This document discusses strategies for effectively implementing the Balanced Scorecard methodology for translating organizational strategy into action. It summarizes Kaplan's five-stage system for deploying the Balanced Scorecard and recommends tools that can help with each stage. These include using SWOT analysis for strategy development, setting SMART objectives linked to metrics, utilizing the planning phase of Deming's PDCA cycle to develop detailed implementation plans, and employing the PDCA cycle's check and act phases to analyze results and modify actions. The document argues that using these tools can help organizations overcome strategic dilemmas and operational barriers that often derail Balanced Scorecard implementation efforts.

1. The Strategic Dilemma and Critical Operational Barriers
A Monologue on
The Balanced Score Card: Translating Strategy Into Action
Robert S Kaplan, in one of his articles explains how to effectively manage Strategy
and Operations. This wonderful work chalks out a five stage system deployment of
the Balanced Scorecard. Each of the stages has crystal clear deliverables, while
connecting ends beautifully.
By my study of various Operations and their Struggle in getting their Balanced
Scorecard moving, I tried testing a simple & popular analogical model to see if it
works. The Success has been pleasantly surprising.
Organisations (read Visionaries) start with a loud bang, however many whimper
down when they face operational barriers & conflicting short term goals. This leads
to a Strategic Dilemma in forging ahead the Balanced Score Card. Now seriously,
come to think of it; should we say forging ahead, who, many would liken to a ruthless
warrior, mad with personal glory in mind; or a Great One with small wins of Land &
Friends along the way?
Kaplan begins with Strategy Development as the stage 1 of this system. Of course he
talks about the Organisation’s Vision, Mission and Value Statements at this stage.
These are the deliverables expected from this stage. What’s important is the process
of arriving at these guiding principles. I tested the SWOT Analysis Tool (Strengths,
Weakness, Opportunities & Threats) to drive this process. Success has been inciting
confidence.
Stage 2 is about translating these guiding principles of Vision & Mission into
Objectives and Programs. General Objectives only move a notch above the Vision
Statements. My tests have shown that, by arriving at SMART (Specific, Measurable,
Achievable, Realistic and Time-bound) Targets, Organisations have been able to put
their thoughts into manageable chunks of Actions. Results have been highly
convincing when these objectives are linked to performance Metrics
Let me talk about the simple analogical tool mentioned in the beginning of this
monologue for a minute. We have heard of Deming’s PDCA Cycle. (Plan –Do – Check
– Act). Can we not beautifully utilise the Planning phase of this cyclic tool in
accomplishing these Objectives. Well I did try this. The Balanced Scorecard is
Strategy Deployment & needs a detailed fool proof plan to be successful. The 80-20
rule (read Pareto) aptly worked. This is the Stage 3 of Kaplan’s System. Teams spent
value adding time on developing these Plans. Organisations need not disturb the
running operations till a workable Plan is in place. A well thought out plan debated

2. healthily & agreed by leaders made the transition into Kaplan’s next stage relatively
less thorny.
Stage 4 is all about Action. The ‘Do’ Phase of the Deming’s cycle is nothing but
operationalising (or implementing) the Plan. Organisations that had extensively
covered aspects and potential risks along with mitigation plans in the Planning
phase, fared decently in deploying the actions. Teams & Individuals bought the ideas
rather than being sold or coaxed into it. Vibrations were felt in the floor & Positive
results started pouring in
Reports start coming out. These are sliced and diced around. Analysis of Cost-
Benefit, Profitability & Time Correlations of Performance, before and after Strategy
Deployment is drawn. These are further tested and actions are modified / intensified
based on the results. This is the final Stage of Kaplan’s System. So is the Check and
Act Phase of Deming’s PDCA Cycle
The Strategic Dilemma occurs when Visionaries fault in moving ahead with an
inadequate & opaque plan, thereby disturbing the apple cart and attracting ire of the
operational teams. Operational Barriers will occur & did occur during the
implementation and my tests. However these were less of a surprise and more to do
with activating the mitigation plans and cushioning the impact profoundly.
The Balanced Scorecard is a wonderful methodology for Strategy Deployment. The
world will miss the utility of this if they are disorderly operationalised. Employing
the SWOT Analysis, SMART Objectives, Pareto & PDCA helps the organisations in
effectively implementing this. Experts’ and my own tests have vindicated this stand.
Krishna Praveen Rao