Viewing Category: Personal Balanced Scorecard
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Now that the Execution Premium book by Drs. Kaplan and Norton has been out in the market for a number of years, let's take a look at the benefits that can be realized through the XPP implementation in your organizaiton. Let's take it a couple stages at a time. Stage 1 and 2 looked at Develop the Strategy and Translate the Strategy. Now let's look at stages 3 and 4: Align the Organization With the Strategy and 5: Plan Operations. In these stages, the strategy has been clarified with scorecards and strategy maps at the enterprise level so now they need to be cascaded down into the business and support areas to ensure vertical alignment. Individuals might employ personal Balanced Scorecards and development plans to link the performance review process with the strategy. A communication program around the strategy is also paramount. The organization can begin to link strategy to key processes, driver models, and dashboards. Rolling forecasts and dynamic resource allocation are often found around the operational planning step.
STAGE 3: ALIGN THE ORGANIZATION WITH THE STRATEGY
- Defines the corporate role so that organizational units receive strategic guidance & direction
- Cascades strategy maps and scorecards to ensure organizational alignment to the strategy
- Leverages synergies between corporate, SBU, shared services, and other units to ensure alignment
- Communicates the strategy so that everyone understands his/her role in executing it
- Aligns team and individual goals and incentives to ensure the behavioral changes required for success
STAGE 4: PLAN OPERATIONS
- Identifies critical processes required to execute the strategy
- Establishes cross-functional business teams to drive performance across organizational boundaries
- Develops rolling forecasts and dynamic resource allocation to link strategy and operations
- Implements driver based planning to identify the critical levers of performance
- Creates operational dashboards that identify the key performance indicators that drive performance
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Balanced Scorecard,
BSC Hall of Fame,
Business Leadership,
Client Success,
Competitive Advantage,
Decision Making,
ESM Development Team,
ESM Features,
ESM General Information,
ESM Tips and Tricks,
Initiative Management,
Innovation,
Operational Reporting,
Personal Balanced Scorecard,
Reporting,
Risk Management,
Software as a Service,
Strategy Maps,
Sustainability
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Posted
9/7/11
@ 2:25 PM
by ESM Team ESM Team
Now that the Execution Premium book by Drs. Kaplan and Norton has been out in the market for a number of years, let's take a look at the benefits that can be realized through the XPP implementation in your organizaiton. Let's take it a couple stages at a time. Stage 1 and 2 of 6: Develop the Strategy and Translate the Strategy. These stages are where the organization performs S.W.O.T. analysis, Gap and shift statements, identifies key overarching strategies, clarifies the mission and vision and key risks. Then the strategy is developed into Balanced Scorecards and strategy maps. Typically an Office of Strategy Management (OSM) or other like group/individual is tapped to manage the strategy implementation and execution.
STAGE 1: DEVELOP THE STRATEGY
- Defines how shareholder value will be created to achieve new levels of performance
- Identifies required changes from current to future state so the organization understands it
- Quantifies vision, values, mission, objectives, and risks so they are measurable
- Analyzes strengths, weaknesses, opportunities, and threats to determine course of action
- Formulates strategy so that the entire organization can execute it
STAGE 2: TRANSLATE THE STRATEGY
- Clarifies strategy with a strategy map to produce a one-page action plan that works
- Develops a Balanced Scorecard to specify objectives, targets, measures, and initiatives
- Identifies key risk indicators that must be managed to avoid failure to execute
- Focuses on initiatives with the greatest impact to accelerate time to results
- Allocates resources dynamically to produce the most effective outcomes
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Balanced Scorecard,
BSC Hall of Fame,
Business Leadership,
Client Success,
Competitive Advantage,
ESM Features,
Initiative Management,
Innovation,
Operational Reporting,
Personal Balanced Scorecard,
Reporting,
Strategy Maps,
Sustainability
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Posted
8/31/11
@ 3:19 PM
by ESM Team ESM Team
The ESM team is hard at work innovating, designing and building ESM 6. This effort began in February 2010 and will continue through to Beta launch in early 2012. Through our recent surveys, direct client requests, and guidance from Drs. Kaplan and Norton and Palladium’s strategy consulting experts, we’ve compiled over 200 potential enhancements to include in this release.
As our developers share these new enhancements with the larger ESM team, we get more and more excited about where the ESM community is pushing the application. After all, it is you, the client, who’s advancing our application as you use it in your organization and provide us with feedback.
Some of the latest features to be built include automatic status indicator roll up across the scorecard. For example, milestone performance status indicator can impact the overall initiative status indicator, which in turn impacts objective performance status indicator. Objective status indicators can also automatically set based off of cascaded objectives and underlying measures. Measure can be automatically set by either data roll up or status color roll up. Objectives then roll up into perspectives and themes and then ultimately into an overall scorecard performance. It will be up to you if you activate this feature and just how far you want automatic status color setting to go in your organization.
We’ve also seen a new measure charting interface, allowing for unlimited data series, data calculations between columns, and multiple charts that can be displayed against the same measure data set. We will enable much more complex data roll up since different underlying measure series can feed into various higher level measures. For example, historically ESM required final calculated numbers such as a target, actual, variance, and forecast. With ESM 6, if desired, those raw data calculations can be done right in ESM or sourced in from data sources or data bases. We will also enable period groups for month to date, quarter to date and year to date summary series. Our measure charting enhancements should remove any restrictions users have felt in the past with complex measure calculations, roll up, and visual charting.
As we continue our development efforts we look forward to sharing our development efforts with you.
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Give them the incentive!
Strategic alignment should not stop at the business unit level; rather each employee should be fully committed and aligned to the strategy in their everyday tasks. In the most successful Balanced Scorecard implementations, organizations are able to cascade the strategy from the corporate scorecard all the way down to each individual employee.
ESM’s Personal Balanced Scorecard (PBSC) module facilitates the alignment of individual contribution to corporate direction.Each employee’s PBSC works to align their personal objectives to higher level strategic elements (theme, objective, measure, or initiative) while organically developing individual commitment, responsibility, and accountability to the overall strategy.Each personal objective is further cultivated through strategic competencies and a personal development plan; the knowledge, skills, and values required of employees to achieve their personal objectives.
To help create improved individual alignment and personal accountability for the strategy, Palladium Group is pleased to announce the launch of PBSC 2.0. PBSC 2.0 provides an arena from which employees answer the question, “How do I support the strategy?” by describing how they challenge themselves against the strategy in a given period.
Key benefits and features of PBSC 2.0 include:
Get started quickly and easily!
- The PBSC 2.0 wizard walks each user through the PBSC creation process to ensure successful alignment of personal objectives to the strategy.
Align the organization from top to bottom
- Employees can link their personal objectives to any element on the enterprise scorecards for a more comprehensive alignment process.
- Scorecard administrators can ensure adequate strategic coverage through a series of alignment reports.
Create a more logical performance review process to match today’s performance review methodology
- Since accountability for employees work extends beyond just one reviewing manager, employees can establish objective level reviewing managers as well as a second level signs off manager.
- If desired, performance development plans and PBSC scores can be weighted and combined for a final score.
Painless personal scorecard creation from one review cycle to the next
- PBSC account administrators can take advantage of scorecard cloning and copying features to easily move from one review cycle to the next and thereby reducing the burden of having to rebuild individual scorecards.
Now is the time for your organization to get started with PBSC! For information on how to add the personal scorecarding component to your account, or to schedule an online demonstration, contact your ESM account manager.
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