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Home | Business | Strategic Planning According to studies, the BSC is being implemented in nearly two-thirds of North American corporations. Indicative of the system's growth, many of these implementations are less than six months old. Thus, as a manager, if the system has not yet been encountered, it most likely will be in the near future. What does this mean to managers? FIRST, recognize the Balanced Scorecard for what it really represents. Essentially, the BSC is a measurement framework through which organizations define strategic goals at every level in an organization with measures attached to each goal - thus enabling managers to review past and predict future performance and to take corrective improvement action. The BSC is significantly different than other management systems in that it forces organizations to measure only the top few strategic goals and to align every employee behind their interpretation of these goals. Ultimately, the BSC is a proven methodology to execute an enterprise strategy. SECOND, embrace the power of the Balanced Scorecard. If managers can deftly create their divisional, departmental or team goals, identify useful measurements, and enable those working for them to take predictive action against performance shortfalls, the BSC can truly become a value-added manager's tool. THIRD, understand the big picture of enterprise strategy execution. Organizations that have successfully deployed a Balanced Scorecard framework and achieved notable results all followed these 10 steps:
FOURTH, managers should be aware that they possess the power to execute enterprise strategies. As illustrated in the ten steps above, managers and front-line employees translate the objectives and measures into different levels within an organization. The accuracy of these measures determines the effectiveness of the organization and its ability to achieve the overall goals. On the other hand, beware of becoming a bottleneck within a strategy execution system. Just as a manager's role determines the ultimate success, his or her inaction or inattention to a system can also attract a swift and negative spotlight. Strategy systems like the Balanced Scorecard succeed only when the measures are recorded on time and accurately for each period. Thus, managers must maintain diligence in the area of system usage or risk turning the spotlight on themselves. FIFTH, do not forget that a strategy execution system impacts all those being managed. Thus, it is the manager's challenge to empower front-line employees with the collaborative tools necessary to encourage the swift implementation of improvement initiatives and the replication of best practices. Finally, embrace technology. The marketplace for software solutions to automate the strategy execution process is rapidly growing. According to the Balanced Scorecard Collaborative (www.bscol.com) almost 75% of companies implementing a BSC will also implement a software solution to automate the process. If managers express interest and become involved in the selection and implementation process of these software solutions, the systems can be transformed into job enhancing tools - thus making managers even more effective and efficient in achieving strategies. Article Source: http://www.articlewheel.com
Jack Steele has worked with and consulted for some of the world's largest corporations, helping them achieve two Baldrige Awards, two Baldrige site visits, two Deming Prizes, and countless dramatic performance improvements. In 2000, Jack co-founded ActiveStrategy, Inc., which was the first organization in the world dedicated to developing and deploying enterprise-wide software for corporations seeking to harness the power of strategy execution. Learn m
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