A lot of effort goes in developing sound strategies and to get them endorsed by the board and the executives. Initially there is a flurry of activities and new initiatives. But a few months down the track, the day-to-day operations seem to take over and the strategy is relegated to the bookshelf.  Bulk of the organization continues to do what they did before. What is typically missing is the process for turning the broad thrust of strategy into specific measurable performance goals and assigning accountability right through the organization.

Kogekar Consulting has helped clients with effective execution of strategies using balanced scorecards. Here we summarise key learning from our experience. For more information on this topic please contact us.

Executive Summary

Strategy describes where the organisation currently is and where it aspires to be. It also describes the broad initiatives that the organisation plans to take. It may describe key focus areas, process changes or capability-building initiatives or projects that are necessary for the achievement of goals. Strategy execution needs the ability to take a very broad-brush strategy and identify, prioritise and implement the key things that need to be done to put that strategy in practice. A successful execution means that the goals are set, accountability is assigned and the results reviewed on a regular basis.

A balanced scorecard (BSC) is a one-page document that outlines an organisation’s key performance goals and indicators (KPIs), usually covering financials, customers, execution and people.  These KPIs are driven from the company’s strategic intent. A BSC is critical for a performance-driven organisation as it creates a common view of performance across a range of objectives. For the business, KPIs are the “guiding force” that link strategic goals with day-to-day execution. This allows managers to have a better understanding of how to improve the business. Across and down the organisation, business units and teams then define supporting targets and KPIs, which results in a hierarchy of KPIs cascading down from the corporate strategy.

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