Can I Use the Balanced Scorecard with My Current Strategic Plan?

Can I Use the Balanced Scorecard with My Current Strategic Plan?

Well … Yes, of course.  In fact, that’s what the Balanced Scorecard (BSC) was really designed for.  You do not have to start the BSC only when you are first developing your strategy.

While it is great to begin to use the BSC as part of the strategic planning process, it is never too late to use the BSC framework to help execute your organization’s strategic plan. 

On the one hand, if you are using it from the get-go, the BSC will force you to not only develop strategic objectives for your organization, but also the measures that you will use to track your progress toward achieving those objectives.  Another key aspect of the Balanced Scorecard is the use of initiatives, or strategic projects, to help close the performance gap between where your measures tell you your organization is now and where you want to be based on the targets you set.

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Five Key Differences Between Performance Management and Performance Measurement

Five Key Differences Between Performance Management and Performance Measurement

When it comes to running an organization and executing your strategy, there is a huge difference between performance management and performance measurement.  An article I read this morning by Robert D. Behn of the Kennedy School of Government on the Government Executive website, “What Performance Management Is and Is Not,”  reminded me how people often use the terms interchangeably because they do not understand these differences.

While Behn highlights eight key aspects of performance management in his article, I am going to try to keep it short and focus on five.

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To Get Staff on Board with Your Strategy, Get Them Involved

To Get Staff on Board with Your Strategy, Get Them Involved

When I work with clients to help them execute their strategies, one of the most important issues they seem to face is getting staff buy-in to the new strategy.  I often hear the question:  What do we have to do to get staff buy-in to this new strategy?

Like any experienced consultant, my answer is usually: “It depends.”  It depends on your organizational culture.  Is this an organization in which people are used to being told from on high what the strategy is and then they go out and execute in lock-step?  Or, is it a culture based on consensus, where everyone has the need to ruminate, provide input, and discuss every last detail? 

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Environmental Scanning Can Add Another Dimension to Your Strategy

Environmental Scanning Can Add Another Dimension to Your Strategy

When developing their strategic plans, a lot of clients we work with (most, in fact) are adamant about getting input from staff—in addition to the leadership team—and important external organizations such as clients or donors to ensure they are getting more diverse input and to help with buy-in from these key stakeholders. 

Getting input from these constituencies is important in developing your strategy because often an organization’s leadership team can have tunnel vision with respect to its mission, vision, and strategy and not always understand what other stakeholders need or want from it.  However, engaging staff and external stakeholders in addition to your organization’s leadership team still leaves a “blind spot” in your strategy development process.  What about the external environment?  Does your organization properly take account of the external social, technological, environmental, economic, and political environment in which you operate?

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Achieving Outsized Success Requires Setting Outsized Targets

Achieving Outsized Success Requires Setting Outsized Targets

When helping clients develop measures, or key performance indicators (KPIs), for their Balanced Scorecard or strategy management system, one of the most common questions I hear is:  “What do we do about setting targets for our measures?”

And, as every good consultant knows, the answer is: “It depends.”  It depends, for example, on how mature your measures are (Have you used them before and, therefore, have historical data?) or whether there are benchmarks you can use from similar organizations or an industry association.  In some instances, you may not even want to set targets for the first year or so, that way you can collect baseline today to use to set future targets.

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