Balanced Scorecards, and much more.
Value based Performance management-VbPm
“Despite the best intentions of those at the top, lofty statemens about becoming “best in class”, “the number one supplier,” or an “empowered organization” don’t translate easily into operational terms that provide useful guides to actionat the local level. For people to act on the words in vision and strategy statements, those statements must be expressed as an integrated set of objectives and masures, agreed upon by all senior executives, that describe the long term drivers of success.” (R.S.Kaplan, D.P.Norton)
Kaplan and Norton define the Ideal practice as a 4 step process
1. Translating the Vision
2. Communicating and Linking
3. Business Planning
4. Feedback and Learning
These are great, but often, as most ideal practices go…….implementing them is no small feat and the end result is often a far cry from the actual mark intended.
We are in the age of automation and technology, we have never had such a plithora of tools available to us to either utilize or to develop other more focused tools. We have the tools to develop more advanced tools.
At KPI Digital. we have developed a unique solution that now takes the Corporate Vision and allows you to translate it into a working model all the way down to the KPI’s and Measures. These KPI’s and Measures are linked to specific departments as well as being prioritized allowing you to have a clear image of the KPI’s and measures required at the department level and the lists are prioritized allowing the employees to know easily which ones to focus on more. This makes it far easier for employees to understand how their activities impact different KPI’s which may be shared across multiple departments.
This interactive application allows you to build a schema bellow your Vision rating it to all the different parts of your Organization and creating a visiual showing how all areas of your busniess tie into your vision. It also allows you to show the different areas of commonality, where KPI’s and measures are shared allowing different areas of the business to work together in collaboration and even more importantly ensuring that areas where KPI’s are actually counter productive to one another, where the success of one, prevents the success of the other. This is also the reason for a prioritization system allowing employees to understand that they are working in a collaborative effort to achieve a vision.
Without the collaborative efforts of the different parts of the organization, achgieving your vision is an impossability.
In our next post….. details on the VbPm Application and how you can get started.
PERFORMANCE MANAGEMENT PRACTICE LEADER
Robert S. Kaplan and David P. Norton (1996), ‘Using the Balanced Scorecard as a Strategic Management System’ Harvard Business Review, January-February 1996 https://cours.etsmtl.ca/mti820/public_docs/lectures/UsingTheBalancedScoreCardAsStrategicManagementSystem.pdf