{"id":29046,"date":"2013-09-20T18:06:06","date_gmt":"2013-09-20T23:06:06","guid":{"rendered":"https:\/\/balancedscorecard.org\/staging\/?p=29046"},"modified":"2017-11-30T18:08:04","modified_gmt":"2017-12-01T00:08:04","slug":"balanced-scorecard-gone-bad-whats-that-funky-smell","status":"publish","type":"post","link":"https:\/\/balancedscorecard.org\/staging\/blog\/balanced-scorecard-gone-bad-whats-that-funky-smell\/","title":{"rendered":"Balanced Scorecard Gone Bad – What’s that Funky Smell?"},"content":{"rendered":"

[et_pb_section bb_built=”1″][et_pb_row][et_pb_column type=”4_4″][et_pb_text _builder_version=”3.0.89″ background_layout=”light”]<\/p>\n

I had a distressing phone conversation earlier this week.\u00a0 A former client called to say they were at a decision-point. They were trying to decide if they wanted to keep using their balanced scorecard system or not.\u00a0 He went on to say, \u201cto be quite honest, the scorecard really isn\u2019t driving the organization.\u00a0 It feels more like \u2018busy work\u2019…it leaves a bad taste in our mouths<\/strong>.\u201d\u00a0\"\"<\/p>\n

\u201cIn fact,\u201d he continued, \u201cour project management discipline is clearly what is strategically guiding the organization while the balanced scorecard feels like an anchor weighing us down.\u00a0\u00a0 It used to be what propelled us forward and kept everyone in alignment.\u00a0 Maybe if we cascade the scorecard, this will help?\u201d\u00a0 \u00a0I was perplexed.\u00a0 While I\u2019ve diagnosed the root cause and prescribed the solutions for a lot of \u201cbroken\u201d scorecard systems, this was the first time I\u2019d heard of project management being \u201cmore strategic\u201d than the strategic management system that drives it.<\/p>\n

The next day, I joined the client executive team on a web conference. \u00a0We walked through an overview of an integrated scorecard system \u2013 reviewing the 14 components of a fully integrated system.\u00a0 As we talked, some of the team members began remembering back to when they built the original scorecard and recalled how the underlying strategic elements were built \u2013 how they brought in board members and stakeholders to inform and set strategic direction.\u00a0 But most importantly, they began to remember when it was built.<\/strong><\/p>\n

This client is a healthcare organization and they built their original scorecard during the last presidential election cycle – at a time when there was political uncertainty.\u00a0 The environment was so uncertain that one of their strategic themes was \u201cReadiness for Public Policy Changes\u201d which meant that their resultant strategic scorecard was designed to prepare them for whichever way the political winds eventually blew.\u00a0 And that scorecard was appropriate for the times.<\/p>\n

But their environment has since changed…significantly!\u00a0 In the past year or so, the Affordable Care Act now drives all action and projects at this organization.\u00a0 This massive shift in their strategic environment happened to coincide with the implementation of a robust project management system in which the portfolio is aligned to the tenants of Triple Aim.\u00a0\u00a0 That\u2019s when the room went silent.<\/em><\/strong>\u00a0 As I strained to hear across the phone line, I began to hear murmurs as one after another team member came to the same diagnosis.\u00a0 Their environment had changed and they had shifted strategic directions without updating their strategy \/ strategic balanced scorecard. \u00a0Their strategic scorecard was outdated….expired!\u00a0 <\/em><\/strong>Their sense that their old scorecard was anchoring them in the past and was at odds with the new implied direction of the organization was absolutely correct.<\/p>\n

They had stumbled into<\/strong> the classic \u201cSet It and Forget It\u201d mistake<\/strong>.\u00a0 Their project management discipline (which is critical to strategy execution) appeared to be \u201cmore strategic\u201d because it was more aligned with their true strategy than was the rest of their strategic management system.\u00a0 Due to some key team member turnover, they had forgotten their entire system needs to go through a regular strategic evaluation cycle!\u00a0 Scorecards do not have indefinites shelf lives<\/strong>….they are dynamic systems designed to allow an organization to shift directions, as needed.\u00a0 The team is now in the process of updating their entire strategic management system to reflect their current reality. And as part of this update process, they will ensure that their current strategic direction is chosen, not implied<\/em><\/strong>.\u00a0\u00a0 Only then can they be sure that their current portfolio of projects is truly aligned for maximum strategic impact.<\/p>\n

Does your scorecard have a funky smell?<\/strong>\u00a0 For more examples of Scorecard Challenges and Solutions, we invite you to read \u201cThe Institute Way: Simply Strategic Planning & Management with the Balanced Scorecard<\/a>.\u201d<\/p>\n

We also invite you to join the conversation at our Linked In group: www.theInstitutePress.com\/group<\/a><\/p>\n

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\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div> I had a distressing phone conversation earlier this week.\u00a0 A former client called to say they were at a decision-point. They were trying to decide if they wanted to keep using their balanced scorecard system or not.\u00a0 He went on to say, \u201cto be quite honest, the scorecard really isn\u2019t driving the organization.\u00a0 It […]<\/p>\n","protected":false},"author":5,"featured_media":29047,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[1],"tags":[22,25,26,23,15,24],"class_list":["post-29046","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-balanced-scorecard","tag-strategic-planning","tag-strategic-thinking","tag-strategy","tag-strategy-execution","tag-strategy-formulation"],"yoast_head":"\nBalanced Scorecard Gone Bad - What's that Funky Smell? - Balanced Scorecard Institute<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/balancedscorecard.org\/staging\/blog\/balanced-scorecard-gone-bad-whats-that-funky-smell\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Balanced Scorecard Gone Bad - What's that Funky Smell?\" \/>\n<meta property=\"og:description\" content=\"I had a distressing phone conversation earlier this week.\u00a0 A former client called to say they were at a decision-point. 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