Software systems for Strategy Management – an art  - I have now worked 16 years with software systems for Strategy Management/ Performance Management. In my earlier days I worked as a practitioner, but in the last 11 years my role has been that of a CEO of a software company developing Strategy Management solution.

Summary

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.

Summary

In this article, Peter Ryan, Corporate Performance Manager for the Christchurch City Council of New Zealand and expert on performance management in the public sector, points out that the science of successful creation and use of the Balanced Scorecard methodology is widely understood in the case of the private sector and government agencies with narrow regulatory fields. However, points out Ryan, government agencies in charge of complex and diverse services have no body of best practices to draw on when they use the Balanced Scorecard. After dwelling on the challenges involved in developing such a body of knowledge, Ryan seeks to fill the gap and point out the differences between a successful and a failed scorecard implementation through an extensive comparative study of the scorecard implementation experiences of two cities – New  Albany (a hypothetical case of failure built around actual scorecard implementations) and Christchurch (a highly successful and much-acclaimed real case).

Summary

This interview is part of a series in which experts respond to questions about some of the persistent issues facing leaders, as they seek to create an adaptive enterprise and achieve new levels of performance. This round features Peter Ryan, Corporate Performance Manager, Christchurch City Council, New Zealand.

The interview focuses on the connection between an adaptive organization and the conventional budgeting process which drives performance planning and performance management. Issues covered include the definition of an adaptive organization; strengths and weaknesses of conventional budgeting; budgeting concept as an annual performance contract; how managers view budgeting; and the effectiveness of budgeting in goal setting, performance evaluation and reward. The interview also seeks to discover what the favored alternative frameworks are, and why leaders are unable to move to new models. It also identifies cultural barriers in transforming the conventional budgeting process. Finally, it seeks a prediction on how adaptive organizations will evolve.

Summary

Cost cutting and job reduction programs have always been popular in downturns, but they have taken on increased prominence during this most recent and extremely severe recession. Beyond the alarming number of jobs lost, what is most distressing for many people is that a significant number of those positions won’t return when conditions improve.

Performance Management System – For Reward or Punishment ?  - Many companies are using their performance management system to control and punish people/ divisions which do not meet their set targets.

Summary

The Balanced Scorecard was introduced in 1992 and has since, given rise to a wealth of material that describes the concept’s preeminence for enterprise performance management (or corporate performance management, as it is also referred to). The material also covers themes like scorecard implementation and cascading the scorecard. However, very little has been written about the roles and responsibilities of the Balanced Scorecard Manager. This article seeks to fill the gap because expertise in strategy management is the most critical prerequisite for success in today’s dynamic business environment. Acknowledging this prerequisite, experts have proposed new concepts like the Office of Strategy Management.

Summary

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.