Visionary, Balanced Score-Based Strategic Planning for Nonprofit / Nongovernmental Organizations and Government Agencies is a relatively new area of study in comparison to the same approach to the for-profit sector. While appearing complex on first sight, this approach to planning is effective, articulate and engaging. Insights relative to the specifics on the non profit / non governmental organizations and Government Agencies are clarified and examples are provided.

1. Insights on Balanced Scorecard-Based
Strategic Planning for Nonprofit / Nongovernmental Organizations
and Government Agencies
Arturo J. Bencosme-Dávila, PhD
ajbencosme@comcast.net
Strategic & Systems Thinking Consultant
and
Affiliate Faculty, Global Nonprofit Leadership Department at Regis University

2. NON PROFIT / NON GOVERNMENTAL ORGANIZATIONS
AND GOVERNMENT AGENCIES:
• Typically aim at community interests, social change and the common good:
Philanthropic / social wellbeing motivation is their prime driver:
Need to emphasize a vision that refers to the greatest good.
The uncertainty and complexity of the organization’s general environment
require significant attention.: should utilize scenario planning.
Navigate in a complex environment beyond market forces:
need to clarify the challenge and the uncertainty involved.
• Are characterized by being purpose & mission oriented:
finance everything plays a utilitarian role when crafting strategy.
• Demand comprehensive guidance for the entire organization:
should consider multiple perspectives to attain the necessary alignment.
2Arturo J. Bencosme, PhD

3. Purpose & Mission
Values
Visionary Objectives
Vision
Strategic Themes &
Strategy Maps
Balanced Scorecard
Cascading
Initiatives
Results
BALANCED SCORECARD-BASED STRATEGIC PLANNING CONSISTS OF AN INTEGRATED PROCESS:
IT GOES FROM ESTABLISHING A SENSE OF DIRECTION TO MONITORING RESULTS
AND HAS STRATEGY DEPLOYMENT AT ITS CENTER
 The “WHY” and the Social Proposition
 Core Ethical Beliefs
 Aspired Long Term Results
 Picture with Words of the Aspired Future
 Strategy Pillars and Key Areas of Action
 Strategy Indicators, Measures & Targets
 Promoting Involvement via Cooperation
 Projects & activities
 Monitoring & feedback
3Arturo J. Bencosme, PhD

4. BALANCED SCORECARD-BASED STRATEGIC PLANNING:
Whole organization enrolment in and alignment with strategy
Visionary: Oriented toward the organization’s guiding ideas.
Challenge Detecting: Surfaces the challenges ahead for the organization.
Strategy Focused: Clarifies strategic thrusts to go past the challenges.
Holistic: Addresses multiple perspectives on the organization.
Strategy Visualizer: Deploys visually vision-strategy connections and the logic
to enable and implement the strategy.
Leadership Distributor: Stewards widespread enrolment via cascading throughout
all organization levels down to the individual.
Improvable: Sets measurements for determining progress
and for improving on strategic thinking & implementation.
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5. There are two ways of being lost :
?
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6. WHERE WE ARE GOING:
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7. 7Arturo J. Bencosme, PhD

8. Governing Ideas are the fundamental statements
of what matters to the organization specifically, the future it aspires to build.
They are summarized in a
are deep-rooted
ethical beliefs with which the
organization identifies itself.
describes the products
or services offered
as the specific way
of manifesting
the purpose.
to be achieved
in accomplishing
the organization’s
mission.
is the larger impact sought and
why society values the
organization.
8Arturo J. Bencosme, PhD

9. Arturo J. Bencosme, PhD 9
T h e organ ization ’s key stakeh o ld ers
are individuals , groups and organizations ,
with in an d with ou t th e o rgan izatio n ,
wh os e s atisfaction d etermin e its s u cces s
o r th at th e organ ization n eed s to con s id er
to advance toward its success .
SETTING THE VISIONARY GOALS
AROUND THE ORGANIZATION’S KEY STAKEHOLDERS’ ATTRIBUTES OF SATISFACTION
EXPANDS THE ENVISIONING PROCESS

10. Arturo J. Bencosme, PhD 10
For each stakeholder identified:
What are its satisfaction attributes?
What is its current stand relative to the organization:
-support, oposition, collaboration, interdependence, indiference?
What are its strengths and weaknesses, and what opportunities and
threats does it offer to the organization?
What is its connection to other stakeholders
and how does that connection operate?
How much power does it have over the organization,
and what is the source of such power?
How much interest does it have in the organization and why?

11. Arturo J. Bencosme, PhD 11
Influence Power over the organization:
Capacity to affect the organization’s success significantly, either
directly or indirectly: the media, providers, politicians, state
government…
Degree of Interest in the organization:
The magnitude of the attention (knowledge / awareness)
or perception (favorable / against) that it has on the organization.
INFLUENCE POWER DEGREE OF INTEREST

12. Arturo J. Bencosme, PhD 12
ASSESSING THE DIMENSION OF STAKEHOLDER POWER
OVER THE ORGANIZATION
If the organization were to pursue its goals and strategies,
could/would this stakeholder exert its influence over it?
– Analysis relates to particular goals / strategies
– Implementation of some strategies may be within
the approved discretion of a certain stakeholder.
– Some stakeholders may not want to exercise their power

13. Arturo J. Bencosme, PhD 13
ASSESSING THE DIMENSION OF STAKEHOLDER INTEREST IN DAODAS
If the organization were to pursue its goals and strategies,
could/would that ignite / fuel this stakeholder’s interest in it?
– Analysis relates to particular goals and strategies
– Is the stakeholder’s interest against or for the organization?
– How high is the organization in this stakeholder’s priorities?

14. Arturo J. Bencosme, PhD 14
SUMMARIZING STAKEHOLDER CHARACTERIZATION BASED ON POWER & INTEREST
InfluencePower
(Image,Convincing)
Degree of Interest
(Enablers)
Low High
LowHigh
Posible Movers Key Players
Less Important Potential Supports

15. Arturo J. Bencosme, PhD 15
WHAT TO DO AS A RESULT FROM THE STAKEHOLDER ANALYSISInfluencePower
(Image,Convincing)
Degree of Interest
(Enablers)
Low High
LowHigh
Posible Movers:
Tend to their
requirements, keep them
satisfied.
Key Players:
Special attention,
seek alliances &
collaboration.
Less Important:
Minimal efforts.
Potential Supports:
Show consideration,
keep them informed

16. Arturo J. Bencosme, PhD 16
STAKEHOLDER INVOLVEMENT MOVES
InfluencePower
(Image,Convincing)
Degree of Interest
(Enablers)
Low High
LowHigh
Posible Movers:
Involve and consult with
them, strive to increase
their interest
Key Players:
Focus on them,
seek to involve them in
major decisions,i.e.,
the organization’s
vision.
Less Important:
Keep them generally
informed, strive to
increase their interest.
Potential Supports:
Keep them informed,
involve them in low risk
matters

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• Orchestrate stakeholder management & involvement efforts
following the results from the stakeholder analysis.
• Incorporate the most important stakeholders
(key players, possible movers and potential supports)
in the organization’s vision & strategy in an explicit manner.
• Maintain current a stakeholder data base,
monitoring their evolving characterization.
• Aim at establishing win-win agreements with the key players.
• Develop, implement and keep current
an institutional communications plan
emphasizing the specifics for each stakeholder.

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KEY
STAKEHOLDER
1
KEY
STAKEHOLDER
2
KEY
STAKEHOLDER
3
KEY
STAKEHOLDER
4
KEY
STAKEHOLDER
5
KEY
STAKEHOLDER
N…
DRAWING THE ORGANIZATION’S KEY STAKEHOLDER BIG PICTURE…
THE
ORGANIZATION
SPECIFY POWER
AND INTEREST
INTERCONNECTIONS

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KEY
STAKEHOLDER
1
KEY
STAKEHOLDER
2
KEY
STAKEHOLDER
3
KEY
STAKEHOLDER
4
KEY
STAKEHOLDER
5
KEY
STAKEHOLDER
N…
… AND UNDERSTANDING THE BALANCE TO STRIVE FOR
AMONG THE KEY STAKEHOLDERS
THE
ORGANIZATION

20. Arturo J. Bencosme, PhD 20
BENEFICIARIES
FUNDERS /
DONORS
STAFF
VOLUNTEERS
GOVERNMENT
REGULATORS
SOCIAL MEDIA
MANY ORGANIZATIONS WOULD CONSIDER THE FOLLOWING STAKEHOLDERS:
THE
ORGANIZATION

21. A shared vision of the organization’s successful future
will bring about the alignment needed to accomplish its mission.
Visions take the form of a detailed, vivid narrative
-a portrait painted with words-
of what will look like and how will feel
having attained the overarching goals of the organization.
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22. There are two alternative routes
to develop a visionary narrative:
• Start with the purpose, mission and values, establish
the goals, and then write the narrative.
• Start with a narrative which incorporates the values,
purpose and mission, and describes the aspired future
and then, intuitively extract the goals from it.
What is important is to be able to inspire for achieving
worthwhile goals totally congruent with the underlying essence
of the organization: its values, purpose and mission.
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23. As we stand on our future,
we see ourselves energized and proud as an ever growing number of
graduates from our trainings surround us. They show gratitude and
support having transformed themselves into the true human beings
they are, and are embodying their full potential. As staff, we enjoy a
profound sense of purpose and connection among ourselves and to our
volunteers, sharing a worthwhile endeavor in caring, truth, endurance,
effectiveness and honesty. Our funders and donors are confident on the
value of the service that is provided by us to those who participate in
our trainings thanks to their generosity and continued support. Our
financial sustainability is partly provided by them and from the
proceeds from our ever growing training participants. And we strive to
remain at the cutting edge of like skill trainings, while continuing to
build a community of graduates who are our best ambassadors to
society in pursuing our endeavor of contributing to a better world.
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24. WHERE WE ARE:
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25. REALITY
CHECK
HOW FAR
ARE WE?
The strategic analysis starts by determining the
GAP
between the aspired state of the organization -as specified in the vision-
and its current state relative to that vision.
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26. 1) A future oriented view
with the visionary goals
being the focus.
2) Multiple organizational
perspectives for formulating
comprehensive, organization-
wide strategies.
FINANCE
SOCIETY
PROGRAMS
The “SWOT” analysis assesses the organization’s potential
for moving toward its vision:
a scan for the organization’s
Strengths, Weaknesses, Opportunities and Threats.
Within the balanced scorecard approach, the SWOT analysis encompasses two dimensions:
26Arturo J. Bencosme, PhD

27. The SWOT Analysis’s First Dimension:
Is driven by questions about current reality with respect to attaining the
organization’s future vision amidst complexities posed by the environment of the
organization’s sector.
What are the internal advantages?
What can it do better than any other
organization?
What unique resources can it draw
upon?
What could the organization improve
on, and what should it avoid?
What internal factors hamper the
organization in materializing its
vision?
What external obstacles could stand
in the way to success?
Are there any funding / fiscal issues?
What unfavorable trends are
emerging?
What are the significant
opportunities within the
organization’s environment for
achieving success?
What favorable trends are surging?
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28. Uncertainty needs to be included in the SWOT analysis
when looking into the external factors that is,
the uncertainty surrounding the threats and opportunities.
“In the future,
instead of striving to be right at a high cost,
it will be more appropriate to be flexible
and plural at a lower cost.
If you cannot accurately predict the future
then
you must flexibly be prepared
to deal with various possible futures.”
~ Edward de Bono
An effective way to handle the uncertainty
in threats and opportunities
is via scenarios about the future:
“Should this scenario materialize,
then what would be the right strategy to pursue?”
28Arturo J. Bencosme, PhD

29. FUTURE
SCENARIO
“Z”
FUTURE
SCENARIO
”X”
FUTURE
SCENARIO
“W”
FUTURE
SCENARIO
“Y”
CURRENT
KNOWNS &
UNKNOWNS
ABOUT THE
FUTURE
“…Scenarios are stories about the way the world might turn out tomorrow,
stories that can help us recognize and adapt to changing aspects of our present
environment…”
“…To act with confidence, one
must be willing to look ahead
and consider uncertainties:
“What challenges could the
world present to me? How
might others react to my
actions?”
Peter Schwartz, The Art of the Long View
WHAT ARE “SCENARIOS”?
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30. HOW STRATEGIC SCENARIOS ARE CONSTRUCTED
1. Focus on the key organizational
choices: the visionary goals.
3. Identify and analyze the
key environment driving
forces, and identify
uncertainties.
4. Establish scenario logics:
the organizing paradigms
or theories around which
the scenarios will be structured.
5. Select and elaborate the 3-4
most significant scenarios by
describing explicitly their plots.
6.Interpret the scenarios:
strategic Implications
in terms of threats
and opportunities.
2. Specify key factors to know
about the future to achieve
the visionary goals.
Organization’s
Overarching
Choices
Key factors about the future
needed for strategy crafting
Scenario
Logics
Strategy
implications
Environmental
factors &
trends
SCENARIOS
7. Qualify / Redefine the key factors
about the future
needed for strategy crafting.
30Arturo J. Bencosme, PhD

31. BOTH THE ORGANIZATION’S WORKING
AND CONTEXTUAL ENVIRONMENTS
OUGHT TO BE CONSIDERED.
WORKING ENVIRONMENT
DRIVING FORCES:
Beneficiaries
Volunteers
Donors/Funders
Competitors
Partners
Regulators
Communities
CONTEXTUAL ENVIRONMENT
DRIVING FORCES:
Economic
Political
Social
Cultural
Geographical
The most uncertain and therefore,
the most relevant to scenario construction
usually is the contextual environment.
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32. Scenario logics are the organizing principles around which the scenarios’ plots are structured:
the “theories of the way the world might work" along each of the axes of uncertainty.
1. Identify general, broad, driving forces, applicable to all scenarios
i.e.., Government Orientation, Economic Strength, Immigration Reform Progress.
2. Identify trends and combine them to get a series of scenarios
3. Select those which are most significant, naming then meaningfully.
Social Welfare
Oriented
Government
Strong
Economy
Weak
Economy
Free Market
Oriented
Government
“Locomotive
Style”
“Navigating
in Difficult
Waters”
“High
Expectations of
the 3rd Kind”
“Mission
Almost
Impossible”
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33. SWOT Analysis’ Second Dimension:
Supports the balanced scorecard-based strategy crafting process
by adopting 4 perspectives on the organization namely,
 Organization Beneficiaries, the Community
and Society at Large.
 Donor and Financial
Accountability & Sustainability.
 Agility & Efficacy
in each of the organization’s key processes.
 Organizational Dynamics: Learning & Growth
(information, human & organizational capital).
FINANCE
SOCIETY
33Arturo J. Bencosme, PhD

34. Within the balanced scorecard approach, a complete SWOT analysis encompasses the
strengths, weaknesses, opportunities and threats as seen from the 4 perspectives
and takes the form of a “bookshelf” that organizes all aspects of the analysis.
34Arturo J. Bencosme, PhD

35. The next step in the strategic analysis
is the stage:
The challenges are of two kinds:
1) Challenges to transform the
adversities (weaknesses &
threats) into possibilities.
2) Challenges to make the most of
the advantages: strengths &
opportunities.
Match
Strengths
to the
Opportunities Transform
Adversities
into
Possibilities
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36. The logic that articulates the means to overcome the challenges
that were determined in the SWOT analysis
is at the core of strategic thinking.
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37. How to go past the challenges
in order to attain the visionary objectives
under a variety of scenarios about the future?
The answer is:
through crafting and implementing
an effective, robust strategy.
YOU
ARE
HERE
37Arturo J. Bencosme, PhD

38. WHAT IS STRATEGY ?
Within the balanced scorecard method, STRATEGY consists of
a set of mutually supporting Strategic Themes
(a.k.a. ¨Strategic Thrusts”)
The strategic themes are the assumptions (hypothesis)
about how to drive the organization toward its visionary goals
under the most significant scenarios about the future.
Usually there will be one strategic theme
for each visionary objective
expressing what the leadership believes the organization
should adopt as a rationale to materialize each such objective.
38Arturo J. Bencosme, PhD

39. In order to attain these
VISONARY GOALS:
The leaders believe that these STRATEGIC THEMES
should be adopted:
Beneficiaries achieve
substantial personal
transformation.

Cultivate the intent and the skills to transform lives
among the organization’s staff and volunteers.
Financial Stability &
Sustainability.

Impel process improvement
with emphasis on cost efficiency and financial
accountability.
The following are examples
of visionary objectives and their corresponding strategic themes
in a non profit organization dedicated to provide life skills for personal growth.
39Arturo J. Bencosme, PhD

40. OPERATIONALIZING STRATEGY
The next task consists of identifying the key areas of action
which will operationalize the set of strategic themes that is,
the strategy.
 Organization Beneficiaries, community & Society at Large;
 Financial Efficiency, Accountability & Transparency;
 Agility & Efficacy in each of the Organization’s Processes;
 and Organizational Learning & Growth.
The key areas of action comprise
the four balanced scorecard perspectives:
40Arturo J. Bencosme, PhD

41. Arturo J. Bencosme, PhD 41
FINANCIAL
How should we be perceived by our donors
and other stakeholders financially wise?
• Transparent & accountable?
• Cost efficient?
BENEFICIARIES & COMMUNITY
How should we be perceived by our
beneficiaries and society at large?
• What services & products?
• What population segments?
• What impacts?
INTERNAL PROCESSES
How should our work flow?
• With agility?
• With reliability?
• Error-free?
ORGANIZATIONAL DYNAMICS
How can we excel at learning collectively to
become an intelligent, progressive and
cohesive organization with a strong climate of
oneness?
THE FOUR PERSPECTIVES DEPICT FOUR DISTINC BUT INTERRELATED
STANCES ON THE ORGANIZATION

42. THE KEY AREAS OF ACTION ARE DISPLAYED THROUGH ”STRATEGY MAPS”:
FINANCIAL
CUSTOMER
INTERNAL
PROCESSES
ORGANIZATIONAL
DYNAMICS
While For-Profit organizations
are finance-driven,
FINANCIAL
BENEFICIARIES
& COMMUNITY
INTERNAL
PROCESSES
ORGANIZATIONAL
DYNAMICS
Nonprofit / Nongovernmental organizations
and government agencies
are mission-driven and financially accountable.
 The “strategy maps” depict the causal relationships among the areas of
action that implement the strategic themes.
 Naturally, the strategy maps of nonprofit / nongovernmental organizations
and government agencies are different from those of for-profit organizations.
42Arturo J. Bencosme, PhD

43. Enhanced Quality
of the Trainings
Offered
Volunteer, Participant &
Graduate Relationship
Management
Participants Complete
Trainings Successfully
Organizational Learning
Focused on Adult
Learning
Staff & Volunteers Align
with the Values, Purpose
Mission & Vision
Beneficiaries & Community
Financial (N.A.)
Internal Processes
Organizational Dynamics
STRATEGY MAP EXAMPLE 1
ORGANIZATION DEDICATED TO PROVIDE LIFE SKILLS FOR PERSONAL GROWTH
To have the beneficiaries achieve a substantial personal transformation, (Visionary Objective)
cultivate among the staff and volunteers commitment and skills to transform lives. (Strategic Theme).
This strategic theme will be implemented through the following key areas of action:
 Build alignment with the organization’s guiding ideas.
 Collectively learn adult learning aimed at personal growth.
 Improve the quality of the trainings being offered.
 Advance volunteer & graduate involvement processes.
 Support the participants in successfully completing their trainings.
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44. Improve the Efficiency
in Marketing and in
Delivering Trainings
Donor & Graduate
Relationship Management
Continuity in Training
Offering
Staff & Volunteers Align with the
Values, Purpose Mission & Vision
Beneficiaries & Community
Financial
Internal Processes
Organizational Dynamics
Donor Continuity,
Financial Equilibrium,
Financial Accountability
Enhanced
Cost Accounting
STRATEGY MAP EXAMPLE 2
ORGANIZATION DEDICATED TO PROVIDE LIFE SKILLS FOR PERSONAL GROWTH
In order to achieve financial stability & sustainability, (Visionary Objective)
Articulate process improvement with emphasis on cost efficiency and financial accountability. (Strategic Theme).
This strategic theme will be implemented through the following key areas of action:
 Build alignment with the organization’s governing ideas.
 Improve the cost efficiency in the trainings being offered and in marketing efforts.
 Advance donor & graduate involvement processes.
 Improve cost accounting and fund allocation.
 Strengthen relations with donors & graduates.
 Ensure continuity in training offering.
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45. SUPERIMPOSING THE CAUSAL RELATIONSHIPS FOR THE THEMES
GENERATES AN OVERARCHING STRATEGY MAP
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46. SUCH A COMPACT VISUAL REPRESENTATION OF THE ORGANIZATION’S STRATEGIC THINKING
CAN BE USEFUL AND POWERFUL:
The organization’s leaders can make it available
to all the staff members and volunteers as
a “pocket strategy guide”
to remind everyone of what the organizations aspires to be
and the path that has been chosen - its strategy.
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47. 47Arturo J. Bencosme, PhD

48. Strategic management requires
measuring progress toward the vision
and quantitatively supporting strategic decision making
“What you can measure you can manage.”
INDICATORS & MEASURES FOR STRATEGY EXECUTION
(Cont.)
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49. Measurements and targets
will empower the organization
to monitor its progress toward its vision
and to gauge feedback for improvement
in the strategy being implemented.
INDICATORS & MEASURES FOR STRATEGY EXECUTION
(Cont.)
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50.  Visionary Indicators:
depict the organization’s current
reality in terms of the degree to which
the organization is attaining
its visionary objectives.
 Strategic Key Performance Indicators:
depict the extent to which the key areas
of action which implement the strategy
are being undertaken.
TWO SETS OF INDICATORS
INDICATORS & MEASURES FOR STRATEGY EXECUTION
(Cont.)
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51. The Visionary Objective Indicators:
Express the degree to which the organization
is actually making progress in materializing its
visionary objectives.
Provide an objective way to verify the validity
of the assumptions made when developing
the strategy. Were the strategic themes or
thrusts the right ones?
Help all levels of the organization strive for
alignment with the vision.
INDICATORS & MEASURES FOR STRATEGY EXECUTION
(Cont.)
51Arturo J. Bencosme, PhD

52. The Key Strategic Indicators:
Reflect the degree to which the key areas of
action are being undertaken which in turn, signal
that the strategy is actually being implemented.
There might be more than one key strategic
indicator for each area of action.
The system of key strategic indicators
for the areas of action in the four perspectives
will bring to life the balanced scorcard for the
organization.
They will help all levels of the organization focus
on what matters strategically.
INDICATORS & MEASURES FOR STRATEGY EXECUTION
(Cont.)
52Arturo J. Bencosme, PhD

53. The visionary objective indicators and the key strategic indicators
together with the causal relationships among them
can be portrayed in a dashboard:
a Strategic Decision Support System.
INDICATORS & MEASURES FOR STRATEGY EXECUTION
(Cont.)
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54. Arturo J. Bencosme, PhD 54
Strategy (the set of strategic thrusts or themes) is just a hypothesis
about how to move effectively toward the organization vision.
As in science, hypothesis are stated, put to the test and either confirmed or changed.
Attainment
of the
Visionary Objectives
(Visionary Objective Indicators)
Degree of Strategy Implementation
(Key Strategic Indicators)
Low High
Low
High
!
Moving Ahead in Spite of
Little or no Strategy
Implementation -
Strategy and/ or
Implementation Need to
Change
Moving Ahead
as Expected
~ Strategy is Validated ~
?
Uncertainty Reigns /
Organization Adrift
X
Strategy Needs to Change
INDICATORS & MEASURES FOR STRATEGY EXECUTION
(Cont.)

55. “Logic will get you from A to B.
Imagination will take you everywhere”
“Not everything that counts can be counted,
And not everything that can be counted counts”
“The only real valuable thing is intuition”
“Imagination is more important
than knowledge”
The usefulness of measurements for strategic decision making
determines the value of the information
provided by those measurements.
For all this potential value however, quantitative and logical information
should be seen only as a means to support intuition and imagination.
INDICATORS & MEASURES FOR STRATEGY EXECUTION
(Cont.)
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56. 56Arturo J. Bencosme, PhD

57. ALIGNING THE ORGANIZATION WITH STRATEGY
The strategic alignment process consists of cascading it
by utilizing the highest-level scorecard as a template
for constructing the scorecards for the other levels
top to bottom throughout the entire organization and as a result,
every unit’s goals will be directed to implementing the organization’s strategy.
Cascading the balanced scorecard provides a means of fulfilling
the will to meaning & contribution
on the part of everyone within the organization.
CASCADING THE BALANCED SCORECARD TO INVOLVE THE ENTIRE ORGANIZATION
(Cont.)
57Arturo J. Bencosme, PhD

58. For successful cascading,
everyone in the organization must embody
the organization’s guiding ideas (mission, values, visionary narrative),
share the visionary objectives and their corresponding strategic themes,
and understand the objectives and measures in the highest-level scorecard.
From that point downward through the organization,
the underlying drive will be one of cooperation.
CASCADING THE BALANCED SCORECARD TO INVOLVE THE ENTIRE ORGANIZATION
(Cont.)
THE BEGINNING OF THE CASCADE
Each organizational level needs to find the answers to the question:
“How can we cooperate at our level
to help the organization achieve its goals?”
58Arturo J. Bencosme, PhD

59. THE CASCADING PROCESS IS DRIVEN BY A SENSE OF COOPERATION
Successive cascading to a particular organizational level
begins by looking at the next upward level scorecard,
and identifying the objectives and measures within it
with which this level can cooperate.
The scorecard at any level
will align with the next upward level’s scorecard
by cooperating through the same,
or a sub-set or even different, yet congruent objectives,
or through objectives in the same or in other perspectives.
CASCADING THE BALANCED SCORECARD TO INVOLVE THE ENTIRE ORGANIZATION
(Cont.)
In the end, all the objectives at highest level must be supported
by the cascade of scorecards throughout the organization.
59Arturo J. Bencosme, PhD

60. CASCADING THE BALANCED SCORECARD TO INVOLVE THE ENTIRE ORGANIZATION
(Cont.)
SEVERAL BALANCED SCORECARD CASCADING PATTERNS ARE AVAILABLE
Identical to the Next Upper Level
The objective is the same as in the next upper level.
Contributory to the Next Upper Level
An objective in the cascaded scorecard that is different
from those in the next upper level still contributes
to an objective in the next upper level.
Unique to the Level
An objective in the cascaded scorecard
that is exclusive to the level.
Shared between Several Cascaded Levels
An objective in the cascaded scorecard
that is jointly owned by more than one scorecard.
Next Upper Level Cascaded Level
60Arturo J. Bencosme, PhD

61. Units such as human resources, accounting, finance,
information technology and so forth
provide specialized services to the other units.
Balanced scorecard for shared service units ensure
that the services they provide support the units they
serve in achieving their strategic objectives.
The shared service units will determine
with which strategic objectives in the units they serve
they can most directly cooperate and based on that,
develop their own strategic objectives.
The highest-level scorecard in the organization may also
contain objectives with which
the shared service units can directly cooperate.
CASCADING THE BALANCED SCORECARD TO INVOLVE THE ENTIRE ORGANIZATION
(Cont.)
CONSTRUCTING THE SHARED SERVICE UNIT BALANCED SCORECARDS
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62. CASCADING THE BALANCED SCORECARD TO INVOLVE THE ENTIRE ORGANIZATION
(Cont.)
62Arturo J. Bencosme, PhD
TOP ORGANIZATION
LEVEL
OPERATIONAL UNIT 1
SHARED
SERVICE UNITS
OPERATIONAL UNIT 2
ALL THE ORGANIZATION’S LEVELS AND UNITS
ARE ENCOMPASSED IN THE CASCADING
OF THE STRATEGIC OBJECTIVE GOALS
Each unit is thus directed to cooperate in
implementing the organization’s strategy by
deploying their corresponding unit level goals
and objectives to support those of the unit to
which they report (operational units)
or to which they serve (shared service units).

63. MAKING THE BALANCED SCORECARD PERSONAL
Cascading the Balanced Scorecard to the personal level can enhance significantly
the employee, manager or executive performance appraisal process.
Personal Balanced Scorecards:
• Build awareness of, and commitment to the organization’s strategy
and encourage comprehension of cascaded scorecards
since that understanding is a pre-requisite to developing their own.
• Clarify personal – organizational strategy connections
as it depicts the impacts from individual’s decisions and actions
on the organization’s overall results.
• Motivate the individual for goal-setting processes
by underscoring the importance of each one to the organization’s success.
CASCADING THE BALANCED SCORECARD TO INVOLVE THE ENTIRE ORGANIZATION
(Cont.)
63Arturo J. Bencosme, PhD

64. Key elements of incentive compensation and capacity building
should connect to the balanced scorecard strategic alignment process:
− In the personal scorecard construction process, the individual is the protagonist
albeit mentoring and coaching might be in order.
− If the compensation is performance-related, the individual establishes the
appropriate weights for each measure and each perspective.
− Last but not least, a personal, individualized development plan is constructed
in connection with the goals established on individual scorecard.
SIGNIFICANCE OF CONSTRUCTING PERSONAL BALANCED
SCORECARDS
CASCADING THE BALANCED SCORECARD TO INVOLVE THE ENTIRE ORGANIZATION
(Cont.)
The creation of personal scorecards completes the cascading
from executives and managers to the line workers.
64Arturo J. Bencosme, PhD

65. Monitoring the cascade supports
feedback and learning:
 Verifying that the measures are complete and timely,
the targets are stretching yet realistic,
and all units are working cooperatively.
 Verifying that alignment is consistent
throughout the organization:
 The strategic planning team reviews
all the cascaded scorecards
and work with their counterpart teams in each unit
to ensure consistency and completeness.
 Organization-wide learning and improvement
is done through staff forums and town halls,
and specially, through communities of practice.
 Individuals are encouraged to invite their peers
to help improve their scorecards.
CASCADING THE BALANCED SCORECARD TO INVOLVE THE ENTIRE ORGANIZATION
(Cont.)
REVIEWING AND EVALUATING CASCADED BALANCED SCORECARDS
CASCADING
THE BALANCED
SCORECARD
STRATEGY
EVALUATING
THE BALANCED
SCORECARD
CASCADE
PERFORMANCE
MEASUREMENT
Purpose
Values
Mission
Vision
65Arturo J. Bencosme, PhD

66. CHECKING LINKAGES, TARGETS AND COMPLETENESS:
• Linkages to related scorecards. Each scorecard should
contain objectives that contribute to the corresponding
scorecard in the next upper level.
• Appropriate targets. Only targets that are stretching,
specific, realistic and achievable should be established.
• Coverage of all key strategic objectives. All of highest-level
strategic objectives should be cooperated with throughout
the organization.
CASCADING THE BALANCED SCORECARD TO INVOLVE THE ENTIRE ORGANIZATION
(Cont.)
66Arturo J. Bencosme, PhD

67. 67Arturo J. Bencosme, PhD

68. Executing the strategy usually involves
leading and managing organizational change:
enrolling all organization´s individuals
in a collective construction effort.
In particular, the focus is on:
1) Implementing the initiatives that the strategy prescribes:
bringing to life the key strategic areas of action.
2) Cascading the balanced scorecard throughout the
organization: ensuring that everyone in the organization is
responsible for implementing the strategy.
IMPLEMENTING THE STRATEGY: MAKING IT HAPPEN (Cont.)
68Arturo J. Bencosme, PhD

69. ORGANIZATIONAL DYNAMICS PERSPECTIVE
Initiatives of particular interest to enhance motivation
& alignment: Governing idea collective embodiment;
dialogue & systems thinking development programs.
INTERNAL PROCESS PERSPECTIVE
Initiatives to improve process effectiveness,
efficiency, agility and reliability: process redesign,
stakeholder relationship management expansion.
FINANCIAL PERSPECTIVE
Initiatives aimed at financial performance and
sustainability: improving cost accounting &
transparency, developing donation continuity.
BENEFICIARY AND COMMUNITY PERSPECTIVE
Initiatives to enhance the organization’s
mission: personal development seminar
innovation & offering, advocacy & support.
Example:
Translating the strategic areas of action into initiatives
in an organization dedicated to provide life skills for personal growth.
IMPLEMENTING THE STRATEGY: MAKING IT HAPPEN
(Cont.)
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70. WHERE THE TREAD TOUCHES THE GROUND
A chart can be built that displays the visionary objectives,
their strategic themes,
the strategic enablers for each strategic theme
and the initiatives that enliven the enablers.
Each of them with the corresponding measurements and targets.
Visionary
Objectives
Visionary
Objective
Indicators:
Current
Measures
Visionary
Objective
Indicators:
Goals
Strategic
Themes
Strategic
Areas of Action:
Strategic
Objectives
Key Strategic
Indicator:
Current
Measures
Key
Strategic
Indicator:
Goals
Initiatives
- - - -
-
-
-
-
-
-
-
-
-
IMPLEMENTING THE STRATEGY: MAKING IT HAPPEN (Cont.)
70Arturo J. Bencosme, PhD

71. IMPLEMENTING THE STRATEGY: MAKING IT HAPPEN (Cont.)
Those initiatives might include continuous activities
(i.e., programs such as continuous quality improvement)
and projects
(such as key process redesigns).
KEYAREAofACTIONX
PROJECT X P1
CONTINUOUS ACTIVITY X A 1
CONTINUOUS ACTIVITY X A 2
CONTINUOUS ACTIVITY X A 3
THE KEY AREAS OF ACTION ENCOMPASS INITIATIVES NEEDED
TO ATTAIN THEIR CORRESPONDING STRATEGIC OBJECTIVES.
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72. Purpose & Mission
Values
Visionary Objectives
Vision
Strategic Themes &
Strategy Maps
Balanced Scorecard
Cascading
Initiatives
Results
The results obtained from the initiatives
stand at the final stage
of the balanced scorecard-based
strategic planning approach which in turn,
is a never ending process…
IMPLEMENTING THE STRATEGY: MAKING IT HAPPEN (Cont.)
RESULTS ARE FEED BACK TO PROGRESS STRATEGIC ORGANIZATIONAL LEARNING
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73. 73Arturo J. Bencosme, PhD

74. In preparing for battle,
I have always found
that plans are useless
but planning is indispensable.
General Dwight D. Eisenhower
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