Knowledge Management (KM)

a process of acquiring, generating,

accumulating and using knowledge for the
benefit of the organization to enable it to gain a
competitive edge for survival, growth in a
globalized competitive economy
 process of identifying, organizing, storing and

disseminating information within an

organization.
 Types of knowledge
tacit knowledge
typically acquired through experience, and it is intuitively
understood.
As a result, it is challenging to articulate and codify, making
it difficult to transfer this information to other individuals.
Examples of tacit knowledge can include language, facial
recognition, or leadership skills.
Explicit knowledge
captured within various document types such as manuals,
reports, and guides, allowing organizations to easily share
knowledge across teams.
most well-known and examples of it include knowledge
assets such as databases, white papers, and case studies.
Nature of Knowledge Management/componenets

KM depend on the effective utilization of

peoples

help design and then operate Processes

Processes define the roles of, and the knowledge
needed by People.

systems or technologies which is the third

component of this system, refers to all devices that

supports the practice and implementation of
knowledge management.
 Benefits of KM
Increase customer satisfaction Knowledge

Promote innovation and cultural change 

Speed up access to knowledge and information

Avoid redundant effort 

Accelerate customer delivery 

Stimulate growth and innovation 

 KNOWLEGDE MANAGEMENT PROCESSES
series of activities an organization put in place for the
facilitation and use of knowledg
Knowledge Acquisition and Generation
the tacit knowledge is converted to recorded form, in
documents or databases for reference by others
Knowledge can be generated through:
Research: systematic investigation is to generate
knowledge i,e Research institution
Shared problem solving: referred to as brainstorming.
This has to do with knowledgeable persons in a particulars
area coming together to share their view about a problem
in order to proffer solutions. Examples are; seminars,
conferences, workshop etc
 Knowledge capturing

Technology

Knowledge Mapping:where knowledge resides within an

organization. it requires the techniques of questionnaire,

interview and sometimes observations.
knowledge Organization

• The knowledge acquired generated or created needs to be

properly organized for easy access and retrieval which is

the essence of organization of knowledge

i,e cataloguing and classification

 Knowledge Storage
also called knowledge “repository” take documents with
knowledge embedded in them and store them so that they
can be easily retrieved in the future.
Knowledge Sharing
acquired information, knowledge, ideas, skills, and
experiences are exchanged and shared among people,
organizations and institutions.
Knowledge Application
Once knowledge is shared among people in the
organizations, the shared knowledge should be applied to
solve a problem.
 Knowledge Management Systems (KMS)
Any kind of ITS designed to help store, organize and ensure
easy retrieval of information is a knowledge management
system.

basic types of KMS

 Internal knowledge management systems

 Enterprise knowledge bases

gather and store all of a company’s knowledge and content

assets and make them easily shareable and accessible

digital workforces. Stonly
Document management systems

designed to help teams organize, manage, and distribute

content. i,e text documents, images, records, surveys, product
information, emails, web pages, etc.PrizmDoc Viewer
 Learning management systems

employees that want to become experts in specific areas

 SAP, Litmos and Paylocity

Team collaboration tools

a centralized information repository for information like plans,

processes, and policies. Notion and Confluence
External knowledge management systems
to share knowledge and improve the customer experience.
 Customer support knowledge bases or help center
tools
make it easy for customers to access on boarding materials,
product breakthroughs, FAQs, etc
able customers to self-serve and choose their learning path
Stonly no-code software documentation tool
searchable, interactive guides deliver in-context help
 Knowledge Management Strategies
depend on how our company currently functions as
Organizational structure, politics, management style, and
existing processes
Storing knowledge vs. sharing knowledge: accumulating,
codifying, and maintaining knowledge in a reliable storage
system and a system to disperse that stored knowledge
Codification vs. personalization: collecting knowledge and
creating awareness of these collection systems.
is connecting people to this codified knowledge by forming
learning communities, and facilitating group interaction.
Push vs. pull:  individuals actively encode their knowledge to
make it available for others. and team members seek out
experts to request knowledge sharing, so you only transfer
knowledge on an as-needed basis.
SECI model
Socialization: Tacit to tacit, where knowledge is transferred
intuitively through observation, guidance, and practice.
Externalization: Tacit to explicit, which codifies intuitive,
intangible knowledge in order to be taught.
Combination: Explicit to explicit, where codified
knowledge with other codified
Internalization: Explicit to tacit, where an organization
follows and practices codified knowledge so that it becomes
intuitive.
 Barriers to Knowledge management

a barrier to the successful implementation of knowledge

management to include:
Lack of performance indicators and measurable benefits

Inadequate management support

Improper planning, design, coordination, and evaluation

Inadequate skill of knowledge managers and workers

Problems with organizational culture

Trends of Knowledge Management
Improving Information Discovery With Knowledge Mining

And AI

Knowledge mining is an emerging AI-driven concept which

includes using a combination of intelligent services to easily
explore this data,uncover hidden insights and find relationships
at scale

AI technologies like machine learning and Natural Language

Processing (NLP) can be used to automate manual tasks
 Faster Access To Knowledge With Knowledge Bots
A knowledge bot can be designed to provide information
related to any topic relevant to knowledge workers
 Personalized Search Experiences
cognitive enterprise search is an important tool for
modern knowledge management systems and key to
deliver personalized search experiences.
 Seamless Collaboration
Flexible and diverse tools that enable hassle-free
collaboration will be an indispensable part of all intranet
packages
 Rise Of Mobile Technology
better compatibility of intranet and knowledge
management tools with the mobile interface.
 All Tools On A Single Platform
intranet software can bring all the workplace apps and the
knowledge management system together under an integrated
digital workplace suite
 Cloud-Based Platform
framework for an operating system without a physical server
 Conclusion and Recommendations

we have seen overviews on KM is basically made up of three

components of processes, people and systems, various
processes necessary to achieve the goal of knowledge
management as well as the systems or technologies required
to support these processes and strategies In view of which
the following recommendations are made:
Organizations should encourage the creation of knowledge

by supporting research activities, encouraging

collaborations and team work.
Organizations should set up reward systems through which

members will be motivated to acquire as well as share

knowledge for common good.
Organizations should create knowledge repositories that are

accessible with user friendly interface.

Organizations should ensure that generated knowledge is

applied in solving real-time problems and ensuring innovations.

Organizations should endeavor to acquire tools and

technologies necessary to support people and processes

involved in knowledge management.
 BSC Program Preparation
 Organize the program
 Choose team participants
 Develop program schedule
Scorecard Development Team Structure Builds Employee Buy-in
 Strategic Management Team
members: leaders and managers.
 Communication team
members: leaders and managers responsible for communication.
 Strategic Theme Teams
members: process owners, program/project experts, subject matter
experts.
 Objective owner teams
members: small team of experts who understand what is needed to
accomplish an objective.
Scorecard Team Roles and
Responsibilities
Senior Management Team
 Provide overall leadership, direction and ownership of the
balanced scorecard program policy.
 Dedicate resources necessary
 Set strategic foundations
 Provide subject matter expertise as needed
 Develop corporate scorecard
Strategic Theme Teams
 provide extensive subject matter expertise
 Build theme strategy maps
 Support implementation
Strategic Management/BSC
Champion
 Provide day-to-day leadership and support
 Provide insight into organization and personnel issues
 Provide subject matter expertise as needed
 Arrange schedule and logistics support
 Serve as information conduit to all teams
Consulting Team
 Work closely with all teams
 Facilitate all aspects of the balanced scorecard program
 Provide balanced scorecard expertise
 Incorporate ‘best practice’ insights
Leadership Development Actions
Choose the BSC executive Champion
Identify one or two BSC Program champions
Outline the roles and responsibilities of the champions
Leaders and managers participate in balanced
scorecard executive training
Leaders and managers participate in a strategic
planning workshop and stay engaged (“ leaders model
desired behaviors”)
 Environmental Scan
SWOT Analysis
Enablers and pains
Customers and stockholders
Mission and vision
Core values
Organization Assessment Resources
One-on-one interviews with key organization
representatives (use survey plus open-ended questions)
Other “voices” ( board, commission, regulators)
Phone interviews
Internet climate survey
Previously completed SWOT/assessment surveys
Previously completed customer and employee surveys
Previously completed strategic plans
Market/competitor studies and analyses
Organization Assessment Components
Perform a SWOT analysis to recognize the
organization’s position, both internally and in the
external environment.
Identify organizational pains and enablers from the
SWOT analysis
Develop clear mission (our purpose), vision (our
future), and core values ( our principles) to provide
direction for the organization’s success
Consider who the customers and stakeholders are, and
their ability to influence the outcome of strategy
 Who are our Stakeholders
Identifying stakeholders
 a stakeholder is anyone who has an interest in the outcome
of the organization.
 A customer is a direct beneficiary of your organization’s
products or services --- customers are stakeholders who
benefit directly.
Examples of Stakeholders:
 customers
 Clients
 Employees
 Management team
 Suppliers
 Regulators
 Policy makers
 Characteristics of a Good Mission
Statement
Who we are and what we are about – “ our mission is
to provide (serve) …”
A few sentences in length – no more than one
paragraph
Defines why our organization exists
Reflects our purpose
Incorporates features of our organization ( e.g.,
products or services, markets or community served,
functions performed, uniqueness)
Characteristics of a Good Vision
Describe where we want our organization to be in the
future,
Describe the organization’s future intent ---- the “
picture of the future”
Brief, easy to understand and communicate message,
usually one sentence; can include a high-level strategic
result (goal) or not
Vision statement should be an emotionally inspiring
picture of future success
 Characteristics of Good Core Values
(Guiding Principles)
Describes what we stand for in the context of the
organization’s mission.
Defines our code of conduct, our behaviour.
Based on the values our parents taught us
Human-centric
Provides ethical guidelines for decision-making and
daily conduct (e.g., hiring, promoting, relationship
building )
Aligned with organization vision, mission, culture.
 Summary: Step 1- Organization
Assessment
Key elements:
Develop a plan for the BSC program, and organize the
effort
Assess the organization internally and externally
Define organization mission, vision, values, pains and
enablers
Identify customers and stakeholders
Create a change management plan
Stand-up the BSC teams
Hold strategic planning workshop
Products Developed in Step One:
Management commitment to BSC process secured
BSC teams selected and empowered
Resource commitments secured
Key player roles and responsibilities understood and
accountability established
BSC plan and timetable developed and approved
SWOT results summarized:
 strengths + opportunities = Enablers
 Threats + Weaknesses = pains
 Step Two: Strategy
Learning objectives:
Learn about the key elements of strategy, and how the
elements fit together in the scorecard system.
Learn key leadership development, communications
and change management and facilitation actions for
this step
 Some “ Strategic” Quotes
“ if you don’t know where you are going, you will
wind up somewhere else” Yogi Berra
“ Strategy is Choice” Herodotus 500 BC
Strategy is the art of winning wars.
“What is the use of running if you are not on the right
road?”
 What is Strategy?
Strategy is about broad business options and choices
that have organization-wide impact.
Strategy is a hypothesis of the best way for the
organization to achieve its vision and mission, and
satisfy its customers and stakeholders.
Strategies answer the broad question “ what
approach(s) should we pursue to get the results we
want?”
Strategy is different than tactics; tactics answer more
narrow question, such as : “ what specific actions
should we take at our level, that are consistent with the
organization’s overall strategy?”
 Customer Value Proposition

Customer value proposition

 aligns an organization’s product or service with the
values and needs of customers
Identifies how the organization’s product or service
will provide a unique benefit to the customer
Distinguishes an organization’s product or service
from the competition
Customer Focus
 by deliberately seeking to understand and respond to
customer’s needs, you build brand loyalty and support
from your customer base
 Strategic Themes Help Create
Alignment
 Strategic themes represent the major focus areas of the
organization- the “ pillars of Excellence”.
 Strategic Themes broadly define the business and allow
the organization’s vision to be decomposed into
operational effort.
 Strategic Themes help create organizational alignment
by cutting through:
a) all four BSC perspectives , harnessing the energy of
activities in each of them toward a common result.
b) The organizational boundaries, harnessing many
capacities and processes toward desired results.
 Characteristics of Good Strategic
Themes
They answer the question: in what key areas must we
excel in delivering high value to our customers?
Represent the few main strategic focus areas of the
organization (typically three or four)
Represent the organization’s “ pillar of Excellence”
Allow mission and vision to be translated into more
operational terms (“ How will we achieve our vision
and mission?”
The “ Altitude” of Strategic
Themes
 Need to find the correct “ altitude” of strategic Themes; at
the start, the altitude of candidate Themes may not be the
same, with some Themes having an altitude that is too low
(i.e. too specific/ not general enough)
 To raise the strategic altitude, ask the question “ why do we
want to do this?”
 If there are too many themes identified initially, try to
combine them and raise their strategic altitude to a more
general theme.
 Try thinking bottom-up: what will be the results if we are
successful in achieving our strategy?
 Apply “ filters” to candidate themes.
 Characteristics of Good Strategic
Results
Describes the outcome that the strategies and
objectives within a strategic Theme are intended to
produce- these may be outcomes that we can influence,
but not control.
Keeps the focus of strategic thinking on “end states”
rather than specific activities or tasks.
Taken together, the set of strategic results should
translate into success in achieving the mission and
vision.
The set of strategic results should aggregate upward to
the next strategic level- the vision, and possibly an
overarching strategic result developed for the vision.
 Choose Balanced Scorecard
Perspectives
Balanced scorecard perspectives represent different
views of the organization; they help assure balance to
our strategies and measures
Perspectives are different lenses, or performance
dimensions.
Balanced Scorecard Perspectives
1. Perspective: Customer/stakeholder perspective
Key concept: “satisfaction”
Key questions
Through the eyes our customers and stakeholders, how will they judge our
products and services?
2. Perspective: Financial/ stewardship perspective
Key concept: “financial performance”
Key questions: For businesses, how do we create value for owners? For
government and not-for-profit, how do we maximize cost-effectiveness of
resources?
3. Perspective: Process perspective
Key concept:“Efficiency”
Key questions: How can we improve internal processes to improve quality,
timeliness, economics, and functionality?
4. Perspective: Organization/Learning Perspective
Key concept: “ knowledge and innovation”
Key questions: How can we continually get smarter, innovate, and improve?
Some “ Perspective” on Perspectives
Balanced scorecard perspectives are not:
The functional departments of the organization
Strategies for success: strategies are a vertical slice that
cut across all perspectives.
Key performance indicators: performance measures
will gauge performance in all perspectives.
 Change Management Actions
Lead strategically
Clearly explain all aspects of the balanced scorecard
strategic journey
Identify and deal with resistance issues
Empower employees to think strategically
Build broad support and create a “ coalition of the
willing”
Leadership Development Actions
Leaders participate in workshop to define balanced
scorecard perspectives, and strategic Themes and
results
Training and support given to leaders and managers to
prepare for developing Theme strategic objectives and
strategy maps.
Work with communication Team to determine content
and process for informing all employees of progress to
date.
Communication Planning Actions
Communicate preliminary results of Senior Leaders
Strategy workshop:
- what have we accomplish so far?
 What happens next?
 Who will be involved, when, and what is expected of
each participant?
 Facilitation Actions
BSC champions coordinate strategic planning
workshop
Train Them members
Facilitate strategic planning workshop to develop
perspectives, customer value proposition, strategic
themes, and strategic results.
Check for the right strategic “altitude” of themes
and results
Decide how to handle parking lots issues
Check for logical consistency and linkage among the
strategic elements developed so far.
Step Three: Strategic Objectives
Learning Objectives:
 learn how to organize the development of strategic
objectives
Learn how to identify strategic objectives
Learn how to document the discussion around strategic
objectives.
Understand the elements of change management,
communication, and facilitation that are important for
the step
Practice what you learned
What are strategic Objectives
Strategic objectives are the building blocks of
strategy .
Strategic objectives make up the detailed game plans
that describe what is to be done to accomplish strategic
results.
Strategic objectives are used to break strategic themes
into the more actionable activities that lead to the
strategic result.
Three Tasks in Step Three
Theme Team Preparation:
- team charter, roles and responsibilities
 Schedule and resourcing
 Team member time commitments
 Team initial training
Develop Strategic Objectives
- strategy
Document objective commentary
- capture, for use later on, what is included in each
objective and what is not included.
Theme Team Preparation
 Identify theme team members
 Understand team and individual roles and responsibilities.
Strategic Management Team
members: leaders and managers from departments and support units.
Responsibilities:
 Communicate policy guidance
 Define strategic elements
 Commit resources
 Establish schedules
 Review strategic theme work and develop the corporate objectives,
commentary and strategy map.
 Develop strategic plan and scorecard graphic
 Communicate and stay engaged.
 Strategic Theme Teams
Members: Process owners, subject matter experts.
Responsibilities:
Develop strategic objectives and strategy maps for
each strategic theme
Identify new process improvement ideas
Develop corporate scorecard inputs
Provide objective commentary
 Choose Theme Team members:
Qualifications
 Understand the work that relates to their Theme
 Rand and seniority are much less importance than knowledge
and experience
 Analytical, inquisitive, problem solver, process expert
 Cooperative
- people who work well in team or small group settings
 Self-assured
 Junior members willing to contribute actively in the presence of
more senior members
 Senior members willing to share the limelight and their
experience, while remaining open to new ideas.
 Reliable
- Can be relied upon to be at meetings when scheduled, and
complete agree-upon tasks between meetings
Prepare The Theme Team Agenda and
Schedule
Define a roadmap to accomplish the meeting
objectives
Identifies what can/should be done prior to the meeting
Enables participants to think and prepare before the
meeting
Keeps the meeting on track
Provides a way to measure success
 Strategic Theme Team Agenda
Introductions and logistics
Review theme team instruction
Team guidelines/ground rules
Review strategic foundations
Validate theme strategic result
Arrange strategic objectives in strategy map
Develop objectives commentary
Prepare briefing on results
 Strategic Objectives
 What is the Result (outcome or output) that we intend to
accomplish?
 Should be “verb-object” form:
 improve health
 Increase work efficiency
 Lower cycle time
 Increase employee satisfaction
 Should indicate what a “ good” result is:
• improve
• Increase
• Decrease
• Enhance
• Optimize
 Sample Strategic Objectives
Improve product innovation
Reduce cycle time
Strengthen partnerships
Increase process efficiency
Improve network reliability
Improve coordination among departments and
agencies
Increase skill level of new staff hired
Improve alignment of individual and organization
goals
Optimize use of resources
Improve member loyalty
 Characteristics of Good Strategic
Objectives
Good Objectives
Action oriented activities ( what must be done to be
successful)
Continuous improvement potential
Easy to understand; simple statement of intent
Not projects or activities no “ on –off” switches
Step 4: Strategy Mapping
Learning objectives:
Discuss step four: strategy mapping
 link theme strategic objectives
 Build the corporate (i.e. organization-wide) strategic
map
 Leadership
 Communications and change management
 Facilitation
What is a Strategy Map?
A strategy map is an important business tool for
communicating value internally and externally:
Defines the causal relationships among strategic
objectives leading to results
Helps to create a balance among objectives,
performance measures, and initiatives across the
perspectives
Helps to visualize the logical consistency of the
scorecard
Helps to align an organization around strategy
Why Strategy Maps are
Important?
A strategy map shows how organizational value is
created, by “ mapping” the cause-effect relationships
among the building blocks of strategy (strategic
objectives)
Objectives, linked together in cause-effect relation, tell
the story of an organization’s strategy
A strategy map is a disciplined way of linking results
(outcomes) and the drivers of outcomes
A strategy map encourages balancing leading and
lagging performance measures, tangible and intangible
assets, financial and non-financial objectives
 Characteristics of Good Strategy
Maps
Tell a story of how value is created for the business
Show the logical connection (cause-effect links)
among the objectives where success is needed to get
the results we want
Contain a balanced set of objectives, representing each
of the perspectives
Contain objectives that are at the same level of detail
Show an upward flow of value creation from
performance driving objectives to results objectives
How to construct A strategic Link
Reduce
Cycle Time
Improve of Billing
computer
skills

A Strategic Link:
 Is a cause-effect relationship between strategy objectives
 Is constructed by if-then logic
 “ if we improve computer skills, then we can reduce cycle time”
 Is developed by a cross-functional team
 Is a hypothesis- an educated guess of the team
N.B. A Strategy map is a collection of strategic links that show how the
organization creates value for its customers and effective financial performance
for its shareholders, stakeholders, or members.
Strategy Mapping Procedure
 Select highest-level “customer” objectives (if for a public
or nonprofit organization), “financial” objectives (if for a
private sector business); identify those that lead directly to
the desired “strategic Result”
 Select one “ customer” or “financial” objective and, as a
group, identify cause-effect linkages of that objective to
others
 Continue to identify cause-effect linkages among other
objectives
 Rearrange and create objectives as needed
 Place objectives on a blank strategy map in appropriate
Balanced Scorecard Perspectives
 Review logic by reading the map “ from the bottom up”
 Constructing Organization-wide strategy Maps
From Strategic Theme Objectives
 The overall (corporate; enterprise; agency-wide) strategy
map is constructed from objectives developed by strategic
theme teams. These Theme objectives must be “integrated
into a single overall map. To do this:
1. Prepare “post-its” with all objectives from all themes
2. Identify all the objectives that seem to belong in the top
3. Eliminate duplicate objective, and combine closely related
objective into a single “overall” objective
4. Proceed as with previous instructions, identifying
objectives that “cause” others, continuing to eliminate
duplications and combine closely related objectives as you
go.
Step Five: Performance Measures
Learning objectives:
Learn how to develop balanced scorecard of
performance measures
Learn how to develop specifications and reporting
requirements for performance measures.
Learn advanced techniques for developing
performance measures
Learn how to transform data into performance
information
Discuss leadership, communications, change
management and facilitation.
Why do We Need Performance Measures
“ Measurement is the description ,(often quantification), of a
property of an object, activity, process, or result that
enables comparisons across items being compared, or
across time”
 To monitor the implementation and effectiveness of an
organization’s strategies
 To determine the gap between actual and targeted
performance
 To determine organization effectiveness and operational
efficiency
N.B. Performance measure development work will typically
be done by a small “measure development team”; usually
composed of the objective owner and a few other
employees.
 Develop Meaningful Performance
Measures
 Meaningful means strategic
- focused on the strategic results we want
- derived from the objectives on the strategy map
 Meaningful means relevant to the user
- it tells the user what he or she needs to know
- it provides information that will help make better decisions
 Meaningful Means “SMARTER”
1) Specific
2) Measurable
3) Attainable
4) Real
5) Time bound
6) Efficient
7) Rewarding
Performance Measurement Definitions
 Outcome Measure: a result measure that defines what is
accomplished (end outcome = final accomplishment;
intermediate outcome = intermediate accomplishment)
 Output Measure: a results measure that defines what is
produced. Outputs used efficiently and effectively lead to
outcomes
 Process Measure: a performance deliver that measures
what is happening in the system or process that produces a
specific output
 Input Measure: a performance driver that measures
attributes (amount, type, quality) of resources consumed in
the processes that produce outputs
 Project Measure: a measure of schedule, budget, scope, or
risk associated with a project or initiative.
Lagging Measure: an indicator of past performance
that shows how successful we were in achieving
results.
Leading Measure: an indicator of performance that is
a precursor of future success.
Target: Desired level of performance
Threshold: Upper and lower ranges of performance
around a target value ( e.g. Green threshold range
indicates good performance, yellow threshold range
indicates satisfactory performance, Red threshold
range indicates poor performance)
Benchmark: Comparison of one organization’s
performance to an industry standard or “best in class”
performance
Performance Measures should answer
key strategic Questions
1) How much work did we do? Output measure
2) How efficiently did we do the work? Process
efficiency measure ( output/input)
3) How much benefit did our customers and
stakeholders get from our work? Outcome measure
4) How satisfied were our customers with our products
and services?- outcome measure
5) How well are we managing our projects and
programs? Project measure
Framework for Assessing
Performance
When developing performance measures, it is helpful to
think of the development process as having four
components:
1. Describe the intended result
2. Select the measure or indicator
3. Establish targets and thresholds
4. Develop baseline Data
 Describe the intended result
What is the outcome or output that we intend to
accomplish?
Should be “verb-object” form:
- improve health
- increase work efficiency
Use the objective commentary of the strategic
objective to fully understand the intended result. The
next task is to decide how to measure progress toward
that result.
 Measuring performance Directly
The best measures are those that allow us to measure the
result directly. For example:
 Services are delivered in a timely manner: we know when
the service is due; we know when it is delivered; thus, we
can directly measure whether it was delivered on time.
 Profitability is improved: we know how to determine “
profit” for a specific time period; we know whether profit
for the current period is better than the previous time
period; thus, we can directly measure whether profitability
is improved.
Our ability to measure results directly depends on our ability
to define our terms precisely and consistently.
 Measure Performance With “
Indirect” Indicators
 In many situations, we cannot measure the result directly:
unfortunately, this is often the case with “ high level” objective
in enterprise-level strategy maps, e.g.:
- improve health
- increase security
 The concepts “health” and “Security” don’t have single, obvious,
unique, direct measures
 In this cases, it is useful to look for indirect measures.
 For example, measures that:
Correlate with a desired result- if the indirect measure
improves, the desired result improves also, because of the
correlation of the measures
Contribute to a desired result – if A and B occur, the result will
be C
Correlation with desired result- if the indirect measure
improves, the result improves as well,
e.g. :
 Desired result – improved health
 Indirect measure – fewer cases of specific disease
 Logical correlation- if specific disease decreases,
health improves
N.B. the “validity” of indicators based on correlation
depends on the “strength” of the relationship
between the indicator and the desired result. With
adequate data, we can test this relationship
quantitatively.
Business Intelligence Value of
Different Types of Performance
Measures
1. Outcome ( e.g., customer retention, profitability,
organization value/impact)
2. Intermediate outcome (e.g., customer/stakeholder
satisfaction, sales, employee
development/knowledge gain)
3. Output (e.g., number of customers booked, items
sold, parking tickets issued)
4. Process (e.g., efficiency- output/input, cycle time,
cost per unit)
5. Project (e.g., accomplishment of scheduled tasks,
resources used, scope)
6. Input(e.g., budgeted amount, number of computers)
 Establish Targets
Targets are the desired values of performance for the
reporting period in question.
Should not be arbitrary
Should be based on some knowledge of
process/program capability – baseline
Should reflect “ best practices” - benchmark
Should reflect needs of those who benefit- customer
requirement
May include stretch targets that test the organization.
 Develop Baseline Data
Use a baseline as the reference for measuring current and
future performance
Baseline data answers the questions;
- how well do we perform now?
- what is our current capability?
Historic organization data can be used as a baseline
If baseline data doesn’t currently exist, a first order of
business is to develop it.
To exceed our baseline level of performance, we will
have to change the way we do business!!
 Performance Measurement “ Data
Definition Table”
Need a systematic, thorough and consistent approach
to determining the data to be used to measure
performance
Defining data thoroughly demonstrates that we really
understand what we intend to measure, and how
The “data definition table” provides a useful tool to
accomplish this
 Performance measures Template:
Data Definition Table
A strategic objective development team completes this
table for each measure for which it is responsible.
Strategic objective (number and name):
Objective owner:
Measure Data Units of Formula Collection Baseline Target/ Measure Validated Verified
source measure Frequency Thresholds location by by
 Performance Measures: Data
Definition
1. Data source
 How will the data be collected ?
- if automated, where does the data currently reside?
 If manual, who will collect the data? How and where will
they record it?
2. Collection Frequency
 How often will the data be collected? Annually, monthly,
weekly, continuously
 How often will data be reported?
3. Units of Measure
- What will you be counting or recording? Dollars; days;
proportions; events
4. Formula: how will performance measures be calculated?
5. Baseline: how well are we performing now in this
performance area? Historic data; second shift data;
comparable organization benchmark data
6. Target: what is our expected/desired level of performance?
Targets based on; expectations (e.g., stretch goal),
analytically derived, baselines, benchmarks
7. Thresholds: what are the performance ranges above and
below the target that indicate good, satisfactory, and poor
performance?
8. Measure Location and Owner: where does the data
reside? Who is responsible for seeing that the data is
collected, verified, maintained, and reported to others who
need it?
9. Validation: how do we know the measures accurately
measure what is intended?
10. Verification: how do we know that the data are
correct? Edit checks; sampling inspection; automated
checks for “errors flags” who performs the data
verification? How often?
 Step Six: Strategic Initiatives
Learning objectives:
Identify candidate strategic initiatives
Develop a selection filter to rank initiatives
Rank candidate strategic initiative using the selection
criteria
Turn strategic initiatives into risk-managed projects
What are Strategic Initiatives?
Projects that help ensure strategy success by
improving the performance of strategic objectives
Actionable short-term or long-term projects that are
linked to strategic objectives
Projects that have wide-reaching potential for
significant organization impact and benefit.
 Identifying Strategic Initiatives
 Definition of strategic Initiatives
- each initiative must be clearly defined before it can be
assessed
- Everyone in the organization should have an understanding
of what the initiative will create, why you are creating it,
and what will be required of the organization to create it
 Four components of describing an initiative
1. Scope: what is included in each initiative?
2. Opportunity Description: how will the initiative benefit
the organization? What is the opportunity that the initiative
capitalize on? What strategic objectives on the strategy
map are supported?
3. Deliverables: what will the initiative produce? What
is the output of the initiative?
4. Requirements: what resources are necessary for the
initiative to succeed? What does the organization need
to do the “make it happen?”
 Characteristics of Good Strategic
Initiatives
Strategic initiatives are new or existing, short-term or
long-term strategic projects and activities identified
during the scorecard development process that will
improve performance in strategic objectives.
Strategic initiatives are linked to objectives and
perspectives linked to improve customer retention in
customer performance dimension.
Strategic initiatives can be prioritized and ranked by
selection criteria
Schedule, deliverables, resource commitments, and
ownership need to be defined.
 Step Seven: Automation
Learning objectives:
Analyze software options
Identify enterprise information technology
requirements
Choose software
Develop data visualization criteria for users
Begin collecting and reporting performance
information
 Why is automation important?
Performance needs to be made visual to be useful
Automation adds discipline to the process of strategic
management
Software automates the collection, reporting and
visualization of performance data
Performance measurement data must be transformed
into useful information and business intelligence
Allows us to present performance information to the
people who need it in a visually appealing format
Helps people use performance information to better
inform decision making
 Three Tasks in step Seven
 Understand the organization’s enterprise architecture and
data requirements (no surprises!)
- information technology “ backbone” and future
directions.
- operating systems and software requirement
 Understand software options, including features and
limitations (know your system options)
- capabilities
- Cost of purchase and ownership
 Understand user needs for information (know your users!)
- charts, briefing books, reports , other
- Analysis
-Visualization
 Software Requirements
 Use tested technology; elegant in features and ease of use, but
not extravagant
 Links to existing legacy and desktop databases, and other
software
 Highly flexible to accommodate changes in measurement
environment (measures will continue to evolve)
 Accommodates changing information technology systems
environment
 Easy integration into work environment
 Displays not just number but stories (description; interpretation;
actions planned, etc.) about measures, the business, and
performance
 Provides analysis and “what if” capabilities, to allow analysis of
trends, forecasts, correlation, and other capabilities.
 Supports multiple level drill-downs into underlying data
 Supports exception reporting
 Step Eight: Cascading
Learning objectives:
Align the organization
Develop scorecards for business and support units, and
for teams and individuals
Develop performance measures and initiatives for
cascaded scorecards
Recognize and incentivize desired behavior changes
What is Cascading?
Translate high-level strategy into aligned lower-level
objectives and measures
Create alignment around the organization’s shared
vision, to make strategy actionable to department, and
down to individuals.
Develop department scorecards, aligned to corporate
vision and strategy
Develop individual scorecards, aligned to departments
and support units objectives to tie rewards,
recognition, and incentives to results.
 Organizational alignment comes from scorecard
cascading
Tire 1: Organization-wide scorecard
Tire 2: Strategic unit
Scorecards
•Mission Purpose statement
•Vision Department strategic
•Core values objectives
•Customer focus Strategy maps (optional)
•Strategic themes (focus areas) Unit performance
•Strategic objectives measures and targets
initiatives
•Performance measures and
targets
•initiatives Tier 3: Individual scorecards
Personal goals
(SMARTER goals)
Accomplishments
Performance measures
 Three Tasks in Step Eight
 Develop cascading options
 Function
 Department
 Location
 Organize cascading teams
 Business units
 Support units
 Training
 Facilitated workshops
 Build cascaded scorecards
 Tier 2
 Tier 3
 Cascading Best Practices
Involve cross-functional teams, to build their own
objectives and build employee buy-in
First align objectives, then develop performance
measures
Stay strategic as long as possible (cascade off
corporate objectives)
Build in rewards and recognition as you go along
Showcase the use and usefulness of performance
information

Celebrate success: use the opportunity to “ change hearts

and minds”
Cascading Team Responsibilities
Facilitated workshops are used to develop objectives
 Each business unit selects a team to help identify Tier 2
objectives, performance measures, and initiatives
 Each team should have a team leader, and a recorder. The
recorder captures the key results of the team’s effort at
the end of the session/
The business units and support units will meet to
identify objectives that support corporate-wide strategy
map objectives
Unit teams meet for an additional day or two to
identify performance measures and initiatives for their
unique objectives.
 Cascading Action Steps –Tier 2
 Choose a cascading scheme ( e.g. , by department, by region,
by business function, by products/service line)
 Choose up to seven business/support units to cascade
 Write a purpose statement for each strategic business/support
unit
 Using the purpose statement and the Tier 1 corporate strategy
map, review strategic objective commentary
 For each strategic objectives on the corporate map, as “does
my unit support this objective significantly and strongly?”
 Then write a unit objective for how the unit supports the
chosen corporate objective(s) Note: corporate objectives can
have zero, one, or more supporting unit objectives.
 Cascading Action Steps –Tier 3
 Start with the strategic objectives developed at Tier 2
 Tier three: after the tier 2 unit objectives have been developed, ask “ how
do I support my units (e.g., department, division) objectives?”
 If employees have personal development plans in place, look for one or
more critical success factors ( e.g., strategic personal goals) that align with
the units strategic objective(s)
 If no personal development plan is in place, write a strategic personal goal
for how each person supports the unit’s strategic objective (s). Note: each
employee should have at least one personal goal that supports one or more
unit objectives. At the individual level, these personal goals may be called
“ personal objectives”, “critical success factors” , “ personal objectives”,
MBO’s” or something similar
 Develop a performance measure and initiative for each personal goal
 Change Management and Cascading
Cascading includes all the elements of change
management
Clear, shared vision
Communicate the business case
Leadership
Involvement of all employees
Interactive communication
Training
Organization restructuring
Rewards and recognition (Behaviors and
Results)
 Leading Sustainable Change –key
lessons
Change is enabled when employees are involved and
equipped, and they see visible commitment to the
change!
 Consistency in leadership commitment is a critical factor
 Employees must understand the why and the how (the business case)
 Infrastructure is not simply an expense – its is a critical investment
in project credibility
 Some rewards and recognitions tied to change –related performance
puts ‘ skin in the game’, but too much creates job fear and the
likelihood of passive sabotage.
 Involve people! Two –way Communications is the fastest way to
kick off a change- it builds trust, leverages relationships, and helps
identify potential problems. Don’t substitute mass exposure for this!
 Ensure that employees have the training they need to implement the
change
 The combinations of these areas of change management matter. Use
them together to help people see the value and to provide support.
 Recognition and Rewards
 Recognition and rewards should fit the person and what is
important to him/her --- i.e. “they should fit a glove --- and not
like a mitten”
 A first step – determine “what is of value to whom?”
 Recognition is first –as it should be more frequent, is “no –cost”,
and generally means more (when done sincerely by a respected
person)
 Most people simply want to know that their ideas are valued,
their work is valued, and they are valued
 Money is appreciated as a reward, but usually has a very short-
term( reinforcement)impact
 Informally interview people to find out what recognition and
reward approaches really matter; make sure you probe beyond
the obvious

 The Internal Change Journey
Change Management deals with the internal side of change
---- “ changing hearts and minds”
Commitment: Stakeholders embraces new
corporate culture, values and process --- it is the
way we do business around here!
Acceptance: Stakeholder demonstrates visible
actions toward implementing the change, and
begins to consistently use the new systems and
processes
Understanding: Stakeholder more fully
comprehends the nature, scope, and intent of change
Awareness: stakeholder has basic knowledge but is
unclear of scope, impact, and rationale for change
 Step Nine: Evaluation
Learning Objectives:
Assess why the organization achieved the results it did
Make needed connections to strategy, objectives, measures
and initiatives
Understand supporting communication, change
management, and leadership actions
“ however beautiful the strategy, you
should occasionally look at the
result”
Winston Churchill
 What is Evaluation?
Review of organization progress toward
planned strategic results
Review of the balanced scorecard strategic
planning and management system to determine
where the system can be improved
Evaluation results lead to modifications in organization
planning assumptions, strategy, objectives, performance
measures and targets, strategic initiatives, and budget.
 Three Tasks in Step Nine
 Develop an evaluation plan
 What is to be evaluated?
 Evaluation results reported to who?
 Determine schedule and scope
 Analyze strategic results reported to who?
 Review background assumptions
 Evaluate performance results against targets
 Evaluate initiative results against expectations
 Make any necessary changes to strategic elements and rebalance
the scorecard system
 Revise vision, mission, values, customer value proposition
 Revise strategic themes
 Revise strategic objectives and the strategy map
 Revise performance measures and targets
 Identify new strategic initiatives
 Evaluating Planning
 Identify the purpose of the evaluation effort
 review program, service, product, and project results
 Refine strategies based on review of strategic assumptions
 Rebalance scorecard system
 Identify who the evaluation results are designed to serve
 Leaders and managers, who need to re-evaluate strategic direction and focus
 Key stakeholders who need to be informed on the organization’s progress
 Identify the key questions
 Why did we get the results we did?
 How do people in the organization feel about the relevance and timeliness of
performance information?
 Where can the use and usefulness of information be improved?
 What objectives, strategy map linkages, performance measures and targets,
and strategic initiatives be modified, added, or deleted?
 Lay out the schedule and evaluation team assignments
 What should be Evaluated?
Program, product, service, project results- did we get the
results we expected?
Leadership – are leaders engaged?
Strategic environment –has the “strategic environment:
changed?
Organization Capacity- do we have a learning organization
Strategies – are strategies working and producing desired
results?
Alignment – is our organization aligned around outcomes
and accomplishments?
Performance measures and targets- are the measures
effective; are they being used to deliver actionable business
intelligence, and are gargets realistic?
Strategic initiatives-did we get the results we wanted from
our initiatives?
Workflow and processes – are they efficient,
and are customer-facing processes working as
planned? Are communications interactive (two-
way)?
Employee engagement – are we building buy-in
to new directions?
Incentives/rewards- are we getting the behavior
changes needed?
Budget influencing – are strategies “ budget
influencing”?
 Evaluation Starts with Desired Results
Business Results –Typical
• Improve shareholder value
• Improve profitability
• Improve earnings
• Improve governance
• Improve community responsibility
Government Reform Goals- Office of Management and Budget
• Improve effectiveness and public accountability
• Improve service delivery
• Improve oversight decision making and visioning
• Improve internal management
• Hold agencies accountable for achieving goals
• Initiate agency-specific reforms to make a dramatic and
material difference in program performance
 Evaluate Performance Management Progress (effectiveness)
Evaluation components Effectiveness ( 1= low,
5 = high)
Communications effectiveness
Critical performance issues identified and being worked
Performance measure and target setting effectiveness
Strategy is actionable and effective
Objectives understood and working
Leadership and other employee engagement and by-in
Process on strategic initiatives
Budget influencing is evident
Proactive performance management corporate culture
working
Identifying and solving “red” problems
Process improvements realized
Incentive/rewards program effectiveness
Customer satisfaction scores high/improving
 Sustaining the System
Learning Objectives:
Key components of institutionalizing and sustaining the
scorecard planning and management system
System aspects – continuous improvement activities
So you have a Balanced Scorecard ….. Now what??
Your next job is to evolve the organization so that
the Balanced scorecard is the way you do business
….. Make the change contagious and sustainable.
 Sustaining the BSC builds on previous Change
Management Action
Phase One- prepare for the change: define the change
management strategy, prepare the change management team,
and develop the sponsorship model
Phase Two- Manage the change: Develop change
management plans based on desired outcomes (awareness,
desire, knowledge, ability, reinforcement), and take action
and implement the plans
Phase Three- Reinforce the change: Collect and analyze
feedback, diagnose gaps and manage resistance, and
implement corrective actions and celebrate successes
Facilitate cross-functional team workshops
 10 Challenges
1. Sustainable, engaged leadership
2. Ignoring the history of strategic planning
3. Using more than one sheet of music (definitions)
4. Communicating with yourself and the special few
5. Thinking it’s a sprit (it is not , it is a marathon!)
6. Thinking it is only about performance measures or
about what you are currently doing
7. Choosing software too early
8. Not rewarding success and desired behaviors
9. Not planning for and managing change
10. Not following through
 Sustaining the Scorecard System
Build the foundations:
• Maintain committed and engaged leadership, and
interactive communications; lead transformation from
the top by living the desired behaviors
• Support the continued effort by establishing a strategy
management office
• Enhance individual accountability for resutls through
objective ownership
• Emphasize continual improvement- in processes, in
employee learning and skills development, and in
understanding customer needs and satisfaction, and in
ensuring employee satisfaction
• Leverage training cost-effectively (mass training doesn’t
work well!)
Maintain Focus and Alignment
 Align organization strategy by using the balanced scorecard as
the strategic planning and management framework
 Focus the organization on strategy by holding review meetings
organized around strategy (e.g., strategic themes) and
perspectives
 Align the organization, systems, and employee performance
around strategy through a rewards and recognition program
 Link key organizational initiatives into the balanced scorecard
development process (ISO, Lean, Six Sigma, BPR)
 Improve the Planning and Management System
• Analyze trends and relationships among business performance
drivers- use business intelligence techniques to look for
correlations among leading performance drivers and lagging
performance results
• Look for new leading performance indicators- incorporate learning
into strategy and business operations
• Look for new ways to present information clearly
• Understand processes to improve predictability, and reduce cycle
time and waste
• Monitor the quality of data
• Communicate effectively internally and externally; create a
performance culture
• Periodically check reward and incentive systems to ensure the
desired behaviors are being rewarded
Key BSC Responsibilities –chief Strategy Officer
(Strategic Performance Management Office)
• Stand up a strategic management office
• Manage the balanced scorecard process
• Align organization decisions to strategy
• Communications
• Change management and Transformation
• Training
• Initiative management
• Evaluate/review the planning and management
system and process
 Managing a Strategic Management Office

• Facilitate creation and deployment of the scorecard system

• Define organizational structure and reporting requirements:
SMO organized to facilitate strategy and become focal
point for ideas and initiatives as they relate to strategy
• Manage cross functional strategy execution processes
• Review strategy: Understand the continual strategic
development and the days to changing/refining objectives
• Executive briefing requirements
• Define positioning and staff of office
 Align the Organization
Understand how, when, where and why the strategic
priorities link with current organizational structure and
support operations
Understand departmental/business unit roles and
responsibilities
Align business operations with strategy
Align performance measures with strategic resutls;
including leading indicators
Link budget and performance
Educate/train to facilitate use of balanced scorecard
process
 Summary
Assessment
Evaluation Strategy

Cascadin Strategic
g Objectives

Automati Strategy
on Mapping

Strategic Performanc
initiatives e measure
and targets
Leadership Role in Implementing A BSC System
Explain the need for the new system and processes
Focus on capturing the benefits and eliminating pains
Communicate with clarity, frequency
Get the right people on the bus
Adequately resource the change initiative
 set the standard for excellence
Remove barriers to successful implementation
Demonstrate contagious commitment
Adopt a disciplined framework (and get some
facilitation assistance)
Facilitating The Nine Steps to Success
Framework
Step one: Assessment
 Review current strategic materials and manage client
expectations
 Lead the organization assessment team
 Plan, organize and lead strategic elements workshop
 Summarize key discussion results into format for theme
teams to use
Step Two: Strategy
 Train theme teams
 Lead strategy discussion; worry about “strategic altitude”
 Lead development of strategic themes and strategic results
 Check for alignment among strategic elements
Step Three: Strategic Objectives
Lead process of developing individual objectives for
each strategic theme
Lead affinity grouping process to develop refined
objectives
Lead objective commentary documentation process
Prepare summary of workshop for senior leaders and
managers
Manage “ parking lots” for other issues: possible
performance measures, strategic initiatives, other
Step Four: Strategy Mapping
Lead affinity grouping process to develop refined
objectives for theme maps
Lead affinity grouping process to develop refined
Step Five: Performance Measures and Targets
Lead discussion around each strategic objective, to
develop candidate measures and targets
Build consensus around selection of final measures and
targets
Train employees how to fill in the data definition table
Step Six: Strategic Initiatives
Lead discussion around each strategic objective, to
develop candidate strategic initiatives
Suggest alternative initiative prioritization approaches
Lead the transformation of initiatives into risk-managed
projects
Train employees how to fill in the data definition table
Step Seven: Automation
Coordinate user performance information requirements
with information technology requirements
Advise on software selection
Step Eight: Cascading
Train cascading workshop participants
Lead strategy development (tier 2 and 3 objectives)
discussion in workshops
Lead development of performance measures and
initiatives
Step Nine: Evaluation
Lead process of developing the evaluation approach
Lead process of reviewing and revising all strategic
elements
 Final Thoughts: Overcoming
Obstacles
Obstacle Solution
Resistance to change Clearly communicate benefits

Fear of measurement Use of system to improve, not to punish

Fear of new system Keep systems simple

Disbelief that any real Show early successes

improvement will result
“Gaming” the system Measure the critical things

Data collection requirements Make performance information useful and

used
Perceiving scorecard work as a Internalize the scorecard call it something
separate activity from normal else!
business operations
Measures that are set Choose measures after developing
independent of a framework framework
 Thank you!

Wishing you continued

success on your balanced
scorecard journey!