Learning and Growth - The knowledge & talents of people account for upward of 80% of value creation in organizations.

Spotlight - The active support and involvement of the senior management team is an important success factor in an Enterprise Performance management initiative.

Other articles 

• Interview with Felix Kwok
• Which door do you want to open?

Summary

In this article, Bjarte Bognses – 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

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

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 interview features Julian Taylor, director of strategy development and network performance for Scottish Enterprise Network (SE), which is Scotland’s main economic development agency and comprises Scottish Enterprise National (the coordinating body) and 12 Local Enterprise Companies (LECs) that collectively cover 93 per cent of the nation’s population. In this interview, drawing from his experience of facilitating the Balanced Scorecard program in Scottish Enterprise, Julian Taylor presents a practitioner’s viewpoint regarding various aspects of the Balanced Scorecard concept.

Internal Process Perspective - Achieve the customer value proposition, enhance revenue and increase efficiency.

Saatchi & Saatchi Worldwide - Scorecard an essential tool for managing the organization, from setting priorities to allocating resources to managing performance.

Other articles 

• Strategy Maps
• Cause and Effect

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

This article examines the challenges of creating effective links between the Balanced Scorecard on the one hand and compensation and incentives on the other hand. Monetary incentives are, in principle, a powerful motivator for aligning employee efforts to Balanced Scorecard objectives. In fact, Robert Kaplan and David Norton, creators of the Balanced Scorecard, recommend the incentive-compensation link as a sub-component of the principle that calls for making strategy everyone’s everyday job. However, establishing a clear incentive-compensation link that actually works is one of the most challenging aspects of a Balanced Scorecard approach to enterprise performance management.