Balanced Scorecard Basics
Balanced Scorecard Basics Quick Reference Guide Sample Balanced Scorecard
Scorecard Building Blocks Values What is important to your organisation? What is the one word or phrase that your leadership team would like the organisation to embody? Ideas: o Excellence o Loyalty o Truth o Innovation o Responsibility Mission Statements This outlines the core purpose of your organisation. In other words, what makes the company tick? Vision Statement Your vision statement takes your organisation’s values and missions and creates a statement of where you want to go in the long term (the next 10 to 15 years).
Communication Plan Checklist
Training Plan Checklist
o Who will you be communicating with? o When will you need to communicate with these various groups? o Why are you communicating with these people? What are you trying to accomplish? o What are you going to say to each group? o How will you get your message across?
© Velsoft
o Who will be receiving the training? (Group of people or a particular individual) o When will they require the training by? o Why do they need the training? o What will the training cover? o How will the training be done? (Classroom, online, hands-on, etc.)
LearningWorks Training
Critical Balanced Scorecard Processes o Identify how the balanced scorecard fits into your strategic and financial management processes o Create a timeline for data gathering, reporting, evaluating, and updating the balanced scorecard o Assign responsibility for each of these phases of activities to a single individual o Create a template and FAQ sheet for submitting balanced scorecard data o Integrate the balanced scorecard into all organisationcritical processes
© Velsoft
Top Ten Pitfalls 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
No top-level commitment to drive the project Not enough awareness of why project is happening Lack of experienced people on the project Lack of project focus Inadequate foundation Project is not made a priority Teams are poorly chosen Scorecard/related tools not customised properly Scorecard not applied throughout the organisation Measuring too much, too little, or the wrong things
LearningWorks Training
The Balanced Scorecard Process Here is our big-picture process from with the various tasks identified by team. o o o
Red outline = Executive Team Green outline = Balanced Scorecard Steering Team Blue outline = Strategic Teams
© Velsoft
o o o
Black box = Planning, Training, and Set-up Green box = Balanced Scorecard Development Orange box = Implementation
LearningWorks Training
Building a Balanced Scorecard Steering Team The balanced scorecard steering team is the group that gets the balanced scorecard started and keeps it going. In the beginning, it will likely have eight to ten members chosen by the executive team, including: o Team leader o Executive sponsor o Consultant (optional) o Project manager (optional but recommended) o Representative from each business unit o Technical advisor Once the Executive Team has done its piece, the balanced scorecard steering team will appoint teams for each strategic theme. They can then consolidate each piece into a master tactical action plan (and a master scorecard if desired). They will also be in charge of communication and project management. The steering team will also be instrumental in implementing the balanced scorecard and keeping its momentum going.
© Velsoft
LearningWorks Training
Scorecard Building Blocks Values What is important to your organisation? What is the one word or phrase that your leadership team would like the organisation to embody? Ideas: o Excellence o Loyalty o Truth o Innovation o Responsibility Mission Statements This outlines the core purpose of your organisation. In other words, what makes the company tick? Vision Statement Your vision statement takes your organisation’s values and missions and creates a statement of where you want to go in the long term (the next 10 to 15 years).
Communication Plan Checklist
Training Plan Checklist
o Who will you be communicating with? o When will you need to communicate with these various groups? o Why are you communicating with these people? What are you trying to accomplish? o What are you going to say to each group? o How will you get your message across?
© Velsoft
o Who will be receiving the training? (Group of people or a particular individual) o When will they require the training by? o Why do they need the training? o What will the training cover? o How will the training be done? (Classroom, online, hands-on, etc.)
LearningWorks Training
Critical Balanced Scorecard Processes o Identify how the balanced scorecard fits into your strategic and financial management processes o Create a timeline for data gathering, reporting, evaluating, and updating the balanced scorecard o Assign responsibility for each of these phases of activities to a single individual o Create a template and FAQ sheet for submitting balanced scorecard data o Integrate the balanced scorecard into all organisationcritical processes
© Velsoft
Top Ten Pitfalls 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
No top-level commitment to drive the project Not enough awareness of why project is happening Lack of experienced people on the project Lack of project focus Inadequate foundation Project is not made a priority Teams are poorly chosen Scorecard/related tools not customised properly Scorecard not applied throughout the organisation Measuring too much, too little, or the wrong things
LearningWorks Training
The Balanced Scorecard Process Here is our big-picture process from with the various tasks identified by team. o o o
Red outline = Executive Team Green outline = Balanced Scorecard Steering Team Blue outline = Strategic Teams
© Velsoft
o o o
Black box = Planning, Training, and Set-up Green box = Balanced Scorecard Development Orange box = Implementation
LearningWorks Training
Building a Balanced Scorecard Steering Team The balanced scorecard steering team is the group that gets the balanced scorecard started and keeps it going. In the beginning, it will likely have eight to ten members chosen by the executive team, including: o Team leader o Executive sponsor o Consultant (optional) o Project manager (optional but recommended) o Representative from each business unit o Technical advisor Once the Executive Team has done its piece, the balanced scorecard steering team will appoint teams for each strategic theme. They can then consolidate each piece into a master tactical action plan (and a master scorecard if desired). They will also be in charge of communication and project management. The steering team will also be instrumental in implementing the balanced scorecard and keeping its momentum going.
© Velsoft
LearningWorks Training
