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ADVANCED BALANCED SCORECARD

Overview

The Balanced Scorecard is a globally used strategy execution concept and discipline in several private and public organisations. Many know the basic theory but few know the practicalities of BSC and how to get more value from it.

Advanced Balanced Scorecard is a comprehensive 2-day programme which provides practical guidance on the design, development and sustained successful usage of the BSC. The course will be especially relevant to those that already have some BSC experience but would like to enhance and strengthen their practical understanding on the subject, and for those who would like to upgrade their knowledge and skills or learn more BSC best practices to improve their strategy continuously.

A pre-programme information pack will be sent to all registered participants well before the event to ensure a strong starting level of knowledge on the basic concept. During the event

- at which participants must bring their laptop - you will undertake spreadsheet exercises that deal with:

  • Review of the step-by-step development of the BSC
  • The alignment of target-setting across the Scorecard perspectives
  • The wider project management aspects of introducing the concept
  • The cascade of Scorecards to business unit and departmental levels

Within the time constraints of an intensive 2-day format, the programme will consider many examples of Balanced Scorecards and case studies.

WHO SHOULD ATTEND

This course is designed for people in the private, public and non-profit organizations who have prior knowledge on Balanced Scorecard and those who are responsible for development, implementation, and continuous improvement of scorecard including:

  • CEOs, Managing Directors, Vice Presidents, Directors
  • Strategic Planning and Corporate Affairs Managers
  • Organisational Development and Human Resource Managers
  • Heads of Department across all functions
  • Commercial Directors, Business Managers and Corporate Planning Executives
COURSE OUTLINE (Day One)
Session 1: BSC Review - Concept & Benefits

Since its introduction in 1992, the Balanced Scorecard has become globally recognised as "the" strategic execution tool across all industry sectors and categories of ownership. At first sight the concept is simple, but as all practitioners and users have come to realize, it requires a profound re-focus on the strategic priorities of the business.

  • Review of the BSC concept and its benefits when designed and used properly
  • Common causes of BSC "failure" and how to avoid them
Case study - a BSC project that started well but ended up a failure - lessons to be learnt
Session 2: Refresher - The Strategic Context from Strategy to a full Balanced Scorecard
  • Explore the methodology of translating corporate goals and supporting strategies into the full BSC through the step by step approach
  • Strategy mapping
  • Translating the Map into carefully selected and prioritised measures
  • Measuring performance of every BSC development - exploring key practicalities and prioritizing potential measures
  • This session will include an exercise for participants to develop and to prioritise a set of potential measures from a given strategy case background
  • Level 1 and level 2 measures: how to ensure that the apparently conflicting demands of strategic focus and drill-down analysis can be managed successfully
Session 3: Managing the BSC "project"
The design and development
  • Deliverables, timescales, and resource requirements
  • Effective top-management sponsorship
  • Understanding of tangible benefits sought from the employment of the BSC
  • Long-term sustainability

The "project" does not end with launching the first Scorecard - usually at company level. These disciplines typically need to cover at least the first two years, encompassing the cascade programme, the alignment to business planning / budgeting, the development of effective compensation linkage, and the mentoring of the users.

  • Brief case study - good practice and how it was achieved
  • Brief case study - bad practice and why it happened
Session 4: Target Setting and Initiative Alignment
Setting targets
  • This session will include the challenge of achieving the best possible numeric alignment across the spectrum of measures / targets throughout the Scorecard. Advanced users of the BSC know that this topic is a common weak-link in the whole strategy execution process
Establishing "strategic initiatives"
  • Most early BSC applications are especially weak on this aspect of the Scorecard discipline: we explore how practically to link business planning and budgeting with BSC targets.
  • Spreadsheet exercise in setting and aligning targets across the 4 perspectives of the BSC
COURSE OUTLINE (Day Two)
Session 5: The Wider Challenges of Strategy Execution Advanced use of the Balanced Scorecard requires a pro-active management of the wider management culture environment. Successful application of the BSC only happens when these challenges are addressed:
  • Creating a performance culture
  • Change management
  • Leadership
  • Communication
  • Creating a "Strategy Focused Organisation"
  • Team culture and synergy management
In this session we will explore how a more sophisticated application of the BSC helps us to manage positively these common challenges and barriers.
Session 6: Aligning the Scorecard and Compensation
  • Making Scorecards work within a "performance culture"
  • Examining the principles and practicalities of creating an effective performance culture aligned to successful strategy execution
  • Developing effective compensation schemes that incentivise desired behaviour
  • Underlying challenges and business implications in applying the BSC to an organisation including its impact to HR policies and practices
Case Study: Examination of case studies of good and poor usage - and the lessons that we can learn from them
Session 7: The Management Review Process
  • Steps to be done after developing a Balanced Scorecard
  • Structuring a management review process
  • Getting the balance right between corporate and unit / department review processes, and the associated differences of strategic and operational scorecards
  • Taking the Scorecard to the Board: the challenges and practicalities
  • Distinguishing between decision-making management reviews and the much wider requirement for strategic communication to all staff
Session 8: Longer-Term Developments and Evolution of the BSC
  • Achieving a dynamic BSC that is aligned with updated external conditions and changing strategic priorities of organisations
  • Exploring typical further development aspects of the BSC, usually during Year2 or later
  • Cascading to lower organisation levels, including personal objectives
  • Assessing the developments triggered by the experience of the BSC - especially in the area of financial management accounting (ABC, Capital Allocation, Product Profitability)
  • Using the BSC as an integrated planning tool which is aligned with the budget
  • Dentifying other developments
What next? As part of this concluding session, all participants will be encouraged to develop their own action plan for the way forward.

Testimonials