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The key to executing strategies rests with the ability to drive strategically aligned improvement actions.
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  Building a Top-Level Balanced Scorecard
To start building a Top-Level Balanced Scorecard, first copy the perspectives and objectives from your strategy map:
  • Perspectives -- groupings that represent your organization’s highest level areas of focus, or "stakeholders"
  • Objectives -- the 8-10 most important organizational goals (in short, verb-noun format) from this year’s strategic plan, grouped by Perspectives
The next step is to identify measures that will best determine if you are on track to achieve each objective:
  • Measures -- also called KPIs (Key Performance Indicators) or metrics. Align 1-3 measures as indicators of achievement to each Scorecard Objective.
Many organizations struggle with how to focus the number of measures on their scorecards to just 1-3 per objective. Remember:
  • These should be strategic measures
  • Day-to-day tactical or line-level quality measures can and should be moved to lower level, cascaded scorecards
The final step is to identify initiatives that will address critical areas of underperformance:
  • Initiatives - Time-specific projects (with identified start- and end-dates) that should be aligned to critical underperforming measures or objectives.
Some Tips for Success:
  • Start with your strategy
  • Keep objectives to the critical few (8-10 per Scorecard)
  • Define realistic measurements and limit to 1-3 per objective
  • Cascade Scorecards and deploy them through your organization

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