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Thursday , September 19 , 2019

Customer Value Proposition
The Customer Value Proposition is the unique added value an organization offers customers through its operations; the logical link between action and payoff that the organization must create to be effective.  Three aspects of the proposition include Product/Service Attributes (Performance/ Functionality considerations such as quality, timeliness or price), Image and Relationship.

Mission
A mission statement defines why an organization exists; the organization's purpose

Performance Measures
Performance Measures are metrics used to provide an analytical basis for decision making and to focus attention on what matters most.  Performance Measures answer the question, 'How is the organization doing at the job of meeting its Strategic Objectives?'  Lagging indicators are those that show how successful the organization was in achieving desired outcomes in the past.  Leading indicators are those that are a precursor of future success; performance drivers.

Perspectives
A Perspective is a view of an organization from a specific vantage point.  Four basic perspectives are traditionally used to encompass an organization's activities.  The organization's business model, which encompasses mission, vision, and strategy, determine the appropriate perspectives. 

Strategic Initiatives
Strategic Initiatives are programs or projects that turn strategy into operational terms and actionable items, provide an analytical underpinning for decisions, and provide a structured way to prioritize projects according to strategic impact.  Strategic Initiatives answer the question, ‘What strategic projects must the organization implement to meet its Strategic Objectives?’

Strategic Objectives
Objectives are strategy components; continuous improvement activities that must be done to be successful.  Objectives are the building blocks of strategy and define the organization's strategic intent.  Good objectives are action-oriented statements, are easy to understand, represent continuous improvement potential and are usually not 'on-off' projects or activities.

Strategic Result
Strategic results are the desired outcome for the main focus areas of the business.  Each Strategic Theme has a corresponding Strategic Result.

Strategic Theme
Strategic Themes are key areas in which an organization must excel in order to achieve its mission and vision, and deliver value to customers.  Strategic Themes are the organization's "Pillars of Excellence."

Strategy Map
A Strategy Map displays the cause-effect relationships among the objectives that make up a strategy.  A good Strategy Map tells a story of how value is created for the business. 

Strategy
How an organization intends to accomplish its vision; an approach, or “game plan”.

Targets
Desired levels of performance for performance measures

Vision
A vision statement is an organization's picture of future success; where it wants to be in the future

 

 

 

Why Implement a Balanced Scorecard?

  • Increase focus on strategy and results
  • Improve organizational performance by measuring what matters
  • Align organization strategy with the work people do on a day-to-day basis
  • Focus on the drivers of future performance
  • Improve communication of the organization’s Vision and Strategy
  • Prioritize Projects / Initiatives

Additional Resources:

A Balancing Act by BSCI Executive Director Howard Rohm

A seminal article on how to implement the balanced scorecard.

Read More >>

 

 

Sustaining New Directions by Howard Rohm and Larry Halbach

Sequel to A Balancing Act -- an article.

Read More >>

 


The Balanced Scorecard -- Not Just Another Project  by Paul Arveson
The balanced scorecard management system is not just another project. It is fundamentally different from project management in several respects.

 


A Sample of Balanced Scorecard Adopters

 

 

Definitions of Management Terms