OCM, the Balanced Scorecard, and Fostering Collaboration

[Former Member]

Many organizations try to implement a management methodology, like the Balanced Scorecard, in order to improve performance and meet the shifting needs of the marketplace.

When developing a scorecard, the organization identifies what it believes are the key performance indicators that are driving the business. And while it is easy enough to formulate a plan with shared goals and teamwork, realizing and executing on that plan can be more challenging.

During every step of this process, from communicating the goals, to identifying KPIs, to executing on the strategy, requires attention to change management.

How does an organization move toward a unified set of objectives when that means getting collaboration between departments and functions that typically compete for attention, turf, and resources?

Do you have any examples of how Organizational Change Management was effectively used to better the cooperation and interaction between departments? Were there any good lessons learned?

Bob

[Former Member · Accepted solution]

Often overlooked in the process of change is the relationship of organizational structure to strategy. Too often organizations look for major transformations within the current structure. As a result, the competing interest are still aligned to the past because the structure and relationships do not change.

Bob Badzinski

OCM Consulting Principal

[Bob_McGlynn · Accepted solution]

Bob,

That's a very good point. While many people may be critical of the current structure, they nonetheless cling to it.

How do you keep the focus on the overall goals and objectives, minimizing the disruption that usually accompanies changes in organizational structure?

Bob

[vinay_hk · Accepted solution]

It's always "What's in it for me". The moment I realise the value I gain to my business, I shall give-in.

Its true that there's always this factor of value addition but still there are differences and disruption of goals. If my experience is anything that can be counted, it is due to the fact that we don't speak their language. A support organization expects benefits and values that they can realise in their daily business. As long as this gap is not bridged, the disparity remains.

[Former Member · Accepted solution]

Bob:

Sorry for the delay in responding to your question - lost my link to the site.

Keeping the focus on goals and objectives is a leadership issue which is independent of any structural change. Leaders need to do a number of things to keep the focus.

One - Connect the goals and objectives to the overall strategy

Two - Connect the goals and objectives to the individual's role and contribution

Three - Connect the right behaviors (what people do) to the goals and objectives

Four - Make sure your performance measurements actually measure what you want

Five - Recognize incremental improvements to the goals and objectives

Six - Make this how you manage - this is not a one time event.

Bob

[Former Member]

Expanding a little on Bob Badzinski's comments:

One - Connect the goals and objectives to the overall strategy
Two - Connect the goals and objectives to the individual's role and contribution
Three - Connect the right behaviors (what people do) to the goals and objectives
Four - Make sure your performance measurements actually measure what you want
Five - Recognize incremental improvements to the goals and objectives
Six - Make this how you manage - this is not a one time event.

I would add that if you have good KPIs, and they are truly measurable and realistic, the simplest way to drive acceptance is to create the right reports to measure the KPIs, then assign responsibility for those reports to the affected stakeholders.

This goes back to the old business axiom of "what gets measured gets done." If there are good reports, and if appropriate feedback mechanisms are in place to ensure they are reviewed and acted upon the change will come.

Bob, curious about your feedback, and if that is your original list, or a reformulated list, do you mind if I use it in a book I'm writing on realizing ROI from SAP?

Thanks,

Bill Wood - President

R3Now Consulting

http://www.r3now.com SAP thought leadership!

Platinum SAP Solutions

(704) 905 - 5175

http://www.linkedin.com/in/billwood

[Former Member]

Hi Bob,

We have used the "Portfolio" approach effectively to address the competing needs of various departmernts,functions.

A portfolio of the plans / initiatives under progress with the details in terms of money,Time etc is drawn and discussed in the workshop of the stake holders.The dependencies are also identified and discussed in detail.This is signed-off.

Based on the above it is easy to draw a heat map in terms of sensitivity and significance.This largely helps in bringing under control the competing departments etc.

If still the problem exists or in case of a tie,we can apply other constraints like money-cost of capital-,pay back period,skill set requirement, higher ROI relevant to a particular plan etc.

If we apply the yard stick logically in terms of the "value creation",the job of change management is half done.

In practice i have seen the delayed execution of the plans,the quality problems,the delayed collection of cash,bad relationship with the client really upset our plan.There should be a good governance in these areas.In a portfolio of "Resource constrained projects" the above will have a telling effect.

Lesson learned:

The Managers who fight for priority on logical reasoning in fact do good to the firm.They bring in the scenarios -often real time-and potray the effect.On the other hand the pliable Managers accept to every thing resulting in to missed oppurtunities, abnormal idleness in terms of idle time,idle resources,thus allow changes to happen at a very high price.In the process they inflict an irreversible damage.

Often the "good will" considerations prevail,meaning,even if the project is ranked last in the portfolio,if the customer is powerful or is potentially important from a future point of view,then these low ranked projects pierce thro' the filter at the cost of the "good ones" to the detriment of the organization.The significant side effect is,the performing departments get demoralized,frustrated with the poor allocation of the resources,delay etc.This sets a domino,which may threaten the very "business continuity".Resource buffering is essential to counter these.

In Change Management "For every Prize,there is a Price".This has to be examined from the value perspective.otherwise we are lost.

My 0.1%.

Reagrds.

Ramesh

Edited by: Ramesh Ramaswamy on Jul 28, 2008 1:49 PM