Archive for August, 2010

Dr. Robert Kaplan and Dr. David Norton of Harvard Business School coined the term “balanced scorecard” to describe their approach to performance management in 1994. During the Clinton administration, Vice President Al Gore popularized this term as the leader of the National Performance Review. In the 21^st century, government agencies, private companies, and non-profit organizations use the balanced scorecard to measure organizational achievement of strategic objectives. This article uses a strategy map – part of the balanced scorecard approach – to show how the Kaplan-Norton model works for managing organizational performance.

What is a Strategy Map?

A strategy map is a diagram of connected boxes and other flowchart symbols. These pictures as well as short phrases describe an organization’s approach to strategic management. The following discussion of a strategy map is based on a sample map posted on the Value Based Management website. This map shows logical relationships between organizational values, resources, and objectives using four perspectives – the Learning and Growth Perspective, the Internal Perspective, the Customer Perspective, and the Financial Perspective.

At the base of this example of a strategy map, the Learning and Growth Perspective shows how an organization uses human capital, information capital, and organization capital to achieve goals. At the second level, the Internal Perspective demonstrates how an organization strategically manages business processes such as customer management, supply chain, and research and development to build on its Learning and Growth Perspective.

At the third level of this sample map, the Customer Perspective shows how an organization creates value for customers through customer value propositions such as price, quality, and service. At the fourth level, the Financial Perspective conveys how an organization uses financial strategies – such as cost structuring and asset utilization – to produce long-term value for shareholders.

Three Types of Resources

In the same strategy map example, three types of resources help an organization operationalize its objectives – human capital, information capital, and organization capital. These three resources focus on the knowledge owned by an organization, especially technical knowledge possessed by employees and proprietary technologies and information. This focus on resources suggests managers must define strategic objectives that help employees understand what they need to learn to perform their roles. From a manager’s perspective, a strategy map is a powerful tool for communicating an organization’s culture to direct reports. For example, a strategy map shows employees how an organization is organized and managed to achieve growth.

Strategic Objectives

A strategy map also illustrates an organization’s strategic plan. Companies can download template strategy maps and other strategy mapping software programs from websites like CNET and Active Strategy. These tools offer a way to build a strategy map and include strategic objectives where appropriate. If an organization already has a strategic plan, it is feasible to adapt a strategy map tool to fit its plan.

Strategy maps help an organization to ensure everyone focuses on the methods that will produce value for customers, shareholders, and other stakeholders. A balanced scorecard approach to strategic performance management calls for senior leadership to use a strategy map and other organizational planning documents to evaluate performance (or achievement of strategic objectives).

A dynamic management consultant instructor stands out as a professional with high ethical standards, extensive education, a proven record for transforming businesses into more efficient organizations, and an ability to communicate with colleagues. This person approaches consulting education with energy and enthusiasm, inspiring every participant to achieve results in business consulting. Don’t you want this person as your next consulting education instructor?

The key to finding a quality program with dynamic instructors is evaluating the program provider’s reputation. Assess the ability of a consulting education provider to target consultants with specific needs. To select a first-rate program and to walk away with valuable skills, look for a program that is:

* Tailored to management consultants in your field and with your level of experience. Each seminar should be specific to your needs; otherwise, you will not get the right tools to develop in your career. Select a consulting education program that will help you move from one level of management consulting to the next; for instance, look for a list of prerequisite skills and/or a target audience for each seminar.

* Structured to facilitate group communication and understanding. Some experts teach consulting education seminars without a good grasp of how to facilitate learning in small group or large group settings. If you research the reputation of each instructor, or better yet, take a training program from a provider recommended by a colleague who had a great experience, you can ensure your investment is not wasted. A great instructor will use the seminar time to help participants learn from each other and maximize their takeaways.

* Supported by online postings of program materials. A professional provider of consulting education makes it clear to prospective participants what each course will cover. Look for a schedule, a course outline, a list of course objectives, a summary of the course instructor’s background and experience, assessments, and potential uses for the course.

* Supported by follow-up consultations with an instructor. A quality consulting education provider charges a handsome some for participation, but its product is supported by ongoing support from an instructor. You make an investment in increasing your knowledge base, and your instructor helps you to understand the application of your new learning when you return to work.

The next time you attend a consulting education program, remember you may have selected a well-designed course, but you gain more from your experience by leaving work commitments behind and focusing on your learning.