Third Generation Balanced Scorecard:
The 3G BSC came about as a means to strengthen the Strategy Map concept.
This was a hands-on field-notes concept which is an indication that the entire Harvard University Balanced Scorecard concept has matured.
The Strategy Map & Balanced Scorecard Approach
has become entrenched in Commerce and Industry, as the world standard
framework for Strategic Planning.
A Stronger Strategy Map:
In complex or sensitive Change Management circumstances, it became essential to have a very strong Strategy Map.
This is because the foundation for all change management is a strong and well defined Strategic Direction.
The Objectives have to be defendable so that they are beyond question, then all issues can then be effectively managed in the Balanced Scorecard.
In every Strategy Map it makes sense to add simple descriptive statements to each Objective. This clearly defines the scope and definitions, so that everybody can understand and engage them better.
The statements look good to your stakeholders and raises their confidence level, plus general Strategic Thinking is enhanced.
Bigger Picture Strategic Objectives:
Strategy Maps are all about "Setting the Trend by looking at the bigger picture" - they do not get involved in the daily management.
The more you can define your intended Strategic Direction using overview or broader concepts, the better everybody will be able to engage it.
Our Implementation of 3G BSC:
The Strategy Map provides the capability for three Statements, each of up to 250 characters.
One statement will be applied to every Perspective and two statements will be applied to each Objective.
In the Options module, default statement names will be defined and the user can change the names as required.
The default Perspective Statement is "Purpose", whilst the Objective statement names are "Description" and "Destination".
In the Strategy Map module you will easily be able to define the statement text.
A Project Map is different:
If your Strategy Map was a "Project Map" or a "Mind Map" then you would have a more complex flowchart to include all relevant details.
So if you want to build a Project Map or Mind Map then that is ok, plus you can adapt these 3G BSC concepts as you consider appropriate.
The Intangible Asset Initiatives are Industry Specific:
No matter what book you read there is never any reference to the actual initiatives, yet this is the "Richness" of the Strategic Plan.
- What are they and what do they look like?
- Where are those Intangible Assets?
It is understandable why many people are confused by the process...
and now we have introduced an additional top-level concept.
Yet it is the lower levels that contain the employee Initiatives and Activities.
These are the Intangible Assets and they are exposed when an employee
or departmental manager prepares their Balanced Scorecard based on
a Balance dScorecard Template.
The best way to achieve this "exposure" is through the Budgeting Framework as everyone wants more money for their department.
Use the "Money Handle" and those Intangible Assets will magically appear. The staff and their managers are more than happy to reveal the depth of their (intangible) skills, especially if is linked to the quality of their work environment.
Fully engage the 3G BSC Strategy Map and all the facilities:
Strategy Map Input Quality => Scorecard Output Quality.
We strongly recommend that you engage and use absolutely all the facilities
that the Strategy Map has to offer, including the Balanced
Scorecard Template.
When the employees do you the honor of specifying their intangible richness, you must have done them the service of clearly and correctly defining the top level to the absolute best of your ability using the very maximum of your own intangible visionary skills.