"It is better to perform a not very correct strategy by 100% than by 70% correct"

- The expression of one of my employer.

Strategy - a working tool when planning for the next period. It is thanks to the strategy that projects, marketing budget, HR-resources, customer segmentation, commercial proposals, new product development are determined.

Balanced Scorecard (BSC), in the English version - Balanced Scorecard (BSC). SSP is a mechanism for consistently communicating to the staff the strategic success factors, the company's goals and the control of their achievement through the so-called key performance indicators (KPI), in the English version - Key Performance Indicator (KPI). ( ) wikipedia
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This system was developed by professors at Harvard Business School Norton and Kaplan.

This is a whole enterprise management system, or a large department, which is based on the following postulates:
1) it is necessary to control what can be considered
2) Enterprise strategy can be expressed in quantitative terms very clearly.
3) every employee of the enterprise should know for which strategic block he is responsible, and knowing how important it is for the whole company is more motivated in fulfilling its own plan


Actually, what is the strategy of an ordinary enterprise:
“The organization of“ horns and hooves ”intends to take a leading position in the market of water transfusion from empty to empty due to high quality customer service and leadership in developing new valuable products for the most profitable customers” - if you find something like this in the business plan, then This will not be the worst option. MTP, on the other hand, makes it possible to talk about strategy from a much more down-to-earth perspective. Having formed the BSC, your employees will still expect tactical plans, but the goals reflected in the strategy will be much more understandable.

The strategy of the company that has implemented the SSP will look like this: “The organization of“ Horns and hoofs ”will achieve an increase in the value of 40% per share by reducing the costs of non-core assets and increasing revenues for the most profitable customers (entering new markets, bringing new ones in demand by our current customers products). To achieve these goals, our company will improve the quality of the production process, deal with a system of increasing customer loyalty. To organize such work, we need to have the cheapest production personnel, and the most highly qualified managers. ”

As you can see the SSP considers any organization from 4 sides. Since this tool is used mainly in large and sustainable organizations, the Strategy is a document for a period of 3 years, because projects implementing this strategy will reach the bottom in just 3 years.

So the fish begins to rot from the head:
1) Finance - in this part of the strategy, the CEO describes what financial goal the shareholders meeting approved after the report. In our example, the “horn and hoof” shareholders want to get 40% earnings per share for 4 years (a good yield for the American stock markets). They also write that for this they will withdraw non-core assets for the balance, which will reduce their costs and aim at increasing revenues.
2) Client component - To increase profitability, our CEO after customer segmentation and sales analysis comes to the conclusion that it is better to sell to those who already buy the most profitable products (everyone thinks about it himself, in principle, this is not a McDonalds strategy, for example). To customers who do not provide the necessary profitability, the CEO can offer the option of more standard products when the cost of servicing such a client is minimal.
3) The component of business processes - well, everything is clear. To implement our plans, it is necessary to change the production process, reduce the number of defects (thereby reducing costs), develop and implement CRM, organize the sales process so that an already attracted customer is forced to come again for a more expensive product.
4) Human component - According to our CEO, production personnel may not receive anything, because everyone makes cars, but salespeople and management must have a strong and complex motivational system focused on strategy execution (by the way, our CEO is wrong: better if all employees will be focused on the implementation of the strategy)

So after a brief analysis, we must draw a strategic map. On the strategic map, we denote the KPI (Key Performance indicator) of each component, as well as combine some KPIs with each other, as related. As a result, we get something as follows .

After such a document is approved at a general meeting of managers, KPIs will be developed for each structural unit (at the suggestion of the creators of the system, no more than 8 pieces). Heads of divisions determine KPIs for each employee. Also about 8 pieces per brother. Everything is going together in the form of SSP from bottom to top.

Why does it need Ishnikam?

IT staff, especially those implementing management systems, should understand well why the client needs it. IT employees in large companies need to understand why their goals are as they are now, and how their implementation or failure will affect the well-being of the entire company. IT managers can use the BSC within their division to improve the quality of service and regulate the assessment of their work with management. By and large, all of this is good. Starting from clarity in the minds, ending with cutting off unnecessary attempts due to the realization of someone's ambitions, because you are always going to the company, and checking any project for compliance with the strategy is very simple (at least some of the KPIs should come close to the target values) .