Blog Posts

Post Category: ‘Managing uncertainty & risk’

Why fly an untested strategy: Testing your organisation’s strategy against the external environment

You would not fly a plane  or drive a car that was untested – so why do we sometimes try to execute untested strategies? There are lots of ways to test a business strategy and check its validity.  Recently, I was running a strategy workshop for an Executive team of an international retail bank: I was delighted when the Executive team did one …

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Managing amidst uncertainty: How to positively affect shareholder return

What sort of decisions about the crisis improved, or worsened, shareholder value? It is useful to look back at the types of responses and decisions various organisations had to the credit crisis, and their speed, to see if there are patterns that influence performance, and shareholder return.  A new book, Managing uncertainty [1], reports on how it tried to do …

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Balanced scorecards do manage risk, Part 1 – it depends on the class of risk.

The way that strategy maps and balanced scorecards represent risk is one of the most misunderstood areas of their design and use.  Some practitioners and academics suggest that there is no explicit mention of risk within the balanced scorecard or even strategy maps, and therefore that they do not manage risk at all. THIS IS NONSENSE! This will be one …

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What planning horizon for my Balanced Scorecard and my strategy

So what planning horizon should I use for my balanced scorecard?  1 year, 2 years, 6, 10 perhaps? First recognise that different tools in the overall Balanced Scorecard approach to strategic management are for different planning horizons.  Tangible future for 10 years, strategy map for 2-5 years, and scorecards measures for 12-24 months, whilst targets and actions are only 6- …

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Balanced scorecard and risk management

The question was asked, how do you manage risks with the balanced scorecard and how is risk management integrated with the balanced scorecard? I’ve been thinking about this and asked myself the question, “Why would the balanced scorecard not include the management of risk?” A little thought brought me to three conclusions: * The first is about risk of the …

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Strategy in uncertainty: what tools are useful?

At an Institute of Director’s economic briefing in November, the Chief Economist of the IOD said that we are still facing uncertainty, its just that the uncertainties are changing. I think the uncertainty continues to change, especially with impending elections and economic fog. Therefore I find two tools most useful in this time of uncertainty (and changing uncertainty): 1) Value …

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Rapidly evolving and changing strategy

How do you handle rapidly evolving and changing strategy with a balanced scorecard? Today I opened my email and found out that my “BT yahoo search is now powered by the nations favourite search engine – Google!”. Yes Yahoo uses Google. It is hard to believe that these rivals from only a few years ago are now in such close …

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Balanced Scorecards in uncertainty and recession (Part 1)

How your balanced scorecard should be helping you in this economic climate (part 1) The current environment is an excellent test of your balanced scorecard. Does it still serve you well as the economy changes, with credit tightening, interest rate and exchange rate changes, with concerns over governance (just ask a banker), as you need to find ways to change …

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