Balanced Scorecard Implementation
Starting With Executive Management Team
Our client, a large service organization had traditionally set goals, but was
not consistently achieving their goals. They needed to improve consistency of
earnings in order to raise capital.
We met with the Chairman, President, and their direct reports to discuss how
the Balanced Scorecard would get everyone aligned in achieving their strategy.
Having obtained buy-in from executive management, we
Reviewed the vision and mission with the chairman who felt this was her
Reviewed the goals set for the organization
Reviewed and modified the strategy
Created 20 performance measures the executive management team would focus
Then created scorecards for the departments below the executive management
The organization now had a list of performance measures including leading and
lagging indicators that the senior executive team could focus on.
Creating Balanced Scorecard by Starting With One Manager and Having
Senior Executive Team Build On This Draft
This recent IPO needed to get the newly created executive team aligned. It
was felt that the executives needed the balanced scorecard in order for everyone
to understand the focus of the organizations.
Since the executives were so new and spread so thin, it was felt it would be
better to review the strategies in the IPO document, and develop performance
measures related to the IPO strategies. Then the executives were brought
together in order to comment on this draft of the balanced scorecard.
This approach allowed a new executive team of executives to agree on what
everyone should be focused on.
Creating A Balanced Scorecard by Starting with a 3 Day Balanced
The executive team was spread throughout the world. The chairman had sent the
president the Fortune article on Why CEO's Fail. The president realized he
needed to align his executive team.
The executives were brought to corporate for a three day Balanced Scorecard
Workshop. During the workshop the strategy was reviewed and performance measures
for each of the four perspectives (i.e., financial, customer, process, growth
and learning) created.
In three day the executives were able to create a very good first pass at a
balanced scorecard. This needed to be refined, but the executives realized the
value of the balanced scorecard and the importance of having everyone aligned.
Balanced Scorecard In Government
This government organization had 14,000 employees spread throughout the
world. The senior executives delegated the creation of the balanced scorecard to
general managers. Based on their creation, they would comment.
Managers from throughout the organization were brought to headquarters. Based
on the current strategy, the managers were able to create a first pass at a
balanced scorecard within three days.
The balanced scorecard should be created by the senior executives. Sometimes
the senior executives feel they don't have the time to create a balanced
scorecard. If senior executives don't eventually sign off on the balanced
scorecard, it will fail. A number of the managers in the group asked why the
senior executives were not involved in creating the scorecard. The success of
the balanced scorecard depend on the support and buy-in of the executive team.
Otherwise, it will fail.
Call John Antos or Steve Peacock at 972.980.7407 for peace of mind in
implementing the Balanced Scorecard.
Phone: 972.980.7407 email: Contact us
Value Creation Group, Inc. 7820 Scotia Dr. #2000 Dallas, TX