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Faculty Seminar Series Building Strategy-Focused Organizations with the Balanced Scorecard Professor Robert S. Kaplan Harvard Business School Copyright  2003 Building Strategy-Focused Organizations with the Balanced Scorecard Professor Robert S. Kaplan Harvard Business School The Balanced Scorecard ©2001 Balanced Scorecard Collaborative, Inc., and Robert S. Kaplan. All rights reserved. Implementing Strategy How do you implement strategy? Bain: senior executives put strategy at top of list. High percentage of companies are failing in implementing strategy. Gap in management tools between the top and the front lines 1 Copyright ©2003 The Gap in Management Tools ©2001 Balanced Scorecard Collaborative, Inc., and Robert S. Kaplan. All rights reserved. Early Adopters Mobil: last to first in two years Cigna Insurance: bottom to top quartile Saatchi and Saatchi: worldwide strategy Southern Garden Citrus: lower cost per pound Duke Children’s Hospital GTE (Verizon) Human Resources Linking Vision and Strategy to Employees’ Actions ©2001 Balanced Scorecard Collaborative, Inc., and Robert S. Kaplan. All rights reserved. 2 Copyright ©2003 The Principles of a Strategy- Focused Organization 1. TRANSLATE STRATEGY 2. ORGANIZATION ALIGNMENT 3. EVERYONE’S JOB 4. CONTINUAL PROCESS 5. EXECUTIVE LEADERSHIP The Principles of a Strategy-