The dilemma…..
“80% of organisations say they have some form of “balanced scorecard” yet,70% of scorecards are failing heir organisations because they do not provide concise, predictable, actionable, information.”
(For source see below)
But at the same time…
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%
(Source: Hackett)
WHY?
1) The average Senior Exec has 132 measures (83 financial, 49 operational)
2) 62% of measures are financial. 76% are lagging (historic) measures.
It is all too late…
- Little customer information
- Little use of “Learning & growth” perspective
- Lost focus on strategic goals and underlying drivers of performance
The underlying reason
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.
