WHY A BSC PROJECT?

Balanced Scorecard Implementation Project: Overview of client motivation

Presentation objectives

If you are an Executive or a valuable member of senior management team, you probably ask this question:

What are the right conditions for diving into a strategic project of such magnitude as is the BSC implementation?

Right Conditions for BSC project

The leader of the company / division / function (or entity) wants to plan in the medium-long term in order to provoke quantum (or at least significant) performance leaps

Right Conditions for BSC project

The entity management team is in some way diverse in competencies, in culture, in character, in age and this diversity creates barriers

Right Conditions for BSC project

The planning is, according to a leader’s view, either inexistent or ineffective

The leader wants the plan to be managed through time and be the basis of discussion (beyond budget)

Right Conditions for BSC project

The leader prefers empowerment to control

The leader prefers team collaboration to one-to-one management

The leader likes analysis, numbers, proofs, a scientific approach

General Results of BSC project

Normally the implementation of the BSC speeds up the capability of a company to reach its desired targets

The larger the company, the larger the growth rate desired, the larger the gains from the BSC project

General Results of BSC project

Clients say that BSC implementation process accelerates the achievement of incremental gains by an average of 20-30%

The satisfaction rate of BSC implementation among executives grows tremendously from doubts and lack of support in the beginning to a highest satisfaction and excitement by the end of the project

General Results of BSC project

The BSC approach serves exceptionally well as:a strategic project management and change

management toola communication toola control toola tool to manage strategic trade offsa deployment toola framework for converting strategy into action

BSC as a Project management and Change management tool

Improve the level of collaboration of decisions and information sharing on strategic objectives, indicators and improvement projects

Improve the transparency level of the team discussions

BSC as a Project management and Change management tool

Bring in the discussion other managers, normally not included in the team, because they have specialist knowledge

Push the team to re-think the entity strategy

Push the team to formalize the strategy

BSC as a Communication and Empowerment tool

Improve collaboration between functions

Empower first, second and third line management

Improve the information flow vertically, i.e. from the top to the bottom of the organization

BSC as a Communication and Empowerment tool

Improve the relationship between first lines and lower management layers

Make sure that everybody in the company knows what the strategy is about and in what way they contribute

Improve the communication of the strategy and its development towards the outside world (e.g. board, shareholders, stakeholders, buyers)

BSC as a Control tool

Improve the quality of information and set relevant indicators on:○ Business environment○ Customers○ Internal weaknesses○ Key strengths○ Development of strategic projects

BSC as a Planning tool Increase the reliability of forecasts

Clearly understand the drivers of business results

Be capable of analyzing periodically and in a structured way the development of the strategic plan

BSC as a Deployment tool

The team has just formed, most managers, or some key ones, are new

The historic group has been there forever, but needs to define new directions, previously unexplored

Strong growth targets

Opportunity and desire to overcome competitors due to bad economic times

Concluding Thoughts

The Balanced Scorecard is the most sound, systematic, and developed approach to Strategy Execution

BSC implementation is a project of high magnitude, responding to organization strategic challenges and bringing strategic results.

Concluding Thoughts

Strong executive leadership, substantial knowledge transfer, clarity of organizational strategy, and availability of an implementation framework are among the key requirements for the Balanced Scorecard project to take off.

Concluding Thoughts

For more on:

power of BSC Approach BSC implementation project prerequisites,

teams, time outline, challenges, and pitfalls role of external consultants

go to our ScorecardPartner.com website

About the Authors

Francesco Zingales – BSC Specialist, Facilitator for Strategic Plan implementation. Contact Francesco francesco.zingales@gmail.com

LinkedIn Profile

Igor Starodubtsev, BSC consultant at ScorecardPartner.com Contact Igor project@scorecardpartner.comLinkedIn Profile

Autours’ ProfilesFrancesco Zingales – BSC Specialist (Msc. Chemical Engineering, PhD in Strategic Decision Making

Processes). Francesco Zingales has completed in September 2005 his PhD in strategic decision making

processes, with a special focus on the Balanced Scorecard approach, after 4 years of applied research,

teaching and practitioner activities at INSEAD Business School in Fontainebleau (Paris). FZ has

participated, in the last 3 years, to several facilitation/consulting projects in application of the Balanced

Scorecard methodology in different industries such as food, services, utilities, entertainment and

manufacturing. Key companies serviced, all at top management levels, have been Sodexho Group,

Sodexho Italy, Iveco, ATAC, ACEA, LVMH. FZ has carried out several corporate, business unit and functional

level projects in large organizations, which gives him the capability to choose the best approach in each

different setting. FZ has built experience both by working in a leading consulting firm on BSC practice as a

senior manager for 2.5 years, both bringing original knowledge from his studies. This makes him a perfect

candidate to manage and implement BSC projects.

Scorecard Partner is a niche consulting practice focused exclusively on providing guidance, help, and

support for clients implementing the Balanced Scorecard approach to Strategy Execution. Our mission is

to be a leading focused provider of expertise and support to bring this revolutionary Strategic

Management tool to organizations willing to develop strategic discipline, overcome execution

challenge, learn, grow and change.