11/20/2013
The Strategic Edge, Association for Strategic Planning Newsletter, November 2013
Reviewed by: Terry Schmidt of ManagementPro
The Balanced Scorecard (BSC) approach has been around since 1973 when Robert Kaplan and David Norton first brought it into the world. In the 40 years since, organizations of all types have applied the approach. Some got great results, others got confused.
Various thought leaders have recognized the value of the approach but also saw its limitations as a total performance management system. One of these was Howard Rohm, a former Booz Allen consultant with three decades of experience in and out of government, and lead author of THE INSTITUTE WAY: Simplify Strategic Planning & Management with the Balanced Scorecard.
Rohm understood the potential power of the BSC, but knew that making it actionable required a logical development process, not just the BSC framework. He later co-founded the Balanced Scorecard Institute and created such a development process - Nine Steps to Success - which I find to be simple, comprehensive and flexible.
Personal disclaimers: I know Howard Rohm and have great respect for the quality of his thinking and his integrity. We served together on the ASP Task Force which developed the professional certification program, and we are two of the original five ASP Registered Education Providers (REPS). He is a great supporter and sponsor of ASP. I also know Robert Kaplan, attended his BSC Global Summits, and have taught the BSC. But when it comes to reviewing books, I put personal relationships aside and tell it like it is–the good, the bad, and the ugly.
First, a question: does the world really need more books about BSC? After all, a quick Amazon search revealed 2,775 books with “balanced scorecard” in their titles.
The answer is YES, but only if they advance the methodology by making it more practical and well integrated into a total strategic management system. This book does just that by introducing proven principles and actionable insights that overcome the obstacles some organizations have in applying BSC. All the pieces weave together nicely, and it’s obvious that a lot of deep thought based on client experience went into writing it.
I was surprised by the weight of this 350-page book. It’s heavy! That’s because it was printed in color on the high-grade paper found in coffee table art books, which is wonderful because it livens up the scores of diagrams, tables, flow charts, and other helpful illustrations.
The book is full of conceptual twists that even seasoned consultants will find provocative, such as doing a SWOT analysis on each of the environmental scanning factors in the PESTLE framework. (I realize how the sentence above makes absolutely no sense to someone not in our profession!)
The foundation of the balanced scorecard is the strategy map, which links objectives using causal logic at four hierarchical levels: organization capacity, business process, customer satisfaction, and financial results.
Causal logic is a fundamental but underappreciated principle that propels all strategies. In a sense, it is like gravity. You don't always notice and appreciate causality, but you sure experience the effects. Causal thinking is vital to creating strategic alignment within an organization.
My criticism of the BSC since it first came out has always been that the cause-and-effect linkages among the four scorecard categories are too loose and general. They are illustrative, rather than definitive. Sharpening the connections requires more rigorous application of causal logic.
The BSC approach, the Logic Model, and Logical Framework approach are the primary management systems that feature causal thinking as a foundational element, but all in different ways.
Management books can be inherently dry, but Rohm's team offers plenty of examples and case studies from multiple sectors which adds a warm human touch.
I heartily recommend this book to any manager, consultant, educator or difference-maker. It’s chock full of practical take-aways. The Balanced Scorecard Institute team has written a landmark book that is true to its subtitle promise because it does indeed simplify strategic planning and management with the balanced scorecard. Candidly, it’s the best BSC book I’ve ever read, and makes a strong contribution to the larger field of strategic management.
Watch out Kaplan and Norton, there’s a new big dog Rohming around in the balanced scorecard playground!
The original posting can be viewed here: http://www.strategyplus.org/newsletter.shtml
Terry Schmidt is founder of www.ManagementPro.com and dean of the www.StrategicPlanningAcademy.com
The Strategic Edge, Association for Strategic Planning Newsletter, November 2013
Reviewed by: Terry Schmidt of ManagementPro
The Balanced Scorecard (BSC) approach has been around since 1973 when Robert Kaplan and David Norton first brought it into the world. In the 40 years since, organizations of all types have applied the approach. Some got great results, others got confused.
Various thought leaders have recognized the value of the approach but also saw its limitations as a total performance management system. One of these was Howard Rohm, a former Booz Allen consultant with three decades of experience in and out of government, and lead author of THE INSTITUTE WAY: Simplify Strategic Planning & Management with the Balanced Scorecard.
Rohm understood the potential power of the BSC, but knew that making it actionable required a logical development process, not just the BSC framework. He later co-founded the Balanced Scorecard Institute and created such a development process - Nine Steps to Success - which I find to be simple, comprehensive and flexible.
Personal disclaimers: I know Howard Rohm and have great respect for the quality of his thinking and his integrity. We served together on the ASP Task Force which developed the professional certification program, and we are two of the original five ASP Registered Education Providers (REPS). He is a great supporter and sponsor of ASP. I also know Robert Kaplan, attended his BSC Global Summits, and have taught the BSC. But when it comes to reviewing books, I put personal relationships aside and tell it like it is–the good, the bad, and the ugly.
First, a question: does the world really need more books about BSC? After all, a quick Amazon search revealed 2,775 books with “balanced scorecard” in their titles.
The answer is YES, but only if they advance the methodology by making it more practical and well integrated into a total strategic management system. This book does just that by introducing proven principles and actionable insights that overcome the obstacles some organizations have in applying BSC. All the pieces weave together nicely, and it’s obvious that a lot of deep thought based on client experience went into writing it.
I was surprised by the weight of this 350-page book. It’s heavy! That’s because it was printed in color on the high-grade paper found in coffee table art books, which is wonderful because it livens up the scores of diagrams, tables, flow charts, and other helpful illustrations.
The book is full of conceptual twists that even seasoned consultants will find provocative, such as doing a SWOT analysis on each of the environmental scanning factors in the PESTLE framework. (I realize how the sentence above makes absolutely no sense to someone not in our profession!)
The foundation of the balanced scorecard is the strategy map, which links objectives using causal logic at four hierarchical levels: organization capacity, business process, customer satisfaction, and financial results.
Causal logic is a fundamental but underappreciated principle that propels all strategies. In a sense, it is like gravity. You don't always notice and appreciate causality, but you sure experience the effects. Causal thinking is vital to creating strategic alignment within an organization.
My criticism of the BSC since it first came out has always been that the cause-and-effect linkages among the four scorecard categories are too loose and general. They are illustrative, rather than definitive. Sharpening the connections requires more rigorous application of causal logic.
The BSC approach, the Logic Model, and Logical Framework approach are the primary management systems that feature causal thinking as a foundational element, but all in different ways.
Management books can be inherently dry, but Rohm's team offers plenty of examples and case studies from multiple sectors which adds a warm human touch.
I heartily recommend this book to any manager, consultant, educator or difference-maker. It’s chock full of practical take-aways. The Balanced Scorecard Institute team has written a landmark book that is true to its subtitle promise because it does indeed simplify strategic planning and management with the balanced scorecard. Candidly, it’s the best BSC book I’ve ever read, and makes a strong contribution to the larger field of strategic management.
Watch out Kaplan and Norton, there’s a new big dog Rohming around in the balanced scorecard playground!
The original posting can be viewed here: http://www.strategyplus.org/newsletter.shtml
Terry Schmidt is founder of www.ManagementPro.com and dean of the www.StrategicPlanningAcademy.com
September 13, 2013
Business 2 Community
Reviewed by: Clive Keyte of Intrafocus
This month saw the publication of the much anticipated book ‘The Institute Way’. The book promises to ‘Simplify Strategic Planning and Management with the Balanced Scorecard’. It certainly lives up to its promise. It is no secret that Intrafocus is a big fan of the Balanced Scorecard, indeed our premium product, QuickScore, was produced with the Balanced Scorecard in mind. We are therefore very pleased to see a publication on this subject that is both accessible (a good easy read) and informative (full of real-life examples).
It is interesting to note that the authors acknowledge in the first chapter, entitled ‘It’s Complicated’ that this whole subject is sometimes considered so complicated it is occasionally avoided altogether. However, the book goes on to say that in reality, the subject is not complicated all. It is not easy, and no strategic planning activity is, but it is not complicated (provided you have a strategic planning process in place).
If you are familiar with the work of the Balanced Scorecard Institute then the book will provide a much needed reference source to the Institute’s methodology, the Nine Steps to Success. The methodology, created by the Institute co-founder and CEO, Howard Rohm, provides a structured framework of activities to help medium to large organisations and companies through the process of creating, implementing and managing a strategic plan.
We asked Howard Rohm about the book, he said:
“The Balanced Scorecard, when created as an integrated strategic planning and management system, is a powerful framework for helping any organization move to higher performance. The strategic thinking process that is used to build and sustain the system, and the employees who are empowered to own the system, create a unique culture of change to transform and align an organization of any size and operating in any sector to be more competitive and to execute strategy more efficiently and effectively. It is a very powerful change management tool.”
If you have not come across the Balanced Scorecard Institute or have only a superficial understanding of the Balanced Scorecard approach then don’t worry. The Institute Way provides an excellent introduction in its initial chapter and follows up with detailed instructions that are clearly born out of many, many years of practice and involvement in hundreds of live situations. The book is sprinkled with anecdotes that bring the subject alive.
The Balanced Scorecard Institute has had a long history working with the George Washington University. Indeed, their courses are under-pinned by certification from the University itself. Jim Robinson, Director, George Washington University Centre for Excellence in Public Leadership wrote the forward for the book, in it he states:
“The Institute way is far more than another “how to” manual. The reader must be prepared to go on a journey of discovery which will provide them surprising insights about organisations, about our heart-brain connections, and, most importantly, about ourselves”.
We thoroughly recommend this book as a good read that will almost certainly end up as a well-thumbed reference.
The original posting can be viewed here: http://www.business2community.com/books/institute-way-book-review-0615182
Clive Keyte has worked in the IT and Communications industry for over 25 years, he now runs his own company, Intrafocus, specialising in corporate performance management software and consultancy.
Business 2 Community
Reviewed by: Clive Keyte of Intrafocus
This month saw the publication of the much anticipated book ‘The Institute Way’. The book promises to ‘Simplify Strategic Planning and Management with the Balanced Scorecard’. It certainly lives up to its promise. It is no secret that Intrafocus is a big fan of the Balanced Scorecard, indeed our premium product, QuickScore, was produced with the Balanced Scorecard in mind. We are therefore very pleased to see a publication on this subject that is both accessible (a good easy read) and informative (full of real-life examples).
It is interesting to note that the authors acknowledge in the first chapter, entitled ‘It’s Complicated’ that this whole subject is sometimes considered so complicated it is occasionally avoided altogether. However, the book goes on to say that in reality, the subject is not complicated all. It is not easy, and no strategic planning activity is, but it is not complicated (provided you have a strategic planning process in place).
If you are familiar with the work of the Balanced Scorecard Institute then the book will provide a much needed reference source to the Institute’s methodology, the Nine Steps to Success. The methodology, created by the Institute co-founder and CEO, Howard Rohm, provides a structured framework of activities to help medium to large organisations and companies through the process of creating, implementing and managing a strategic plan.
We asked Howard Rohm about the book, he said:
“The Balanced Scorecard, when created as an integrated strategic planning and management system, is a powerful framework for helping any organization move to higher performance. The strategic thinking process that is used to build and sustain the system, and the employees who are empowered to own the system, create a unique culture of change to transform and align an organization of any size and operating in any sector to be more competitive and to execute strategy more efficiently and effectively. It is a very powerful change management tool.”
If you have not come across the Balanced Scorecard Institute or have only a superficial understanding of the Balanced Scorecard approach then don’t worry. The Institute Way provides an excellent introduction in its initial chapter and follows up with detailed instructions that are clearly born out of many, many years of practice and involvement in hundreds of live situations. The book is sprinkled with anecdotes that bring the subject alive.
The Balanced Scorecard Institute has had a long history working with the George Washington University. Indeed, their courses are under-pinned by certification from the University itself. Jim Robinson, Director, George Washington University Centre for Excellence in Public Leadership wrote the forward for the book, in it he states:
“The Institute way is far more than another “how to” manual. The reader must be prepared to go on a journey of discovery which will provide them surprising insights about organisations, about our heart-brain connections, and, most importantly, about ourselves”.
We thoroughly recommend this book as a good read that will almost certainly end up as a well-thumbed reference.
The original posting can be viewed here: http://www.business2community.com/books/institute-way-book-review-0615182
Clive Keyte has worked in the IT and Communications industry for over 25 years, he now runs his own company, Intrafocus, specialising in corporate performance management software and consultancy.
