Balanced Scorecard
Execute Strategy through Balanced Scorecard Framework
fruiStrategy® Balanced Scorecard supports Dr. Kaplan and Dr. Norton’s Execution Premium methodology. It takes a structured approach to the whole strategy execution process, with a complete framework for project, risk, compliance, communications and review management.
The Balanced Scorecard is a framework that translates an organization’s strategy into a set of objectives and measures, and aligns the organization to them through its planning and control processes.David Norton
Strategy execution is the key challenge for the majority of senior executives. The Kaplan-Norton Balanced Scorecard is a proven methodology for strategy execution, used by many high-performing organizations.
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Define Perspectives based on your need
The Balanced Scorecard generally relies on four perspectives to monitor organizational health.
Financial
The financial health of an enterprise is critical for long-term survival. Typical measures include revenue growth, operating income, return on equity and other measures of interest to owners.
Customer
Compares your service with the competition’s. Metrics vary by industry but focus on time, quality and service levels, such as customer satisfaction and responsiveness.
Internal Process
Shows the efficiency and effectiveness of internal processes and supporting technology, such as the time to take an order or on-board a new hire.
Learning & Growth
Considers how far the enterprise can evolve and improve in supporting its goals, monitoring people, culture, organization and the infrastructure behind them.
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Design a Strategy Map to translate your strategy
A strategy map is a simple diagram that shows the cause-and-effect relationship between strategic goals. It communicates quickly how the organization creates value, and a well-designed one lets every employee see how they contribute to the goals.
A balanced scorecard includes strategic goals and measures, with actuals and objectives. We must choose the right strategic initiatives or projects to meet the goals.
fruiStrategy lets you define a dynamic strategy map and monitor business performance holistically.
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Perform Value Gap Analysis and close the gap
A value gap is the performance gap that current resources or abilities cannot fill to meet strategic projections. It can be determined by product or service category, or by geographic location.
Predicted revenue gaps are usually filled through strategic goals, projects and actions. Describing them methodically, and how they will be closed, provides valuable knowledge during execution.
Value gap closure performance can be recorded as part of BSC reporting, so you can track the link from strategy plan to execution.
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Conduct Strategy Reviews and take insightful actions
Through strategy review, management evaluates how effectively the chosen strategy is implemented, its success or failure, and the performance of the whole organization.
Reporting KPI actuals, initiative performance and people performance is a key process in every organization. Robust automation with any ERP or other system simplifies it.
Review meetings are decision-driven. They focus on the big picture rather than tactical issues and identify new value-creating opportunities.
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Report performance of objectives and measures regularly
A range of reports from the balanced scorecard helps you monitor and improve the performance of your overall strategy, including:
- A report with all of the scorecard’s indicator values
- A report on leading and lagging indicators
- A summary of all initiatives with budget and duration
- A report of goals, initiatives and the people in charge
- A report of the mission, vision, core values and strategic themes
- A report of all the scorecard’s strategy maps
- Any other customised reports you need
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How it is done
- 1Develop StrategyPerform strategy analysis, validate strategic choices and formulate strategy to move from the current state to the future state.
- 2Translate StrategyTranslate strategy into strategy maps, balanced scorecards and initiatives, and fund them to deliver desired results and key capabilities.
- 3Align StrategyAlign corporate units, business units, people, systems, processes and everything else in the organization.
- 4Plan OperationsPlan operations for key process improvements, integrated demand and supply plans, budgets, and tactical and operational plans.
- 5ExecutionExecute operations efficiently and effectively and complete projects successfully to achieve results and business growth.
- 6Monitor & LearnMonitor the business through effective strategy reviews to ensure execution and alignment, plus efficient operational reviews.
- 7Test & AdaptTest strategic assumptions regularly against results to achieve outcomes, and quickly identify and adopt emerging strategies.
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