Details

Balanced Scorecard Strategy For Dummies

1. Aufl.

von: Charles Hannabarger, Frederick Buchman, Peter Economy
15,99 €
Verlag:	Wiley
Format:	PDF
Veröffentl.:	19.11.2007
ISBN/EAN:	9780470227688
Sprache:	englisch
Anzahl Seiten:	384

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Beschreibungen

Titelbeschreibung

A practical, easy-to-understand guide to Balanced Scorecard for busy business leaders The Balanced Scorecard method is an analysis technique designed to translate an organization's mission and vision statement and overall business strategies into specific, quantifiable goals, and to monitor the organization's performance in achieving these goals. Much less technology driven then other analysis approaches, it analyzes an organization's overall performance in four regards: financial analysis, customer service, productivity and internal analysis, and employee growth and satisfaction. Balanced Scorecard Strategy For Dummies breaks down the basics of Balanced Scorecard in simple language with practical, Dummies-style guidance on getting it done. This book covers all the basics of Balanced Scorecard for busy executives and managers-and does it without the high price tag of most professional level Balanced Scorecard guides.

Inhaltsverzeichnis

Introduction 1 About This Book 2 Conventions Used in This Book 2 What You’re Not to Read 3 Foolish Assumptions 3 How This Book Is Organized 3 Part I: The ABC’s of Balanced Scorecard 3 Part II: The Customer — The Critical Leg 4 Part III: Financial Measurement — The Foundation Leg 4 Part IV: Internal Business Processes — The Value Creation Leg 4 Part V: Knowledge, Education, and Growth — the Learning Leg 4 Part VI: The Part of Tens 5 Icons Used in This Book 5 Where to Go from Here 5 Part I: The ABC’s of Balanced Scorecard 7 Chapter 1: Goals, Scores, and the Balanced Scorecard 9 Getting Familiar with Balanced Scorecard 10 Just what is Balanced Scorecard, anyway? 10 Leaning on the four legs of the scorecard 10 Achieving Organizational Balance 11 Analyzing Your Customers: Critical Leg 12 Knowing who you sell to 12 Focusing on future customers 13 Considering your internal customers 14 Following the Money: Foundation Leg 14 Measuring your financial health 15 Common mistakes made in finance 17 Tracking Your Internal Business Processes: Value-Creation Leg 18 Assessing the current state of your business 18 Installing effective measures for tracking processes 19 Anticipating your business’s future state 20 The top five process-tracking problems 20 Managing Company-wide Knowledge, Education, and Growth: Learning Leg 21 Understanding the importance of taking care of your own 22 Measuring knowledge, education, and growth 23 Staying on the right course in the fourth leg of the scorecard 25 Using Dashboards to Apply Balanced Scorecards to Your Business 25 Market, environmental, and technology considerations for your dashboards 27 Reviewing strategy, operational, and tactical scorecards and dashboards 28 Chapter 2: Building and Balancing Scorecard Strategies 31 Understanding How the Four Legs Interact and Link to Strategies 32 Putting strategies in the driver’s seat 32 Focusing resources on your strategies 33 Borrowing from Other Companies’ Success 34 Translating strategies into operational terms 35 Aligning your organization to the strategies 36 Making strategies everyone’s daily job 36 Turning strategic deployment into a continual process 36 Mobilizing change through your executive leadership team 37 Developing Your Strategy Map: A Balancing Act 38 Doing your mapping homework 38 Drafting the strategy map 39 Ensuring a Balanced Scorecard (And What to Do When Yours Isn’t) 40 Adapting to Changes in Your Markets or Business 43 Spotlighting external influences and their effect on your business 43 Recognizing early warning signals 47 Balancing in today’s environment — a moving platform 48 Chapter 3: Planning For the Balanced Scorecard 49 Getting Your Planning in Order 49 Planning Your Work and Working Your Plan 51 Planning for the resources you will need 51 Garnering support from management and others 52 Building the Foundation and the Structure of a Scorecard 53 Stacking the building blocks for implementing a scorecard 54 Adding flexibility so you can adjust a scorecard for effectiveness 55 Contingency planning methods 57 Adding the Final Touches 58 Taking care of the details 58 Ensuring that your scorecard is fireproof 59 Performing a final inspection 59 Chapter 4: Putting Your Balanced Scorecard into Action 61 Deciding When to Launch Your Balanced Scorecard 61 The Scorecard passed the pilot, and everyone knows it! 61 The Scorecard is seen as genuinely adding value 62 Sustaining the Balanced Scorecard 62 Promoting the scorecard concept 63 Making scorecard the talk of the town 64 Cooking up the best time to launch 66 Mastering the Art of Communicating Your Balanced Scorecards 66 The view from the top: Senior executives 67 Surviving scorecards as a middle manager 68 Spreading the word from the front line 69 Avoiding communication pitfalls 70 Part II: The Customer — The Critical Leg 73 Chapter 5: Understanding Your Role with Customers 75 Five Things You Must Know about Customers 76 Not all customers are created equal 76 Customers can go away 77 You must master the art of customer service 78 Customers watch you closely 79 Do right by your customer 79 Using Customer Info to Keep Your Customers Happy 80 Gathering info about your customers’ satisfaction levels 80 Being proactive to find out what your customers desire 82 Walking miles (and miles) in your customers’ shoes 84 Setting customer-based strategic measures 84 Linking Customer Measures to Your Strategies, Policies, and Plans 85 Developing customer strategies 85 Creating customer plans and tactics 86 Taking action when your customers don’t get what they want 86 Following Up With Your Customers for Adjustments 87 Chapter 6: Creating a Customer Scorecard 89 Zeroing In on the Right Customer Measures 90 Weeding out the wrong measures 91 Discovering customer measures that matter 91 Understanding customer loyalty 92 Taking customer measurements 94 Getting Dependable Data 96 Hocus, pocus — the focus group 97 Asking all the wrong questions 98 Keeping data charts simple 99 Avoiding Interpretation Pitfalls 100 Drawing wrong conclusions 100 Communicating timely with your customers 102 Reading between the lines 102 Building the Customer Scorecard 103 Strategic-level scorecards 103 Operational-level scorecards 105 Tactical-level scorecards 106 Analyzing a Scorecard and Determining a Course of Action 107 Knowing which way to go 107 Making sure you stay on course 109 Chapter 7: Building the Customer Leg Dashboard 111 Customer Dashboard Fundamentals 112 Dashboard basics 112 Determining ownership and responsibility 113 Taking appropriate action: Who, when and how 114 Building the Customer Dashboard 115 Keeping-it-simple-style dashboards (KISS) 115 High-end dashboards with all the fluff 116 Just-in-time versus just-too-late dashboards 118 Tracking and Analyzing the Customer Dashboard 120 Figuring out who needs to know 121 Updating the customer dashboard 122 Drilling down to root causes 123 Part III: Financial Measurement — The Foundation Leg 125 Chapter 8: Understanding Your Role in Financial Measurement 127 Five Things You Must Know About Financial Measurement 128 Your financial measures must be accurate and highly dependable 128 Your financial measures must truly reflect the value of your business 129 Your financial measures must cascade easily from top to bottom 131 Your financial measures must be easy to use and explain 132 Your financial measures must adhere to current regulatory and tax laws 134 Finding The Financial Data Gold Mines 135 Scratching the surface of a goldmine 135 Knowing your business equals leveraging your financial data 135 Using key measures to gain a significant competitive edge 136 Turning difficulties to your advantage 137 Measuring and Interpreting with Accuracy 139 Making sure the right people do your measuring 140 Using consistent and dependable measures 141 Avoiding measurement pitfalls 141 Turning Numbers into Information 142 Examining reporting pitfalls 142 Showing financial info simply 143 Linking Financial Measurements To Strategies, Plans And Tactics 144 Financial measurement is dependant on strategic focus 145 What you do depends on what you want 145 Using Failure Mode Effects Analysis (FMEA) to assess risk 146 Chapter 9: Building the Financial Leg Scorecard 149 Key Aspects of Financial Measures 150 Focusing on the right things 150 The WIIFM (What’s in it for me?) station everyone tunes into 151 Timeliness is your competitive edge 152 Financial Measures That Matter 152 Key questions help you see what to measure 153 Selecting key performance indicators (KPIs) 155 Tips for finding key measures 155 How measures differ 156 Ensure competitive success by revisiting measurement 158 Creating The Financial Scorecard 159 Select either a strategic, operational, or tactical level 159 Customizing your financial measures, and how to score them 160 Examining examples 162 A word or two (or three) about information management 166 Interpreting Financial Measures for Balanced Scorecards 168 Understanding scorecard financial measures, and what they tell you 168 Pointing toward additional information and insight 170 Structures for decision making from scorecard financial measure 171 Understanding the Essence of Accuracy 173 Oh no, the numbers are wrong! 174 The right numbers, the wrong analysis 174 Tracking the numbers by automatic pilot 175 Chapter 10: Building the Financial Leg Dashboard 177 The Basics of Financial Dashboards 177 Determining ownership and responsibility of the financials 178 An emphasis on real-time measurement and response 179 Taking appropriate action: Who, when, and how 180 Creating Financial Dashboards That Have Impact 181 Keep it simple, complete, and effective! 182 Types of dashboards 183 Some examples of dashboards that work! 186 Enabling response and adjustment agility and flexibility 189 Avoiding Pitfalls While Designing Dashboards 190 Selecting the wrong measures 190 Organizing goals and objectives poorly 191 Having the wrong number of financial measures 191 Thinking in the short-term thinking 191 Understanding Your Financial Dashboard 192 Make it part of your daily work 193 So what does it mean, and how will I know what to do next? 194 Follow through — it’s what’s for breakfast 196 Part IV: Internal Business Processes — The Value-Creation Leg 197 Chapter 11: Understanding Your Role in Internal Business Processes 199 Five Things You Must Know about Internal Business Processes 200 Waste abounds in your processes 200 Many process measures don’t link to the customer 202 Your measurement system is probably broken 202 Process workers are under-utilized and unappreciated 203 Technology isn’t always the right answer 204 Creating Value 205 Looking at your value streams’ current state 205 Where you want to be when: The future state 206 You Get What You Reward 207 Sending mixed messages 207 Old rewards do not create new behaviors 208 Rewards that matter 209 Building-In Continuous Improvement 210 Process improvement in a nutshell 211 Determining, what, when, and where to measure 211 How to measure your performance 213 Acceptance and ownership means getting everyone involved 213 Pitfalls to Continuous Improvement 215 Implementing continuous improvement 215 Identifying core processes and outsourcing 217 Technology isn’t always the answer 218 The Weakest Links in Internal Business Processes 219 The problem with integrating strategies, plans, and tactics 220 Systems thinking and internal business processes 222 It’s a people thing 224 Tying Internal Processes to Your Strategies, Plans, and Tactics 226 Playing catchball: The art and science of deployment 226 Developing your process strategies, plans, and tactics 227 Chapter 12: Building the Internal Business Process Scorecard 229 Finding the Right Measures for Internal Business Processes 230 Identifying the critical few measures 230 The Input-Process-Output diagram: Your best friend 232 Waste, scrap, and other bad things 233 Where’s the variation? 234 Building Scorecards for Internal Business Processes 235 Strategic level scorecards 235 Operational level scorecards 236 Tactical level scorecards 236 Making Process Decisions That Give Competitive Advantage 239 Involving the right people in process decisions 239 Staying ahead of the competition: Tools that help 240 Common mistakes made with internal business process scorecards 241 Chapter 13: Building Dashboards for Internal Business Processes 243 Understanding Internal Business Process Dashboards 244 The what and why of internal process dashboards 244 Getting to real-time data and information 246 Drilling down to get the gold 247 Creating Your Internal Business Process Dashboards 248 Who should be involved with your dashboards and how 248 Making sure you’re hitting the right targets 250 Ten common mistakes with business process dashboards 251 What Your Internal Business Process Dashboard is Telling You 251 Analyzing your dashboards 252 What to do if you’re not getting there 253 Five common mistakes made in business process dashboard analysis 254 Part V: Knowledge, Education, and Growth — The Learning Leg 255 Chapter 14: Understanding Your Role in Learning and Growth 257 Getting Schooled on Knowledge, Education, and Growth 258 Putting your finger on the elements of productivity 258 Understanding how information flows 260 Examining leadership style and culture 261 Identifying and filling competency needs 262 Aligning your employees organization 263 Have a Clear Direction for the Future 264 Growing means changing: the concern of complacency 265 Getting clarity from learning and growth chaos 266 Having a plan for growth and development 267 Knowing and Understanding Liabilities 269 Turning liabilities into assets, weaknesses into strengths 270 The dangers of shortcutting training for growth 272 Inventorying Knowledge, Skills, and Abilities 273 Your company’s wish list: Defining what you need 274 Step away from the office! Getting to know your people 275 Mind the gaps: Determining knowledge and skill gaps and filling them 277 Linking Your Strategies, Operations, and Tactics for Learning and Growth 280 Balancing at the strategic level for organizational knowledge and growth 281 Having an operational focus for the future 282 Acting tactically for growth, capability improvement, and retention 283 Chapter 15: Creating the Knowledge, Education, and Growth Scorecard 285 Finding The Right Measures For Knowledge, Education And Growth 286 Determine key growth goals for the future 286 Identifying operational goals, measurements for growth 287 Indicators at the action level 288 Constructing The Knowledge Management Growth Scorecard 291 Aligning key growth measurements, for strategies and their impact 291 Determining the right measures for today and tomorrow 292 Always reassess and adjust, per market changes as well 293 Some examples of growth and development scorecards 294 Determining What Your Scorecard Is Telling You 300 How to read your future 301 Adjusting when it’s not what you want 302 Some mistakes to avoid in interpretation 303 Chapter 16: Creating The Knowledge, Education, and Growth Dashboard 305 Requirements For Knowledge, Education, and Growth Dashboards 306 Translating growth goals into meaningful daily measures 306 Selecting key short- and long-term measures 307 Wait! It’s time to do a sanity check! 308 Creating Dashboards That Increase Knowledge Management 309 Formulating the structure of your growth dashboard for action 309 Setting up feedback systems 311 Using the dashboard to achieve greater potential 311 Analyzing Your Knowledge, Education And Growth Dashboard 312 How to use the growth dashboard to make adjustments to scorecard balance 313 What your dashboard is telling you as you work toward achieving your future 314 The importance — and the risks — of being truthful 315 Understanding the Pitfalls of Analysis 316 Performance results alone do not a benchmark make 317 Comparing apples and elephants: best practices where? 318 Beware of cookbook approaches and case studies 319 Part VI: The Part of Tens 321 Chapter 17: Ten Tips for Balanced Scorecard Success 323 Establish (and Remember) Where Your Company is Headed 323 Understand and Stay Current with What Your Customers Want 324 Define Your Scorecard and Dashboard Roles and Responsibilities 325 Charter Effective Steering Committees 325 Establish and Maintain Accountability 326 Link Your Scorecards and Dashboards to Your Strategies, Goals, and Objectives 326 Communicate Your Personalized Four - Legs Approach to Everyone 327 Use Feedback and Feed-Forward Loops 327 Plan and Execute Your Balanced Scorecards Relentlessly 328 Synergize Your Scorecards for Competitive Advantage and New-Market Entrance 329 Chapter 18: Ten Biggest Scorecard Mistakes to Avoid 331 Cherry Picking 331 Following Case Studies Too Closely 332 Delegating Responsibility without Authority 333 Ignoring the Soft Stuff 333 Focusing Too Much on the Tools 335 Overanalyzing 335 Not Dealing with Key Detractors 336 Sending Mixed Messages 337 Exaggerating the Returns 337 Ignoring the Customer 338 Chapter 19: Ten Tips for Overcoming Barriers 339 Empower Your Employees 339 Be Flexible 341 Apply Psychology 341 Identify and Use Influential People 342 Limit the Use of Force 342 Don’t Shoot the Messenger; Make Everyone the Messenger 342 Implement Stage-Gate Reviews 343 Reward, Recognize, and Celebrate Success 343 Communicate, Communicate, Communicate (And Don’t Forget to Talk) 344 Provide Structure for Coaching, Mentoring, and Learning from Mistakes 344 Index 345

Autorenportrait

Chuck Hannabarger: Chuck (Tyler, Texas) is founder and president of PSI Associates, a business consulting and training firm founded in 1992 with headquarters in Tyler, Texas. As a business consultant, Chuck has consulted with many of the Fortune 100 companies and is recognized throughout the world for his work in the areas of Balanced Scorecards, Six Sigma, Lean Manufacturing, Business Process Reengineering and Project Management. Chuck’s course on Project Management has been offered at UC Berkeley, Pepperdine University, San Diego State University, and Michigan State University, to name a few. He received his BSBA and his MBA in technology management from the University of Phoenix. Rick Buchman: Rick, who lives in Woodland Hills, CA, has worked with many of the Fortune 100 companies for over 20 years, as both an organizational member of executive management, and as an external consultant, in designing, developing, and implementing operational excellence and continuous improvement programs worldwide. He received his bachelor’s degree in mathematics from Western Illinois University, his MBA in business from California Coast University in Santa Ana, CA, and has completed all but the dissertation for his PhD in management as well. Currently, Rick is working as a consultant with several major global clients toward designing and implementing their continuous improvement programs, focusing on lean leadership and improving the flow of value to deliver products and services to their customers worldwide. Peter Economy: Peter is Associate Editor for the award-winning magazine Leader to Leader, Senior Consultant for The Jana Matthews Group, a member of the National Advisory Council of the Creativity Connection of the Arts and Business Council of Americans for the Arts, and bestselling coauthor of The SAIC Solution: How We Built an $8 Billion Employee-Owned Technology Company, as well as Managing For Dummies, The Management Bible, Enterprising Nonprofits: A Toolkit for Social Entrepreneurs, Writing Children’s Books For Dummies, and many others.

Back cover copy

Packed with helpful checklists and figures Find success by focusing on four critical areas to bring your business into balance Set and achieve goals consistently by using and applying balanced scorecards that work. This hands-on guide shows you how to pay attention to more than just your bottom line, revealing how to balance goals you set for your customer needs, company growth and education, finances, and productivity. Discover proven strategies to analyze these areas in the best way to bring balance to your business and achieve the success you seek. <ul> <li>Understand organizational balance</li> <li> Build scorecards and dashboards </li> <li> Analyze your results </li> <li> Fine-tune and improve your system </li> <li> Avoid common scorecard mistakes </li> </ul>