Strategic Managment:
To evaluate strategy management execution, the Decision Builder provides measures and key performance indicators for your entire organization. By communicating performance objectives and measurements, companies are better able to communicate strategy, align behaviour and improve organizational effectiveness. Measurements are used both for leading and lagging indicators providing a cause and effect model. Measuring performance and results provides data to continuously test and revise functional strategy.
The Decision Builder provides measurement in an assortment of ways. Measurements can be displayed within the application based on a role based or individual log in. For example an individual sales person can see statistics relating to their specific activities as they are performing their normal functions. Activities can be communicated based on a specific event such as reporting a delay in order shipment. The Decision Builder uses “The Balanced Score Card” to provide measurement on key indicators throughout the company in one readable table with drill downs to specific operational details.
Our trained consultants are available to:
A.     Review Corporate, Business, and functional strategies currently used.
B.     Assess how well these strategies are communicated within the organization.
C.     Determine how each department could contribute toward their implementation.
D.     Translate strategies into measures and targets.
E.     Establish procedures to monitor results and test strategy effectiveness
For “The Balanced Scorecard” to achieve its full potential it must be supported by an information system that is capable of 1. Communicating the business strategy to all parts of the company; 2. Monitoring activities as defined on the scorecard as to the achievement of established targets; and 3. Continually testing and revising the cause and effect business model that helps a company understand what’s really driving its success.
A brief description of the Balanced Scorecard:
In developing a Balanced Scorecard, corporate strategy is first converted to specific objectives in four key areas. Financial measures include the owner’s objectives, such as return on investment and cash flow. Customer perspective measures include objectives for meeting customer expectations like defect rates and on time delivery. Internal business process measures focus on the processes necessary to excel at to create future financial value and keep customers satisfied such as cycle time or cost management. Innovation or the learning perspective focuses on activities required for future success like developing new products or exploring employee suggestions.
After selecting the objectives, measures are selected that help assess the progress toward each objective, targets are set for each measure and the scorecard is communicated and managed throughout the organization.
The indicators should measure the elements of performance that lead to good results and may include input and process measures in addition to output measures. The four perspectives connect in a chain of cause and effect: innovation and learning improve internal business processes; internal business processes improve customer satisfaction; and customer satisfaction leads to improved financial performance. One category of measurement drives the performance in the next. These indicators should reinforce each other, all contributing to measuring the accomplishment of a unified strategy.
The balanced scorecard looks into the future and identifies the drivers of future performance. Every manager knows that measurement motivates. If you put a spotlight on something, it will influence the way people act. If you believe that and you want your organization to move to the future then, you should measure that pathway to the future.
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