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Plans cast in stone

Plans cast in stone

 

Title: Plans cast in stone

When is your budget outdated? The day you write it. I have worked with creating budgets in large corporations and was amazed that we still adhered to the old way of allocating resources. Luckily there are individuals and companies  that have examined this under a magnifying glass and have changed the way they allocate resources.

I am proud to announce that my previous employer (Statoil) had a board decision to remove the budgets, and to implement event-driven resource allocation, target-setting, and prognosis updates. It is the business events that occurs externally that control our business environment-- not us setting the major routes for our businesses.

Author : Tor Inge Vasshus

Explore our resources to learn more about techniques and the value of effectively communicating and executing your strategy.

 



Annual budget cycle hurts

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Annual budget cycle hurts

 

Do you remember last year’s budgeting process-- how time consuming and detailed it was?

 

 

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The longest journey

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The longest journey

 

This Easter I went skiing. During my trip thought about old Norwegian heroes who traveled by skis to the North and the South Poles. Wow - those were long journeys.

 

 

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What kind of perspective do you have?

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What kind of perspective do you have?

 

When I consult with companies I always look for the type of perspective of the people I meet. I encounter many different people, and what strikes me is that they often hold a very narrow view of performance.

 

 

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Managing performance is managing people

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Managing performance is managing people

 

Many managers appear to believe that the right way to manage a company is to put a lot of control mechanisms in place. This thinking is driven by the idea that all people are lazy and need to be closely managed. Balanced Scorecard can also be implemented as a system of control and follow up. In Western countries I have observed that this often leads to the failure of BSC projects.

 

 

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Goal and Target Setting

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cartoon_jan09-archive_thumbnail.jpg

 

How many times have you seen the above scenario take place— a manager who sets an unrealistic goal?   What does this do to the motivation of the team?  How does this affect their performance to achieve other, more reachable goals?

 

 

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What words are you using in your strategy plan?

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What words are you using in your strategy plan?

 

I read a lot of strategy documents and most of them are written using common language. Words like the best, outstanding, leading, world class, and international have different meaning to different people.

 

 

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BSC Champion Testimonials

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BSC Champion Testimonials

 

When people ask me about customer references I always tell them that they should not ask the person that has committed the money for the project. This person is by default obliged to say that the project was a success.

 

 

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Can you lose weight by weighing yourself?

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Can you loose weight by weighing yourself?

 

I recently turned 40, and like many other men my age, I am cultivating a bit of a belly. Over the past few years, I have weighed myself more than ever. Sadly, the needle on the scale keeps going up and up.

 

 

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No KPI is Perfect

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No KPI is perfect

 

Measure focused companies are very eager to find the "right" KPI. I doubt the existence of perfect KPIs. But in our endeavoring search for perfection, we have to make compromises. After all, you might actually find "gold" on "the golden happy mean".
When I am working with measures/KPIs I have a list that I am using assessing the quality of a KPI.

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KPI Door

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KPI Door

 

The selection of key performance indicators (KPIs) is on the minds of many companies these days. I have had consultants from the most prestigious strategy and management companies call me to ask what KPIs they should use for a particular industry. I always answer them, "the KEY performance indicator that you are looking for is dependant on the DOOR that you are going to open."

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Cause and Effect

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Cause and effect

 

I have seen many strategy maps and I have also seen many people working with strategy maps over the last decade.

In the process of developing maps I have observed people struggle to illustrate all causes and effects that occur in their company. At the end it looks like the "airline route net" that you find in an in-flight magazine where all routes are crossing each other. 

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