| #1 Ranking: Read how InetSoft was rated #1 for user adoption in G2's user survey-based index |
|
Read More |
Project Measures and Risk Adherence
When we get to projects, the initiatives, it’s a different set of measures. Folks, when we talk project
measures, we are talking risk adherence. We are talking schedule adherence, scope adherence, and deliverables.
It’s a different set of performance measures. So don’t get confused about strategic measures for a
strategy map and a performance management system and project measures to track initiatives. They are different
kinds of measures.
When we teach performance measures, and we have classes on that as well, we go through this kind of a logic
model framework to tie those measures to the strategic objectives but in a logical way. Take technology. The
process measure is procurement. Output is how many requisitions did I process? The intermediate outcome is how
many hours did I spend? How many fewer hours?
But what I am really interested in is did I increase work efficiency. So if you apply this kind of logical
thinking to your performance measures, you will get much richer measures. Another best practice, we think, is prioritizing initiatives. The problem that a lot of companies have is
they have 400 projects. They couldn’t say no. There is no disciplined way of them saying no. Now they
have a disciplined way. That was the big value of the balanced scorecard or one of the values. So this is what we do. We start out with the candidate initiatives, develop selection criteria and then
prioritize those using a waiting scheme. But we have seen that as a best practice.
How many of you are familiar with double-loop learning, right? This is where we start at the top here with
our assumptions, build our strategic themes down into our balanced scorecard that drives the budget
formulation process. From the budget formulation, the annual operating budget, we get our programs, projects,
services, whatever we are doing in our business, leading us to outcomes.
 |
Read how InetSoft saves money and resources with deployment flexibility. |
Back Up to the Balanced Scorecard
What do we actually accomplish? Then we can go back through the costing side of the equation and then back up
to the balanced scorecard and test our assumptions. So there is a link between the planning side of this and
the management side of this that planning drives management. Any other best practices? I think we only have a
couple of minutes left here.
Okay. Some challenges, we talked about sustainable engaged leadership. Folks, the history of strategic
planning works against us. Give it to the planning shop, and they will build it for us. Just get a few smart
people off in a corner someplace on a weekend at a nice resort, and they will write this sexy clever colored
document and share it with everybody. Boy, this is a big one. I was in the Pentagon talking to the head of Strategic Planning, and he was talking
about goals, goals, goals. I literally walked across the hall to one of the program offices, and this guy was
using objectives the same way the guy across the hall was using goals.
Folks, get the dictionary right on day 1. It doesn’t matter whether you use our definitions, or you use
the collaborative definitions. Agree on something so that they are the same. But the point is there are
different terms, different uses of the language in this stuff and so be real careful on how you use it. We try
not to use the word goal very often because so many people get goal and objective mixed up, and that's why we
use strategic result for example. It’s an easier term for us.
The marathon, make sure you are not just communicating with yourself and a few folks thinking it’s
only about measures and what you are currently doing, choosing software too early. This a crucial one, not
rewarding success and desired behaviors, managing change and not following through. That's the execution piece
of that, isn’t it? Moving on to obstacles, there is going to be resistance to change. The key is to communicate benefits
clearly. Put in the language of benefits rather than the language of the tool that you are using. Most of us
are scared of being measured.
Use the System to Improve
Make sure we use this system to improve, not to punish. You have heard many speakers talk to that. There is
always a fear of a new system so keep this one simple. There is a disbelief that any real improvement is going
to result, and we want to get some early successes to disprove that. Old timers are pretty good at gaming the system. They know where stuff is buried, and they know where to hide
stuff so make sure you get a process to measure the critical thing so it’s harder for them to game it.
Make the information useful and used.
Finally, a scorecard work is a separate activity from normal business operations. The organizations that have
been using the scorecards the longest, they don’t talk about working on a balanced scorecard then go
doing my real work, right. It’s integral to the process. It is the way we plan. It is the way we manage, end of discussion. You
don’t have to raise a flag and say balanced scorecard every time because it’s the way you do
business. Make sure you don’t set your measures independently of the framework.
Any other obstacles? Sustainability, keep your emphasis on the results you want and the strategy you are
going to use to get there. Think of the balanced scorecard as your strategic planning and management system,
not just a strategic management system. If you harness the discovery process of hearts and minds, you can really move a lot, and the balanced
scorecard can take on a much wider meaning than just narrowly focusing on the execution, on strategy
execution. You have got the best and the brightest. Take advantage of it, and go a little deeper. Make sure
leaders are walking the talk so they don’t disrupt this whole thing. You have seen that before.