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09/13/2011

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Sandy Richardson

Hi Jelena: I will start off by saying that I tend towards the "form follows function" approach (i.e. strategy first). That being said, when I start off working with a client, we begin by defining the structure of their strategy map/BSC hierarchy based on the way they see their business flowing. That is, unless they are a private sector organization,how do they want to place their strategy map/BSC perspectives in relation to each other? So in some ways, the "structure" of their business does inform the structure of their strategy map and BSC.

To me, organizational alignment has less to do with the BSC and everything to do with the strategy map. This is because I see the strategy map as the business strategy that informs the BSC indicators. Once a company's customer value proposition and strategy/strategy map have been defined and the supporting business processes and projects have been identified, then I think that a company is in a better position to ask the question - "How do we need to be structured to best deliver our value proposition and execute this strategy?" Aligning the organizational structure at this point is just as important as aligning resources, tools, and budget dollars.

So I guess that I am saying that the strategy/strategy map should drive the organizational structure. If the strategy map is created in the correct way (i.e. it is the value chain for as long as the CVP and mission stand) then the aligned structure should hold up for as long as they remain consistent. However, things have to stay fluid and dynamic as we learn about how our strategy works and as things change. This means that organizations must stay open to modifying their structure if required.

I hope that this helps - just let me know if you have more questions on this or another topic! Regards, Sandy

Jelena

I would like to know significance of Balanced Scorecard in designing organization which supports strategy? Is it like Chandler said "Structure follows strategy" and how we can design organization according to BSC?

Sandy Richardson

Hi Jelena: thanks for your question though it is a big one! Can you be a little more specific about what you are looking for/hoping to learn?

For example, do you want to know about the type of resources that should be put in place to implement and support a balanced scorecard? Or do you want to know about the accountability structures that you should implement to ensure that your strategy gets properly executed and managed using BSC results? Other? If there is a particular issue you are facing, it might be easier to give you some practical ideas to address your specific problem.

I'll look forward to hearing back from you and will provide you with a focused answer to your question then.

Regards, Sandy

Jelena

I would like to know how organizational structure can help in implementing Balanced Scorecard?

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