This is my first blog which I wanted to use to introduce myself.
I am an independent senior management consultant specialized in integrated corporate performance solutions. I have more than 15 years experience in conceptualizing, designing and implementing integrated end-to-end management control processes, based on the SAP Platform.
For the last two-and-half years I have been working on the conceptualization, design and implementation of an integrated corporate performance management solution.
Currently, I am working on further extending and developing a complete framework for an integrated corporate performance management solution. Reason for this, that I have come to the conclusion, as some other peers have, that there is not such a complete solution yet. The only one who has currently an integrated framework seems to be Peter Geelen from CPM Partners in the Netherlands with his iPM Solution.
The reason for a complete and integrated framework across the strategy, tactical and operational axes is the fact that they have to be inter-linked with each other. These linkages must be set up in a proper cause-effect relationship manner. As Thom Davenport also has mentioned in one of his blogs, there is a lack of cause-effect relationship in the current CPM Solutions. That is one of the reasons that the BSC does not seem to provide the results it was supposed to deliver.
The BSC has been set up based on presumed critical succes factors, but there is no cause-effect relationship between those critical succes factors and the root causes which will prevent those CSF’s to be achieved. For this we need to introduce the Theory of Constraints Methodologies which enable us to identify these root causes and subsequently the necessary solutions. I am a strong believer that we should include the measures identifying solving the root causes in the BSC.
How we should do this is a topic I am working on. But one thing is clear so far and that is that the BSC does not focus on the real issues as suggested by the TOC. Afteral, there is only ONE GOAL( i.e. Profit ) and only three Strategic CSF’s which result in those Profits;
- Operating Expenses.
The BSC therefore should always be build around these three Strategic Themes.