The biggest problem in business today is that most strategies don't get executed. Thinking up great ideas is a lot easier than implementing them.

One component of that problem is that strategy is difficult to articulate, and therefore it is difficult to measure. Without a means of measurement it is impossible to find out whether the strategy is being implemented or not, whether the strategy is sound or not, and whether the results are being produced.

The balanced scorecard is a methodology that allows for measuring all of those components at every level of the organization. By designing metrics that address each component piece of the strategy, and which are then linked to specific job families and individual accomplshments, the strategy in all of its component pieces can be measured.

Equally as important is to link the evaluation of employees to the strategy to ensure that employees are spending their energies on areas that will forward the organization's strategy, and that they are compensated for those results. It is just as important to be able to determine when employees are weak in their strategic activities, to link that weakness to compensation as well, and to be able to use that information for training, development or personnel change decisions.

The creation of balanced scorecards and their relationship to performance evaluation and compensation is a complex undertaking. This approach requires the expertise of strategists like The Devero Group, often working hand-in-glove with a technology professional (either the client's own I.T. team or a strategic partner of ours)to seamlessly integrate the newly invented metrics into the performance and compensation system.

Maximizing human capital is the most vital part of any organization (unless it is an entirely robotic organization). The balanced scorecard and its holistic integration is the state-of-the-art in accomplishing that goal. For more information on The Balanced Scorecard please visit The Balanced Scorecard Collaborative