【正文】 e perspectives. Everything is linked to capture a cause and effect relationship. Strategic grids are the foundation for building the Balanced Scorecard. Strategic Model: The bination of all strategic objectives over a strategic grid, well connected and plete, providing one single model or structure for managing the strategic area.Strategy: An expression of what the organization must do to get from one reference point to another reference point. Strategy is often expressed in terms of a mission statement, vision, goals, and objectives. Strategy is usually developed at the top levels of the organization, but executed by lower levels within the organization.Target: An expected level of performance or improvement required in the future. Templates: Visual tools for assisting people with building a balanced scorecard, typically used for capturing and paring data within the four ponents of the Balanced Scorecard: Strategic Grids, Measurements, Targets, and Programs.Vision: An overall statement of how the organization wants to be perceived over the longterm (3 to 5 years).Overall ProcessNow that you understand the purpose and terminology behind the Balanced Scorecard, let’s describe the overall process on how we will build the Balanced Scorecard. The process consists of seven steps over three phases:Phase I: The Strategic Foundation Step 1: Communicate and align the organization around a clear and concise strategy. This is the fundamental starting point behind everything else. Your strategy is what “feeds” the Balanced Scorecard. Step 2: Determine the major strategic areas or scope for getting the organization focused on those things the organization can actually do. Step 3: Build a strategic grid for each major strategic area (step 2) of the business. Out of all the steps in the entire process, this can be the most difficult since we must take our entire strategy (step 1) and transform it into specific terms that everyone can understand. And everything must be linked to form one plete strategic model. Phase II: Three Critical Components Step 4: Establish Measurements: For each strategic objective on each strategic grid, there needs to be at least one measurement. Measurement provides the feedback on whether or not we are meeting our strategic objectives.Step 5: Set Targets for each measurement: For each measurement in your scorecard, establish a corresponding target. Step 6: Launch Programs: Things will not happen unless the organization undertakes formal programs, initiatives or projects. This effectively closes the loop and links us back to where we started – driving the strategy that was formulated in phase I. Phase III: Deployment Step 7: Once the Balanced Scorecard has been built, you need to push the entire process into other parts of the organization until you construct a single coherent management system. This pulls everything together, allowing successful execution of your strategy. Don’t worry if all of this doesn’t make sense yet! The remainder of this short course will describe in detail each of the steps outlined above. Once you have pleted this short course, you should have a solid understanding of what is required for building a great balanced scorecard. Phase I: The Strategic Foundation Chapter2When balanced scorecards were first introduced, it seems that everyone rushed to put a whole new set of measurements in place. However, this is not how to build a balanced scorecard. Strategizing is critically important to building a good balanced scorecard. In fact, it is so important that the authors of the book, The Balanced Scorecard, Robert S. Kaplan and David P. Norton, released a followup book titled: The Strategy Focused Organization. Therefore, we need to focus on building a strategic foundation, culminating with a set of strategic grids or maps. This is the watershed event within the entire process! The bination of strategic grids, measurements, targets and programs represent the four key ponents that makeup the Balanced Scorecard. All of these ponents will be described in detail as we work our way through the seven step / three phase process.When designing a balanced scorecard, we always start by asking: “What is your strategy?” Once we understand the strategy, we can build a new framework for describing the strategy, which we call a strategy map. – The Strategy Focused Organization by Robert S. Kaplan amp。 it captures the cause and effect relationship throughout every part of the organization. In the case of Mobil Oil, the truck driver pulls a balanced scorecard off the visor in his cab, outlining the five things he must do as a truck driver. Like a laser beam, strategy now has a clear path to everyone in the organization. Balanced Scorecards tell you the knowledge, skills and systems that your employees will need (learning and growth) to innovate and build the right strategic capabilities and efficiencies (internal processes) that deliver specific value to the market (customer) which will eventually lead to higher shareholder value (financial). – “Having Trouble with Your Strategy? Then Map It” by Robert S. Kaplan and David P. Norton Harvard Business ReviewTerminologyThroughout the entire process of building and implementing a balanced scorecard, we all need to speak the same language. Therefore, the first thing to get out of the way is to understand a few terms:Cause Effect Relationship: The natural flow of business performance from a lower level to an upper level within or between perspectives. For example, training employees on customer relation’s leads to better customer service which in turn leads to improved financial results. One side is the leader or driver, producing an end result or effect on the other side.Goal: An overall achievement that is considered critical to the future success of the organizat