|
How
To Develop A Strategy Scorecard
By Dennis Sommer (www.dennissommer.com)
How can you turn your company or department around ? Leading
organizations have found the answer - performance scorecards
that map to their business strategy. Lets look at the
concepts and guidelines used by top performing organizations
using a performance scorecard.
Leading organizations have broken away from the traditional
measurement techniques and software, and have built their
performance scorecards based on the organizations strategy.
These companies have been successful because they have
realized that the cause and effect links of the corporate
strategy really do make a difference.
By changing to a strategy focused scorecard, management
has been able to:
1. Make the strategy #1 on the organization's agenda
2. Create incredible focus on the strategy
3. Mobilize employees to act differently, guided by the
organization strategy
Five guidelines summarize what it takes to move your organization
to a strategy focused scorecard and improve organization
results.
Drive
the Change
To drive change in an organization, executive management
must develop a case for change, a vision, and strategy
on where they want to drive the organization. Management
must develop accountability and ensure the entire team
is aligned with this change.
Drive
Tactical Action Plans
The strategy must be driven down to the operational level.
The corporate strategy and scorecard drives the tactical
action plans that are at the operational level. These
plans are in terms the organization can understand and
act upon.
Align
Organization
Once the performance scorecard is created at the top level,
it is then pushed down to the operations and support level.
This process will allow each area of the organization
to understand how it contributes to the overall organization
strategy.
Motivate
Employees
Achieve the strategy objectives by making it everyone's
job. Communication and training is essential to accomplishing
the strategy. Align incentives and individual objectives
to the strategy. Develop personal performance scorecards
that link personal development to the strategy performance
metrics.
Continuous
Improvement
Continuously review and modify the strategy and performance
scorecard. Adjust the strategy based on economic and business
conditions.
Conclusions
Organizations that have effectively implemented a performance
scorecard based on the organizations strategy have found:
Critical Success Factors
1. They have committed executive management
2. They involve as many people as possible in the process
3. They disseminate the performance scorecard throughout
the entire organization
4. They use the performance scorecard as a continuous
improvement process
5. They make certain that the long term strategy in embedded
in the performance scorecard
Benefits
1. Improves the organizations competitive edge by permitting
scorecard benchmarking
2. Keeps management focused on the entire business process
3. Helps align objectives to ensure that every unit is
working in the same direction
4. Motivates employees, improves reward systems, improves
employee satisfaction, and enhances organization culture
About The Author
- Dennis Sommer
Dennis Sommer
is the founder and CEO of Executive Business Advisers,
a management consulting firm specializing in business
growth, sales and profit improvement. www.executivebusinessadvisers.com
Dennis helps companies increase sales revenue, reduce
sales and marketing costs, improve marketing ROI, and
drive new business growth by improving and optimizing
their sales, marketing, company strategy and financial
health.
Dennis is a highly sought after business keynote and seminar
speaker www.dennissommer.com
and author of several highly popular sales, marketing,
leadership and professional development international
articles and books www.advisersecrets.com
.
Contact Dennis at 800-627-6512.
|
|
|
