Strategy Execution: Aligning KPIs and Performance with Ensemble Balanced Scorecard
In the modern business world, it is not enough to simply have a strategy or a vision. The actual success is bringing the corporation’s strategy down to the lowest level of the organization and tracking it with measurable data. Bimser Ensemble enters the picture at exactly this point and maximizes corporations’ capacity for strategy execution. Ensemble is a comprehensive Corporate Performance Management solution designed to turn strategic objectives into operational realities.
Strategic Alignment: The Power of Balanced Scorecard Methodology
Bimser Ensemble is built upon the Balanced Scorecard discipline developed by Dr. Robert Kaplan and Dr. David Norton. While traditional management systems focus solely on financial sheets, in other words past data, Ensemble balances four main perspectives that determine the organization’s future performance:
- Financial Perspective: Profit, cash flow and growth objectives looking to answer the question of “How should we look to our shareholders?”
- Customer Perspective: External-focused indicators such as market share, customer satisfaction and brand loyalty.
- Internal Processes Perspective: Operational perfection, production efficiency and quality standards.
- Learning and Development Perspective: Investment in personnel competence, organizational culture and technological structure.
Ensemble allows you to form Strategy Maps that establish cause-and-effect relationships between these four perspectives. For example it can visualize through the software how an investment into personnel training (Learning) increases process efficiency (Internal Processes) and how that eventually leads to customer satisfaction.
Through Ensemble high-level strategic objectives of the company are brought down to department- and individual-based scorecards. And Strategy Maps ensures that the organizational strategy is understood by all employees.
KPI and Performance Management
The success of the strategy depends on the establishment and real-time monitoring of the right key performance indicators. Ensemble digitalizes the principle “You can’t manage what you can’t measure” through three main steps.
Data Integration and Automation
Ensemble can directly communicate with ERP (SAP, Logo, Microsoft Dynamics etc.) and CRM systems. This allows it to automatically extract data such as number of monthly sales or the ratio of production loss. All without manual work. This in turn reduces the risk of human error.
Hierarchical Breakdown
A main KPI in the organization (such as 10% increase in market share) is distributed to the relevant departments and indiviuals as sub-targets. So every employee sees how their daily work is contributing to the main strategy.
Each KPI’s impact ratio on the corporate scorecard is also determined. This allows greater focus on critical business processes.
Thresholds and Alarm Systems
“Target,” “Tolerance” and “Critical” levels are determined for each KPI. If an indicator enters the red zone, the system alerts the relevant managers in real-time so they can take action.
Process-Based Management and ISO Standards
One of Bimser Ensemble’s biggest strengths is its integration of Business Process Management with performance management. If low performance is detected the cause of the problem (purchase, shipment, design etc.) can be analyzed through the system.
Especially for organizations adhering to quality management systems such as ISO 9001:2015 Ensemble support risk-based process approach. Monitoring processes with KPIs facilitates audit processes and increases organizational transparency.
So Ensemble is not only a tool that aids your company in reporting. It is also a platform for organizational memory and discipline. It is compatible with process hierarchy creation, 360-degree performance appraisal, and the ISO 9001 risk-based process approach. This enables institutions to become more agile and resilient in the face of changing market conditions.
How Ensemble Can Help
Let’s imagine a production facility. Their strategic purpose is to reduce operational costs by 15%.
- Ensemble Strategy Map links this objective with “Reduce Machine Breakdown Time” (Internal Processes) and “Technical Personnel Training” (Learning).
- Then KPIs are monitored. Machine breakdown time is extracted each week from the ERP.
- If there is a deviation from the target a “Corrective and Preventive Action’ is initiated through Ensemble and the maintenance team is assigned to work.
Data-Based Decision-Making Mechanism
Ensemble allows the upper management to see the organization’s general health on a single screen through its dashboard. Instead of a management based on guesses or intuitions you can establish an evidence- and result-based management culture.
If you are ready for the future don’t let your strategies live only on paper. Meet Bimser Ensemble to manage your organizational performance with a digital discipline, fully align your KPIs with your strategic objectives and attain sustainable success. Request a demo now and power up your strategies.
