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18 June 2009 • 12:24 pm
Cascading is a term that has been used in the balanced scorecard (BSC) community to describe the process of propagating the BSC across an organization. Although the term implies a downward movement (through the organization’s hierarchy), propagation in any direction has come to be referred to as ‘cascading.’ Some people mistakenly apply the term to the strategy communication process; after all, they reason, communication of strategy also cascades through the organization, and is certainly related to BSC propagation. But I believe that cascading and communication are two separate processes, especially since communication is absolutely essential to the change process, while cascading is not always necessary or beneficial. And poorly-planned cascading can derail the change program. 12 June 2009 • 12:21 pm
In my earlier post on strategy map design, we examined the basic structure of strategy maps as originally described by Bob Kaplan and Dave Norton in their early work on balanced scorecard. While their four-perspective model has been effective in designing strategy maps in for-profit organizations, there has been much variation in the perspective (vertical) dimension of strategy maps in government and non-profit organizations. At the same time, there have been a number of approaches to organizing the thematic (horizontal) dimension of strategy maps, with no one approach having emerged as consistently effective. Today, I propose a generalized structural approach for both the vertical and horizontal dimensions of the strategy map. 9 June 2009 • 1:00 pm
In their early work describing and promoting the balanced scorecard as a tool for strategic management, authors (and my former bosses) Bob Kaplan and Dave Norton presented their four perspectives (Financial, Customer, Internal Business Process, Learning and Growth) from which to measure business performance and motivate behavior in an organization. While the four perspectives were presented as a framework for selecting performance measures, there was little said about the physical presentation of these perspectives, the strategy map. 8 June 2009 • 11:36 am
Practitioners and fans of the balanced scorecard concept understand that measurement has the power to motivate behavior. The great challenge in driving change in any organization isn’t just to change the culture, but to change the behavior of individuals and groups inside the organization. Performance measurement doesn’t just tell us how well we’re doing at achieving a desired outcome, the very process of measurement and communication of measure results actually changes behavior. 2 June 2009 • 8:25 pm
Those familiar with strategy maps know that when properly designed, they convey the cause and effect hypotheses of an organization’s strategy. No leader, no matter how gifted, is able to discern the future. But to describe strategy is to describe how leaders believe that value will be created in the future. While some organizations’ leaders may be content to simply say “our strategy is to become the number one producer of widgets in North America,” there is nothing in such a weak statement to help middle managers and front-line employees understand how the organization will become so good at producing widgets. And therein lies the critical need for conveying the hypotheses of cause and effect. Let’s consider a simple example. In this purely hypothetical example, my wife is judging my performance in our organization (our family) by two measures: the number of calories I eat each day, and the number of days each week I exercise for at least thirty minutes. She’s even established targets for my performance; no more than 2,000 calories in a day, and at least three exercise periods a week. On the basis of those two measures, we can infer that she wants me to eat smart and to exercise. But why is my performance being measured this way? (If you have a good punchline, please leave it in the comments below.) |
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