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    This interview features Julian Taylor, director of strategy development and network performance for Scottish Enterprise Network (SE), which is Scotland’s main economic development agency and comprises Scottish Enterprise National (the coordinating body) and 12 Local Enterprise Companies (LECs) that collectively cover 93 per cent of the nation’s population. In this interview, drawing from his experience of facilitating the Balanced Scorecard program in Scottish Enterprise, Julian Taylor presents a practitioner’s viewpoint regarding various aspects of the Balanced Scorecard concept.

    In the course of a wide-ranging interview, Julian Taylor discusses how long he has been managing the Balanced Scorecard in Scottish Enterprise, how the Balanced Scorecard is managed within Scottish Enterprise, the reasons why his job of Balanced Scorecard Manager is a full-time position, how he first got involved with the Balanced Scorecard, his involvement with the Balanced Scorecard initiative in Scottish Enterprise, the key personal and professional qualities necessary for a Balanced Scorecard manager, the training he received, the use of his functional background in managing the Balanced Scorecard program, the nature of senior management backing he received, the major challenges he faced when building and implementing the Balanced Scorecard, how to overcome the challenges and maintain the momentum of the scorecard initiative, and the system Scottish Enterprise has in place for managing the Balanced Scorecard. Further, Julian Taylor also tells us what he enjoys most about working with the Balanced Scorecard, how it benefits him personally and tries to see how his role would evolve 2-3 years down the line. Finally, drawing from his experience, he identifies critical success factors in succeeding as a Balanced Scorecard manager.

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    This is an interview done with John Monczewski, when he was Manager, Balanced Scorecard for The GO-Team of the global management consultancy Booz Allen Hamilton. With then about 900 employees and headquartered in McLean, Virginia, USA, The GO-Team is an amalgam of the support functions of a conventional corporate structure. In this interview, drawing from his experience of facilitating the Balanced Scorecard program in Booz Allen Hamilton, John Monczewski presents a practitioner’s viewpoint regarding various aspects of the Balanced Scorecard concept.

    In the course of a wide-ranging interview, John Monczewski discusses how long he has been managing the Balanced Scorecard in Booz Allen Hamilton, how the Balanced Scorecard is managed within Booz Allen Hamilton, the reasons why his job of Balanced Scorecard Manager is a full-time position, how he first got involved with the Balanced Scorecard, his involvement with the Balanced Scorecard initiative in Booz Allen Hamilton, the key personal and professional qualities necessary for a Balanced Scorecard manager, the training he received, the use of his functional background in managing the Balanced Scorecard program, the nature of senior management backing he received, the major challenges he faced when building and implementing the Balanced Scorecard, how to overcome the challenges and maintain the momentum of the scorecard initiative, and the system Booz Allen Hamilton has in place for managing the Balanced Scorecard. Further, John Monczewski also tells us what he enjoys most about working with the Balanced Scorecard, how it benefits him personally and tries to see how his role would evolve 2-3 years down the line. Finally, drawing from his experience, he identifies critical success factors in succeeding as a Balanced Scorecard manager.

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    This interview features Felix Kwok Wah Ng, Standards and Performance manager of the Hong Kong based MTR Corporation, which operates a railway network of 91 kilometers with 53 stations. With a daily patronage of over 2.4 million passengers, the MTR railway system is one of the most intensively utilized in the world. In this interview, drawing from his experience of facilitating the Balanced Scorecard program in MTR, Felix Kwok presents a practitioner’s viewpoint regarding various aspects of the Balanced Scorecard concept.

    In the course of a wide-ranging interview, Felix Kwok discusses how long he has been managing the Balanced Scorecard in MTR, how the Balanced Scorecard is managed within MTR, the amount of time he commits in his role, his involvement with the Balanced Scorecard initiative in MTR, the key personal and professional qualities demanded by his role in scorecard facilitation, the training he received, the use of his functional background in managing the Balanced Scorecard program, the nature of senior management backing he received, the major challenges he faced when building and implementing the Balanced Scorecard, how to overcome the challenges, and the system MTR  has in place for managing the Balanced Scorecard. Further, Felix Kwok also tells us what he enjoys most about working with the Balanced Scorecard, how it benefits him personally and tries to see how his role would evolve 2-3 years down the line. Finally, drawing from his experience, he identifies critical success factors in succeeding as a Balanced Scorecard manager.

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    This interview features Bjarte Bogsnes, Project Manager Beyond Budgeting for Stavanger, Norway-based Statoil, an integrated oil and gas company with about 25,000 employees and activities in 32 countries. In this interview, drawing from his experience of facilitating the Balanced Scorecard program in Statoil, Bjarte Bogsnes presents a practitioner’s viewpoint regarding various aspects of the Balanced Scorecard concept.

    In the course of a wide-ranging interview, Bjarte Bogsnes discusses how the Balanced Scorecard is managed within Statoil, how the Balanced Scorecard fits into the Beyond Budgeting initiative he is leading, what makes the Balanced Scorecard more useful as a management tool than the budget, the amount of time he commits in his role, his involvement with the Balanced Scorecard initiative in Statoil, the key personal and professional qualities demanded by his role in scorecard facilitation, the training he received, the use of his functional background in managing the Balanced Scorecard program, the nature of senior management backing he received, the major challenges he faced when building and implementing the Balanced Scorecard, how to overcome the challenges, and the system Statoil has in place for managing the Balanced Scorecard. Further, Bjarte Bogsnes also tells us what he enjoys most about working with the Balanced Scorecard, how it benefits him personally and tries to see how his role would evolve 2-3 years down the line. Finally, drawing from his experience, he identifies critical success factors in succeeding as a Balanced Scorecard manager.

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    This interview features Barbara Possin, Vice-President for System Quality and Strategic Alignment of the Minnesota, USA-based St Mary’s/Duluth Clinic Health System (SMDC). The SMDC incorporates 20 clinics, four hospitals and an array of specialty care services  and was inducted into the prestigious Balanced Scorecard Collaborative Hall of Fame in 2002.

    In this interview, drawing from her experience of having facilitated the Balanced Scorecard program in SMDC, Barbara Possin presents a practitioner’s viewpoint regarding various aspects of the Balanced Scorecard concept.

    In the course of a wide-ranging interview, Barbara Possin discusses her years of experience with the Balanced Scorecard, how she got involved with the Balanced Scorecard, the amount of time she commits annually to managing the Balanced Scorecard, the key personal and professional qualities demanded by her role in scorecard facilitation, the training she received, the use of her functional background in managing the Balanced Scorecard program, the nature of senior management backing she received, the major challenges she faced when building and implementing the Balanced Scorecard, how to overcome the challenges, and the system SMDC has in place for managing the Balanced Scorecard. Further, Barbara Possin also tells us what she enjoys most about working with the Balanced Scorecard, how it has benefited her personally and tries to see how her role would evolve 2-3 years down the line. Finally, drawing from her experience, she identifies critical success factors in succeeding as a Balanced Scorecard manager.

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    Architecting a Balanced Scorecard requires organizations to master four techniques – effective strategic mapping, selection of the right strategic measures, selection of the appropriate strategic targets and choosing the right strategic initiatives.

    This article focuses on the third aspect, namely, choosing strategic targets. The way in which organizations choose strategic targets has a great bearing on their performance management results.

    All enterprises set targets. While most are financial, the Balanced Scorecard reminds them to pay equal attention to both financial and non-financial targets and to synchronize goals to a longer term, strategic horizon.

    Within organizations, targets are the subject of negotiation and typically end up representing a compromise. Further, targets are normally based on a rather limiting inside-out view of the marketplace instead of being based on the outside-in perspective.

    Targets are a tangible and quantifiable vision of desired performance. Hence, they need to be set after a thorough analysis of required performance and internal capabilities.

    The article argues that targets in the Balanced Scorecard should represent quantum step-changes in performances because most scorecard initiatives are major change programs as well.

    The article then provides guidelines on how organizations should go about rooting targets in real strategic initiatives, setting stretch targets, communicating the targets, avoiding the trap of mixing targets with forecasts, and finally, performing an audit of individual and organizational capabilities in the context of target setting. 

     

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    This article looks at the rationale for designing and implementing pilot projects for introducing the Balanced Scorecard concept in organizations.

    It begins by showing that the ideal text-book scorecard implementation process, which begins with the global organization’s executive committee creating the first Strategy Map and Balanced Scorecard and cascading it down successively to the divisional heads, business unit heads and functional heads to create fully aligned scorecards is an exception rather than the rule. Perhaps less than one in 10 ten scorecard implementations start at the executive table. Rather, typically, the scorecard is piloted at a lower level in the organization before wider adoption.

    The article goes on to discuss the benefits of Balanced Scorecard pilots when organizations are looking at adopting new ways of performance management or strategy management. Drawing from the experiences of organizations like BKK of Norway, Scottish Enterprise, and the Subordinate Courts of Singapore, all of which conducted various kinds of pilot projects, the article highlights the benefits. Pilot projects offer proof of concept, demonstrate efficacy, help market the Balanced Scorecard internally, get senior management’s buy-in, help create awareness, and finally, minimize the impact where there is potential for failure. On this last point, the article argues that the failure of a pilot keeps the door open for later pilots and a possible full rollout at a later date. Finally, the article offers advice on how Balanced Scorecard proponents should choose business units for the scorecard pilot projects, so that the learnings are consistent with the experience when a full rollout takes place.

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    This article discusses the engagement of external consultants for change programs or performance management initiatives like the Balanced Scorecard and offers guidelines on what organizations should do and what they should not do.

    The Balanced Scorecard has grown hugely in popularity and so has the community of consultants offering expertise in the design, development and implementation of Balanced Scorecard solutions. Organizations need to be aware that there is a marked differential the quality or value of services offered by scorecard consultants. The picture is cluttered with examples of consultants who have made a difference to the success and those who have failed to deliver.

    Organizations need to equip themselves to work with consultants. This begins by asking the most fundamental question ‘Is an external consultant necessary?’ because it is actually possible to implement the scorecard without external help.

    Moving on, the article looks at the reasons why organizations will need external consultants – such as lack of requisite capabilities internally, a need for effective facilitation, a need for the rich knowledge the consultant might bring to the implementation as a result of experience.

    Having dwelt on the reasons why organizations need external consultants, the article highlights the areas that organizations need to be cautious about – beginning with a lack of meaningful domain knowledge, being misled by big name consultancies with expertise in balanced scorecard programs that is assumed rather than known, retaining ownership with the senior team, and not accepting template industry scorecards. Finally, the article summarizes the ground covered by providing a checklist of do’s and don’ts in using external consultants for Balanced Scorecard programs. 

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    The article begins with what is the ultimate objective of a strategic performance management initiative like the Balanced Scorecard – ‘to make strategy everyone’s job.’ To do so, organizations need to align individual performance with the strategic objectives. In this endeavor,
    personal Scorecards assume significance as a central tool.    

    In an ideal scorecard cascade, personal scorecards serve as the final step in the process, starting from corporate, divisional, business unit, functional, and team to individual levels. The underlying belief is that cascading the scorecard to the deepest level of the organization fully aligns the individual’s objectives to the organization’s objectives.

    Personal scorecards also introduce a high degree of transparency into organizational performance and also serve as the only appraisal system within the organization.

    The article also presents the arguments against personal scorecards – such as the difficulties encountered in aligning personal scorecards to higher level scorecards, and making a personal scorecard meaningful for the employee.

    An important lesson emerging from this analysis is that personal scorecards can only be effective when the employee can personally influence the measures.   

    Moving on, the article presents the experience of Mobil Oil in developing personal scorecards that incorporate all four strategic perspectives of the Balanced Scorecard. The article also cautions that a four-perspective personal scorecard is an exception rather than the norm and discusses the development of truncated personal scorecards (using examples drawn from Scotiabank and the Royal Canadian Mounted Police), to ensure that they remain meaningful and manageable. 

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    The introduction of a Balanced Scorecard program is a major enterprise performance management initiative or change program, involving considerable time and money for the full design and rollout. Hence, it is important to develop a clear idea of the business benefits.

    This calls for building a compelling business case. When business faces a question of survival, as one example in the article shows, this is probably made easier. Such cases are an exception and most scorecard initiatives are proposed in organizations that face a ‘business as usual’ situation. In such scenarios, the proponents need to develop a clear plan for championing the Balanced Scorecard program.

    The article seeks to identify the steps Balanced Scorecard proponents can take to build a business base with regard to the short-term and long-term benefits delivered by the methodology. Some of the steps include explanation of the concept to management; elaboration on the connection to reporting, budgeting, governance, staff communications and project management; answering legitimate concerns from key players; presenting successful scorecard implementations from the same industry or sector; describing the capabilities that will need to be developed; and even identifying the right literature or material to educate and create awareness about the Balanced Scorecard methodology.

    The article also discusses how organizations can use the Balanced Scorecard itself as a way of communicating the ultimate benefits to senior managers.

    Presenting real cases, the article asserts that the main objective in building a business case is to give business users a clear idea of how the Balanced Scorecard will make their jobs easier and make a measurable difference to performance. The article also alerts potential Balanced Scorecard proponents to pitfalls such as the scorecard being reduced to a fad or flavor of the month.

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