What The Heck is a... Balanced Scorecard?

Voted one of the most influential business ideas ever presented in the Harvard Business Review the Balanced Scorecard enjoys global popularity. There are some management tools that seem to have enduring appeal and the Balanced Scorecard, or BSC for short, is one of those. Over the past 20 years it has seen adoption rates soar. At the same time I have to say that as a tool the BSC is still widely misunderstood and misused by managers.

I have developed over 1,000 scorecards for clients from across the globe including many blue chip companies, government organisations as well as small and medium size corporations. Based on that experience I believe that the BSC is one of the most powerful management tools ever invented. However, I also think that the majority of scorecards in use today are not only useless but often dangerously counter-productive. So let’s once and for all look at what a good BSC is and the key pitfalls to avoid.

A BSC is a strategy execution tool that, at the most basic level, helps companies to:

1. Clarify strategy - articulate and communicate their business priorities and objectives
2. Monitor progress - measure to what extent the priorities and strategic objectives are being delivered
3. Define and manage action plans – ensure activities and initiatives are in place to deliver the priorities and strategic objectives.

I often use a shipping analogy to explain the importance. Just think of an old fashioned Viking ship that has rowing crews along each side. The first thing we need for a successful voyage is a plan. The captain and crew would map out the sailing route detailing how they will sail from their departure port to their destination, outlining the key milestones along the journey. The second thing they need are navigation instruments that help them understand where they are on their journey. These are especially important once the ship has left the harbour and is sailing in the open ocean. Without reliable navigation they would be completely lost. Finally they need to ensure the rowing crew takes the appropriate actions to move the boat forward in a coordinated manner and adjust course when needed.

Exactly the same applies to companies. They need a map of where they want to go and how they intent to get there. They need performance indicators to understand how well they are doing against their plan. And finally they need to manage the initiatives, projects and action plans that will help them achieve their plan. The BSC has been designed by Robert Kaplan and David Norton to do exactly that and contains the following three distinctive components:

1. The first and most important component of a BSC is a so-called ‘Strategy Map’ that visually maps the key strategic objectives of a company on a single page (a bit like the sailing route in my shipping example). A Strategy Map shows the overall destination as well as they key objectives and priorities a company must deliver along the way. The strategic objectives are usually mapped along four perspectives, which support each other (see below):

• Financial Perspective – outlining the financial objectives
• Customer Perspective – outlining the objectives related to customers and the market
• Internal Process Perspective – outlining the internal business process objectives
• Learning and Growth Perspective – outlining the objectives related to employees, culture and information system

Mapping out how the objectives in each perspective support each other is one of the big benefits of a Strategy Map. Instead of listing strategic objectives in a seemingly unrelated manner, the Strategy Map depicts how each objective supports others and how they all help to reach the ultimate destination.

2. The second component of a BSC are Key Performance Indicators that allow companies to measure and monitor progress against their most important strategic objectives (outlined in their Strategy Map). Key Performance Indicators, or KPIs for short, are the vital navigation instruments for managers. Each KPI needs to be defined well and include targets or benchmarks.

3. The third component of a BSC is an Action Plan that ensures the right projects, programmes or initiatives are in place to deliver each of the strategic objectives on the Strategy Map.

If all three of these components (Strategy Map, KPIs and Action Plan) are in place then a BSC can transform an organisation. For me it is the No 1 strategy execution tool because it allows organisation to depict and communicate their strategic plan in a very simple and graphical way as well as monitor and manage the delivery of the plan.

So why are so many of the scorecards in use today not as effective as they could be? The reasons for this are that companies take short cuts or forget vital components when developing their own BSC. Here are some of the key pitfalls I see in practice:

1. Not having buy-in and understanding of the tool across the company before you implement it.
2. Starting the BSC development with metrics and KPIs instead of the strategy. Measures cannot be relevant if they are not firmly based on the strategic objectives. The Strategy Map is the first and most important component of any BSC, KPIs follow once the strategy is clear.
3. Using the generic strategy map as a template you simply populate or copying a strategy map from another company. A strategy map has to be a unique representation of your company’s strategic objectives at this point in time. It has to be developed with close senior executive engagement and represent the distinctive challenges of your company.
4. Not revising and refreshing the Strategy Map, KPIs or Action Plans. We all know that your company’s priorities shift over time and therefore the Strategy Map, KPIs and Action Plans have to reflect that.
5. Only using oversimplified KPIs to track progress. It is important that the KPIs help to track your strategic objectives but instead of developing the most relevant KPIs companies often chose the ones that are most easy to measure or the ones everyone else seems to be tracking. More effort has to go into developing truly relevant and meaningful KPIs.
6. Not having an Action Plan linked to the BSC. A strategy without a plan to deliver it will always remain a trip to fairly land!

As always, I am interested to hear from you and your experiences and thoughts. Do you work in a company that uses a scorecard well or are you among the many that experience the effects of sub-optimal scorecards? Is there anything you would add? Any stories to share?Please do so.

Source: Bernard Marr

The 75 KPIs Every Manager Needs To Know

Key Performance Indicators (KPIs) should be the vital navigation instruments used by managers and leaders to understand whether they are on course to success or not. The right set of KPIs will shine light on performance and highlight areas that need attention. Without the right KPIs managers are flying blind, a bit like a pilot without instruments.

The problem is that most companies collect and report a vast amount of everything that is easy to measure and as a consequence their managers end up drowning in data while thirsting for insights.

Effective managers understand the key performance dimensions of their business by distilling them down into the critical KPIs. This is a bit like a doctor who takes measures such as heart rate, cholesterol levels, blood pressure and blood tests to check the health of their patients.

In order to identify the right KPIs for any business it is important to be clear about the objectives and strategic directions. Remember, navigation instruments are only useful if we know where we want to go. Therefore, first define the strategy and then closely link our KPIs to the objectives.

I believe KPIs have to be developed uniquely to fit the information needs of a company. However, what I have leant over many years of helping companies and government organizations with their performance management and business intelligence is that there are some important (and innovative) KPIs everyone should know about. They will give you a solid base of knowledge. However, there will be other, more specialized measures designed for your specific strategy or industry context. Take for example the network performance KPIs for a telecom operator or the quality indicators for healthcare providers. These will have to be included in your list of KPIs but will not be found in the list below, at least not in their industry-specific format.

The list of 75 KPIs includes the metrics I consider the most important and informative and they make a good starting point for the development of a performance management system. Before we look at the list I would like to express an important warning: Don’t just pick all 75 – You don't need or indeed should have all 75 KPIs. Instead, by understanding these 75 KPIs you will be able to pick the vital few meaningful indicators that are relevant for your business. Finally, the KPIs should then be used (and owned) by everyone in the business to inform decision-making (and not as mindless reporting references or as 'carrot & stick tools').

To measure financial performance:

1. Net Profit

2. Net Profit Margin

3. Gross Profit Margin

4. Operating Profit Margin

5. EBITDA

6. Revenue Growth Rate

7. Total Shareholder Return (TSR)

8. Economic Value Added (EVA)

9. Return on Investment (ROI)

10. Return on Capital Employed (ROCE)

11. Return on Assets (ROA)

12. Return on Equity (ROE)

13. Debt-to-Equity (D/E) Ratio

14. Cash Conversion Cycle (CCC)

15. Working Capital Ratio

16. Operating Expense Ratio (OER)

17. CAPEX to Sales Ratio

18. Price Earnings Ratio (P/E Ratio)

To understand your customers:

19. Net Promoter Score (NPS)

20. Customer Retention Rate

21. Customer Satisfaction Index

22. Customer Profitability Score

23. Customer Lifetime Value

24. Customer Turnover Rate

25. Customer Engagement

26. Customer Complaints

To gauge your market and marketing efforts:

27. Market Growth Rate

28. Market Share

29. Brand Equity

30. Cost per Lead

31. Conversion Rate

32. Search Engine Rankings (by keyword) and click-through rate

33. Page Views and Bounce Rate

34. Customer Online Engagement Level

35. Online Share of Voice (OSOV)

36. Social Networking Footprint

37. Klout Score

To measure your operational performance:

38. Six Sigma Level

39. Capacity Utilisation Rate (CUR)

40. Process Waste Level

41. Order Fulfilment Cycle Time

42. Delivery In Full, On Time (DIFOT) Rate

43. Inventory Shrinkage Rate (ISR)

44. Project Schedule Variance (PSV)

45. Project Cost Variance (PCV)

46. Earned Value (EV) Metric

47. Innovation Pipeline Strength (IPS)

48. Return on Innovation Investment (ROI2)

49. Time to Market

50. First Pass Yield (FPY)

51. Rework Level

52. Quality Index

53. Overall Equipment Effectiveness (OEE)

54. Process or Machine Downtime Level

55. First Contact Resolution (FCR)

To understand your employees and their performance:

56. Human Capital Value Added (HCVA)

57. Revenue Per Employee

58. Employee Satisfaction Index

59. Employee Engagement Level

60. Staff Advocacy Score

61. Employee Churn Rate

62. Average Employee Tenure

63. Absenteeism Bradford Factor

64. 360-Degree Feedback Score

65. Salary Competitiveness Ratio (SCR)

66. Time to Hire

67. Training Return on Investment

To measure your environmental and social sustainability performance:

68. Carbon Footprint

69. Water Footprint

70. Energy Consumption

71. Saving Levels Due to Conservation and Improvement Efforts

72. Supply Chain Miles

73. Waste Reduction Rate

74. Waste Recycling Rate

75. Product Recycling Rate

What do you think? Do you find this list useful? Are there others you would add? Or do you have wider comments on KPIs and how they are used?

Source: Bernard Marr

Stop Using These 30 Phrases At Work!

I reckon every office or workplace has one of those people that are just full of jargon-ridden management drivel. Does this kind of 'management speak' remind you of someone at your work place: "Before going forward we have to touch base and reach out to our key stakeholders so that we can drill down into the key issues that are not yet on our radar and catch the low-hanging fruits..."

Are you surrounded by people who annoyingly can't get enough of the management gobbledygook and who utter one jargon buzzword after another? Are your meetings buzzing with so much management lingo that you find it hard to get to the real meaning of what is being said? The problem I have with these phrases is that they sound so pretentious and often are counter-productive because they irritate people so much and deflect from the real meaning.

Below are my top 30 most irritating and overused phrases we hear at work. I am sure you have others that you can add to this list. Let's make it the most comprehensive list of unnecessary management drivel ever - Please add your ones using the comment field!

For me, these are my top 30 most irritating jargon phrases used at work:

1. Going forward
2. Drill-down
3. End of play
4. Touch base
5. It's on my radar
6. No brainer
7. Best of breed
8. Low hanging fruit
9. Reach out
10. Dive deeper
11. Think outside the box
12. Positive momentum
13. On my plate
14. At the end of the day
15. Run the numbers
16. Touch points
17. Keep your eye on the ball
18. Back to the drawing board
19. Get the ball rolling
20. Bang for your buck
21. Close the deal
22. When the rubber hits the road
23. Shift paradigm
24. Move the needle
25. Game-changing
26. Move the goal post
27. Value added
28. Win-win
29. Across the piece
30. All hands on deck

What do you think? Do you agree? Are these the most irritating phrases? Please let me know which ones you would add to this list!

Source: Bernard Marr

Want A Promotion? Then Don’t UpSpeak!

Source: Bernard Marr

Up-speaking is increasingly common. However, a recent survey reveals that it can be very bad for your career!

Upspeak, Uptalk or HRT (High Rising Terminal) describes a speech pattern where someone ends his or her sentences with a higher pitch (or upward inflection) similar to the way we would do when we ask a question. The problem with this is that it turns any statement into a pseudo question, which in turn makes a person sound less sure, tentative and weak.

The effect of uptalk is almost as if we are questioning our own statements and therefore subconsciously tells our listeners that we either are not sure of ourselves or what we are saying, we feel inferior to them, or we are somehow seeking their approval.

A recent survey by the Pearson reveals that bosses find uptalk not only annoying, but the majority believe uptalk hinders the prospects of promotion as well as better pay grades in their organization. Here are some revealing stats from the survey (based on the responses of 700 male and female bosses):

• 85% believe uptalk is a clear indicator of a person’s insecurity and emotional weakness
• 70% find uptalk a particularly annoying trait
• 57% confirmed that uptalk has the potential to damage a person’s professional credibility
• 44% stated that they would mark down applicants with uptalk by as much as a third

The numbers speak for themselves: Upspeak has no place at work. If you would like a thriving career, then simply don't do it!

At the same time, uptalk is one annoying habit that is spreading like a virus across the globe. Initially, uptalk seemed the language style of choice among many American teenagers (in that context sometimes referred to as Valley Girl Speak), but the uptalk epidemic is spreading fast. Now, we hear it among men and women of all ages and we find it across the U.S., Canada, Britain, and many other parts of the world. Oh, and Australia and New Zealand, but they are excused because uptalk (or in their case Australian Question Intonation) is simply the way everyone speaks – and because everyone does it, nobody is disadvantaged by doing so.

If you are still unsure what uptalk, upspeak, HRT, AQI - or whatever you want to call it - is, then the videos below should make this clear.

As always, I am interested in your views. Do you also find uptalk really annoying? Do you think it should be avoided at work, especially if someone wants to sound credible and is interested in career progress? Or do you feel we should simply embrace it at work, especially as it is similar to the Aussie accent, which many see as mild-mannered and consensus-seeking? What do you think?

How KPIs Drive Success… As Well As Make You Slim, Fit And Have Shiny Teeth

Source: Bernard Marr 

People often ask me whether KPIs really help us improve. Can metrics make a tangible difference in our businesses or are they simply driving the wrong behaviours? My answer is: It depends on how they are used. If KPIs (or Key Performance Indicators) are simply numeric targets that people are expected to deliver at any cost, then they are toxic poison to any company. However, if they are used and owned by people to monitor and improve what they do, then they are powerful enablers.

Let me paint you three scenarios that I hope will convince you that KPIs are indeed vital enablers of success. The little twist is that I haven’t taken these examples from any of the businesses I work with but from everyday life so we can all easily relate to them. The first is loosing weight, the second is getting fit, and the third is about brushing your teeth. Here we go…

How KPIs can help you lose weight

I know it’s not great to talk about losing weight in early February. Ever since the holiday season finished many will have tried to shift the extra pounds we put on but somehow we don’t manage to do it. I was in exactly that position (and as it is February – I am again), where I wanted to slim down a bit. I was trying to eat well and exercise more but wasn’t losing the weight I was hoping to lose. So when my friends were asking ‘How many calories to you eat a day?’ and ‘How many calories do you burn off?’ I couldn’t really answer that.

So I started to go about this a little more systematically. I set myself a body-mass target that I wanted to achieve within a given time period. This allowed me to figure out how many calories I could eat each day to achieve that. My efforts were aided by some great gadgets to track my progress: My UpBand and my iPhone. Together, they help me monitor how many calories I eat and how many calories I burn off. Suddenly I had a simple and fun way of regularly and effortlessly monitoring the amount of calories I was consuming and burning. Surprise, surprise: I was losing the weight I wanted. This is exactly why weight-loss programs like Weight-Watchers work: they set targets, then help you to measure performance and regularly review progress. So here we have it, KPIs do work when you want to lose weight.

How KPIs can help you get fit

I am sorry to talk about another one of those New Year resolutions in early Feb, but when it comes to getting fit KPIs are great, too. To keep fit I am trying to run regularly and I am keeping track on how many miles I have run, what my average running speed is and how many calories I have burnt (which comes in handy when used together with the loosing weight app).

Anyway, those of you who know me know that I am a gadget man, so no surprise here: I use another iPhone App. This one is called RunKeeper. Each time I run the phone tracks (and maps) where I have been, how many miles I have run, what my average speed was, how many calories I have burnt, etc. What’s more, whenever I switch the app on to go for my next run it asks whether I want to challenge myself (e.g. go a little further or a little quicker). The app even allows me to compete against others and publish my runs (live) on Facebook or Twitter, which would allow my friends to track my progress and even cheer me on (don’t worry for those who follow me on Twitter – I am not going to bore you with my runs). So, in summary, I am running more often and am able to push myself further because I am measuring and tracking my performance. This means, KPIs help us get fit.

How KPIs can make your teeth shinier

My final example is brushing your teeth. We all know that we should brush our teeth twice a day for at least two minutes. A few years ago my dentist introduced a dental scorecard on which he gives everyone a score out of 100 – basically the better you brush and take care of your teeth the better the score. My score wasn’t bad and I was brushing my teeth twice a day but couldn’t really tell you whether it was two minutes or not. My dentist recommended using an electric toothbrush because it cleans better. And as I love gadgets I had to have the one with the little wireless wall display telling me how long I have been brushing for. What is good about that tooth brush is that you get a little smiley face after two minutes and a smiley face with a wink after two and a half minutes or so. Now that I was measuring and timing my brushing performance I had many times when I thought 'okay – brushing finished' – only to check my timer to find out that I have a little longer to go – and generally I keep going to at least the winking smiley face! Since I got that toothbrush by score on my dentist’s scorecard has improved to an almost perfect score. So, KPIs also give you shinier teeth!

I hope that these are useful examples to show that KPIs do work if the are used correctly. There are so many more great examples of where KPIs and metrics make a real difference and I would love to hear form you if you have any stories to share. Of course, there are also many examples that show how the wrong use of KPIs drives dysfunctional behaviours. I’d love to hear your views and comments. Please share your thoughts…

Hair Beauty Secrets from Your Kitchen!

Healthy Hair ! Look in your kitchen for the BEST conditioners to moisturize and revitalize your hair!
Four different masks for each type of hair that you can easily make in minutes using all-natural ingredients you probably have sitting in your refrigerator or cupboard right now!...

DRY hair –Olive Oil and Egg
In need of some major TLC? Combine three tablespoons of extra virgin olive oil with two eggs and apply the mixture to your hair and let the mixture sit for 20 minutes before rinsing in the shower.
The olive oil will help hydrate brittle locks, while the protein in the eggs will promote healthy hair growth.

ALL HAIR TYPES — Avocado and Honey
Mask a ripened avocado and mix in a tablespoon of organic honey and allow it to sit for 20 minutes before rinsing it off in the shower.
Avocados are rich in a variety of vitamins and nutrients, including vitamin E and protein, both of which your hair needs to remain soft and healthy. Meanwhile, honey is a natural antibacterial agent.

OILY hair — Apple Cider Vinegar and Lemon
Combine 1/4 cup of apple cider vinegar with the grated peel of an entire lemon and allow it to set for 15 minutes to absorb the excess oil from your scalp, and then rinse in the shower.
Appling cider vinegar will remove build up from styling products and conditioners and strengthen the hair shaft, leaving you with soft, shiny strands. It will also balance hair’s pH level, kill bacteria, and is a cure for dandruff.

DRY, flaky scalp hair — Banana, Honey and Almond
Mash together 1/2  ripe banana and add two tablespoons of honey and a few drops of almond oil and allow it to set with a shower cap on for 20 minutes before rinsing.
Bananas can increase the moisture of your hair, smooth frizz and soothe your itchy scalp.

Note: Choose the one that fits you better and bring your hair back to life!! There is no need to buy the most expensive conditioners on the market to moisturize and revitalize your hair.Go mother nature baby!!!!!

Send in your comments.SAVE this,be sure to click SHARE so it will store on your personal page and share with your friends.

Source: Natural health US

www.gooddeedsmall.com 

Amazing -5 Best and Simple Tips for Glowing Skin:

Source: Natural Health US

1, Milk cream

Milk cream is helpful to remove darkness of skin. Do massage with milk cream for up to 10 minutes. Then after, rub with lemon and wash that area of the skin with cold water- to get oil free and glowing complexion. Lemon contains ascorbic acid, it naturally bleaches the skin and helps whiten it. As well, applying raw milk with lemon juice aids to tighten the open pores. For dry skin, take lemon juice, mixed with honey, gram flour and milk cream. Apply this daily on your face. For oily skin, use cucumber in place of milk cream and other ingredients remain same.

2, Lemon

Lemon is a superb bleaching agent, and it is very useful in ironing out the blemishes of the face. It can clean the skin, remove dead cells, whiteheads, blackheads, and helps dispose of pimples. Scrub a half of lemon on your face every day for 10 minutes to lighten your skin tone. It will lower your darkness and your color will glow. You can also include a pinch of turmeric in lemon juice as a beauty tip.

3, Lemon and sugar

Mixing lemon juice and a little sugar is one of the most common facial masks. Apply this homemade facial mask 2-3 times a week to get a clean and flawless skin. Massage with this mask on the face and neck and leave for 10 minutes, and then wash with cold water. Doing so will help to remove the darkness. If you want to moisturize the skin, then add some drops of olive oil in the sugar and lemon mix. You can also apply this blend on hands and feet to get rid of sun tan.

4, Buttermilk

Buttermilk contains lactic acid, which is found in various costly beauty products and is one of the good facial peels that doctors prefer for softening, dazzling and exfoliating skin. Due to its extremely acidic and astringent nature, it treats not only age spots, freckles but also tightens skin. Apply buttermilk on the affected areas using a cotton pad for about 15 minutes. Rinse off with lukewarm water to remove the buttermilk. This home remedy provides outstanding results in getting fair skin at home. Combine 1 spoon of buttermilk with 1 spoon of radish juice to lessen wrinkles, and roughness of skin. Mix 5 TBS buttermilk and 2 TBS tomato juice for treating sunburn. Grind dried orange peel and mix with buttermilk to reduce dark spots on your face.

5, Bread

Take unused bread and soak it into milk overnight. Let it stay in this condition for whole night and on the next morning you would see that the bread becomes very soft. Mash the same and gently scrub it on the black area and remove it. This mask can be applied to keep skin soft and glowing.

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www.gooddeedsmall.com