The document discusses implementing business strategy using a Balanced Scorecard approach. The Balanced Scorecard is a management system that helps organizations clarify their strategy and translate it into action through objectives defined across four perspectives: financial, customer, processes, and learning & growth. The document provides guidance on how to successfully implement a Balanced Scorecard, including defining strategic objectives, preparing a strategy map, and identifying key performance indicators to measure progress.

1. Balanced Scorecard
The successful way to
implement your strategy
www.consenec.ch

2. Implementing business strategy
 How to secure successful implementation?
How to link it
with the budget?
How to make sure
How to define the actions are
appropriate actions? coordinated?
How to measure
the progress?
How to communicate How to do all
your strategy, actions this efficiently?
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and progress?
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3. The Strategy Process – common weak points
 Non financial goals are missed out
 Insufficient planning transparency
 Unsatisfactory communication tools
 Insufficient consistency of actions and budget
Strategic Controlling
Market
Business Competition KPI
Business Strategy
Idea SWOT
SWOT
Idea Location
Financial Controlling
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Strategy Development Business Controlling
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4. The Balanced Scorecard (BSC) approach
The balanced scorecard is a management system (not only a
measurement system) that enables organizations to clarify their strategy
and translate it into action.
The balanced scorecard suggests that we view the organization from
four perspectives:
Financial
Customers
Processes
Learning
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Source: www.balancedscorecard.org

5. BSC - a popular method to implement strategy
 In 1987 a measuring system (score card) has
been uses by Analog Devices Ltd in the US.
 In the beginning of the nineties die BSC was
further developed to a management system
by Robert S. Kaplan und David P. Norton
at the Harvard University
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2’500’000 Entries !
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6. Balanced Scorecard - sometimes misunderstood
The Balanced Scorecard
 is a management concept to implement
business strategy
 is applicable to every size of organization
 requires direct management involvement
 requires a culture of open communication
The Balanced Scorecard is NOT
 a substitute for a business strategy
 a quick fix for a business
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 a system of operational key data
a performance measurement tool
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

7. How to implement BSC successfully?
 The implementation process is crucial for success
 Involve all relevant persons
 Communicate ongoing Compile annual plan
 Plan enough time
Set up strategic program
Determine performance indicators
Create a strategy map
Define strategic objectives
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Strategy Check
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8. Get the full picture of the strategic planning process
Business Idea Strategy Strategic Scenario
Balanced
Business Plan Strategic Objectives
(3 years) Scorecard
Performance indicators
Strategy Map
Strategic Program
Strategic Objectives
Strategic Actions
Annual Plan Responsible Person & Dates
(1 year)
Annual Plan
Supporting Actions
Responsible Person
Costs / Benefits Detailed Dates
Budget Cost & Benefits
(1 year)
Budget
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Business Process
Leistungsprozess
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9. The impact of soft issues – mostly underestimated
They are the most serious barriers
Revenues Costs
Market share Productivity Hard Facts
Personal agenda
Trust
Personal vision
Taboos
Soft Facts
Values
Frustration
Power
Emotions
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Sympathy
Relations
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10. Start with a check of your strategy
Is the strategy fit for implementation?
 Are the underlying data and assumptions of the
strategy realistic and well documented?
 Is the strategy specific enough to be able to
derive actions?
 Is the strategy consistent with the parent organization?
 Is there a common understanding about the strategy?
 Is there consensus about the strategy in the
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management team?
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11. Set your strategic objectives
Strategic objectives based on your business strategy
Recommendations: Strategic
Importance
 Strategic importance Strategic
Important at
„cruising altitude“ change
deviations
necessary
 Need for action
 Reduce number of objectives Low Selective
priority attention
“twenty is plenty”
 Concrete and measurable
Urgency to act
 Do it in a team; all relevant areas should be
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represented (e.g. HR; finance; sales; production …)
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12. Set your “balanced” strategic objectives
Business Strategy
Perspectives Objectives
Expectations of the investor? Finance
Expectations of the market? Market
Which processes do we
have to optimize? Processes
Which competences do we Learning
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have to develop?
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13. Prepare your strategy map
Finance
1.1 1.2 1.3
Bestellungseingang Bestellungseingang
Vorgegebene Marge
beim Betriebsergebnis AZ gesteigert in den zugeteilten
erreicht Ländern gesteigert
 Map the objectives according
to their perspective
Market
2.1 2.2
2.3
Kundenpräsenz Kunde nimmt AZ als
qualitativ und umfassenden Retrofitlösungen
quantitativ erhöht Problemlöser und
Connect the objectives the
anbieten

Partner wahr
way they support each other 3.2
Consultingprozess
eingeführt
3.1 3.3
Processes
Beschaffungs-
 The strategy map
managementan Projektmanagement-
AZ-Strategie an- prozess für die Ab-
gepasst wicklung komplexer
Projekte optimiert
3.4
 tells the story of your strategy 3.7
Akquisitionsprozess
verbessert
3.5
Montage- und Entwicklungsprozess
für Produkte und
is a check for completeness
IBS-Prozess integriert
 3.6
Ersatzteilprozess
Dienstleistungen
aufgebaut
optimiert
 shows conflicts and missing
links
Learning
4.1
In AZ fehlende
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Fähigkeiten aufgebaut 4.4
Retrofit & Support in
den zugeteilten
4.2 Länderorganisationen
4.3 eingeführt
ABB internes / externes
Von der Strategie
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überzeugte Mitarbeiter Netzwerk aufgebaut
haben

14. Each strategic objective needs …
Finance
1.1 1.2 1.3
29
Bestellungseingang Bestellungseingang
Vorgegebene Marge
an owner
beim Betriebsergebnis AZ gesteigert in den zugeteilten
28 Ländern gesteigert
erreicht
25
Market
22 23 24
27
31 2.1 2.2
26 2.3
Kundenpräsenz Kunde nimmt AZ als
21
qualitativ und umfassenden Retrofitlösungen
quantitativ erhöht Problemlöser und anbieten
Partner wahr
17
a short description
18 20
35
3.2 15
19
Consultingprozess
eingeführt
3.1 13 3.3
Processes
Beschaffungs-
management an Projektmanagement-
AZ-Strategie an- 34 prozess für die Ab-
gepasst 14 wicklung komplexer
Projekte optimiert
12
3.4
2. Market
Akquisitionsprozess 16
verbessert
3.7
3.5
Montage- und 33 Entwicklungsprozess
2.1 Market Presence Increased (Quality and Quantity)
IBS-Prozess integriert für Produkte und
8 3.6 Dienstleistungen
9 aufgebaut
Ersatzteilprozess
optimiert
4
Offering services is very challenging. To accomplish our
32
growth target we have to increase our presence in the
30
11 market so potential clients become aware of us.
4.1
7
It is our aim that clients know about our solutions / services
Lerning
10 6
and that our department has a good reputation based on
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In AZ fehlende 3
Fähigkeiten aufgebaut 4.4
Retrofit & Support in
den zugeteilten
performance.
2 4.2 Länderorganisationen
4.3
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eingeführt
1 ABB internes / externes
Von der Strategie
überzeugte Mitarbeiter Netzwerk aufgebaut
haben