Create Strategic Aligment + Line-of-sight

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Balanced Scorecard > Best Practices > Create Strategic Aligment + Line-of-sight

Create Strategic Aligment + Line-of-sight
You must first assess the level of alignment in your organization. Based on this you proceed with tracking performance on the SBU level and then cascade to the individual level or performance contract level.
Having done this for more than 80 companies, the important issue is to get 100% line-of-sight or strategic alignment. This means that everybody must be able to "see" her or his contribution in terms of the strategic objectives.

Create Strategic Alignment + Line-of-sight
Donald Reynolds, Manager, United States, Member
In order to create a clear strategic line of sight you may want to consider creating a high level "Strategy Map" for your organization. Kaplan & Norton themselves have noted in "Execution Premium" that just balanced scorecarding alone with measure & metrics is not enough to create organizational alignment. The strategy map identifies strategic objectives for the organization, people will continuously strive toward the themes of the objectives. The objective are then broken down into balance scorecard metrics and measures. We inspire and align strategy with objectives "ideas" and evaluate performance with measures and metrics. Trying to inspire performance with just measures & metrics is akin to the old Taylorism days.

Create Strategic Alignment + Line-of-sight
Paul Maguire, Business Consultant, United States, Member
Yes. Good communication (including frequency and media) is a key success factor and the strategy map is a key communications tool that helps to "tell the story". It describes the cause-and-effect logic that links the outcomes with the enablers and process changes need to achieve the outcomes and helps individuals see how their contributions link to the desired outcomes.

Creating Strategic Alignment + Line-of Sight, BSC Models and Strategy Maps Together
Chris DeJager
Our organization implemented the BSC model this year. It was difficult to "balance" the score card and in turn measure the correct things across the organization. A strategy map allowed us to understand the last 25% of what we were missing. We still use the map to ask ourselves key questions of the supporting elements of our business when we see higher level symptoms. Sometime executives hunt for the higher level responsible segment when the challenges are truly being generated within other segments of the business.

Strategic Alignment + Line-of-sight
Ceferino Dulay, Jr., Philippines, Member
In developing strategic alignment, there must be a clear picture of the end result wanted and not simply a performance target. This is needed for the units in the organization to describe their own role and picture which they can then translate into specific targets and measures. This consciousness of the end result will guide everyone in making adjustments, if needed, without deviating from the end result. It will also engender units and people to work together for a common aim, i.e. everyone having a line of sight. To an overall end result.

Creating a Shared Context
Firstep Eapl Astimen, Manager, Indonesia, Member
It is important to measure all things that should be controlled and managed. However the most important thing is describing what our goals and related critical objectives are to create a shared context in the organization (for example using strategy maps).

Compelling Scoreboard
Gary Wong, Consultant, Canada, Premium Member
As many of us know, strategy comes first then it's execution. If a Balanced Scorecard is for the thinkers/strategists, then a "compelling scoreboard" is for the doers/executioners.
Think of a baseball game. Players know if they are winning or losing by looking at the scoreboard. The manager and coaches track lead measures such as pitches thrown, at bat performance, who's ready in the bullpen, etc. And make adjustments during the game. At the end of 9 innings, everyone knows who won. Imagine if every employee also knew immediately if he or she was winning or losing during the working day. How would that impact behaviour? Execution? Performance results that eventually shows up on the Balanced Scorecard? How do we make it "compelling"? We let the players decide what are the lead measures. Management's job is to tell them what a win looks like. The players then figure it out and can be easily held accountable since they own it. Sound far fetched? Google what Franklincovey is doing with their 4DX offering.

Balanced Scoreboard
kvssiyer, Consultant, India, Member
It is true that the players know how the the ball is going and how the game is going as winning or losing from the scoreboard. It is up to the players to pick up the signal and act for the winning. But the coaches know where they are to and direct the players for the winning. It is the coach who can study and observe the relative strength and weakness and align the players accordingly.
So is the case with the management and the employees.

Strategic Objectives - Line of Sight
Gary Disley, Teacher, Australia, Member
Using this line-of-sight model wisely would contribute significantly to continuous improvement, by embedding clear strategic objectives at all levels within the enterprise. As an empowerment tool, line-of-sight allows improvements to occur as they are identified at all levels. All changes are therefore directed towards strategic objectives.

Strategic Alignment - Line-of-sight
Ian van Jaarsveld, Strategy Consultant, South Africa, Member
Line-of-sight Balanced Scorecards are imperative for successful implementation, but certain levels of workforce may be subject to "behavioural BSC's" in view of their literacy levels. These workers should be coupled to development/education programs so that they can advance to "line-of-sight BSC's" and in so doing become disciples/links for the lower level of workforce. This sort of approach assists in reducing conflict in more complex organisations.

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