Summary 

In this article, the author examines the need for finding common ground between strategy management and operations management. While strategy management seeks to make strategy relevant to employee’s day-to-day responsibilities, operations management seeks strategic context for implementation and improvement projects. The author presents a performance management framework that describes the common ground.

The author points out that the lack of connect between strategic performance and operational performance leads to issues such as lack of alignment, misallocation of resources, short-term focus, and a failure to perceive risk, among other things.

Summary

In this article, Bjarte Bogsnes – member of the EPM Review Editorial Board and a leading practitioner-thinker of the Beyond Budgeting philosophy – first scrutinizes the five myths most commonly held about ‘Beyond Budgeting’ and then proceeds to throw light on what the approach actually means for enterprise performance management.

As a concept, Beyond Budgeting has its roots and origins well back in time. However, as a management model, it is just a decade old. Consequently, the concept has not reached a stage where clear and consistent understanding can be safely expected. In fact, a number of myths and misunderstandings have developed about Beyond Budgeting.

Summary 

In this entertaining article, author, management consultant and Balanced Scorecard expert Paul Niven takes a closer look at movie making to borrow lessons for making management meetings better.

Ultimately, movies are all about stories and how they progress, scene by scene. While volumes have been written on creating winning scenes, expert screenwriters have found a way to keep it very simple…and very effective.

Summary 

In this article – the last of a four part series – author, management consultant and Balanced Scorecard expert Paul Niven discusses the need for a Learning and Growth Perspective in a Balanced Scorecard. The other three parts focus on the Financial, Customer and Internal Process perspectives.

The author begins by focusing on the need for a Learning and Growth Perspective. Organizations that seek to create a culture of performance management typically wish to create flawless processes, fulfill customer expectations, and create value for financial stakeholders. To achieve these goals, organizations need a strong foundation. People, the author argues, provide this foundation. The knowledge and talents of people are the intangibles that account for upward of 80 per cent of value creation in modern organizations. In the ultimate analysis, committed and capable people dictate the success or failure of an organization.

Summary

In this article – the third of a four part series – author, management consultant and Balanced Scorecard expert Paul Niven discusses the need for an Internal Process Perspective in a Balanced Scorecard. The other three parts focus on the Financial, Customer and Learning and Growth perspectives.

The author begins by pointing out that, with the Internal Process perspective, the focus of performance management shifts from the “what” of value creation to the “how” of value creation. Specifically, the Internal Process perspective describes how an organization will achieve outcomes envisioned in the Customer and Financial perspectives.

Summary

In this article – the second of a four part series – author, management consultant and Balanced Scorecard expert Paul Niven discusses the need for a Customer Perspective in a Balanced Scorecard. “The remaining two parts focus on the Internal Process, and Learning and Growth perspectives.”

The author begins by discussing the explosion in the options available for a consumer’s choice. A century and more ago, producers of goods and services enjoyed great power over customers who had extremely limited choices in the market. Today, the scenario has reversed, with customers exerting far greater power in the purchase transaction. Technologies like the Internet increase customer knowledge and insight and deliver greater bargaining power to customers. This makes it absolutely vital for companies to have a well-defined Customer Perspective.

Summary

In this article – the first of a four part series – author, management consultant and Balanced Scorecard expert Paul Niven discusses the need for a Financial Perspective in a Balanced Scorecard. The other three parts focus on the Customer, Internal Process and Learning and Growth perspectives.

Typically, the mission and vision statements of organizations do not refer to their financial aspirations. However, companies need to have a Financial Perspective so that they can answer shareholders who require a return on their investment.

Companies must ensure that a focus on customers also leads to improved financial results. Financial performance also enables investment in people, processes and technology so that customers can be served successfully.

So, how do companies know if they are performing well financially? The Financial perspective of the Balanced Scorecard gauges financial success from the perspective of a company’s shareholders and gives the company the tools to track success over time.

Summary 

When it comes to enterprise performance management and improving organisational performance, organisations have a bewildering array of approaches, frameworks, methodologies and models to choose from. Two of the most popular approaches are the Balanced Scorecard and the EFQM Excellence Model, which was created by the European Foundation for Quality Management.

This resource is a case study of Inland Revenue, an experienced user of the EFQM Excellence Model, and was created when the Balanced Scorecard was introduced in the organisation.