Page 135 - Managing Change in Organizations

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Chapter 7 ■ Organizations in the twenty-first century: the value-added organization
A typical workshop to create a balanced scorecard comprises the following
stages.
The workshop activity
Agree the vision and strategy and make any decisions necessary to define how
resources will be configured into units, groups, clusters, etc., in pursuit of that
vision.
Agree the four perspectives to be included and brainstorm possible measures.
Discuss each on its merits and not on comparison with the others. Once all meas-
ures have been considered, select three to four ‘candidates’, voting if necessary.
Divide into four subgroups, one for each perspective. Each subgroup should
identify three to four measures, provide a detailed description for each and pro-
pose goals for each (Round 1). The facilitator should circulate a summary of the
output.
At the next meeting the subgroups review the measures/goals:
■ refine the wording;
■ identify the detail for the measure;
■ identify sources of information and how to access it;
■ identify linkages between measures within the perspective and with other
scorecard perspectives (Round 2).
Arrange an executive workshop to sign off the balanced scorecards (Round 3) as
part of the implementation plan.

Selecting the measures
Measures relevant to the activity are essential, but the following often appear:
■ Finance: ROI, profit, revenue growth/mix, cost reduction/productivity.
■ Customer: market share, customer acquisition, customer retention, customer
satisfaction, customer profitability.
■ Innovation: flexibility, percentage of sales from new products/services, time to

market.
■ Business process: resource utilization.

Creating an implementation plan
Define a detailed implementation plan including training, roll-out of measures
and a further executive workshop to sign off the scorecards.

Conclusion

In this chapter I have presented various tools to help you think about the level
of value added by your own organization or department. This is an important
part of identifying what could be changed and for providing a coherent justifi-
cation for proposals for change.

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