Q&A with Robert S. Kaplan. Companies often manage strategy in fits and starts. Though executives may formulate an excellent strategy, it easily fades from memory as the organization tackles day-to-day operations issues, doing what HBS professor Robert S. Kaplan calls 'fighting fires.' A new book by Kaplan and David P. Norton aims to make strategy a continual process. The Execution Premium: Linking Strategy to Operations for Competitive Advantage shows managers how to weave organizational principles into a more effective management system that respects the differences between strategy and operations yet integrates them in a powerful way. Kaplan and Norton introduced the Balanced Scorecard, a performance measurement system, in 1992.
Introduced by Harvard Business School professor Robert Kaplan and colleague David Norton, the Balanced Scorecard has been used by thousands of organizations to align business activities with the strategy. In this Sharpening Your Skills series of articles, by Norton and Kaplan answer questions such as: How does the Balanced Scorecard (BSC) improve corporate governance? Does customer profitability increase using the BSC? Can BSC measures reduce the gap between strategy and execution? Does the BSC work in testing strategy?
In a world of stiffening competition, business strategy is more crucial than ever. Yet most organizations struggle in this area--not with formulating strategy but with executing it, or putting their strategy into action. Owing to execution failures, companies realize just a fraction of the financial performance promised in their strategic plans. It doesn't have to be that way, maintain Robert Kaplan and David Norton in The Execution Premium. Building on their breakthrough works on strategy-focused organizations, the authors describe a multistage system that enables you to gain measurable benefits from your carefully formulated business strategy. This book shows you how to: Develop an effective strategy--with tools such as SWOT analysis, vision formulation, and strategic change agendas; Plan execution of the strategy--through portfolios of strategic initiatives linked to strategy maps and Balanced Scorecards; Put your strategy into action--by integrating operational tools such as process dashboards, rolling forecasts, and activity-based costing; Test and update your strategy--using carefully designed management meetings to review operational and strategic data. Drawing on extensive research and detailed case studies from a broad array of industries, The Execution Premium presents a systematic and proven framework for achieving the financial results promised by your strategy.
The Balanced Scorecard is the leading methodology for implementing performance management systems and improving efficiency. Focusing directly on the public and not-for-profit sectors, this book helps these organizations overcome the unique challenges they face when implementing a Balanced Scorecard.
Fast track route to understanding and implementing the balanced scorecard in your business. Covers the key aspects of the balanced scorecard, from basing the balanced scorecard on the company's strategy and relating it to existing control systems to setting goals and monitoring progress. Examples and lessons from some of the world's most successful businesses, including Ricoh, Xerox and Ericsson Enterprise and ideas from the smartest thinkers including Robert S. Kaplan and David P. Norton. Includes a glossary of key concepts and a comprehensive resources guide.