Balanced Scorecard & Strategy Summit 2013 – Day 2 of The Kaplan Norton Masterclass – Session 1
The first session on the second day of Kaplan Norton Masterclass was Measuring, Managing and Developing Human Capital.The session started with a quick review of the previous day presentation. Dr. Norton then moved into clarifying the concepts of employee engagement and organizational culture, as concepts that are critical in understanding the alignment of human capital to strategy. Building employee engagement – How do we make strategy everyone’s job?
“The internal employee strategy communication program should be as comprehensive and systematic as an external customer advertising program”.
There’s a science of communication and marketing best practices should be applied with the same precision internally, for employees, as it is externally, for other key stakeholders. Instead of convincing a customer to buy a product, you are convincing employees to buy into a new strategy.
Internal communication has four key components:
- Message audience
- Communication channels
- Results measurement.
- The strategic change agenda should be developed based on the strategy map and further be reflected in the human capital development program. To illustrate this approach, a global pharmaceutical company’s practices were showcased; they identified key behaviors, used an assessment of current organizational values and updated their “leadership model” to incorporate new values into their way of managing.
- Linking incentive compensation to the Balanced Scorecard was mentioned by CEOs of best practice organizations as one of the steps they would have pursued earlier in order to accelerate their successful implementation of Balanced Scorecard practices;