Observations:
Observations PRM in table form has limited use
Difficult to interpret
Line of sight (strategy) is not apparent
Not easy to compare performance across fiscal years
Targeted towards IT project managers although they are responsible for one of four measurement areas
Performance Measurement
Many islands exist within organizations
Typically seen as a reporting exercise
Organization performance based on the efforts of many
A Better :
A Better Strategy Maps
Present strategy explicitly
Focus efforts on the top priorities
Foster consensus through discussion and clarification
Define strategy by clarifying cause and effect assumptions
Align efforts to maximize mission outcomes
Stimulate holistic thinking and analysis
Slide4:
Strategic Competencies Strategic Technology Climate for Action Infrastructure Applications Customer Business Partners Homeowners Processes Value Chain (faster, better, or cheaper) Skills, Technology, Motivation Mission Increase Home Ownership Increase Market Share Reduce Claims Step 1 – Identify and Align Key Objectives
Slide5:
Step 2 – Identify Measures & Initiatives
Slide6:
Step 3 – Prepare Exhibit 300 & PRM
Recipe for Failure for the BSC:
Recipe for Failure for the BSC Lack of senior management commitment
Too few individuals involved
Keeping the scorecard at the top
Too long development time - a one-time measurement project
Treating it as a systems project
Hiring inexperience consultants
Introducing only for compensation
Source: The Strategy Focused Organization, Kaplan and Norton
Questions:
Questions Considering the recipes for disaster of the BSC:
Are strategy maps only useful as part of a top down strategic management approach?
Do strategy maps have utility when senior management commitment is weak?