Do You Need a Leadership Balanced Scorecard?
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More and more organizations are implementing the
Balanced Scorecard approach developed by Robert Kaplan and David
Norton. The scorecard approach uses objectives and indicators
to channel and align organizational effort to goals. The Balanced
Scorecard uses four perspectives: financial, customer, internal
business process and learning and growth (see Association™,
October/November, 2001, Learning Link Column; Is Association Governance
and Management Ready for Balanced Scorecards?).
A fully implemented Balanced Scorecard cascades from the top
levels of an organization all the way down. Ultimately, everyone
has their own scorecard that lists personal objectives and indicators
linked to overall organization objectives and indicators. Personal
Scorecards reflect the unique role and abilities of individuals.
In some situations, compensation and reward systems are linked
to Personal Scorecard results. In some instances they improve
or eliminate the annual performance appraisal.
It is important not to get the Personal Scorecard mixed up with
the Personal Balanced Scorecard. The Personal Balanced Scorecard
helps one perceive and spell out life goals. This type of tool
helps increase quality of life in the context of its present complexity.
It goes beyond work and helps with personal decision-making, personal
growth, the consideration of personal visions and missions, and
with management and minimizing stress. It is based on three dimensions:
Personal Competence, Competence for Adding Value, and Aptitude
for Self-Actualization.
Individuals in an organization develop objectives, indicators
and actions in their Personal Scorecards and ensure alignment
between personal and organizational goals. They are then able
to understand their roles and values in the organization, and,
from their Personal Scorecards they may identify the need to develop
personal development plans.
If development is necessary from a leadership perspective, it
makes sense that the scorecard concept can be applied to developing
a Leadership Balanced Scorecard that can improve leadership abilities.
Leaders often operate in a sense of urgency and need to bring
others together to share in the development of a vision and action,
address risk, work with change and engage in complex communications.
Leadership competencies exist to support these activities.
Leadership competencies have been developed by many, and the
distinction between leadership and management competencies is
becoming increasingly clear. Leadership competencies usually include
the following:
- Establishing Vision
- Communication
- Alignment
- Interpersonal and Relationship Building Skills
- Motivation and Inspiration
- Leading Change
- Problem Solving and Decision-Making
- Knowledge Sourcing
- Self-Management
Time for a check up
There may be a need to make shifts in the type of leadership
competencies used and those competencies that are not used on
a regular basis. Great things are expected from leaders. As such,
it is important to engage in ongoing learning activity to support
leadership activity.
Students in the Association Management Education (AME) Program
often engage in online classroom discussions about the challenges
and expectations of leadership. Acquiring the latest practices
and tools are a priority, as is engaging in activity that reinforces
what they have learned or put into practice.
Development or regular check ups of leadership competencies can
be assisted by having a Leadership Balanced Scorecard. The scorecard
can identify where improvements are necessary and can improve
focus.
Leadership scorecarding activity has been a common practice for
many years. While there is no shortage of informal leadership
assessment activity, the interest from a self-perspective is on
the rise. Why? Individuals who are looking to be successful leaders
are paying more attention to managing their careers and the competencies
necessary to achieve success. In addition, there is no shortage
of research and writing, seminars, workshops, etc., on the topic
of leadership.
Whatever your leadership challenges may be, being able to link
them to competencies and using them in the right situation and
at the right time will contribute to your success as a leader.
Individuals aspiring to, or those already in leadership positions,
understand there are things "to do" and "not do".
Owning the knowledge and skills is important. This leadership
approach will make a difference.
Not-for-profit management leaders occasionally have their leadership
abilities evaluated through formal performance appraisals. Appraisals
seek to determine how well the leader is motivating, communicating,
developing teams, etc. Having a Leadership Balanced Scorecard
is a proactive move that could turn comments in the appraisal
review from constructive to congratulatory.
Building Your Leadership Balanced Scorecard
If you are looking to improve your leadership capabilities, you
may want to set up your own Leadership Balanced Scorecard. How?
Identify the leadership competencies required by your organization,
the factors used in performance appraisal, and link the leadership
expectations to the organization's Balanced Scorecard objectives
and indicators.
First establish your leadership perspectives. They could include
those in the following:
Vision & Plans
§ Objectives
§ Indicators
§ Actions |
Leading & Change
§ Objectives
§ Indicators
§ Actions |
Action & Results
§ Objectives
§ Indicators
§ Actions |
Alignment
§ Objectives
§ Indicators
§ Actions |
LEADERSHIP |
Self
§ Objectives
§ Indicators
§
Actions |
Communications
§ Objectives
§ Indicators
§ Actions |
Decision Making
§ Objectives
§ Indicators
§ Actions |
Relationships
§ Objectives
§ Indicators
§ Actions |
Next, establish specific objectives, indicators and actions.
It is possible to break your scorecard and the perspectives or
leadership competency domains into detailed sub domains. For example,
under relationships, it could include building teams, facilitation,
coaching others, and managing conflict. More specifics will help
develop an accurate score.
You can customize your scorecard by identifying the leadership
competencies that you and your employer believe are necessary.
Having others such as mentors and colleagues rank your performance
to these competencies will provide a more realistic picture. Reviewing
the results will help you understand where you are in your leadership
competency development and performance.
An effective tool to illustrate and determine opportunities for
improvement is the leadership competency wheel. Each of the eight
competency areas listed above would represent a piece of the wheel
with sections allocated to specific competencies. For each competency,
a measurement of performance satisfaction would be determined
based on a one to ten scale. Ten would be on the outer edge and
zero in the centre. As you score and draw a line to reflect the
score the wheel helps to clearly see where improvement is necessary.
You will have greater insight into what is working and what is
not.
If you are serious about achieving leadership success and wish
to enhance your leadership competencies, consider scorecarding
your leadership capabilities and needs.
This column features innovation and practical solutions applied
to challenges, trends, issue and opportunities for the association
community. Column editor Jim Pealow, MBA, CMA, CAE is a consultant
and the Association Management Education Program Lead Instructor/Coach
for CSAE. He can be reached at jim@amces.com.
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