Although not every organization has a clear, well-defined strategy, the vast majority would agree that strategy is an essential component of long-term success. With our patent-pending Stratety™ platform, your company not only has a much greater probability of arriving at a well-defined strategy, but also enjoys our guarantee of executing on it effectively.
The first challenge faced by any business in today’s globalized and hypercompetitive environment is to develop an effective strategy. When an organization’s strategy has been clearly defined, the next challenge, perhaps even more important than the first, is to translate that strategy into terms that everybody in the organization can understand and execute. The ability to do this effectively will bring focus to any organization, but that’s precisely where the problem lies. Most executive team failures are not the result of a poor conceptualizing of strategy, but rather of poor execution.
The Balanced Scorecard, first popularized by Dr. Robert Kaplan and David P. Norton in a 1992 article published by the Harvard Business Review, provides the most widely-used framework for organizations to move from conceptualizing and talking about strategy, to actually executing it. The Balanced Scorecard (BSC) describes a company’s strategy, breaking it down into parts through objectives and indicators chosen in each of four different perspectives:
- Internal business processes
- Learning and growth
In an ideal situation, the Balanced Scorecard is created through a two important factors: first, through a very clear understanding of the strategy selected by an organization and, second, by translating that strategy into very clear and measurable objectives in each of the four perspectives above, for example:
We are going to manufacture motors at 50% of the current market costs (sample strategy):
- Financial: We must increase cash flow by “x%”and operating income by “x%” within the next 6 months, etc.
- Customer: We must increase return customers by “x%” and find two new partners per quarter, etc.
- Internal business processes: We mustdecrease our defects to 1 per million and be able to manufacture around the clock, etc.
- Learning and growth: We must be able to form strategic partnerships in less than 14 days and outsource any process that is not absolutely core, etc.
If your team or company has not clearly defined its strategy and then translated that strategy into specific, measurable objectives from each of the 4 perspectives outlined above, then it’snot working with the Balanced Scorecard and it is going to be much more difficult to compete for the long term. The translation of strategy into clear objectives forces a team to determine what exactly is meant by marketing jargon such as: “best-in- class,” “great service” and “unparalleled commitment.” Through the process of developing a Balanced Scorecard – again, after the strategy has been defined – an executive group might determine “best in class” means a consistent top position in an important industry ranking. The entire organization can then concentrate on making sure they remain at that top slot in the industry ranking. This may entail a further refining of measures and objectives, according to the criteria that are used by the people who publish the ranking. Using the Balanced Scorecard as a framework for translating strategy, companies create a new culture of experiment and measurement that serves to ultimately steer the company into the right direction.
Traditionally, the process of measuring and tracking data has been one of the most expensive and laborious aspects of developing and implementing the Balanced Scorecard. Now, with our patent-pending Stratety™ platform, your organization can accomplish a great deal of these measures, especially the all-important qualitative measures that are not very well captured through online surveys and other forms of data capture, at a fraction of the cost. How can we deliver on this promise?
We can deliver on this promise because it is based on our strategy. We offer excellent service and previously inaccessible expert advice through economies of scale and internal systems efficiency. We are a lean organization whose entire business model is built on lean and six-sigma principles. We deliver our high-quality services using the leanest and most advanced administrative models and procedures on the planet. We pride ourselves on our world-class internal collaboration processes that allow us to not only learn quickly but also bring experts from around the world onto our framework and into your project at a fraction of what it costs you and our competitors to deliver comparable quality. Another key is our 8 years of experience at the cutting edge of executing qualitative evaluation systems. We can measure your company and your balanced scorecard better – qualitatively – than you can yourself, for a much lower price.
As is well-known in Balanced Scorecard consulting circles, a key part of effective strategy formation is being able to perform a different set of activities than one’s rivals. This is why our rivals cannot compete with us. Because we have chosen to excel at measuring qualitative aspects of performance that have traditionally been too expensive for companies to perform well, and to base this know-how in a human and technological process that we call Stratety™, we are able to create a unique value proposition for you and thus separate ourselves from our competition. This“qualitative-evaluations” strategy and know how is, of course, reflected in our own Balanced Scorecard.
In other words, because we wish to distinguish ourselves by engaging in a series of qualitative-evaluation activities aimed at creating customer intimacy, then obviously our own Balanced Scorecard reflects this strategic direction. You can expect to see – and we will be happy to show you – linked measures and objectives through the four perspectives outlined above which taken together drive our strategy in the market. For example, measures that are related to service appear prominently in our “Customer” perspective, measures linked to qualitative evaluation methodology in the “Internal Process perspective”, and measures of skill areas and geographical regions covered by our services in the “Employee Learning and Growth” perspective. This chain of linked Balanced Scorecard measures drives our revenue growth in the “Financial” perspective. Again, our very own Stratety™ + the Balanced Scorecard provide the framework to describe and articulate the activities that separate us from our competition. The great part of all of this, of course, is our ability to lend these services and our know-how to your own Balanced Scorecard activities.
With Stratety™, our Balanced Scorecard experts guide organizations of all types through the development of world-class Balanced Scorecard systems. As mentioned above, we do it differently. We do it through our own Balanced Scorecard, which is based on making yours more accurate, more useful and less expensive.
Many thousands oforganizations around the world, including Fortune 500, SMEs, government agencies, and nonprofits of every size are using the Balanced Scorecard. Your organization is probably one of them. Why not talk to us about the aspects of your balanced scorecard where it is difficult and expensive for you to establish and carry out measurement activity? This is our specialty, and our Balanced Scorecard can dovetail with yours to solidify both in a mutually-synergistic way.
If you are new to Balanced Scorecards, as a value-added plus to working with our award winning Stratety™ platform, we can train you on how to think about and create a clearly differentiated strategy, how to build a Strategy Map, or how to develop performance measures – both quantitative and qualitative – that allow you to effectively track the execution of your strategy.
We’re specialists as customizing all of our service offerings to fit the unique needs of your organization. Here are just some of the topics we can cover for you, in your own organization, anywhere in the country, and whenever it suits you best:
- Overview of Balanced Scorecard and Performance Management systems:our historical obsession with financial measures and the difficulty of executing strategy with numbers alone.
- BSC fundamentals: Who, where, when, why, and how of the Balanced Scorecard history andits four perspectives.
- Strategy Maps: Powerful visual communication tools that clearly communicate a strategy throughout an organization.
- Strategy Map case studies: Participants will learn hands-on by developing a Strategy Map for a fictitious organization.
- Performance measures: The heart of the Balanced Scorecard system. We’ll examine the characteristics of effective measuresand describe the powerful additional tools that Stratety™ is going to give you to obtain the hard-to-get measures that you need.
- Key Performance Indicator case study: Participants will create KPI’s for various factitious strategies.
- Implementation of the Balanced Scorecard: what it will take to implement the BSC system, including Executive sponsorship, communication, the power of roles, cascading, reporting, and strategy-focused meetings.
The goal of our training is twofold: to provide your team with a solid grounding in BSC theory as well as practice to help you make informed decisions about implementation and to work with you to develop the qualitative measurements that will be provided by the Stratety™ platform. Sessions can run from 4 to 20 hours, depending on your specific needs and commitment.
With Stratety™, we can also audit your businessor department strategy to make sure it is primed for exceptional learning and performance.
Strategy and BSC Assessment with Stratety™
Whether your team works in one office or in hundreds of offices around the world, Educapro experts and Stratety™ can help quicklyand cost-effectively measure the level of understanding and consensus among your team on key strategic priorities, , including:
- Your target customer profile
- Your target markets and sectors
- Product and service mix, including geographic focus
- Your company’s value proposition
To assist you and your team, we’ll provide first an online template allowing all persons to document their views on the organization’s strategy. More importantly, we will also interview directly and in person, each and every member of your team, from the executive level to the front lines, in 3-5 minute, specially designed interviews. Based on our findings, we’ll prepare a detailed report detailing the strengths and weaknesses discovered. In a short amount of time, you’ll have access to important insights on how well your entire team is equipped to execute your strategy.
Key Performance Indicator Consulting
To compete effectively in today’s fast-changing global context, your strategy and your performance management system must be agile, swift, and effective. This applies in a special way to you select your key performance indicators. This is an area that causes many BSC initiatives to atrophy. It’s not uncommon for organizations to “get stuck” and rarely modify their KPIs, when in reality your company needs to be able to quickly set and measure these as part of a process of continual improvement.
Dynamic and qualitative, insight-inducing metrics are fundamental to an effective BSC and Performance Management system. Using Stratety™, Educapro will provide the tools and training to measure key performance indicators to make sure they:
- Reflect your organization’s strategy
- Represent your organization’s value chain
- Effectively measure your organization’s ability to deliver value
- Clearly communicate the objectives of the strategy
Knowledge is the lifeblood of organizations and powerful, qualitative metrics are an important adjunct to guarantee business success. There is a reason that companies like Nike, Volkswagon, SEAT and PWc call us then they need important metrics that are not easy to obtain elsewhere. We are unique in the market, and the reason we are unique is because of our ability to combine the traditional tools of strategy execution with our proprietary platform, Stratety™.
Contact us to learn more about what Stratety + the Balanced Scorecard can do for you.