Just creating a strategy is not enough. A good strategy that is not implemented is of no benefit. Linking the Strategy to Actions is the next important step. Linking the strategy and actions (or operations) via Balanced Scorecards is the second stage in Creating a Strategy-Focused Organization.
Many organisations represent strategy on a one page Strategy Map. Designing the Technology Strategy Maps and the IT Balanced Scorecard becomes an interesting next challenge for the Senior Leaders.
A Strategy Map provides a visual representation that tells the story of the organization and describes the logic of the strategy. It is the missing link between strategy formulation and strategy execution.
On the Strategy Map, the Corporate Goals and Objectives are distributed into the following four Perspectives:
- Financial Perspectives
- Customer Perspectives
- Internal Process or Operational Perspectives
- Learning and Growth (or staff) Perspective
The Balanced Scorecard and The Strategy Map also shows the cause-and-effect linkages between Vision, Goals and various Objectives that are distributed into various Themes.
The Balanced Scorecard
The Balanced Scorecard is a Performance Measurement tool to assess progress toward the Corporate Goals.
We help create the IT Balanced Scorecard to offer the vital link between Vision, Mission, Values, Corporate Goals and Critical Success Factors on the one hand, and the Operational Objectives, Measures, Targets, Initiatives and Action Items on the other. Also identified on the Balanced Scorecard are the Sponsors and Owners of Goals, Objectives and Initiatives.
The Balanced Scorecard helps in communicating, motivating, empowering employees, funding Initiatives and rewarding progress made toward Corporate/ IT Goals. A Balanced Scorecard is also used in a variety of other ways:
- Clarifying strategy and making strategy operational
- Driving strategy execution
- Identifying and aligning strategic initiatives
- Linking budget with strategy
- Aligning the organization with strategy
- Conducting periodic strategic performance reviews
Read more about Becoming a Performance Driven Organisation with Balanced Scorecards.