Water and Environmental
Management
Balanced Success
A new Strategic Management model
@Asheesh/WEM
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Balanced Success - BSC - what is it?
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Management tool for all levels of management
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A means of turning a strategy into action
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Compass - guarantee of the right course of development
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Combination of short and longer term success of an organisation
2006/M.Asheesh/Eng water
management
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Why do strategies fail to realise?
BARRIERS IN INTERNALISATION AND COMMITMENT
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Understanding and communicating a strategy
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Participation of the staff
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Length of the strategy process
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Awareness of the realisation of the strategy
MANAGEMENT BARRIERS
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Will to shape one’s own future
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Management systems and attitudes
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Strategic capacity of managers/management groups
PROCESS BARRIERS
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Excessive emphasis on the budgetary process in management
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Separate sub-strategies
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Follow-up and review
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Voters, citizens and international stakeholders
Political
leadership
Social-political
contents and choices
Public economy;
expenditure, revenues and
capital decisions
Political decision- making
Strategic perspectives
of public sector
activities
Effectiveness
Resource management
Processes and
structure
Renewal and
work capacity
Governance and management by results
Professional
leadership
Core services;
security and
infrastructure services
Basic services;
education, social and
health care services
Market-oriented
services
Citizens as tax-payers and customers
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Characteristic
Management
function
Starting point
Perspectives
Measures
Target setting
Balancing
BSC (business)
BS (public organisation)
Emphasis on measures
Vision
Strategy
 Economic result (owner
interest)
 Client
 Processes
 Learning
Often numerical indicators
One target/measure
Measure <-> Measure
Business plan
Implementation Personal Development
Procedures
Annual report
Pay system
Emphasis on the process of creating the strategy and
its criteria
Strategic basis:
vision/mission statement =>
strategic responsibilities
 Effectiveness (social/client)
 Resources
 Processes and structures
 Renewal and work capacity
Criteria for Success, including verbal expressions
Three target levels (min,real,max)
Strategic responsibilities <-> critical success factors
Effectiveness <-> other perspectives
Corporate strategy/units’ strategies
Budget
Annual action plan
Result negotiations (between organisational levels)
Result- and development conversations (within
organisations)
Annual report
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Key Questions in Public Leadership
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What is our strategic foundation - vision and
mission statement?
How shall we secure that our actions will fulfil the
vision, the mission statement, and set targets?
What is essential in allocating resources and
competencies?
How shall we know that we have proceeded in the
direction of the vision and the strategic targets?
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management
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Balanced Success Strategy Framework
Citizensand
politicians
EFFECTIVENESS
Organization’s capacity
and efficiency
PROCESSES
STRUCTURES
Resourcemanagement
and economy
VISION
MISSION
STATEMENT
VISIO
RESOURCE
MANAGEMENT
AJATUS
RENEWAL
WORK CAPACITY
Workunitsand
personnel
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Balanced Success Strategy as a
Process
Why do we exist?
and what are we accountable for?
What kind of the future do we
want to have?
What do we need to
accomplish in order to fulfil
the vision and the mission
statement from different
perspectives?
Strategic Basis
Mission Statement
Vision
STRATEGIC PERSPECTIVES
Effectiveness
Resource
Management
Processes
Structures
Renewal
Work Capacity
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CRITICAL SUCCESS FACTORS
In which issues must we
definitely succeed?
How do we know that we have
succeeded?
What are different target
levels for this year?
MEASURES/CRITERIA
TARGET SETTING
Who is in charge of
DEFINING RESPONSIBILITIES
succeeding?
BALANCING
PUTTING STRATEGY INTO ACTION
Is the strategy balanced?
How does the strategy work in
practice?
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Effectiveness-Processes-Resources-Renewal
Critical success factors
Assessment criteria
Goal levels
Min Real Max
Issues in which success is Criterion/measure/ The goal set for the
crucial in order to
method to
criterion describing
implement the vision and identity/follow up the the critical success
the mission statement over implementation of a
factor over the
the strategic period in
critical success
operative period in
question (long-term view)
factor
question (shortterm view)
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Balanced Success - Starting Point
for the Future
It is essential to concentrate on how a strategy is created in
action, not on paper
The strategy must be based on the “raison d’être” and shared
vision of the future
The strategy process must increase competencies and promote
continuous learning
The strategy process must be based on interaction and
involvement
Continuous communication is a the key to the a successful
strategy process
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How to implement BSC?
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Thorough orientation to the concept
Management’s commitment
Working process of the management (5-8 days)
depending on the applicability of the current
strategy and preparedness of the executive group
Open information and feedback
Consultant as an expert of the process and assessing
supervisor of the process
Implementation on the other levels of the
organisation
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Result of the process
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A compact and communicative strategy basis
A decision of perspectives of strategic management
Critical success factors derived from the strategy
(3 to 5 years)
Measures/criteria for success factors
Objectives and targets for the forthcoming year
Defining responsibilities within the executive group
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Advantages of the Balanced Success - BSC
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Strategy into action
Balance between different dimensions of management
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short and long term operations
resources, knowledge, processes and systems
Involvement of the whole organisation - strategic management as a vertical and
horizontal process
A frame for the result management: setting result targets and reporting on results
A compact strategy document: controllable communication inside the
organisation and with the public
Interaction - the strategy does not remain only among the top management
Development process under control, there are only a limited number of critical
success factors - there is no need to do everything at the same time
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Balanced Success
Potential of BS-process
Pros of BS-process
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Strategy can be compressed to
a small number of papers - less
paperwork!
Strategy is easier to understand
- good for the staff and
management
Steers the action to the future
Focuses on key competencies
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Takes into account also nonmonetary issues
Integrates strategic design and
budgeting process
Clarifies the Management by
Results process
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Strategic space of a public organisation
Basic task
Authority
Resources
Strategic
space
Competence
Responsibility
Accountability
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