Our client, a transaction processing company, initiated the development of performance measures utilising the Balanced Scorecard tool. However, the selected measures were found to be unbalanced, short-term, and predominantly operational in nature. Consequently, there was a significant disconnect between the organisation's overarching strategy and its chosen performance measures. This disparity raised crucial questions regarding the purpose and benefits of these measures, prompting a reassessment of their alignment with the company's strategic objectives
The Solution:
Our premise:
Performance measures should cascade from the organisation's strategic objectives, ensuring alignment with its overarching goals. These measures should encompass a balanced perspective, addressing key areas such as Financial, Customer, Internal Operations, and People. Whether qualitative or quantitative, these measures should be meaningful and easily measurable, providing valuable insights into the organisation's progress toward its strategic aims.
What we did:
Tier 1: Defining organisation scorecards
We interviewed senior management and board members to clarify the organisation's strategy and articulate the desired picture of success. Following this, we facilitated senior management workshops to identify specific performance measures at the organisational and divisional levels. Subsequently, we refined and tailored these performance measures to align seamlessly with the organisation's strategic objectives. We concluded by finalising the organisation and divisional scorecards, providing a comprehensive overview of the organisation's performance landscape.
Tier 2: Cascading goals to individual level
We conducted cascade workshops and coaching clinics with business heads to cascade divisional measures to individual levels. This involved linking performance measures directly to the performance management system and aligning them with the rewards framework. Additionally, we suggested ChatBot technology to facilitate the monthly compilation of performance measures, ensuring seamless integration and efficiency.
The Result: Performance measures were linked to the organisation's strategy, fostering clarity and alignment across the managerial hierarchy. Managers clearly understood how their actions contributed to organisational success, establishing a direct line of sight between their efforts and the overarching goals. Consequently, there was increased acceptance of the performance measures across the board
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