Do you have what is needed to succeed in today's challenging business climate?

I recently read a blog by Sandy Richardson, titled “Is the Balanced Scorecard Out of Date?” and found it very interesting, I felt that it was dead on point so I wanted to share it (click here to go to that blog). 

As part of Sandy’s analysis she highlights the criteria needed “to succeed in the business conditions we are facing today,” which I think needs repeating.

“The short list of key requirements includes the ability to:

1.            Know when business performance is heading in the wrong direction as early as possible and have the business intelligence required to change course, eliminate performance gaps/root cause problems in a surgical way, and produce improved results in a short period of time;

2.            Have quick access to accurate and timely data that facilitates meaningful and consistent decision-making across the organization;

3.            Leverage key external and internal insights and information efficiently and demonstrate agility (the ability to modify the business strategy and align tactics quickly) in the face of changing business conditions (including customer and market needs);

4.            Access cause and effect data that can help make targeted investments that are guaranteed to produce specific outcomes and results;    

5.            Optimize operational efficiency and increase the capacity of existing human resources by eliminating duplication of effort and streamlining work activities; and

6.            Develop the capacity to produce better business performance results on a consistent and sustained basis.” ¹

¹ From Sandy Richardson’s blog titled “Is the Balanced Scorecard Out of Date?” dated 10/11/2011.

I found this list interesting for a few different reasons, first as a check list to measure if an organization has the necessary tools to compete in this business climate and second in the breakdown of the items. The first four items require access to information to support decisions.  The last two are focused on the ability to consume the information and affect business outcomes.  

In my most recent posts on “The Future of Planning” I’ve focused on the components/methods of Integrated Business Planning, but this process breaks down unless you have information to support better decisions.  When I started this series on “The Future of Planning” I focused on “The Data Dilemma” and “External Information”.  In my next couple of posts I will finish up this series by focusing on a metrics approach to management, effectively bubbling up key information into leading and lagging indicators to drive the business and react to changes in business climate.