(Part 6) | CARA MUDAH MEMAHAMI STRATEGY MAP DAN STRATEGIC OBJECTIVE DALAM BALANCED SCORECARD

Summary

This video discusses the process of creating a balanced scorecard (BSC), starting with the development of a strategy map that outlines the company’s objectives from different perspectives: financial, customer, internal processes, and learning. It emphasizes the importance of clear strategic goals, the inclusion of mission, vision, and values, and the need for leadership to make wise decisions when differences arise. The speaker warns against setting too many strategic goals, which can dilute the effectiveness of the strategy map, and stresses the importance of alignment with the company’s documented plans. The video highlights challenges in understanding and agreeing on strategic objectives, especially in the early stages of creating a BSC.

Takeaways

• 😀 A strategy map is essential for building a balanced scorecard and should be structured across different perspectives: financial, customer, internal processes, and learning/growth.
• 😀 Strategic objectives should include both an object and a desired condition, such as increasing customer numbers or improving punctuality.
• 😀 The creation of a balanced scorecard requires a clear understanding of the company’s mission, vision, and value system, as well as the formulated strategy.
• 😀 It's important to align the strategic goals with the business processes, such as AVC business processes, to ensure their relevance and effectiveness.
• 😀 A good strategy map identifies causal relationships, typically from lower-level perspectives to higher-level ones, making the strategy clearer and more actionable.
• 😀 Not all company activities should be considered strategic, as having too many strategic objectives can dilute their significance and clarity.
• 😀 The process of formulating strategic objectives can be challenging because not all employees may understand the true meaning of 'strategic'—it should be a priority with a significant impact.
• 😀 Leadership plays a crucial role in resolving disagreements among employees about which objectives should be classified as strategic.
• 😀 The creation of a balanced scorecard improves over time as mistakes are identified and corrected, leading to a more effective strategy implementation process.
• 😀 Consistency in the evaluation and refinement of the strategic goals ensures that the balanced scorecard becomes more accurate and better aligned with the company’s needs over time.

Q & A

What is the purpose of a strategy map in the Balanced Scorecard?

A strategy map visually represents a company's strategy, highlighting the relationships between different perspectives of the Balanced Scorecard: Financial, Customer, Internal Process, and Learning and Growth. It helps align the organization's strategic objectives and provides a clear cause-and-effect relationship from the bottom to the top perspectives.

What are the four main perspectives of the Balanced Scorecard?

The four main perspectives of the Balanced Scorecard are: 1) Financial Perspective, 2) Customer Perspective, 3) Internal Process Perspective, and 4) Learning and Growth Perspective.

How should strategic objectives be written in a Balanced Scorecard?

Strategic objectives should include two key elements: 1) An object (e.g., customer, flight), and 2) A desired condition (e.g., on-time performance, increased customer numbers). These objectives guide the organization's efforts towards its strategic goals.

What challenges can arise during the development of strategic objectives?

Challenges include misunderstanding of what 'strategic' means, an overload of objectives that dilutes their strategic impact, lack of alignment with the company's documented plans, and disagreement among employees about what constitutes a strategic objective.

Why is it important not to have too many strategic objectives?

Having too many strategic objectives can make the strategy map crowded and unclear. This can reduce the focus on high-priority objectives and shift the focus from strategic goals to operational tasks, undermining the overall impact of the Balanced Scorecard.

How can alignment with the company’s plans help in creating strategic objectives?

Strategic objectives should align with the company’s documented strategic plans and functions. Without this alignment, the objectives may be based on assumptions rather than real strategy, which can lead to confusion and inefficiency in execution.

What role does leadership play in the development of strategic objectives?

Leadership is crucial in guiding the organization through differences in perspectives and in making wise decisions regarding which objectives are truly strategic. Effective leadership ensures that there is clarity and consensus among employees about what the organization’s strategic objectives should be.

What happens if employees do not agree on what constitutes a strategic objective?

When employees do not agree on what constitutes a strategic objective, it can create confusion and hinder the implementation of the Balanced Scorecard. A lack of agreement may lead to inconsistency in how strategic objectives are understood and executed across the organization.

How can organizations overcome challenges in the early stages of implementing a Balanced Scorecard?

Organizations can overcome early-stage challenges by continuously evaluating and refining their strategic objectives. As the process matures and employees become more familiar with the system, the issues typically decrease, making the strategy clearer and more effective.

Why is it important for strategic objectives to be impactful and prioritized?

Strategic objectives must be impactful and prioritized to ensure that they lead to significant changes and improvements within the organization. Focusing on high-priority objectives helps the organization make meaningful progress toward its goals without getting distracted by less important tasks.