Why do organizations fail to get results from Strategy Execution Initiatives especially, Balanced Scorecard programs?
- No executive leadership and ownership to lead the strategy execution initiative. It is done by only the middle management and it takes a longer time for development
- Scorecard not linked to strategy (No strategy map and just KPIs in four perspectives)
- Scorecard not communicated to employees
- Scorecard not linked to management processes. It is not linked to 6 stages closed-loop management system and office of strategy management
Successful Organizations Need Both Inspirational Leadership and Effective Management, working in harmony, together.
- Leadership creates a vision and sense of urgency. Leaders communicate, inspire and motivate
- Management provides the rigor, alignment, and discipline required to implement the strategy and achieve the vision
Launching a BSC project takes eight steps approach:
- Define Strategic Destination
- Identify Key Themes Driving the Strategy
- Build the Strategic Objectives and Linkages
- Determine Measures and Targets
- Inventory, Map & Select Priority Initiatives
- Getting First Report
- Introducing periodic data updates for Measures, Initiatives, Risks, etc.,
- Introducing First Strategy Review Process
Project Team Roles & Responsibilities:
Executive Leadership Team
- Provide overall leadership, direction, and ownership of the BSC project
- Participate in interviews and workshops
- Dedicate the resources necessary to complete
- Communicate and champion the BSC project throughout the organization
- Use the strategy map and BSC in monthly and annual strategy reviews
BSC Project Team
- Refine objectives through detailed discussions and statements
- Develop measures supporting the BSC
- Develop data collection processes for measures
- Coordinate preliminary targets
- Inventory and map initiatives
- Develop a BSC implementation plan
- Provide subject matter expertise as needed
Leadership: Three Fundamental Processes:
- Establish Direction: Develop a vision of the future along with strategies for producing the changes needed to achieve that vision
- Align People: Communicate the direction to all employees, create coalitions that understand the vision and are committed to achieving it
- Motivate and Inspire: Encourage people to move in the right direction by appealing to basic human needs, values, and emotions
The Eight Step Process for Leading Successful Change:
(John Kotter, Leading Change (HBR))
- Establish a Sense of Urgency
- Form a Powerful Guiding Coalition
- Create the Vision for change and a Strategy for Achieving it
- Communicate the Vision and Strategy
- Empower Others to Act on the Vision and Strategy
- Product Short-Term Wins
- Sustain the Effort: Produce Still More Change
- Institutionalize the New Culture
There will be a gap with the traditional approach for strategy execution, especially in strategy communication which can be closed by introducing a Balanced Scorecard framework for strategy execution.
Strategy execution through the Balanced Scorecard framework enables proper strategy communication at all levels of the employees across business units, corporate units, and share services.
fruiStrategy ® EDGE empowers you to execute strategies consistently by linking strategy plan to strategy execution and aligning the whole organization’s actions towards the strategic direction. You can establish a robust strategy execution process empowered by plug-and-play modules to achieve overall organizational transformation in a systems driver approach.
Please contact Shaik Abdul Khadar, Strategy Management Expert at [email protected] or +917799798333 for a quick demo or more information.
For more information about the solution, or a meeting with our experienced Subject Matter Expert, please reach out to [email protected] We would be glad to demonstrate the solution and its capabilities at your convenience.