MasterClass with the creator of balanced scorecard - Prof. Kaplan- @Hotel Mulia Jakarta/Indonesia, 18 January 2013.
THE SECRET TO SUCCESSFUL STRATEGY EXECUTION"
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The Kaplan-Norton six-stage closed loop
management system for Strategy Execution
A Strategy Map and Balanced Scorecard provides the
foundation for a new strategy execution system
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A Cascading Approach Needs to Be Established
Before Aligning Individuals to the Balanced Scorecard
Align employees to the strategy: Four HR
processes
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Communicate “seven times seven different
ways” to make strategy everyone’s job
• Personal relevance brings the strategy to life
• Sustained communication uses different channels to get
the message across
• Leadership meetings
• CEO random visits to employees
• Quarterly Letter
• Learning lunches & informal discussions
• Intranet
• Working groups facilitated by HR
• Staff briefings
Dashboards articulate the critical link between strategy
management and operations management
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Operational Review Meetings:
Role for KPI Dashboards
• Frequent (daily, twice weekly, weekly)
• Departmental and functional
personnel
• Identify and solve operational
problems (late deliveries,
equipment downtime, supplier
problems)
• Promote continuous
improvement (better, faster,
cheaper)
Convene a Separate (Monthly) Strategy
Review Meeting
• Role for Balanced Scorecard and Time-Driven
ABC Reports
• Focus on the performance of objectives NOT
measures
• Why did we miss the target?
• What correcting actions should we consider?
• Are initiatives on schedule?
• Do you need more resources?
• Would an multi-functional task force help?
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Executives Monitor and Adapt the Strategy at
Monthly and Annual Strategy Review Meetings
Why do organizations fail to get results
from their Balanced Scorecard programs?
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Broad approach for strategy execution
Act to Win Program
Mascot
Media
Learning Map -Rally Act to Win
Recognition Program
Strategy execution focus:
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Palladium Balanced Scorecard Hall of Fame for
Executing Strategy® By Industry 2000-2011
Strategy-Focused (Hall of Fame) Organizations
Use Five Strategy Execution Principles
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