Defining strategy is only the first step of an organization’s strategic steering.
The key is to balance the strategy around four perspectives: customer, processes, finance and learning and development. Additional perspectives can be added for Corporate and Social Responsibility (environment, involved parties…)
Once this balancing work is completed, we often notice that operational objectives are not aligned with strategic objectives. Also, KPIs and actions plans are not always linked to the objectives.
Furthermore, action plans are sometimes improperly used as objectives which are not those defined by the management.
Using the BSC as a strategic management tool enables:
- Assurance that objectives, KPIs and actions plans are consistent and coherent
- Balance between objectives according to the 4 axes of the balanced Scorecard
- Provides the organization with a global, effective dashboard.
Aligning organization, processes and objectives allows one to ensure that available skills match assignments, and that these assignments are conducted smoothly and effectively.
By benchmarking best practices among peers, one can identify improvement areas, by comparing to standard organizations, or to change scenarios.
Balanced Scorecard approach
Before engaging in a BSc project, a thorough understanding is necessary of the associated challenges and depth level. The goal is not to build a dashboard, but to establish new governance, that will create a link between strategy and operational action plans led by the teams, using a KPI based management system.
Key success factors for the project are:
- Top management sponsorship.
- Across the board teamwork in order to build and launch the initiative.
- KPI system reliability.
- Strong ties with operational projects
- Strategy balancing between the 4 axes.
- KPIs alignment along the strategic axes.
- Establishing a link between strategy, management system and field actions.
Process and organization approach
An organization and processes workshop is organized around:
- Formalizing and analyzing current processes, using your industry’s references.
- Leveraging R.A.C.I. approach in order to bring processes and organization together: roles and responsibilities inventory within a process and organization chart. For each activity, every actor is inventoried and assigned to a role: Responsible, Accountable, Contributor, Informed.
- Analyzing competencies (internal and external) and check alignment with assignments.
- Proposing action plans in order to ensure leadership continuity along the processes and in order to optimize resources across activities.
Veolia Propreté, ImageWear, Galeries Lafayette, Sperian, Inéo Com, Vivéo
The Valoptia.KPI software easily allows structuring and sharing of a strategic dashboard (formalizing objectives, building and following KPIs, action plans management).
The Valoptia.ORG software enables structuring processes and organization; for example, it sheds light on frequent responsibility changes across processes.
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