How can you use a balanced scorecard for strategic planning?

In 2004-2007 I was the external facilitator for the design and execution of a Balanced Scorecard (BSC) for Boehringer Ingelheim Japan. The overall design and implementation process took several months of facilitation of the Executive Committee (EXCOM). The BSC was then cascaded down the 2000 strong organisation into all the divisions. The company applied for and was awarded BSC Hall of Fame status for what Dr Robert Kaplan described in the award ceremony in Tokyo as a near perfect model of execution. The company published a full list of results as required to do by Hall of Fame status with an increase of sales by 56%. The execution was driven by a simple headline “ Exceed Customer Expectations “, communicated widely by the Chairman.

The BI Japan execution was driven by a simple headline “ Exceed Customer Expectations “, communicated widely by the Chairman. The execution process had its own BSC and involved: 1. Conducting customer and employee research based on understanding expectations. 2. A planned series of coordinated workshops fitted within an overall concept 3. Creation and training of a central team of experts. 4. Creation and training of a wider team of BSC Champions, 28 in year 1 and 55 in the second year. 5. Adaptation of the individual performance assessment process 6. Creation and integration of divisional BSCs and Strategy Maps. 7. The running of Annual Managers Meetings for 400 managers. 8. Many other supporting activities.

With hindsight the BI Japan method was a huge success but was a very time consuming and expensive process. Today, when I work with organisations for achieving the same goal, I do not use the BSC, at all. I use the far simpler, easier to understand and cheaper to install Dynamic Scorecard (DSC) invented by Bill Fonvielle at about the same time as the Norton and Kaplan BSC. The DSC does not need a strategy map, is far more adaptable and logical than a BSC, and significantly faster to create by facilitating the executive team. I am in the middle of doing one now. Rowan Jackson Rowan@promisingoutcomes.com July 2023

A balanced scorecard is an extremely useful measurement tool for evaluating and providing feedback to strategic suppliers. It typically will have time, operational, technology, communication, performance, and financial metrics. It can also be used for RFP vendor selections.