" If you fail to plan, you plan to fail." Ralph Waldo Emmerson
The Balanced Scorecard technique is the more effective way I know to implement a strategy, whatever the objective is to create a Business or improve an existing one.
Most of the business plans well focus on the target, setting objectives on Financial Results and on Customer Satisfaction. But sometimes the way to reach them is not so clear, that makes difficult to concentrate the effort of the organization on their achievement.
Working on the internal perspectives, setting related objectives on Business Processes, Information Architecture, People coaching, is mandatory if you want your strategic plan to be something more than a beautiful PowerPoint file.
To explain how important are these internal perspectives in the business change management, let me propose the analogy between the Balanced Scorecard and a tree.
When you plant a tree, your final objective is to get the best fruits from it. That is what the BSC call the Financesl Perspective or Financial results.
Any gardener will say you have to take care of all the tree, starting from the roots, feeding them with fertilizers and water, if you want to maximize your chances to get fruits.
That is exactly what the fathers of BSC, Robert Kaplan and David Norton, say:
To maximize your chance of getting results, pay attention to the other perspectives:
- Customer Satisfaction
- Business Processes
- Learning & Growth
Identifying your full objectives tree, you will evidence what are your root objectives and how they impact on your Financial results.
If your business can be managed as a project portfolio, may be this example can give you ideas how to apply BSC to Project Management.
Project Balanced Scorecard Description
Not familiar with definition of and Key Performance Indicators ?
Need to organize your ideas ? why not to use Mind Mapping Tools
Is your team prepare for a BSC initiative ? May be you have first to organize the change
Need to learn more ? look at Soundview Executive Book Summaries
"A bad plan is better than no plan " Charles De Gaulle
“Unless commitment is made, there are only promises and hopes; but no plans.” Peter F. Drucker
“Plans are only good intentions unless they immediately degenerate into hard work.” Peter F. Drucker