Building a Co-Creative Performance Management System
The article talks about the new generation of the traditional version of a Balanced Scorecard that has resulted in higher growth, productivity and profit while empower employees to co-create the strategy for an enterprise. The classic Balanced Scorecard, which sets the strategy for the interaction of financial-, customer-, business process- and learning & growth issues was traditionally developed by the executive level manager and then passed on to lower level manager to fine tune the system. In comparison, a Co-created performance management system sets only broad themes by the top level and then encourages employees to build their own scorecard within the broad context. The higher level of engagement leads to a richer set of strategies for organizations as individuals often know better what initiatives they can undertake to improve the firm’s overall performance. It allows employees to build new interactions first within the company and with customers and external stakeholders. The article uses the example of a company called Midwest a global environment consulting firm with 137 offices in 39 countries that helps large corporations to identify and manage their environmental and related risk. The organization performed well over a decade but struggled to growth after years because of the existing management performing system in place. Each office had their own Balanced Scorecard which was focused mainly on financial and operational metrics which hindered growth. The company realized they need a mechanism that rewards operational excellence and encourages growth at the same time. Two senior managers layed out a new strategy that included growth and handed the plan over to the regional leaders and partners and have them generated their Scorecard based on the blueprint that had been developed. In 2006 the company organized 3 global meetings to discuss and asses the new performance management process for...
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