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Using the Balanced Scoredcard to Define Big Data

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USING THE BALANCED SCORECARD TO DEFINE THE BIG DATA THAT WILL OFFER THE BIGGEST IMPACT ON YOUR STRATEGY AND COMPETITIVE ADVANTAGE

The Balanced Scorecard can drive your big data strategy to overcome data analysis paralysis; Dr Dave Norton and Professor Dave Ulrich affirm that big data is of no use unless it offers leaders insights relevant to their strategy.

In 2012, Big Data made the cut as the new form of economic currency. The world’s brightest and best thought leaders in Davos acknowledged big data as an economic agent as strong as gold, oil or money itself.

Gartner defines big data as follows; “high volume, velocity and variety information assets that demand cost effective, innovative forms of information process for enhanced insight and decision making.

So with the prediction that nearly 3 billion people will be online pushing the data created and shared to nearly 8 “zettabytes”, how do companies decide which data will offer them the insights and choices to determine their strategy and leverage their competitive advantage?

So what does this mean for leaders in business?

Although there is strong argument that algorithms will rule over instinct Dr Dave Norton, renowned for his balanced approach to measure the effectiveness of business methodology, strongly urges a combination of left and right brain thinking where leaders blend their intuitive insights with structured disciplined methodologies including using big data to test the relationships of their hypotheses and assess how this will enable transformational change. On his recent visit to South Africa, Professor Dave Ulrich recognised the value of information as a fundamental capability, but highlighted further that this capability is less about the information and more about insight and impact. He says leaders need to collect data to make informed choices. This is key to overcoming “data analysis paralysis”.

Dr Dave Norton and Professor Dave Ulrich concur that the data mined must offer relevant insights. Bill Schmarzo, the moniker “Dean of Big Data” and Author of Big Data: Understanding How Data Powers Big Business, suggests that your Balanced Scorecard could define your navigation choices in terms of which information is relevant to your strategy.

To illustrate this, he aligned his big data requirements with his Balanced Scorecard key metrics. This is his big data determinant on one key metric.

Metric: Secure 87.M in New Accounts

Big Data Impact Examples:

  1. Improve forecasting model predictability by modelling each individual deal (and components of the deal) taking into consideration sales team selling capacity (number and strength of deals in their forecast), sales team behavioural tendencies (selling products vs solutions), industry product buying trends and sales team track record with similar new name accounts
  2. Leverage text mining capabilities to analyse the call notes captured by the account development organisation to assess strength of industry solution opportunity; benchmark every NNA opportunity against similar successful and unsuccessful NNA engagements.
  3. Measure the effectiveness of sales and marketing campaigns to drive new NNA opportunities into the pipeline
  4. Flag any change in the sales team comments that might indicate a change in deal status.

SOURCE: Big Data and The Balanced Scorecard Framework | Bill Schmarzo Part 1,11 & 111 December 2013

In 2014, BRG & GIBS will present Dr Dave Norton – Live and in Person: Executing Strategy: Balanced Scorecard Essentials. The 2014 programme includes the latest findings and experiences in strategy, measurement, leadership, human capital and cross functional priorities and solutions.

Dr Dave Norton has most recently been honoured by Thinkers 50 in their Hall of Fame sharing this acclaim with Tom Peters, Warren Bennis, Howard Gardner, Charles Handy, Philip Kotler, Henry Mintzberg, Kenichi Omae, Ikujiro Nonaka and his colleague Professor Kaplan, for their mammoth contribution to business management and leadership. Harvard Business Review recognised the Balanced Scorecard as one of the most influential management ideas in the past 75 years.

BARCLAYS BOLD, CONCISE AND CLEAR 5 YEAR PLAN TO BECOME THE “GO-TO” BANK RELIES ON THE BALANCED SCORECARD TO ENSURE SUSTAINABLE SUCCESS

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In 2013, Barclays came up with a clear, concise and ambitious vision to become the “Go-To” bank. Antony Jenkins, Group Chief Executive, says, “The Balanced Scorecard is the final crucial piece of our plan; alongside our Purpose, Values and Behaviours to embed the right culture in our business.”

Dr Dave & Prof.RobertProfessor Robert Kaplan and Dr Dave Norton say a successful vision should be concise, simple and have a quantitative target and time frame.

Here are some examples of very BIG, AUDACIOUS, HAIRY visions that are not concise and quantifiable.

Google’s “Organise the world’s information & make it universally accessible & useful”–, Bill Gates “put a pc on every desk”; JFK put a man on the moon and return him safely to earth by the end of the decade.

Barclays Vision “Become the GO to Bank by 2015” couldn’t be more concise and quantitative by time frame. Essential to this success they put citizenship in terms of social and environmental performance at the heart of everything they do.

The 5 C’s of Citizenship at Barclays:

  1. Customer and Client
  2. Colleague
  3. Citizenship
  4. Conduct
  5. Company

Kaplan and Norton, also say that a successful Balanced Scorecard should not be cluttered with non- strategic measures. Barclays essentially have 11 metrics. To date they are on track on 10 out of 11 metrics for 2012/2013 and making progress against 2015 goals. How do some of their metrics stack up?

  1. 94% of almost 140 000 employees attest to the new code of conduct.
  2. 5,2 %  reduction year-on year in global carbon emissions.
  3. In 2013, they delivers 34bn in new and renewed lending – on track to meet 2015 goal of 150bn.
  4. In 2013, they delivered 13,4bn in new and renewed lending to SME’s – also on track to meet 2015 goal of 50bn.
  5. 1150 apprenticeships provided – also on track towards target of 2000 by end 2015
  6. 2,43 million young people supported in developing enterprise, employability and financial skills – on track to support 5 million Young Futures by 2015.

In 2012, when Professor Robert Kaplan visited South Africa, he was asked about the vulnerability of an organisation to replicate and copy your Balanced Scorecard giving them a competitive heads-up. This is what he said.” In my experience, it is not easy to replicate a scorecard as the passion, commitment and innovation in creating it, is crucial to its success.” Nicola Tyler, CEO of Business Results Group says this (and has been saying this for years), “The closer someone is the origination of an idea; the more likely they are to act on it.”

Research has shown that companies who implement the Balanced Scorecard enjoy 50 -150% improvement in shareholder value.

Sept. 2014

In 2014, BRG & GIBS will present Dave Norton – Live and in Person: Executing Strategy: Balanced Scorecard Essentials. The 2014 programme includes the latest findings and experiences in strategy, measurement, leadership, human capital and cross functional priorities and solutions.

Dr Dave Norton has most recently been honoured by Thinkers 50 in their Hall of Fame sharing this acclaim with Tom Peters, Warren Bennis, Howard Gardner, Charles Handy, Philip Kotler, Henry Mintzberg, Kenichi Omae, Ikujiro Nonaka and his colleague Professor Kaplan, for their mammoth contribution to business management and leadership. Harvard Business Review recognised the Balanced Scorecard as one of the most influential management ideas in the past 75 years.

Barclays Bold, Concise and Clear 5 Year Plan

/in , ,

BARCLAYS BOLD, CONCISE AND CLEAR 5 YEAR PLAN TO BECOME THE “GO-TO” BANK RELIES ON THE BALANCED SCORECARD TO ENSURE SUSTAINABLE SUCCESS

In 2013, Barclays came up with a clear, concise and ambitious vision to become the “Go-To” bank. Antony Jenkins, Group Chief Executive, says, “The Balanced Scorecard is the final crucial piece of our plan; alongside our Purpose, Values and Behaviours to embed the right culture in our business.”

Professor Robert Kaplan and Dr Dave Norton say a successful vision should be concise, simple and have a quantitative target and time frame.

Here are some examples of very BIG, AUDACIOUS, HAIRY visions that are not concise and quantifiable.

Google’s “Organise the world’s information & make it universally accessible & useful”–, Bill Gates “put a pc on every desk”; JFK put a man on the moon and return him safely to earth by the end of the decade.

Barclays Vision “Become the GO to Bank by 2015” couldn’t be more concise and quantitative by time frame. Essential to this success they put citizenship in terms of social and environmental performance at the heart of everything they do.

The 5 C’s of Citizenship at Barclays:

  1. Customer and Client
  2. Colleague
  3. Citizenship
  4. Conduct
  5. Company

Kaplan and Norton, also say that a successful Balanced Scorecard should not be cluttered with non- strategic measures. Barclays essentially have 11 metrics. To date they are on track on 10 out of 11 metrics for 2012/2013 and making progress against 2015 goals. How do some of their metrics stack up?

  1. 94% of almost 140 000 employees attest to the new code of conduct.
  2. 5,2 %  reduction year-on year in global carbon emissions.
  3. In 2013, they delivers 34bn in new and renewed lending – on track to meet 2015 goal of 150bn.
  4. In 2013, they delivered 13,4bn in new and renewed lending to SME’s – also on track to meet 2015 goal of 50bn.
  5. 1150 apprenticeships provided – also on track towards target of 2000 by end 2015
  6. 2,43 million young people supported in developing enterprise, employability and financial skills – on track to support 5 million Young Futures by 2015.

In 2012, when Professor Robert Kaplan visited South Africa, he was asked about the vulnerability of an organisation to replicate and copy your Balanced Scorecard giving them a competitive heads-up. This is what he said.” In my experience, it is not easy to replicate a scorecard as the passion, commitment and innovation in creating it, is crucial to its success.” Nicola Tyler, CEO of Business Results Group says this (and has been saying this for years), “The closer someone is the origination of an idea; the more likely they are to act on it.”

Research has shown that companies who implement the Balanced Scorecard enjoy 50 -150% improvement in shareholder value.

Sept. 2014

In 2014, BRG & GIBS will present Dave Norton – Live and in Person: Executing Strategy: Balanced Scorecard Essentials. The 2014 programme includes the latest findings and experiences in strategy, measurement, leadership, human capital and cross functional priorities and solutions.

Dr Dave Norton has most recently been honoured by Thinkers 50 in their Hall of Fame sharing this acclaim with Tom Peters, Warren Bennis, Howard Gardner, Charles Handy, Philip Kotler, Henry Mintzberg, Kenichi Omae, Ikujiro Nonaka and his colleague Professor Kaplan, for their mammoth contribution to business management and leadership. Harvard Business Review recognised the Balanced Scorecard as one of the most influential management ideas in the past 75 years.