Fitt Toolbox Cluster Management Scorecard Final

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Cluster Management Scorecard

FITT

(Fostering Interregional Exchange in ICT Technology Transfer)

2 | 16.03.2010 Cluster Management Scorecard

The Balanced Scorecard methodology is used, to give managers a tool for translating a strategy or a vision into actions and a clear set targets.

The Balanced Scorecard methodology can solve the following management problems:

Clarify and translate vision and strategy

Communicate and link strategic objectives and actions

Plan, set targets and align strategic initiatives

Enhance strategic feedback and learning

Balanced Scorecard - Management Tool for Cluster Managers


5 steps for defining the Cluster Management Scorecard

Step 1 : Checking the strategy

Step 2 Define the structure of the balanced Scorecard

Step 3: Setting objectives, targets and strategic initiatives

Step 4: Implementation

Step 5: Learning effects


Step 1: Checking the strategy

Strategy is needed

Most cluster initiatives don’t have a fully developed strategy

First step: identify the real focus and identify the most important

objectives (e.g. workshops)


Step 2: Define the structure of the BSC

Transform the strategy into four or five perspectives

Each perspective is one main topic for the cluster initiative

The value of this approach:

all relevant targets/aspects are taken into consideration for the strategy

it avoids the exclusive focus on just one limited aspect


Step 3: Setting objectives, targets and strategic initiatives

• The objectives of the cluster initiative are conveyed directly from the strategy

• Focus on the objectives, which are crucial for realising the strategy.

• Not more than 20 objectives should be written down.

• For each objective, the following aspects have to be developed:

Indicators and measurement categoriesFind indicators, which help to monitor the achievement of the objectives.

TargetsFor each indicator clear targets have to be defined.

Strategic initiativesStrategic initiatives are all actions, which help to reach the objective.


Step 4: Implementation

Implementation is a complex process

A consensus about which perspectives, objectives, indicators and

strategic initiatives has to be found with all members of the initiative

Members of the cluster initiative need to be involved in the decision-

making process (e.g. in workshops for strategy definition)

Organisation of workshops to involve all members: normally 1 or 2

workshops are needed to implement a functional Balanced Scorecard.


Step 5: Learning effects

Implementation of a balanced scorecard is only the first step

constant use has to be secured: organize scorecard meetings on a

regular basis

In these meetings: discuss categories, strategic targets, the current

status and problems

Collect learning effects: cluster managers can see, which actions

supported the realisation of the defined strategy and which actions were

without effect.

Constant monitoring

Control and overview of activities

Optimization of actions


Who?

Stakeholders

• Cluster managers of German speaking area (Platform is currently only available in German)

• Facts & Figures

MFG: 3 months planning and implementation of the tool

External BSC expert involved

Target for 2010: 5 cluster initiatives


Balanced Scorecards for Cluster Managers

PRO’s

• Improves cluster management

• Very flexible tool: adoptable to any strategy and objectives

• Cluster initiatives to structure the complexity of their objectives and to visualize their strategy

• New ways to measure objectives, which are hard to measure

• Success can be made ‘visible’ by demonstrating which targets they have reached

CON’s

• Implementation and acceptation of the Balanced Scorecard.

• A long process to develop a functional scorecard, the benefit of this methodology is not evident immediately

• The challenge is to convince the cluster managers that they really need this important tool


Balanced Scorecards for Cluster Managers

PRO’s

• Balance Scorecard creates transparency: why has an objective failed?

• Supports the learning process, as the tool clearly shows the positive and negative effects of actions

• Flexible, browser-based software

• Interactive tool allows everybody’s participation

• Every member of a cluster initiative can have access to the strategy and can follow objectives of his cluster initiative.

CON’s

• Finding of the objectives, targets, indicators and strategic initiatives for the cluster initiative is complex

• Cluster initiative must find and agree on a common strategy and objectives


Why is a Balanced Scorecard useful for cluster initiatives?

Challenges rise for cluster initiatives:

1) To translate a vision or strategy into concrete objectives and actions

2) Impact analysis and evaluation is needed for effective management

3) Lack of transparency: the value of efforts and money cannot be proven without a serious evaluation

The MFG Monitoring Tool helps to solve these problems:

The operationalization of a strategy is the greatest value of the Balanced Scorecard methodology.

It offers the possibility to think about the real goals of a cluster initiative

It helps to discover the ways, how these goals can be achieved within the next years.

The tool enables cluster initiatives to show their success and the importance of their work in a clear and structured way.


Lessons Learned

It is not always easy to convince the cluster managers of the balanced scorecard

methodology

Need to show the benefits (e.g. case studies) and improvements of the

management

Some recommendations

Find a consensus about the vision and strategy of the cluster initiative

Involve the members of the cluster initiative

Have an (internal or external) cluster expert for the moderation of workshops

Define the targets as concrete as possible (SMART-Rule)

Do take into account that further developments, updates (technical and

content-wise) and maintenance are time-consuming and costly


Suggested Readings

Link to bibliography:

The cluster initiative Green book

Clusters: Balancing Evolutionary and Constructive Forces

Link to code book: Cluster, Cluster management, Network

Link to relevant websites

www.kreatek.de

www.clusterobservatory.eu

www.competitiveness.org/article/library

Fitt Toolbox Cluster Management Scorecard Final

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