Objective Performance
Participating in the drafting of the new book by Patrick and Marie-Agnes Jaulent Quar, "Performance Objective", forthcoming in the second half of 2010, I am pleased to 'publish a first extract. Formalize a business strategy by designing a Balanced Scorecard (BSC), the decline in corporate strategy "cascading" the BSC in different units, align the key elements of the organization, improve operational efficiency and strategic journals are the main topics discussed in this book and illustrated with real life examples.
Balanced Scorecard: The Balanced Scorecard observation Club France (1)
There is no need to submit the Balanced Scorecard (BSC) translated into French by Balanced Scorecard Balanced (TBPE). This process, established 15 years ago by Drs Robert Kaplan and David Norton, has penetrated the public and private organizations with, admittedly, more or less successful, especially in France the country's dashboard imagined in 1930. But the BSC is not a single dashboard!
We have identified three major gaps that an organization must meet if it wants to ensure the success of this approach allowing to define and prioritize, Key Success Factors (CSF) of that management approach :
1. the involvement of management and its willingness to "change";
2. achieving a "true strategic thinking"
3. the existence within the organization a "champion of the process" and cell experts BSC to the relay in its entities.
1. The involvement of management and its willingness to "change" means:
- it no longer satisfied (each year) to (or review) a "nice" strategy document that her post on the intranet, but it decides to implement the strategic plan and fly it by measuring its deployment
- accepts what make the difference between what is important and what is strategic. In any organization is important (not important activities (no value) have been identified and removed through quality approaches: ISO 900x for example, but not everything is strategic for the 3, 4, 5, x years;
- strong leadership within the management team.
2. The achievement of a "genuine strategic thinking".
Without deep reflection Strategic BSC has no prospective, look more like a dashboard of "mission" as a dashboard of "vision". This strategic thinking is naturally correlated with strong leadership because without wanting to change the point of strategic thinking. But beyond the simple SWOT and critical agenda for change, looking tools - scenario method, game players, ... - will identify and prioritize key issues for the future of the organization operating within an environment of increasingly unstable and regulatory framework (Basel, Solvency, ..) to try to reduce this instability.
3. The existence within the organization of a "champion" of the process and cell experts to relay the BSC approach.
- Not "Champion" in BSC, an expert in the process and heavily involved in its deployment, system construction of strategic management (it is indeed a system) is unlikely to pass the first budget year.
- The "Champion" control the process, we seek to develop a simple system by limiting the number of objectives the strategic map (15 to 17 max) grouped into themes (the concept of themes is fundamental) and the number of indicators related to objectives (1 goal = 1 indicator) It will endeavor to promote the policy objectives indicators of late-type (leading) by identifying the real strategic projects that will achieve the target of the indicator.
- The "Champion" has full control of the BSC approach:
• align the goals of the entities (business units, areas, functions) strategic objectives;
• align the goals of employees with the strategic objectives;
• aligning existing processes and those which are newly created strategic objectives;
• align the budget allows, For example, better "select" strategic investments and introducing a new variable "STRATEX" (strategy expenditure) to "OPEX" (operationalism expenditure) and "CAPEX (capital expenditure);
• align the" tools BSC (strategy map and Balanced Scorecard balanced) with other approaches, such as quality initiatives like ISO 900x, ISO 1400X, ISO 26000, CAF / EFQM, risk management (ISO 31000, heat map, Triple Impact Model, ...) in order not to overlap but rather complement them.
- The "Champion" BSC control the strategic cycle. It will therefore define an agenda for strategic review from the strategic themes. This review should not be reporting activities where CODIR analyze a plethora of indicators evaluating past performance (see indicators of delayed-type ) But a magazine or it would look on the alerts that would endanger the "travel destination" via Leading Indicator (GPS).
The strategy is a journey that will last several years (the policy cycle). Her destination is the strategic goal evaluated with strategic objectives. The trip will be formalized using a strategy map and instruments of navigation aid indicators are grouped into a dashboard for a global vision.
Thus the purpose of the BSC approach is not to design a strategy map and Balanced Scorecard, balanced, but to put in place a management process as illustrated by the figure below. These different success factors lead us to offer you a chapter consisting of two main parts. The first will focus on best practices for designing a BSC using a simple example. The second part looks at real examples from the implementation of the approach. begin your journey with a destination of organizational performance.
(1) Finding 2010 conducted among 42 members of the Club France using the BSC approach for over 3 years. Excerpt from Objective Performance, Patrick Jaulent - Marie-Agnès Quares - Philippe Mularski, Editions PJRiscus 2010. To reserve already a copy of "Performance Objective" follow this link: Objective Performance, the book