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In my last Blog post, I was (and I continue) looking for some way of measuring "business value" for a Crown corporation at both the strategic (portfolio) and project levels of analysis.
I've found two articles that are, in my view, worth reading:
The first article struck me, in particular, because the Crown corporation that I'm working with is currently using the Balanced Scorecard system.
When you look at what the Balanced Scorecard measures, it breaks down to:
I am now trying to "map" these measurement perspectives to the Business Model Canvas.
It's this fourth perspective that seems ellusive. One could argue that it's a meta-level perspective to the entire model within Alex's canvas since it talks about "culture". One cold argue that it's part of the "activity perspective"; more specifically learning activities that can be defined within the Key Activities consideration.
Notably the Balanced Scorecard does not appear to measure anything related to the Value perspective in Alex's model. Or does it?
I look forward to your comments.
Comment
The Balanced Scorecard is a tool to translate the strategy into operational terms and to measure the progress of its implementation, not so much to create it. The BMC is (at least for me) a great tool to formulate new strategies. The moment you design a new business model you must have a tool to translate the BMC into operational terms. The Balanced Scorecard is the tool to do that.
The latest book from Kaplan and Norton (the best one) “The Execution Premium: Linking Strategy to Operations for Competitive Advantage” shows all steps in how to plan and execute a strategy (Strategic planning + strategic execution) but does not show how to innovate successfully in a the Business Model. My succession is to use the BMC to create new strategies and implement the new strategy with the Balanced Scorecard.
I think it's a good real world approach to use both methods,
My immediate idea is that the BSC modified the numbers(quantitative) scorecard to include qualitatives, so to map the BSC to BMC, the learng and growth can be matched to key activities, key resources, key partners and cost structure, and then you may ask the Crown and the customers it is strongly related to the value propostion as to either activities, resources, partners or cost. I think you want reverse engineer the crown's business model from the BSC as it is the business measurement and then you may try to find the effectiveness and efficiency of the each bulding block to improve the business. Based on my experience I'd suggest you may let the Crown do the job as you being the coach.
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