1.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreservedCirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
DR WILFRED MONTEIRO
EXECUTIVE DIRECTOR
SYNERGY MANAGEMENT ASSOCIATES
www.synergymanager.net

2.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
T h e m a t e r i a l i n t h i s P D F
F I L E i s c o p y r i g h t 2 0 1 2
D R W I L F R E D M O N T E I R O –
a l l r i g h t s r e s e r v e d
a n y c i r c u l a t i o n s h o u l d b e
d o n e o n l y w i t h w r i t t e n
p e r m i s s i o n
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
T h e m a t e r i a l i n t h i s P D F
F I L E i s c o p y r i g h t 2 0 1 2
D R W I L F R E D M O N T E I R O –
a l l r i g h t s r e s e r v e d
a n y c i r c u l a t i o n s h o u l d b e
d o n e o n l y w i t h w r i t t e n
p e r m i s s i o n

3.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
• The Balanced Scorecard is one of
most influential management ideas
which provides a framework for
translating an abstract strategy into
specific, concrete objectives,
measures, indicators and actions.
• It combines a ‘balanced’
(cause/effect) view with a ‘scoring’
(measuring/tracking) view. It focuses
on aligning the goals of business
units, teams and individual
employees with the company’s
overall business strategy.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
• The Balanced Scorecard is one of
most influential management ideas
which provides a framework for
translating an abstract strategy into
specific, concrete objectives,
measures, indicators and actions.
• It combines a ‘balanced’
(cause/effect) view with a ‘scoring’
(measuring/tracking) view. It focuses
on aligning the goals of business
units, teams and individual
employees with the company’s
overall business strategy.

4.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
• A great Balanced Scorecard breaks
a business strategy down into
specific and measurable chunks. It
also keeps the long-term strategic
goals visible on the radar. The
ultimate goal of a Balanced
Scorecard is to experience Strategy
Execution as a continuous process.
• Today, the Balanced Scorecard
provides much more than multi-
view measurement; in many
organizations, it’s an essential
management system and a
cornerstone of successful Strategy
Execution. .
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
• A great Balanced Scorecard breaks
a business strategy down into
specific and measurable chunks. It
also keeps the long-term strategic
goals visible on the radar. The
ultimate goal of a Balanced
Scorecard is to experience Strategy
Execution as a continuous process.
• Today, the Balanced Scorecard
provides much more than multi-
view measurement; in many
organizations, it’s an essential
management system and a
cornerstone of successful Strategy
Execution. .

5.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreservedCirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
TWENTY YEARS OF THE BALANCED
SCORECARD...
why do people view it with caution if not
with cyicism & suspicion ???

6.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
THE USUAL GROUSE ....
• Many companies have gone through the process of introducing the
Balanced Scorecard. It’s a good idea to do some research to get a feeling
for your organization’s particular situation. This will help avoid some of
the classic pitfalls. Typical mistakes that companies have made in the past
include:
• Senior management is not convinced and shows little commitment
• The Scorecards are developed by ‘the happy few’
• The internal/external project members have limited or only theoretical
knowledge
• The Balanced Scorecard is only used by top management
• The Balanced Scorecard stays too long at the development stage before
being launched and used
• There are not enough links to the strategy and planning processes
• The content of the Balanced Scorecard is unrealistic
• The Balanced Scorecard is only used for remuneration purposes
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
• Many companies have gone through the process of introducing the
Balanced Scorecard. It’s a good idea to do some research to get a feeling
for your organization’s particular situation. This will help avoid some of
the classic pitfalls. Typical mistakes that companies have made in the past
include:
• Senior management is not convinced and shows little commitment
• The Scorecards are developed by ‘the happy few’
• The internal/external project members have limited or only theoretical
knowledge
• The Balanced Scorecard is only used by top management
• The Balanced Scorecard stays too long at the development stage before
being launched and used
• There are not enough links to the strategy and planning processes
• The content of the Balanced Scorecard is unrealistic
• The Balanced Scorecard is only used for remuneration purposes

7.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
THE MAIN OBSTACLE
• Their main objection is that
it does not provide practical
guidance for deployment,
and some executives view it
as a "quick fix" that can
easily be installed in their
organizations.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
• Their main objection is that
it does not provide practical
guidance for deployment,
and some executives view it
as a "quick fix" that can
easily be installed in their
organizations.

8.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
• The fault lies in making it a one-shot
adventure when if fact Implementing a
balanced metrics system is an evolutionary
process, not a one-time task that can be
quickly checked off as “completed”. If
executives do not recognize this from the
beginning and fail to commit to the long term,
then the organization will realize
disappointing results.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
• The fault lies in making it a one-shot
adventure when if fact Implementing a
balanced metrics system is an evolutionary
process, not a one-time task that can be
quickly checked off as “completed”. If
executives do not recognize this from the
beginning and fail to commit to the long term,
then the organization will realize
disappointing results.

9.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
How to succeed in
the balance scorecard
implementation
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
How to succeed in
the balance scorecard
implementation

10.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
Manage the introduction of the Balanced
Scorecard as a change project
The Balanced Scorecard impacts the way your
managers manage – so the implementation
effort will therefore demand change effort
from everyone. Increase your success rate
dramatically by managing your BSC
introduction as a change project, rather than
the introduction of an instrument.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
The Balanced Scorecard impacts the way your
managers manage – so the implementation
effort will therefore demand change effort
from everyone. Increase your success rate
dramatically by managing your BSC
introduction as a change project, rather than
the introduction of an instrument.

11.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
KNOW WHAT
YOU WANT TO ACHIEVE
• A Balanced Scorecard can serve many
purposes and offers four distinct benefits. You
won’t be able to reap all of them in the first
year, so choose carefully. Once you make a
choice, stick to it and make sure you get those
benefits before focusing on something else. I
like to focus on the cascading and learning
part first, on the communication second,
moving onto the measuring part last.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
• A Balanced Scorecard can serve many
purposes and offers four distinct benefits. You
won’t be able to reap all of them in the first
year, so choose carefully. Once you make a
choice, stick to it and make sure you get those
benefits before focusing on something else. I
like to focus on the cascading and learning
part first, on the communication second,
moving onto the measuring part last.

12.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
KISS FORMULA (KEEP IT SHORT AND SIMPLE)
• You have to keep in mind that even though the balance
scorecard is a big initiative, it’s okay to set basic measures
that can evolve into something more meaningful as time
progresses.
• This makes me think of the quote, “Perfect is the enemy of
good enough.”
• Many times, people try to craft elaborate measures—but
sometimes it’s best to keep it simple. You don’t want to
overburden everyone on the team so they start thinking a
scorecard will be more work than it’s worth.
• In a sense, you have to collect data and be okay with the
75% solution. As you go on throughout the years and collect
more data, you will be able to determine the best
information to collect and you’ll become better at the
measure-making process.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
• You have to keep in mind that even though the balance
scorecard is a big initiative, it’s okay to set basic measures
that can evolve into something more meaningful as time
progresses.
• This makes me think of the quote, “Perfect is the enemy of
good enough.”
• Many times, people try to craft elaborate measures—but
sometimes it’s best to keep it simple. You don’t want to
overburden everyone on the team so they start thinking a
scorecard will be more work than it’s worth.
• In a sense, you have to collect data and be okay with the
75% solution. As you go on throughout the years and collect
more data, you will be able to determine the best
information to collect and you’ll become better at the
measure-making process.

13.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
MANAGING CHANGE REQUIRES
STRONG DRIVING FORCE
• There is no change without strong leadership. It’s that simple.
Create a strong core team that involves othersTake your time
selecting the people who will support the Scorecard’s
implementation.
• Make sure you have people with a good level of business
understanding, excellent facilitation skills and the ability to
mobilize people.
• Motivate the core team to involve as many people as possible
through workshops to ensure enough buy-in before you move
forwards. Critical mass is key to propel a transformation
forward.
•
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
• There is no change without strong leadership. It’s that simple.
Create a strong core team that involves othersTake your time
selecting the people who will support the Scorecard’s
implementation.
• Make sure you have people with a good level of business
understanding, excellent facilitation skills and the ability to
mobilize people.
• Motivate the core team to involve as many people as possible
through workshops to ensure enough buy-in before you move
forwards. Critical mass is key to propel a transformation
forward.
•

14.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
EFFICIENT DATA COLLECTION AND REPORTING
• A primary reason that companies overemphasize financial
metrics at the expense of other important operating
variables is the simple fact that systems already exist for
collecting and reporting financial measures.
• Companies that deliberately plan to define the vital few
metrics and commit the resources to automate data
collection and subsequent reporting tend to achieve good
results. Unfortunately, in most organizations, if collecting
metrics data consumes too much time and energy, they
will not be captured.
• That is why it is important to prioritize key performance
indicators so you can be confident that your investment in
metrics is spent on the information that will be most
relevant to improving organizational performance.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
• A primary reason that companies overemphasize financial
metrics at the expense of other important operating
variables is the simple fact that systems already exist for
collecting and reporting financial measures.
• Companies that deliberately plan to define the vital few
metrics and commit the resources to automate data
collection and subsequent reporting tend to achieve good
results. Unfortunately, in most organizations, if collecting
metrics data consumes too much time and energy, they
will not be captured.
• That is why it is important to prioritize key performance
indicators so you can be confident that your investment in
metrics is spent on the information that will be most
relevant to improving organizational performance.

15.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
EFFICIENT DATA COLLECTION AND REPORTING
• The mantra in business intelligence is to
provide the “right information to the
right people at the right time.”
• Based on the key measurements
involved, analysts can dissect the
information needs through techniques
such as data modeling and dimensional
modeling.
• Those approaches support the analysis,
extraction and integration of the right
information to support the key
measurements. The information
provided could be historical, actionable
and/or predictive. It would typically
reinforce or change the course of action
or behavior of the people performing
the business process.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
• The mantra in business intelligence is to
provide the “right information to the
right people at the right time.”
• Based on the key measurements
involved, analysts can dissect the
information needs through techniques
such as data modeling and dimensional
modeling.
• Those approaches support the analysis,
extraction and integration of the right
information to support the key
measurements. The information
provided could be historical, actionable
and/or predictive. It would typically
reinforce or change the course of action
or behavior of the people performing
the business process.

16.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
COMMUNICATE PROCESS BEFORE
CONTENT
•
start right away by communicating the
advantages, project timings, roles and
responsibilities of the Balanced Scorecard.
Proactive, no-nonsense communication
prevents misunderstandings and creates buy-
in. Take a look at some of the communication
best-
quite useful.
•
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
•
start right away by communicating the
advantages, project timings, roles and
responsibilities of the Balanced Scorecard.
Proactive, no-nonsense communication
prevents misunderstandings and creates buy-
in. Take a look at some of the communication
best-
quite useful.
•

17.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
START WITH AN EXTERNAL FOCUS
• One major criticism of the Balanced Scorecard is that it
encourages an internal focus. This is not as much an indictment
of the principle as it is the way companies put the principle into
practice. To help overcome this problem, you should ALWAYS
start with an external focus – the view of your
organization’s external environment .
• The goal is to achieve a balance of enterprise level metrics as
you assess the organization’s market, shareholders, competitors,
employees and stakeholders. Executives will use data about their
external environment to assess Strengths, Weaknesses,
Opportunities and Threats (SWOT).
• This will then guide them to gaps in their enterprise level
metrics. Then, all other levels of metrics are tested for alignment
with the enterprise level metrics, thereby ensuring that even
internal metrics link to external performance drivers.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
• One major criticism of the Balanced Scorecard is that it
encourages an internal focus. This is not as much an indictment
of the principle as it is the way companies put the principle into
practice. To help overcome this problem, you should ALWAYS
start with an external focus – the view of your
organization’s external environment .
• The goal is to achieve a balance of enterprise level metrics as
you assess the organization’s market, shareholders, competitors,
employees and stakeholders. Executives will use data about their
external environment to assess Strengths, Weaknesses,
Opportunities and Threats (SWOT).
• This will then guide them to gaps in their enterprise level
metrics. Then, all other levels of metrics are tested for alignment
with the enterprise level metrics, thereby ensuring that even
internal metrics link to external performance drivers.

18.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
DEFINE YOUR CASCADING PROCEDURE
• It’s important to select a cascading approach upfront. You
have several options to cascade objectives, measures,
targets and initiatives. Your choice depends on your
overall goal.
• For example, cascading by regions will help you empower
a geographical approach, cascading by business lines will
help you achieve higher autonomy and accountability for
your profit centers.
• Cascading themes, like innovation, customer experience
or green economy, will help you improve the coordination
between several apparently disconnected organizational
units around a particular theme.
•
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
• It’s important to select a cascading approach upfront. You
have several options to cascade objectives, measures,
targets and initiatives. Your choice depends on your
overall goal.
• For example, cascading by regions will help you empower
a geographical approach, cascading by business lines will
help you achieve higher autonomy and accountability for
your profit centers.
• Cascading themes, like innovation, customer experience
or green economy, will help you improve the coordination
between several apparently disconnected organizational
units around a particular theme.
•

19.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
DOES BSC COMMUNICATES YOUR STRATEGY
• Cascading strategy is all about the
collective understanding of the
overall company strategy. And while
this strategy can be designed by just
a few people, the Strategy Execution
demands effort from a much bigger
crowd to succeed.
• Thanks to the visualization of the
cause and effect relationships, the
Scorecard helps to get the strategy
into the Head, Heart and Hands of all
your employees. A strategy needs to
come alive at each of these three
levels.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
• Cascading strategy is all about the
collective understanding of the
overall company strategy. And while
this strategy can be designed by just
a few people, the Strategy Execution
demands effort from a much bigger
crowd to succeed.
• Thanks to the visualization of the
cause and effect relationships, the
Scorecard helps to get the strategy
into the Head, Heart and Hands of all
your employees. A strategy needs to
come alive at each of these three
levels.

20.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
HOW MUCH DATA CRUNCHING IS GOOD?
• Kaplan and Norton’s balanced scorecard
framework recommends no more than 20
key performance indicators (KPIs) within 4
perspectives: financial, customer, internal,
learning and growth.
• Some other experts suggest enhancing
key measurements by removing the
traditional budget process recommend
less than 12 KPIs. Some recommend the 4
balanced scorecard perspectives plus 2
more related to employee satisfaction and
environment/community.
• Regardless of the approach you select, you
should adopt and communicate a strategic
planning framework that will fit your
business and help identify the key
measurements.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
• Kaplan and Norton’s balanced scorecard
framework recommends no more than 20
key performance indicators (KPIs) within 4
perspectives: financial, customer, internal,
learning and growth.
• Some other experts suggest enhancing
key measurements by removing the
traditional budget process recommend
less than 12 KPIs. Some recommend the 4
balanced scorecard perspectives plus 2
more related to employee satisfaction and
environment/community.
• Regardless of the approach you select, you
should adopt and communicate a strategic
planning framework that will fit your
business and help identify the key
measurements.

21.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
• Be honest with your stakeholders
about timing and results. Setting up
the basics may take a few weeks,
but seeing real benefits will take far
longer. Don’t oversell yourself. Make
your stakeholders aware upfront
that implementing a Balanced
Scorecard is a transformational
journey better approached as a
marathon than as a sprint.
•
SET THE EXPECTATIONS RIGHT
FROM THE START
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
• Be honest with your stakeholders
about timing and results. Setting up
the basics may take a few weeks,
but seeing real benefits will take far
longer. Don’t oversell yourself. Make
your stakeholders aware upfront
that implementing a Balanced
Scorecard is a transformational
journey better approached as a
marathon than as a sprint.
•

22.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
The Last word...
• TIME TABLE THE PROCESS: AVOID THE OVERKILL
• Regardless of the size and complexity of the organization, 12-
16 weeks is sufficient time to establish key performance
metrics.
• The exact implementation of the key indicators is rarely right
the first time, so it is better to establish a time table and
reserve the opportunity to provide subsequent iterations
beyond the initial 12 weeks.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
• TIME TABLE THE PROCESS: AVOID THE OVERKILL
• Regardless of the size and complexity of the organization, 12-
16 weeks is sufficient time to establish key performance
metrics.
• The exact implementation of the key indicators is rarely right
the first time, so it is better to establish a time table and
reserve the opportunity to provide subsequent iterations
beyond the initial 12 weeks.

23.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
Dr WILFRED MONTEIRO
• is a nationally acclaimed stalwart in the field of
business management with an illustrious career
spanning over 30 years
• He is a consultant and advisor to Board of Directors
of leading companies & Chambers of Commerce;
• a management trainer of high repute who has
conducted over 2250 seminars in India and abroad
in areas of business strategy, marketing &
organization development.
• a Visiting Professor to premier management
institutes and staff training colleges throughout
India.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
• is a nationally acclaimed stalwart in the field of
business management with an illustrious career
spanning over 30 years
• He is a consultant and advisor to Board of Directors
of leading companies & Chambers of Commerce;
• a management trainer of high repute who has
conducted over 2250 seminars in India and abroad
in areas of business strategy, marketing &
organization development.
• a Visiting Professor to premier management
institutes and staff training colleges throughout
India.
website: www.synergymanager.net 23
If you have any questions at all please do not hesitate to send a note or call.
My email address is: wm@synergymanager.net

24.
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
CONTACT US
Dr Wilfred Monteiro
TELE : 91 22 9819843927
EMAIL: wm@synergymanager.net
website:
www.synergymanager.net
CirculatedbyDrWilfredMonteiro-copyrightallrightsreserved
SYNERGY MANAGEMENT ASSOCIATES
since 1993
Guiding strategic thinking;
strategic planning &
Strategic execution