Perfomance Management

Strategic reviews are an assessment of various elements in the business to determine the validation status and the actions required to maintain the validated state of the businesses.

Review of the strategic plan gives a snapshot of possible failures and whether a change in direction is required in the overall business vision. It’s important for companies to periodically review their strategy and determine what’s working.

The final stage of strategic management is to review and assess the results achieved through the strategic process. By measuring the performance of a business strategy, business can decide whether to stay on course, make adjustments to actions or adapt to changing market conditions. This is an ongoing process that allows business to review performance metrics and put interventions in place if necessary.

The term balanced scorecard (BSC) refers to a strategic management performance metric used to identify and improve various internal business functions and their resulting external outcomes.

The key benefit of using a BSC framework is that it gives business a way to “connect the dots” between the various components of strategic planning and management, meaning that there will be a visible connection between the projects and programs that people are working on, the measurements being used to track success (KPIs), the strategic objectives the organization is trying to accomplish, and the mission, vision, and strategy of the organization.

Businesses may use BSCs for internal processes. For instance, Banks in Kenya frequently contact consumers and conduct surveys to determine how well they do in their customer service.

These surveys evaluate recent banking transactions, with questions ranging from wait times to the volume of interactions with bank personnel and overall happiness. Bank executives can utilize this information to assist personnel if there are problems with service, as well as identify any issues consumers have with products, processes, or services (According to Safety Culture).

By 2004 about 57% of global companies and businesses were working with the balanced scorecard (according to Bain). Much of the information in the commercial sector is proprietary, because it relates to the strategies of specific companies.

Most of the time balanced scorecards require business managers and team members to report information, which means logging data. Many don’t like this because they find it tedious and also, it can get in the way of doing the work required to meet objectives.