Balanced Score Card: Implementation Simplified

With the information age rapidly maturing and the clear inclination of the companies towards superior competitive strategy as operational effectiveness was no more a differentiator, the challenge that companies are facing is not only to derive strategy statement but also to share and implement it effectively across the organization.

Balanced Score Card developed by Kaplan and Norton in early 90s was widely regarded as Performance Management System tool. The evolution of Balanced Score Card as Strategic Management System has filled the gap between the Strategy Formulation and Implementation.

The steps involved are highlighted below:

1) Create Vision and Strategy Statement

2) Derive integrated set of objectives and measures from vision and strategy statement

3) Communicate strategy to all levels

4) Link the organizational level objectives and measures to departmental and individual objectives

5) Integrate the Business and Financial Plans

6) Allocate resources and set priorities to achieve Balanced Score Card objectives

7) Evolve the strategy real time as per the feedback and learning

Resources are scarce for every company in the world. Utilization of those resources to achieve the competitive advantage (which will in turn help in higher returns on the capital employed) will depend upon the integration of Strategic initiatives with the Budgeting process. 

CUNIX specializes in consulting and advisory related to Balanced Score Card.

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Attributes of successful managers: Always have a plan B

One of the major differentiating factors between successful managers and not so successful managers is the way they visualize end.

There is an organization, say X Inc., which wants to train its people in leadership. Two different salesmen – Mr. A and Mr. B – from two different organizations are bidding for the order. Both these salesmen have performed quite well through their career, and this deal, whosoever wins it, shall help him secure a promotion. Mr. A boasts about it. He’s already narrated to his colleagues the things he’ll do on winning this order. He has been talking about it since 3 days!

On the other hand, Mr. B, although confident of winning the order, has kept mum on the deal. Mr. B has been planning in his mind the things that might go and the ways to mitigate them. Worst come worst, if they lose the deal, how to ensure his promotion and survival in the market. This habit of Mr. B, to think through the outcomes, and plan for the negative ones has often paid him in the past. It had helped him to be ready with the choices, when things went wrong. Hadn’t this habit of his helped him when presenting the initiatives to his boss last year?

X Inc. arrived at a decision. It dropped its decision altogether to go for the training presently. Following which, Mr. A was heartbroken, and couldn’t help but wonder what went wrong. He called the executives at X Inc. repeatedly, but couldn’t do much. Mr. B, on the other hand took this positively. He talked to executives at X Inc. to know the details and future scope. He asked for the referral from the related people, if any, and went about his business of selling there.

The key difference in the above example is that though both Mr. A and Mr. B failed in the above scenario, Mr. B knew how to take something of value (referrals) from the above scenario, whereas Mr. A was left banging his head. Sooner or later both would get promotions, but the result there again would depend on their preparedness to deal with the worst.

Always have a plan B, in case the plan A was to fail. Don’t market the Plan B, lest it demoralize the team, but always be prepared. Our human destiny is largely shaped by what goes inside our skull vis-à-vis what happens outside our skull.

Manager: The seven things to remember!

In the complexity of our day to day lives, we forget the basics. Although the basic function of a manager is to manage, there are things to remember, to help us be a better manager and better the art of management.

The following are the 7 things:

1. Plan your work: Psychologically, we humans as a race respect and crave for structure. The ones who structure their time better, win more trust and popularity as compared to the others. Always start with a plan, and execute plan as well as you can
2. Follow the plan: It’s useless to have the best of plan, unless acted upon. Always start working as soon as you have made it 
3. Keep your word: Nothing backs yours (and stakeholders) confidence as work delivered word for word. Always think before you speak, and act to fulfill your promises
4. Keep stakeholders’ informed: Darkness causes confusion, and confusion leads to chaos. A simple message, mail, call or a meet can help you do away with chaos. Always keep relevant stakeholders informed about the progress of the project.
5. Keep yourself updated: Informed decision can be taken only if you are aware of the progress of the project, market expectations, updates in technology and market, current happening. A manager shall always keep track of micro and macro environment 
6. Explore: An ideal way to grow is to try new things. Explore and reinvent yourself and your organization
7. Take care of your people, for they are the ones who build the organizations, and without them all is for naught.