Title: Strategic Objectives – The real Kings & Queens of a Scorecard Project

I have seen how many companies start with ‘data’ as their Holy Grail. “What is the data we have that can give us information?”  This is an important question but not the most important question you can raise.

Others start with the question "What are the critical success factors that we need to manage?" This is yet another important question but still not the most important question you can raise.

You should start at the top and ask "What is our strategy?", "Where are we moving as a company?", and "What are our strategic objectives?"

Before you have fully arrived at answers to these questions, you should not raise other questions regarding data or KPIs or initiatives.

To underline how important this is, I would like to say this: If I had to choose between a Scorecard with only strategic objectives (no KPIs) and a Scorecard with only KPIs (no objectives), then I would choose the one with objectives.

This is because objectives are what tells you the direction. They tell you what is important and I think that many scorecard projects underestimate the value of good objectives.

Once you have established Objectives, you can build it out with Initiatives and at eventually go on to define the KPIs.

So the best way to begin is to start elaborating on your company’s strategic objectives. Don’t stop before you have clearly decided on some good objectives that reflect what your company wants to achieve.

So my view on this is that Strategic objectives are the vital part – the Kings and the Queens of a Scorecard project, while KPIs are mere subordinates to these objectives.

Author : Tor Inge Vasshus

Source: http://blog.corporater.com

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