Balanced Scorecard Evolution

PAUL R. NIVEN is a management consultant, author, and noted speaker on the subjects of Balanced Scorecard, strategy, and strategy execution. He has developed successful Balanced Scorecard systems as both a practitioner and consultant for Fortune 500 companies, public sector agencies, and nonprofits. Paul's previous books include Roadmaps and Revelations, Balanced Scorecard Step-by-Step (now translated into over 15 languages), Balanced Scorecard Step-by-Step for Government and Nonprofit Agencies, and Balanced Scorecard Diagnostics. Visit Paul on the web at www.senalosa.com.

• Preface ixAcknowledgments xvChapter 1: What Exactly is a Balanced Scorecard? 1Origins, and a Brief History, of the Balanced Scorecard 1Balanced Scorecard Perspectives 3What is a Balanced Scorecard? 7Telling the Story of Your Strategy through Cause and Effect 14Key Balanced Scorecard Questions and Answers 18Notes 27Chapter 2: Just Like the Boy Scouts: Be Prepared 29First Things First: Why Are You Developing a Balanced Scorecard? 29Answering the Question: Why the Balanced Scorecard and Why Now? 30Possible Reasons for Launching a Balanced Scorecard 33Send Yourself a Postcard from the Future 35Start with a Provocative Action 36Overcoming Skepticism 38Benefits of a Guiding Rationale 39Where Do We Build the Balanced Scorecard? 40Criteria for Choosing an Appropriate Organizational Unit 41Executive Sponsorship: A Critical Element of Any Balanced Scorecard Program 45Sponsorship Advice for Executives 51Your Balanced Scorecard Team 53Managing the Balanced Scorecard on an Ongoing Basis: The Office of Strategy Management 65Functions of the Office of Strategy Management 66Your Balanced Scorecard Development Plan 71Be Fast, but Be Thoughtful in Your Approach 77Developing a Communication Plan to Support Your Balanced Scorecard Initiative 79Final Assessments to Make Before You Begin Building a Balanced Scorecard 88Notes 92Chapter 3: Balanced Scorecard Building Blocks: Mission, Vision, and Strategy 95Mission 95Vision 105Vision Statements and the Balanced Scorecard 111Strategy 113Strategic Themes 119Appendix 3A: An Introduction to the Roadmap Strategy Process 120Roadmap Strategy 121Four Fundamental Questions You Must Answer When Creating a Strategy 121The Four Lenses 124A Strategy to Create True Alignment from Top to Bottom 126Notes 126Chapter 4: Conduct Effective and Engaging Workshops 129Before the Workshop 130During the Workshop 141The Role of Executives in Workshops 153Notes 156Chapter 5: Building Powerful Strategy Maps That Tell Your Strategic Story 159What is a Strategy Map? 159Why You Need a Strategy Map 164The Spectrum of Strategic Plans 165Developing Strategy Map Objectives 167Developing Objectives for Each of the Four Perspectives 174Which Value Proposition is Best? 183Using Strategic Themes in the Development of a Strategy Map 208Developing a Shared Understanding with Objective Statements 209How Many Objectives on a Strategy Map? 212Notes 217Chapter 6: Create a Balanced Scorecard of Robust Measures, Meaningful Targets, and Strategic Initiatives 221What Are Performance Measures? 221Creating Better Performance Measures 222Attributes of Effective Performance Measures 229Measures for Each of the Four Perspectives 239Recording Your Measures: Creating a Performance Measure Data Dictionary 243Targets: The Goals That Bring Measures to Life 250Do You Need All Three Types of Targets? 254Strategic Initiatives: Projects That Drive Breakthrough Performance 257Notes 266Chapter 7: Hold Strategy Execution Meetings So Good, People Actually Want to Attend 269From Theory to Practice 269Before the Meeting 274In the Meeting 278After the Meeting 287Reporting Results with Balanced Scorecard Software 290Criteria for Selecting Software 291Notes 303Chapter 8: Let Everyone Demonstrate Their Contribution by Cascading the Balanced Scorecard 305What is Cascading? 306The Search for Meaning 308The Cascading Process 309Ensure Understanding of Your Highest‐Level Strategy Map and Scorecard before Cascading 311Chapter 9: Integrating Change Management Techniques to Drive Balanced Scorecard Success 327Preparing for Scorecard Success 328When Building the Balanced Scorecard 331Using the Balanced Scorecard 333Balanced Scorecard Implementation Checklists 336Notes 339About the Author 341Index 343