Strategic Planning Process
Use BSC to make your strategy reality
The Strategic Planning Process mobilizes valuable resources in the Corporations. And Strategy is surely is one of the most important Business area that a Manager has to keep under control if s/he wants his/er Vision become reality, or only to maintain his/er company alive in a competitive environment.
But what about the actions derived from this plan after it has been presented to the top management. How the strategic objectives are communicated to all the organization? especially to whose who have to implement it.
If you have to face this problem, you should know what a BSC exercise can make for you. Or, if you have to present your Business Plan to investors or to your Bank Director, you will give a great and professional impression using BSC.
But BSC is not only impressive: it works. It can give you big return on investment or at least help you to measure the ROI of the decisions you take or you are planning to take.
Have a look at the Strategic Business Process based on the Balanced Scorecard hereafter. What make it different to another way to implement a strategy?
Pay attention to the four perspectives used to classified the business objectives:
- Financial Results
- Customer Satisfaction
- Business Processes
- Learning & Growth
Take your last strategic plan or any equivalent goals setting exercise at business level. Split the objectives you have defined in these four perspectives. Have you got a balanced distribution?
I made this exercise in a BSC seminar, with the Strategic Objectives recently defined in my company and the results was revealing an impressive "unbalanced scorecard":
- Financial Satisfaction: 7 objectives
- Customer Satisfaction: 2 objectives
- Business Processes: 1 objective
- Learning & Growth: 1 objectives
I guess that this situation is not a single case. Most of the managers are hungry of financial results and they know that Customer satisfaction is a key factor to survive.
But how many are including Business Processes in their top objectives or are putting in relation Learning, Knowledge and Employees growth during their strategic planning process ?
If your objectives are not balanced between the four perspectives, come back to the Balanced Scorecard tree to understand why BSC is so important in the Strategic Planning Process and in Business Change Management.
Come back to Balanced Scorecard to integrate it in your Strategic Planning Process
Once you are have a balanced set of strategic objectives.
You can continue with your Strategic Planning Process:
- Defining the best Key Performance Indicators
- Setting target to quantify your objectives
- Developing your Improvement initiatives
Have a trip around this web site to get tips and tools on these topics.
Go to the home page of www.business-process-it.com