Saturday, August 9, 2008

Is Your Company's Strategy a Secret, Even to Your Employees?

Timo Elliott wrote in his blog, a short but nice post called Is Your Company's Strategy a Secret, Even to Your Employees?

He talks about the confusion that some executives are making about the concepts of strategic maps when the company is implementing performance management.

He wrote: "I was recently in touch with a team implementing performance management in a large technology company. To their frustration, the project stalled when the company's executive team refused to roll out the strategy maps to the rest of the organization on the grounds that it was "confidential"...
Given this type of behavior, is it really any surprise that 95%* of a typical workforce does not understand their organization’s strategy?!"

Howard Dresner, in his blog, also wrote a post where he mentions the same kind of issue (I commented in a previous post called Some worrying issues about IT), when he comments that many people have difficulty in developing Performance Management initiatives.

Unfortunately, in several companies are happening something like that. It is a very difficult issue, and I think that the professionals responsible to implementing performance management need to make sure that the board of the company is understanding all the process. For this, it is necessary an executive sponsor highly committed.

He mentioned the classical book The Balanced Scorecard, by Robert Kaplan and David Norton. This book is mandatory reading for who wants to apply the concepts of Balanced Scorecard and Strategic Maps. I also would like to mention the others books of Kaplan and Norton, mainly Strategy Maps: Converting Intangible Assets into Tangible Outcomes.

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