PRODUCTIVITY PORTFOLIO: BALANCED SCORECARD PERFORMANCE AND PROCESS IMPROVEMENT MEASUREMENTS FOR YOUR ENTERPRISE
Balancedscorecard examples, team effort and organizational profitability, and business impact assessment frameworks are key to knowledge management and continuous process improvement measurements. It is often said ‘what gets measured gets done’. And, what gets rewarded gets repeated. With that in mind, it is imperative an enterprise have a performance measurement system which focuses attention and effort on the strategic enterprise priorities. A well-designed performance measurement system can become more than that. When utilized properly and linked to leadership competency profiling and developmental interventions, it can be the foundation of a strategic management system. Such a system defines, monitors, and reviews performance against the most important objectives of the organization.
has particular expertise in the design and implementation ofenterprise performance and process measurement systems. Consistent with our goal of helping clients think and manage theirproductivity portfolio more strategically, we offer a variety of performance measurement professional services ranging from enterprise-wide systems to the clarification of process-specific metrics used to assess capability and outcomes. Whatever the application, the intent is to employ performance measures that direct enterprise time, money, and resources toward the truly vital few objectives.
Establishing an enterprise-widebalanced scorecard performance and process improvement measurement system, what we call a Corporate Scorecard®, involves three phases - design, development, and deployment. The first phase involves the selection of the key strategic and tactical performance measures for the enterprise. These measures are a balanced blend of financial, operational, and quality metrics, reflecting both leading and lagging indicators of performance. Think of it as your own measurement dashboard or control panel, indicating enterprise performance levels while alerting you to areas where improvement might be needed.
When viewed in aggregate, this spectrum of financial, operational, and quality metrics represents the “business of the business”and needs to be a balanced scorecard. In the Design phase, you draw from these three areas and incorporate process and outcome measures to allow for a comprehensive view of the health of the enterprise - in short a productivity portfolio. In addition, the measures cascade down from the strategic, senior management level, to the tactical operating unit levels to assure alignment of the critical metrics which drive the enterprise and its operation. The key strategic measures are tightly integrated with the enterprise strategy and vital few priorities. The tactical measures provide the necessary level of operational detail to adequately manage and improve performance.
The development phase of a Corporate Scorecard® entails putting operational definitions to the selected financial, operational, and quality metrics. It also requires process mapping and information flow diagramming to document the inputs, outputs, and source documents or systems from which the measurement data will be generated. This typically involves working directly with the information systems and finance departments (and others) to understand, modify, or enhance current reports to support the production of measurement data for the Corporate Scorecard® in a timely and efficient manner. Once common operational definitions have been agreed to, and the processes through which the measurement data will be collected is clear, the Deployment phase begins.
The Deployment phase encompasses operational installation of the Corporate Scorecard® system. The collection, tracking, monitoring, and review processes are tested to determine their capability to produce valid and reliable process improvement measurement information. Most importantly, the strategic review process is initiated. The Corporate Scorecard® review process is the centerpiece of the system. Similar to traditional operational reviews, but broader in scope, the strategic review involves the assessment and analysis of the performance and process improvement measurement data. Since the Corporate Scorecard® is a blend of operational, quality, and financial metrics, a complete view of the business - its productivity portfolio - is afforded to the management teams participating in the strategic reviews. In particular, because of the close alignment between the strategic objectives and the measures, the review becomes a means for evaluating both current performance and progress toward the longer-term enterprise strategy.
To evolve the Corporate Scorecard® into a Strategic Management System® productivity portfolio, other initiatives are needed. Compensation, reward and recognition, andperformance management systems will all need to be integrated and aligned in support of the Corporate Scorecard® metrics. Strategic planning, the management review processes, organizational structure changes, and new product development must utilize the performance measurement data as critical inputs when chartering process or operational improvement efforts or designing new products, or strategic priorities. All decisions are subsequently filtered through a new set of lenses, leaving behind the days of management decisions made by the gut feel for decisions based on strategically relevant fact and data.
The ability to link business strategy with meaningful daily action requires an integrating mechanism to bridge the gap between the short- and long-term. LXx Consulting, can help you do just that, through the design, development, and deployment of a Corporate Scorecard® performance measurement system a productivity portfolio for your enterprise. We have the experience and expertise to guide you through the process of thinking, acting, and managing your organization more strategically.
At , we are dedicated to helping produce measurable performance improvement.
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