Stop Planning and Start Doing
Now that you have determined your organization’s mission, vision, values, value proposition, and goals, it’s time to execute and evaluate your plan. The balanced scorecard, a framework developed by Robert Kaplan and David Norton, gives leaders a fast but comprehensive view of the organization and it’s successes. The balanced scorecard is a set of measurements that track your organization’s progress toward its goals and strategies. It:
- is a top-down reflection of the company’s mission and strategy;
- is forward-looking;
- integrates external and internal measures; and
- helps you stay focused.
The balanced scorecard allows leaders to look at the business from four important perspectives and to focus on a handful of measures that are most critical by assigning them to these perspectives:
- Client perspective: How do customers see us?
- Clients’ concerns tend to fall into four categories: time, quality, performance and service, and cost.
- Organizations should articulate goals for these categories and then translate the goals into specific measures.
- Internal perspective: At what must we excel?
- Internal measures should stem from the business processes that have the greatest influence on service delivery, such as factors that affect quality, employee skills, and productivity.
- Organizations should attempt to identify and measure their core competencies—the critical capabilities needed to ensure continued market leadership—and specify measures for each.
- Innovation and learning perspective: Can we continue to improve and create value?
- An organization’s ability to innovate, improve, and learn ties directly to its value.
- Organizations should measure their ability to launch new services, create more value for stakeholder, and improve performance.
- Financial perspective: How do we look to stakeholders?
- Financial performance measures indicate whether or not the organization’s strategy, implementation, and execution are contributing to bottom-line improvement.
- Typical goals have to do with profitability, growth, and shareholder value.
What measures are you tracking to gauge your success?