HOW TO DERIVE OBJECTIVE FROM VISION, MISSION, VALUES AND SWOTT ANALYSIS
To help us critically summarize the deduction of objectives from vision, mission and value (statements), and the SWOTT analysis, it is deemed essential to locate the place of objectives in the over-all process of Balanced Scorecard, management system framework proposed by Kaplan and Norton (1996) to link the different types of (performance) measurements together.
Development of BSC begins with determining or updating the company’s over-all strategy or vision and mission (reflecting the values of the company). Understandably, it is advisable to clarify the organization’s future direction right from the start. In this phase, it is important to consult with top management, rather than line managers, to obtain a clear picture of where the company wants to be in, say, three (3) to five (5) years. With the corporate strategy in place, one now has the guide in the derivation of three to five goals relative to the four – or more, depending on industry or corporate that applies it – perspectives that are of customers, internal business, innovation or growth and learning, and the financial -- and the development of specific measures to support each goal. Subsequently, the BSC approach proceeds by associating with each objective series of measures and targets, and by identifying initiatives that relate to this objective. Finally, the BSC approach cascades objectives and measures down to business units, teams and even individuals.
In short, the BSC approach requires articulation of vision and strategy, establishment of objectives that support the vision and strategy, and development of the relevant measurements that can tract progress toward the objectives. (While dispensable in relation to our purpose, let us still mention that the next steps are creating systems for relevant data collection and analysis, and matching of reward systems to objectives and addition of...
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