Execution Excellence - Making Strategy Work Using the Balanced Scorecard

A hands-on guidebook for making your strategy work with effective Balanced Scorecard design, deployment, and maintenance
 
Execution Excellence is the practitioner's guide to real-world implementation. Designed by a Balanced Scorecard (BSC) thought leader with 30 years of experience and over 300 global implementations under his belt across a range of industry sectors, this guide gives you a hands-on framework for putting the BSC methodology into action. Clear, concise, and easy to read, this book skips the theoretical exposition to get right to the point--how can companies use BSC to effectively deploy strategy and drive individual and enterprise performance? You'll find the answers here. The discussion outlines the ways in which firms commonly fail in implementing BSC. These failures can be traced back to common design and implementation flaws: making the process too complicated and focusing on the BSC process rather than the outcome. The discussion will also cover design optimization across a range of key industry sectors. You'll gain expert insight into avoiding these missteps and the practical tools and perspective you need to implement BSC correctly the first time.
 
While the Balanced Scorecard framework is widely accepted and praised, about half of firms that implement it fail to realize the full benefits. The fault lies not with the framework, but with the design, and more importantly--execution. This book gives you the information and tools you need to adopt BSC successfully.
* Design a BSC that truly and simply reflects your strategy
* Customize the BSC to reflect your industry's uniqueness
* Define clear measurements and ownership that suit your strategy
* Develop a framework for efficient data collection and reporting
* Implement effective reviews to keep your business on track
* Use your Balanced Scorecard data to close performance gaps
 
Developed in the early 1990s, the Balanced Scorecard framework has been recognized as one of the most seminal business ideas in the last 75 years. Thousands of companies around the world use BSC to create and maintain a performance-oriented enterprise, yet just as many try and fail. Execution Excellence shows you what you need to know and do to become a BSC success story.
 

Praise for EXECUTION EXCELLENCE
 
"Execution Excellence is a very clear roadmap for any manager serious about improving performance with a team. Sanjiv has decades of experience solving problems with real-world companies and the challenges they face. This is a superb summary of his learning, communicated in concise, specific and easy to understand steps. I highly recommend it."
--RON SANDERS, President, Warner Bros. Worldwide Home Entertainment
 
"This book is full of sensible, practical advice on how to improve your business using the powerful tools of the Balanced Scorecard. Businesses of all types can see how to achieve their goals more effectively and quickly if they adopt the techniques shown here. Read and prosper!"
--JON MOULTON, Founder and Managing Partner, Better Capital
 
"Sanjiv certainly did not disappoint. The book is certainly a compendium of incredible experience he has had as a Consultant in different circumstances. It makes for extremely interesting reading. It is full of substance with practical and implementable suggestions and explains in an incredibly simple and straight forward manner how a tool like the Balance Scorecard can help in terms of framing and implementing business strategy in today's complex and multi dimensional business world."
--AKHIL GUPTA, Vice Chairman, Bharti Enterprises
 
"If you ever wondered how great generals manage their troops, this is your chance. Sanjiv is the general when it comes to implementing the BSC, having seen him in board rooms. If you are passionate about execution, then this is your back pocket guide. If you want more, read between t

List of contents

Preface xv
 
Acknowledgments xvii
 
I THE REALWORLD OF STRATEGY 1
 
1 The Global Business Environment in Today's Flat World: News Flows Faster than Water! 3
 
So Where Do We Go from Here? 5
 
What Does That Mean? 5
 
2 The Evolving Role of Strategy: Is Strategy Dead? 7
 
Blue-Sky Strategy 8
 
Back-to-Basics Strategy 8
 
3 Strategy Formulation: Building a Strategy that Works 11
 
External Assessment 12
 
Internal Assessment 12
 
4 Strategy Execution: It's All About the Implementation 17
 
5 The Business Planning Process: Don't Let the Process Overrun You 19
 
Ownership 21
 
II INTRODUCING THE BALANCED SCORECARD 23
 
6 Introducing the Balanced Scorecard: Circa 1992 and Still Going Strong 25
 
History 25
 
Basic BSC Framework 26
 
Design 29
 
Implementation 30
 
Cascades 30
 
Individual BSC 30
 
Using the BSC to Formulate Strategy 31
 
7 Challenges in Implementing the Balanced Scorecard Successfully: Time to Put on a Helmet! 33
 
General Challenges 33
 
Design Challenges 35
 
Implementation Challenges 37
 
III CHALLENGES IN BALANCED SCORECARD DESIGN 41
 
8 Designing the Strategy Map: Keep It Lite 43
 
Introduction 43
 
Design Methodology 44
 
Strategy Map Design Components 45
 
Impact of Industry Customization and Support Functions on Strategy Map Design 49
 
Strategy Map Design for Nonprofit and Government Organizations 52
 
The Concept of the Linkage Model 52
 
Designing a Lite Version of a Strategy Map for Board Reporting: Strategic Themes 54
 
9 Defining Objectives: The Wordsmith's Challenge 55
 
The Bad Way 55
 
The Good Way 56
 
Customer Objectives 58
 
10 Picking Owners: Four Executives Don't Run a Company 61
 
Owning the Formulation 61
 
Owning the Execution 62
 
How Does Ownership Really Work in a BSC Meeting? 63
 
BSC Ownership versus Individual Performance Measures 64
 
11 The Art of Measurement: Lead, Lag, and How Many Are Enough 67
 
Introduction 67
 
Financial and Non-financial Measures 68
 
Lead and Lag Measures 69
 
Strategic versus Non-strategic Measures 69
 
Financial Measures 70
 
Customer Measures 70
 
Internal Perspective 72
 
Learning and Growth Measures 73
 
Measurement Formulas 74
 
Data Sources 75
 
What about Missing Data Sources? 76
 
How Many Are Enough? 76
 
12 Units and Frequency of Measurement: Stay Honest 79
 
Units of Measurement 80
 
Key Milestone Indicators (KMS) 80
 
Decimals 81
 
Frequency of Measurement 81
 
13 Target Setting: Actionable or Aspirational? 83
 
Target Intensity 83
 
How Many Targets to Set of Each Kind? 85
 
Target-Setting Benchmarks 86
 
Target Calculation 88
 
14 Initiative Alignment: Are You Overrun with Projects? 89
 
15 Designing Cascades: Top Down or Bottom Up 93
 
Introduction 93
 
The Next Level Cascade: Functional Organization 95
 
Multi-divisional Structures and Cascades 96
 
16 Aligning Individual and Enterprise Performance: Unlocking Human Capital 99
 
Introduction 99
 
The Right Way 100
 
Measures 101
 
Cascading Weights and Measures 102
 
Bands 103
 
IV CHALLENGES IN IMPLEMENTATION 105
 
17 Selecting the Right Balanced Scorecard Coordinator: Not the Audit Team, Please! 107
 
Intr

About the author

SANJIV ANAND is the Chairman of Cedar Management Consulting International, a global management consulting firm with over 800 clients and a network of offices worldwide. He is considered a Strategy and Balanced Scorecard thought leader, with more than thirty years of global management consulting experience and 300 Balanced Scorecard designs executed across a wide range of industry sectors. He is a Harvard Business School and NYU Stern Alumnus, and a former YPO Chapter Chair.

Summary

A hands-on guidebook for making your strategy work with effective Balanced Scorecard design, deployment, and maintenance Execution Excellence is the practitioner's guide to real-world implementation.

Product details

• Authors: Anand, S Anand, Sanjiv Anand, Anand Sanjiv
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 24.05.2016
• EAN: 9781119196464
• ISBN: 978-1-119-19646-4
• No. of pages: 288
• Subjects: Social sciences, law, business > Business > Management; Projektmanagement, Wirtschaft, Strategisches Management, Business & management, Strategic management, Project management, Chemical Engineering, chemische Verfahrenstechnik, Wirtschaft u. Management, Chemische Verfahrenstechnik / Theorie, Planung u. Management, Theory, Planning & Management