Register to read the introduction…
The initiatives were intended to produce a more competitive and successful institution, but they were inadequately integrated into the overall strategy.
After building their balanced scorecard,
Metro Bank’s managers dropped many of those programs—such as a marketing effort directed at individuals with very high net worth—and consolidated others into initiatives that were better aligned with the company’s strategic objectives. For example, the managers replaced a program aimed at en-
page 10
This article is made available to you with compliments of Microsoft.
Further posting, copying, or distributing is copyright infringement. To order more copies go to www.hbr.org or call 800-988-0886.
Using the Balanced Scorecard as a Strategic Management System •• •B EST OF HBR
hancing existing low-level selling skills with a major initiative aimed at retraining salespersons to become trusted financial advisers, capable of selling a broad range of newly introduced products to the three selected customer segments. The bank made both changes because the scorecard enabled it to gain a better understanding of the programs required to achieve its strategic …show more content…
Strategic learning consists of gathering feedback, testing the hypotheses on which strategy was based, and making the necessary adjustments.
The balanced scorecard supplies three elements that are essential to strategic learning.
First, it articulates the company’s shared vision, defining in clear and operational terms the results that the company, as a team, is trying to achieve. The scorecard communicates a holistic model that links individual efforts and accomplishments to business unit objectives.
Second, the scorecard supplies the essential strategic feedback system. A business strategy can be viewed as a set of hypotheses about cause-and-effect relationships. A strategic feedback system should be able to test, vali-
page 11
This article is made available to you with compliments of Microsoft.
Further posting, copying, or distributing is copyright infringement. To order more copies go to www.hbr.org or call 800-988-0886.
Using the Balanced Scorecard as a Strategic Management System •• •B EST OF HBR
date, and modify the hypotheses embedded in a business unit’s strategy. By
After building their balanced scorecard,
Metro Bank’s managers dropped many of those programs—such as a marketing effort directed at individuals with very high net worth—and consolidated others into initiatives that were better aligned with the company’s strategic objectives. For example, the managers replaced a program aimed at en-
page 10
This article is made available to you with compliments of Microsoft.
Further posting, copying, or distributing is copyright infringement. To order more copies go to www.hbr.org or call 800-988-0886.
Using the Balanced Scorecard as a Strategic Management System •• •B EST OF HBR
hancing existing low-level selling skills with a major initiative aimed at retraining salespersons to become trusted financial advisers, capable of selling a broad range of newly introduced products to the three selected customer segments. The bank made both changes because the scorecard enabled it to gain a better understanding of the programs required to achieve its strategic …show more content…
Strategic learning consists of gathering feedback, testing the hypotheses on which strategy was based, and making the necessary adjustments.
The balanced scorecard supplies three elements that are essential to strategic learning.
First, it articulates the company’s shared vision, defining in clear and operational terms the results that the company, as a team, is trying to achieve. The scorecard communicates a holistic model that links individual efforts and accomplishments to business unit objectives.
Second, the scorecard supplies the essential strategic feedback system. A business strategy can be viewed as a set of hypotheses about cause-and-effect relationships. A strategic feedback system should be able to test, vali-
page 11
This article is made available to you with compliments of Microsoft.
Further posting, copying, or distributing is copyright infringement. To order more copies go to www.hbr.org or call 800-988-0886.
Using the Balanced Scorecard as a Strategic Management System •• •B EST OF HBR
date, and modify the hypotheses embedded in a business unit’s strategy. By