Strategic Alignment is achieved by the Balanced Scorecard:
The Strategy Map defines the Strategic Direction and it's primary output are the Objectives.
It is the job of the Balanced Scorecard to manage how these Objectives are applied to different staff members and departments.
The Scorecard is in the form of a table and each row takes as its first column one of the Objectives. This row is then applied to a person using additional columns that are defined in the Options Module.
Employees and Departments can only select from the pre-defined Strategic Objectives. Hence the Strategy Map Objectives are said to be cascaded into the Balanced Scorecard table column 1.
Balanced Scorecard Rows:
For each employee we will create some Scorecard rows.
A Department or Region is considered as a container and its scorecard rows are the sum of all their member scorecard rows.
The Total Organization Scorecard rows are then the sum of all Region and Department rows.
Objective Grid Rows can easily be re-allocated to a different person anywhere in the organization.
Primary Balanced Scorecard Columns:
Moving Left to Right, the first column is the Strategy Map Objective and the second column defines how this Objective applies to an employee.
This column is critical and many organizations use the term KPI (Key Performance Indicator) whilst others use KRA (Key Responsibility Area) and some simply use Target.
Either way the contents of this column must apply the Objective to the Person.
The two other common columns are the measure and score plus we recommend the Numeric Gauge.
[ Objective | KPI | Measure | Score | Gauge ]
Objectives and Initiatives Table Grids:
We refer to the Tables as Grids because they are dynamic and have varying cell capabilities.
The row and column together define a Grid Cell and the cell type is known as the Cell Style.
Person -> Objective Grid Rows (One to Many).
Objective -> Initiative Grid Rows (One to Many).
Initiative -> two Optional Monthly Grids each with up to 36 months.
The Initiative Grid columns are typically the Initiative Text, followed by a Date Range and whatever Financial or Gantt information you require.
[ Initiative text | Account Code | Date-Range | Financial Planning | Monthly Planning ]
List-Based or Free Text Column Types:
Cells can either be chosen from a list or typed in each time. This is known as List-Based or Free Text.
The Objective column is list-based because it is pre-defined in the Strategy Map.
Other columns that have shared cell contents should also be List-Based.
It is much faster to simply make a selection plus they can be cross-referenced in the Drill-Down Dashboard module.
Free Text Columns are only ever used when the cell contents are rarely shared. (An example of this is the Initiatives Text Column).
A variety of Grid Cell Styles:
The Objectives and Initiatives grid design is created in the Options Module.
A special column style is the measurement Gauges.
The Initiatives Grid also has the Date-Range and financial planning columns.
The Monthly Grids also have several selections however the Finance grid can only be numeric.
The Finance Grid Row Totals can also be displayed as numeric cell values in the Initiatives Grid.
All free-text columns can be designated as Links to external documents or web sites.