. Unfortunately, the dedicated planning resource is uncommon in most companies. Rather than helping companies design a meaningful, ongoing planning process, most consultants are looking for the engagement. Ultimately, this is damaging to the company as they will likely be unable to derive maximum value from the direction created.

Ask yourself this: What does our company do with the strategic direction created at the executive / board level? How is it cascaded to “the people?” Canada’s top companies are those whose employees feel connected to the strategy, and understand how their job contributes to the success of the organization.

How can you make this a reality? It begins with creating an ongoing planning process that makes strategy an ongoing conversation, and not a one night stand.