Execute Strategy through Balanced Scorecard Framework

A thorough strategy execution that supports Dr. Kaplan and Dr. Norton's Execution Premium methodology is fruiStrategy® Balanced Scorecard. The solution through structured approach to the overall strategy execution process includes a complete framework to handle project management, risk management, compliance management, communications management, and review management.

Balanced Scorecard is a framework that translates an organization’s strategy into a set of objectives and measures, and aligns the organization to them though it’s planning and control processes”— David Norton.

Less than 10% of strategies effectively formulated are effectively executed – Fortune Magazine.

Strategy execution is the key challenge for majority of senior executives of any organization. Kaplan-Norton Balanced Scorecard is proven methodology for strategy execution used by many high performing organizations.

Define Perspectives based on your need

The Balanced Scorecard generally relies on four perspectives to monitor Organizational health.

Financial Perspective: The financial health of any enterprise is critical for long-term survival. Typical measures used by organizations include revenue growth, operating income, return on equity, and other measures of interest to owners.

Customer Perspective: The customer perspective compares the enterprise’s service to the competition’s service. Specific metrics vary by industry but most focus on time, quality, and service levels. Metrics common to most industries include customer satisfaction and enterprise responsiveness.

Internal Process Perspective: This perspective helps the enterprise understand the efficiency and effectiveness of internal business processes and supporting technologies. Many companies focus on the time to take an order, on-board a new hire, or complete other internal processes.

Learning & Growth Perspective: This perspective considers the degree to which the enterprise can evolve and improve the way it supports its goals. Organization capacity monitors people, culture, organization, and the infrastructure to support them.

Design Strategy Map to translate your Strategy

A strategy map is a straightforward diagram that depicts the relationship between strategic goals in a logical, cause-and-effect manner. As it is used to swiftly communicate how value is created by the organization, it is one of the most effective components of the balanced scorecard technique. Every employee may see how they contribute to the accomplishment of the organization's goals with a well-designed strategy map.

Strategic goals and measures are included in a balanced scorecard. Actuals and objectives will be part of the measurement. We must choose the right strategic initiatives/projects if we are to meet the goals.

fruiStrategy helps you to define dynamic strategy map which include time dependent objectives, drill down to stories, drill down to performance numbers, send action messages for performance gaps, and monitor business performance holistically.

Perform Value Gap Analysis and close the gap

Value gap is the performance gap that cannot be filled by current resources or abilities to meet strategic projections. Value gaps can be determined by product/service categories or geographic locations. The predicted revenue gaps are often filled by strategic goals, projects, and actions. During the execution of the plan, the methodical description of value gaps and how they will be closed can provide invaluable knowledge.

The value gap closure performance can be recorded as part of BSC reporting and hence you can keep the track of link of strategy plan to execution.

Conduct Strategy Reviews and take insightful actions

The management of an organisation evaluates the effectiveness of a chosen strategy's implementation, its level of success or failure, and the performance of the entire organization through the process of strategy review.

Reporting of KPI actuals, initiative performance, people performance is the key process in all organizations. The process will be simplified by robust automation to any ERP or other systems.

The review meetings are decision-driven meetings that focus on the big picture rather than tactical issues and identify new value-creating opportunities within a business.

Report performance of objectives and measures regularly

The performance of an organization's overall strategy may be monitored and improved by using a range of reports that can be retrieved from the balanced scorecard. A report with all of the scorecard's indicator values, a report with data on leading and lagging indicators, a summary of all initiatives with budget and duration, a report with goals, initiatives, and the people in charge, a report with the mission, vision, core values, and strategic themes, a report with all of the scorecard's strategy maps, and any other customised reports that are required are just a few of them.