In their article on the Office of Strategy Management (OSM), Kaplan & Norton identify nine processes that the OSM must either manage or integrate. The three core processes, which did not exist before the Balanced Scorecard, that the OSM must run are: scorecard management, organization alignment, and strategy reviews.
The other processes must either should be run by the OSM—strategic planning, strategy communication, and initiative management—or integrated/coordinated by the OSM—planning and budgeting, workforce alignment, and best practice sharing.
Scorecard Management, Organization Alignment, and Strategy Reviews
According to Kaplan & Norton, the OSM core processes are derived from the responsibility of the BSC project teams. For scorecard management, the OSM facilitates the translation of the organization’s updated strategy into a strategy map and objectives, leads the discussion about whether there is a need to update any BSC measures, and helps executives identify strategic initiatives that must be implemented. In addition, the OSM provides education and training on the BSC methodology and tools.
Second, the OSM must also facilitate the development and cascading of BSC to different levels of the enterprise. This organization alignment is a key differentiator among organizations that implement the Balanced Scorecard. It helps the organization have a consistent view of strategy, including synergies across business units, linking support and business unit strategies, and linking external partners.
Third, the OSM must be the driving force behind the monthly or quarterly strategy review meetings for the organization. Its staff helps put together the briefing book for the meeting, pre-briefs the organization’s leader, monitors the meeting, and follows up to ensure action items are carried out.