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Alasdair Macnab, FCMA, CGMA, director of corporate services for the Royal Botanic Garden Edinburgh, has adapted the Balanced Scorecard to create a new way of measuring the HR and financial costs of meeting strategic objectives. In this article he shares how his innovative approach, coupled with the Executive Strategy Manager, enable strategic objective budgeting. The system he has built offers insight into the input costs for each objective on the scorecard which can then be juxtaposed with the achievement of the objectives, realized through the associated measure performance.
Read the article at: http://www.cgma.org/Magazine/Features/Pages/Strategic-Objective-Costing.aspx
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Posted
2/8/12
@ 2:51 PM
by ESM Team ESM Team
Drs. Kaplan and Norton recently shared with us the future of the most powerful management concept of the past 75 years (according to Harvard Business School). As published in the CGMA inaugural issue a few days ago, the gurus lay out five key guidelines for this framework in the future:
1. Collaborate with external constituents, such as key suppliers, customers and alliance partners, to develop a strategy map that describes and communicates the strategic relationship; once developed, the map and scorecard are used to govern and guide the relationship.
2. Realize that cities and provinces, and even nations, around the world are using our framework for describing and communicating strategies for competitive advantage, and then successfully implementing their visions with our strategy execution system.
3. Use the strategy map as a jumping-off point for risk management, especially the identification and management of strategic risks.
4. Use the strategy map as a central change management tool.
5. Expand the role for analytics in the strategy execution system.
Read more at:
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Balanced Scorecard,
BSC Hall of Fame,
Business Leadership,
Client Success,
Competitive Advantage,
Decision Making,
ESM General Information,
Initiative Management,
Innovation,
Operational Reporting,
Reporting,
Risk Management,
Strategy Maps,
Sustainability
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Posted
2/8/12
@ 2:48 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 looked at Develop the Strategy and Translate the Strategy, stages 3 and 4: Align the Organization with the Strategy and 4: Plan Operations. Now let's look at stages 5: Monitor and Learn and 6: Test and Adapt. In these last two stages, strategy becomes part of the fabric of the organization's management process and governance model right alongside operational review meetings. A business intelligence capability nees to be formalized and linked to the strategy. As part of testing the strategy, new insights should be shared, and strategic and operational processes can be altered to ensure maximum effectiveness. This feedback loop brings you back to strategy refresh, translation and alignment, thus closing the loop on the XPP management system. Some of the benefits realized in these final stages include:
STAGE 5: MONITOR AND LEARN
- Develops a BI competency center to assure accurate, timely data to improve decision making
- Develops an analytic information architecture to harness data, information, and insight
- Creates a governance process and calendar to manage strategy as a process that delivers results
- Conducts strategy and operational review meetings to ensure strategy execution is on track
STAGE 6: TEST AND ADAPT
- Confirms effectiveness of the strategy
- Models business and operational processes to optimize ability to execute the strategy
- Analyzes results in order to make necessary modifications to achieve performance outcomes. Provides direction on what is working and what needs improvement
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Balanced Scorecard,
BSC Hall of Fame,
Business Leadership,
Client Success,
Competitive Advantage,
Decision Making,
ESM General Information,
Initiative Management,
Innovation,
Reporting,
Sustainability
|
Posted
9/14/11
@ 3:42 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 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
[hide extended entry]
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
|
Posted
8/31/11
@ 3:19 PM
by ESM Team ESM Team
Key to an organization’s success in innovation is the ability to adopt and sustain ideas. In the second part of this innovation series, Cassandra Frangos, Ed.D, Director, Cisco Center for Collaborative Leadership, illustrates a best practice organization that drives an innovative culture through knowledge sharing, develops future innovators through a development talent management program, and successfully moves ideas to delivery through a modern organizational structure. In doing so, she provides practices in the in the form of objectives that fuel an integrated approach of culture, talent management, and organizational structure.
Link people through social networks and other Wed 2.0 tools - Sharing knowledge allows individuals to deepen their understanding around what makes sense and what will work. An internal social network is one approach to provide an easily accessible informal forum to discuss ideas. New Zealand’s Kiwibank, a 2009 Palladium Hall of Fame Winner, has achieved great success using a private network within Palladium’s Execution Premium Community (XPC).
According to Frangos, only about 5% to 10% of high-potential leaders have the skills needed to become innovators. Thus, identifying potential innovators and grooming them for sustained growth can be a difficult task. Creating a talent management program as outlined below will support and uphold innovation.
- Give potential innovators the right assignments.
- Take promising innovators out of the formal organizational chart.
- Give future innovators opportunities to gain precious commercialization insights.
- Provide mentoring.
- Develop potential innovators soft skills.
To deliver and to continue deliver an idea an organization must be dynamic enough to move it from its home team into new areas in the organization with other contributing resources.
- Create stand alone growth units.
- Manage stand-alone units through cross-unit links.
Innovation is a result of a three phase approach: generating ideas, moving them toward reality, and adopting them for the long term. For more information on the 3rd phase, adoption, read the full BSR article in ESM, navigate to Resources > Libraries.
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