The performance management dilemma:
Why do so many "balanced scorecards" fail?
80% of organisations say they have some form of “balanced
scorecard” yet,
70% of scorecards are failing
their organisations because
they do not provide concise, predictable, actionable information
(For
source see below)
World class performing organisations are over THREE times
more likely
to use a MATURE balanced scorecard approach to analyse
performance.
Organisations implementing a structured balanced (Mature)
Balanced Scorecard
performance management system show tangible improvements:
Agreement amongst senior management on strategy:
....doubles
Strategy understood by employees:
...rises
from 8% to 60%
Sales per employee:
.....up over 90%
Total shareholder return:
.....up over 24%
(For source see below)
1) The average Senior Exec has 132 measures (83 financial,
49 operational)
2) 62% of measures are financial. 76% are lagging (historic)
measures.
((For source see below)
It is all too late...
Little customer information
Little use of “Learning & growth” perspective
Lost focus on strategic goals and underlying drivers of
performance
These are not balanced scorecards.
They are precisely what the balanced scorecard was designed
to replace.
At best, these are immature balanced scorecards.
Best practice even for these is 20-25 key measures, balanced
across 4 perspectives, with a focus on strategy.
Want to make a real difference?
As the quotes from our clients show, a well-executed strategy
project, introducing the Balanced Scorecard in a way that
uses the latest thinking and
best practice, can achieve dramatic results for you.
Real experience: Having worked for the originators,
Norton & Kaplan, as early as 1996, and on Balanced Scorecard
strategy and performance engagements all over the world, we
can bring a wide experience to help you change and improve
your organisation.
For the sources of this research (and other
case studies and articles)
see "Making the case" Click
here
Want to communicate, manage and execute
your strategy better? For a FREE discussion about your
needs: Contact us
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