Part 13- METODE MENURUNKAN BALANCED SCORECARD PERUSAHAAN KE LEVEL UNIT KERJA (CASCADING & ALIGNMENT)

Summary

The transcript discusses the process of cascading and aligning a balanced scorecard within organizations. It emphasizes the importance of translating corporate strategies into actionable goals for smaller work units, ensuring alignment at every level. Four key methods for cascading are outlined: direct adoption, narrowing the scope, component formation, and creating new objectives. The speaker highlights the necessity of ensuring that each level understands its role in supporting corporate strategies, ultimately aiming for clarity and cohesiveness across the organization to enhance execution of strategic goals.

Takeaways

• 😀 The Balanced Scorecard (BSC) helps align corporate strategies with lower-level units.
• 😀 Cascading involves translating corporate-level objectives into actionable goals for teams.
• 😀 There are four methods for cascading BSC: Direct Adoption, Narrowing Scope, Component Formation, and New Creation.
• 😀 Direct Adoption means lower-level goals directly mirror corporate goals.
• 😀 Narrowing Scope adjusts goals to fit the specific context of a unit's focus.
• 😀 Component Formation involves lower-level goals contributing to higher-level objectives.
• 😀 New Creation allows units to develop unique goals that reflect local priorities.
• 😀 Effective cascading ensures all employees understand their roles in achieving corporate strategy.
• 😀 Alignment is crucial for coherence across the organization from top to bottom.
• 😀 The process should ideally extend to individual contributors for maximum clarity.

Q & A

What is the main purpose of cascading a balanced scorecard?

The main purpose of cascading a balanced scorecard is to align the strategies and objectives of lower-level units within an organization with those of the overall company, ensuring that all parts of the organization work towards common goals.

What are the four methods used for cascading a balanced scorecard?

The four methods for cascading a balanced scorecard are: direct adoption, scope narrowing, component building, and creating new components.

What does the direct adoption method entail?

The direct adoption method involves directly transferring strategic objectives, KPIs, and targets from the upper level to the lower level, resulting in a similar balanced scorecard structure.

How does the scope narrowing method differ from direct adoption?

The scope narrowing method maintains the same strategic objectives and KPIs as the upper level but adjusts them to fit the specific focus of the lower unit, creating a more tailored approach.

Can new strategic objectives be created at the lower levels of the organization?

Yes, new strategic objectives can be created at the lower levels, which are relevant to local priorities and may not be included in the upper-level balanced scorecard, yet still support the overall strategy.

What is the significance of alignment in the cascading process?

Alignment is crucial because it ensures that all components of the balanced scorecard at lower levels are consistent with those at higher levels, facilitating effective strategy execution across the organization.

What role do local priorities play in the cascading process?

Local priorities are important as they may identify specific needs or objectives that are unique to a particular unit, which can be incorporated into the balanced scorecard to enhance effectiveness.

Why is it beneficial to cascade the balanced scorecard down to individual employees?

Cascading the balanced scorecard down to individual employees helps ensure that everyone understands their roles and contributions to the organization’s strategic goals, fostering greater engagement and accountability.

What is a strategy map, and how is it used in this context?

A strategy map visually represents the relationships between strategic objectives at different levels of the organization, helping to clarify how lower-level objectives support higher-level goals.

What potential challenges might arise when implementing a balanced scorecard?

Challenges may include resistance to change, misalignment of objectives, lack of understanding among employees, and difficulties in measuring performance effectively.