Strategy Management with a Strategy Map and its Balanced Scorecard

Author: Gary Cokins

Most executive teams are reasonably good at formulating their organization’s strategy, or they hire consultants to help them. A major frustration with executives is the failure to successfully implement and execute their strategy. The strategy map and its associated Balanced Scorecard, a methodology developed by Drs. Robert S. Kaplan and David Norton, recognized this problem. They observed the problem of executive managements’ excessive emphasis on after-the-fact, short-term financial results. Their strategy map resolves this myopia and improves organizational performance by shifting attention from financial measures (referred to as key performance indicators, KPIs) to managing non-financial operational measures related to customers, internal processes, and employee innovation, learning and growth. These influencing measures are reported during the period when sooner reactions can occur. This in turn leads to better financial results. The enterprise performance management (EPM) seamlessly integrates its many EPM methods including strategy maps and a balanced scorecard. Together these two tools align manager and employee behavior, actions, and priorities with the executives’ strategy using key performance indicators (KPIs) with specific KPI targets to enable accountability. This course by Gary Cokins will cover:

• How strategy maps and their companion balanced scorecards communicate strategic objectives with target-setting to help cross-functional employee teams align their behavior to the strategy and better collaborate
• How to design a strategy map and identify the strategy’s required projects or core process improvements which lead to selecting KPIs
• How to differentiate strategic KPIs from operational performance indicators which cascade downward from the strategic KPIs
• How to deploy a “quick start” implementation in two days to iteratively expand to a balanced scorecard production system in a few weeks

Publication Date: December 2023

Designed For
null

Topics Covered

• What is Corporate Performance Management (CPM)?
• Eight Pressures that have caused interest in CPM
• Strategy map and its Balanced Scorecard
• Differentiating KPIs from PIs
• CPM as a Value Multiplier through Integration
• Barriers Slowing the Adoption Rate of CPM

Learning Objectives

• Recognize the origins of the balance scorecard
• Identify how to design a strategy map
• Identify how to define appropriate key performance indicators (KPIs)
• Recognize how to apply targets of KPIs for motivation and incentives
• Identify the type of process on the intelligence hierarchy that has the highest ROI

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Business Management & Organization (2 hours)

Program Prerequisites
None

Advance Preparation
None