The Stratex Systems Webinar for the 27th of September 2012 has been postponed due to illness of our speaker, Andrew Smart. We apologise for the inconvenience this may cause you and we greatly appreciate your time. We hope that you will be able to attend our amended webinar date this Oct 4th 2012 and become inspired as well as gain valuable knowledge from Andrew. Thank you for your patience and time. More information can be found HERE about our webinars. We hope you all have a lovely weekend. See you next week!
Festive Strategy Map from StratexSystems
To celebrate the holiday season, we have created a Christmas Edition Strategy Map. From everyone at StratexSystems, have a Merry Christmas and Happy New Year. We hope to speak to you in 2012.
The Four Approaches to Integrating Risk Management and the Balanced Scorecard
StratexSystems’ Microsoft SharePoint™ based Enterprise Risk Management solution is unique. While other risk management software offers part of the solution, StratexSystems has developed a complete solution; integrating performance management and risk management into a comprehensive software solution.
StratexSystems used the strategic management system of the balanced scorecard, alongside COSO BS31100, ISO31000 and ISO31010 framework to create a Microsoft Certified Risk-Based Performance management software solution – StratexPoint.
The approach we take focuses on clarifying the organisational objectives and the level of risk (Appetite) required to achieve those objectives. Using Microsoft’s SharePoint™, we have produced a user-friendly, enterprise-wide, technology solution that allows risk taking to be monitored and optimised on a day-to-day basis.
StratexSystems understands that in order to keep tabs on strategy management, enterprise risk management (ERM) and enterprise performance management (EPM), the software solution must be integrated using conceptually sound methodology, and suited to every user.
When considering risk management, organisations often deliberate the following questions: How important is the Balanced Scorecard in business? How important is Enterprise Risk Management in business? How does the integration make a difference?
In a series of blogs, three often talked about approaches to integrating risk management and the balanced scorecard (the Theme Approach, the Perspective Approach and the Indicator Approach) are considered and evaluated, before introducing StratexSystems’ Appetite Approach.
- The Theme Approach looks at the pros and cons of simply adding a Risk Strategic Theme to the existing Balanced Scorecard.
- The Perspective Approach considers why adding a Risk Perspective to an organisation’s Balanced Scorecard is not enough.
- The Indicator Approach evaluates the most common approach to integration, in which key risk indicators (KRIs) are added to each objective alongside existing key performance indicators (KPIs). The blog on this approach explains why it is a sub-optimal business solution.
- The innovative Appetite Approach brings together strategy, performance and risk management, to form a ‘Risk Appetite’. This blog entry considers why this approach offers the most comprehensive business solution.
To read more thoughts on the four approaches to integrating Risk Management and the Balanced Scorecard, and to complete our survey about your organisation’s employment of various Risk Processes and Solutions, please visit www.riskbasedperformance.com
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Enterprise Performance Management (Corporate Performance Management)
Strategic execution remains a major challenge for many organisations, with up to 70% of organisations failing to execute strategy successfully. Enterprise Performance management, also known as Corporate Performance Management, is critical in managing and monitoring the execution of strategy, and ensuring that progress is consistently made towards delivering on the organisation's objectives.
Enterprise Performance management is about achieving strategic objectives. It is about clearly defining and communicating objectives across your organisation; aligning your organisation to meet them; and continuously planning for, monitoring progress of, and analysing exceptions to ensure they are achieved. Developed in the early 1990s the Balanced Scorecard, along with the Strategy Map, is one of the most widely adopted performance management methodologies today.
“However beautiful the strategy, you should occasionally look at the results.” Winston Churchill
What can the Balanced Scorecard Enable an Organisation to do?
· Define strategic objectives and map these using a strategy map
· Develop clarity around the organizational strategic objectives
· Define a set of Key Performance Indicators (KPIs) for each objective
· Align the organisational change agenda to deliver the objectives via initiatives and actions
· Encourage the right performance culture using the RACI model to define ownership and governance
· Enable Theme-based management
· Automate performance dashboards and reporting, while enabling advanced analytics
· Encourage a collaborative approach to delivering performance via commentary, alerts and other web 2.0 collaboration capabilities
Background of the Balanced Scorecard
The Balanced Scorecard is one of the most widely deployed performance management methodologies in organisations today. In fact, the Balanced Scorecard concept was selected by the editors of the Harvard Business Review as one of the most influential management ideas of the past 75 years.
Developed in the early 1990s by Dr Robert Kaplan and David Norton, the Balanced Scorecard was designed to provide a framework to enable organisations to manage with a balanced set of financial and non-financial information. Since its inception the Balanced Scorecard, along with the Strategy Map, has evolved to enable organisations to address the challenge of strategic execution. Strategic execution continues to be a major challenge for organisations, with up to 70% failing to execute their strategy fully and successfully.
