Balanced Scorecard (BSC)
Strategic execution remains a major challenge for many organisations, with up to 70% of organisations failing to execute strategy successfully.
Developed in the early 1990s the Balanced Scorecard, along with the Strategy Map, is one of the most widely adopted performance management methodologies today. However many organisations continue to find Strategy Map and Balanced Scorecard deployment challenging. Others fail to grasp the opportunity presented by these tools to improve strategic execution and increase revenue whilst driving out costs.
Created by Kaplan & Norton in the early 1990's
Leading Corporate Performance Management framework
Use the Strategy Map to set out organisational strategy on a single page
Strategic Themes to create greater focus and accountability to deliver the strategy
Strategic Perspectives to set out the cause & effect relationships within strategy
Use of Key Performance Indicators (KPIs) to monitor progress towards achieving the strategy
Align strategic initiatives to strategic objectives
- Drive revenue improvements.
- Improve cost efficiency.
- Reduce head count, cost and complexity related to performance management reporting.
- Simplify measurement by measuring only the right things.
In our experience Strategy Map and Balanced Scorecard projects often fail due to a lack of a compelling, well-understood business reason for undertaking the change programme. Additionally there is often a failure to address the business change and technology aspects of this type of project in an integrated, aligned manner.