The implementation of the Balanced Scorecard consists of a number of steps. The first step is that senior management sets up the mission, vision and strategy of the organisation.
The strategy is linked to a number of strategic objectives. The mission, vision and the top level strategic objectives are then communicated to middle management.
In consultation with middle management and senior management several objectives are formulated in which different critical success factors are designated per objective. Appropriate performance indicators are selected for each objective to measure them. Specific targets to be achieved are also set and initiatives meant to achieve these objectives are put in place.
When starting to implement the BSC the first aspect is to use it in your strategic planning process. This is the first and most important step in full implementation of a Balanced Scorecard, since it establishes the link between your strategy and the BSC framework.
This stage involves preparing the organisation strategic plan around the Balanced Scorecard.
You set each of the four perspectives, namely, Financial, Customers, Internal Processes and Learning and Growth, as the strategic Focus Areas. You then add strategic objectives, projects, KPIs and initiatives directly underneath each perspective.
This method is simple to understand and will enlist management’s total commitment to the Balanced Scorecard framework. By having each of the perspectives as Focus Areas, it forces the strategy to be geared around the Balanced Scorecard and everyone within the organisation will understand the link between the strategic plan and the BSC.
The second aspect of implementing the BSC is how you can use it to track and report your progress in achieving your strategic objectives.
When using the BSC for strategic reporting you need to come up with a BSC dashboard. The dashboard should show a score for each of your 4 perspectives, which is an average of the scores of key strategic objectives, projects and KPIs that fit within that perspective.
If the scores indicate that you are not meeting your targets then you would need to come up with initiatives that will improve and change the situation.
The process of choosing several strategic objectives for each perspective is very critical. Good strategic objectives should start with a verb, for instance, improve profitability, reduce costs or increase market share.
They should be actionable; something that you can control. They should be quantifiable otherwise it’s not worth including it among your strategic objectives.
After you’ve chosen strategic objectives for each perspective, you then put them in the relevant perspective. This process entails coming up with a strategy map which shows the organisation’s strategy at a glance.
A strategy map shows the relationship between strategic objectives. The strategy map is structured in such a way that it shows the cause and effect relationship between the four perspectives.
You can view the Balanced Scorecard as a series of leading and lagging key performance indicators. The learning and growth, internal processes and customer are the leading steps, as they will facilitate or enable the achievement of the primary lagging KPI, which is the financial perspective.
Each perspective therefore unlocks your ability to deliver effectively against the one above it. So you can view this whole process this way: your ability to learn and grow will directly dictate your ability to better manage your internal processes.
In turn, as your internal processes improve, this will have a positive impact on your customers as well as directly reducing your costs or increasing revenues.
The combined benefit of this lower cost, increased revenues and higher customer engagement will lead to your end goal, increased profit and financial return.
Once you have identified the strategic objectives you need to decide on one or two measures or key performance indicators for every strategic objective to determine how it’s performing.
These measures should be tracked on a regular basis. It’s important to choose a very small number of measures to track so that you’re able to focus on the things that matter most.
The corporate wide balanced scorecard should be cascaded down first to business units, support units or departments and then teams or individuals. The end result should be to focus across all levels of the organization.
The organisation alignment of the scorecard should be clearly visible through strategy, using the strategy map, performance measures and targets, and initiatives.
Scorecards should be used to improve accountability through objective and performance measure ownership, and desired employee behaviours should be incentivized with recognition and rewards.
As the management system is cascaded down through the organization, objectives become more operational and tactical, as do the performance measures.
Accountability follows the objectives and measures, as ownership is defined at each level. An emphasis on results and the strategies needed to produce results is communicated throughout the organization. This alignment step is critical to becoming a strategy-focused organization through the use of the BSC.
The implementation of the balanced scorecard requires a lot of work and therefore there should be certain factors in place to ensure success.
The balanced scorecard needs a great deal of high-quality data from the organisation’s operational systems. It’s therefore critical that the systems are not prone to errors or produce incomplete data.
This would result in a waste of much time when taking corrective action and also in analysing data to ensure accuracy.
The adoption of the balanced scorecard framework represents a major cultural change. The implementation process requires a long time and therefore needs to be accompanied by significant organisational change management so that both management and employees change to the new way of tracking organisational performance.
The process also requires strong executive support, so that the necessary resources to collect and monitor the required information are made available.
The executive team must be seen to use the balanced scorecard data or else the rest of the organisation will ignore any corrective actions suggested by it resulting in the whole program being neglected.
It’s important that appropriate metrics that accurately support organisational goals are selected. A good set of performance metrics should be easy to understand and expressed quantitatively. Management should avoid trying to measure everything.
There should be a balance between trying to provide a complete picture of an organisation’s health and providing too much data which can be very overwhelming and can make it difficult to understand what conclusions to reach and what actions to take.
It takes time to get large organisations to fully embrace the balanced scorecard. Constant updates will be required as lessons are learned during the implementation process, and also competition changes, and new challenges emerge which might necessitate adjustments to the implementation process. This regular feedback is critical for the enterprise to learn, adapt, and improve.
The use of the BSC brings a lot of benefits to an organisation. The balanced scorecard helps executives in tracking the performance of an organisation by monitoring the performance indicators in the four perspectives namely, financial, customers, internal processes and learning and growth.
Management can therefore monitor and measure progress towards meeting strategic objectives.
The use of the strategy map helps to provide a clear and concise way to communicate priorities and goals to employees and other stakeholders. The balanced scorecard also creates a linkage from organisation’s strategy to daily activities thereby ensuring goal congruence within the organisation.
Everyone within the organisation will be able to understand how their projects and activities contribute to the overall success of the organisation.
Stewart Jakarasi is a business and financial strategist and a lecturer in business strategy, advanced performance management and entrepreneurship.
He is the Managing Consultant of Shekina Consulting (Pty) Ltd, a multi-dimensional consulting firm, and he provides advisory and guidance on leadership, strategy and execution, corporate governance, preparation of business plans, tender documents and on how to build and sustain high-performing organisations.
He is also a link with international investors intending to invest in the country. For assistance in implementing some of the concepts discussed in these articles please contact him on the following contacts: email@example.com, call on +266 58881062 or WhatsApp +266 62110062.
All set for Lesotho Tourism Festival
STANDARD Lesotho Bank, in collaboration with Alliance Insurance, on Tuesday launched Lesotho Tourism Festival (LETOFE) Lifestyle Experience.
The launch was meant to lighten up the festive mood in preparation for the LETOFE event to be held in Thaba-Bosiu on December 23.
LETOFE is an annual event that takes place at the Thaba-Bosiu Cultural Village, which has since been transformed from a mere jazz affair to a lifestyle event.
Speaking at the launch, Standard Lesotho Bank CEO Anton Nicolaisen said he was pleased to launch the LETOFE lifestyle experience.
“This festival is arguably one of the biggest music festivals that Lesotho holds and we are pleased to continue as the headline sponsor of this event that brings moments of jubilation and friendship,” Nicolaisen said.
He said since the arts industry should be guarded jealously, the bank will continue bringing joy to Basotho as a means to promote artistes.
“As patron of arts, we have jealously guarded the creative industry. The SLB is still here to promote the arts and bring happiness to Basotho,” he said.
He said the bank has been sponsoring the festival for the past 18 years.
“We are now 18 years on the trot and I am proud that we have been a significant contributor to the growth of this festival.”
He said this festival has grown in leaps and bounds to become one of the biggest features of their entertainment calendar during the festive season, attracting multitudes within Lesotho, Basotho in diaspora and tourists from neighbouring countries.
“We have benchmarked on the successes of these festivals and we will improve our offering every year to the level of a full lifestyle event.”
He said the event is a way of acknowledging the talent that Basotho have as well as the avenue for cross-fertilization of local artists to experience and present their craft.
He added that the bank had made an arrangement for their customers to enjoy a six percent discount when they buy festival tickets using Standard Lesotho Bank cards at any Computicket in Lesotho or other countries.
The promoter of the LETOFE Lifestyle event said they are transforming the event from a jazz festival to a lifestyle event.
“We are introducing young stars to the concepts hence our event is composed of the upcoming stars.”
The co-sponsor from Alliance Insurance, ’Makearabetsoe Mabaleha, said as sponsors they sponsor the LETOFE Lifestyle experience because they are also benefiting from the event.
“Our benefaction is seeing the event creating jobs for Basotho and attracting foreigners in order to improve the economy,” Mabaleha said.
Joang locked in rentals row with tenants
FORMER Home Affairs Minister Joang Molapo is in a nasty fight with tenants over rentals at a shopping complex in Maputsoe which he is managing.
The main tenant, Ha Seotsanyana managed by Jaan Mahomad Suleman, says Molapo does not have authority to demand monthly rentals from him as he does not legally represent the company owning the property.
The property belongs to Litjotjela Mall (Pty) Ltd. The owners of the mall are however locked in a fight for its control.
In April this year, the High Court issued an order giving Molapo power to manage the mall pending finalisation of the case.
The tenants have however refused to pay rentals to Molapo. Molapo then filed an urgent application in the Northern Region High Court seeking intervention.
The Deputy Sheriff Mpho Maphiri padlocked the shopping complex last week executing an order sought by Molapo in the property dispute.
Molapo, who is a former deputy leader of the Basotho National Party (BNP), claims that the tenants owed him rentals for 10 years.
He has sought to terminate the sublease agreement entered between the company and the tenants.
The High Court’s deputy sheriff closed down the shops on Monday last week amid resistance by the tenants. The police told the tenants that they would be arrested for contempt of court if they continued to resist the order.
Six businesses trading there were closed.
However, before the end of the day, Maphiri was sent back to open the pharmacy under condition that the owner was still paying directly to Molapo and did not owe any rentals.
Suleman told thepost that his company, Barakah (Pty) Ltd trading as Ha Seotsanyana, was in agreement with Molapo to use the property but “we are surprised to find a court order without notice”.
He said even in that order they inserted wrong company details.
“I find it illegal that they are closing me down,” he said.
He said Molapo’s company, Litjotjela Mall (Pty) Ltd, had entered into an agreement with him through lawyers that there was a new board of directors.
He said Molapo illegally kicked out the other shareholders from the company and they have a pending case in the High Court.
“Molapo acts as a secretary and does not have any decision-making powers alone,” Suleman said.
He said Molapo’s actions should be directed by the board.
He said Molapo does not want to discuss the agreement he had entered into with the former board of directors.
“He must honour the previous agreement on the sublease,” he said.
Suleman said what pains him is that they have made a lot of developments on the property under the previous agreement with Litjotjela, which Molapo is now ignoring.
“We have made developments worth over M4 million, constructed a garage and other buildings,” he said, adding that it is odd that Molapo wants him to pay rentals to use them.
“This cannot happen under my watch,” he said.
Suleman said it is either they take all their investments away or Molapo has to compensate them for all the developments on the site.
Molapo told the court in an affidavit that he is the one who was put in charge of collecting rentals from all tenants.
“They have failed to pay rentals to me without any justification and have refused to comply even after the demand had been made,” Molapo said.
He said the tenants owe him about M110 400.
He said he is a director, shareholder and board secretary of Litjotjela Mall (Pty) Ltd.
He said in June 2013 Litjotjela Mall and Ha Seotsanyane concluded a sublease agreement of 10 years.
He said it was agreed that Litjotjela was going to develop the site and was to collect all the rentals to be generated from the development site in order to recoup its expenses.
He said the 10 year period expired in May 2023.
“Prior to the expiry of the sublease agreement we engaged with Litjotjela (Pty) Ltd on the possibility of extending the sublease agreement,” he said.
He said after a lengthy deliberation, it became evident that they could not reach an agreement on the terms of the extension of the sublease agreement.
“It was at that time that we instructed our legal representatives to write to Litjotjela on September 20, 2023 that if the parties cannot agree on the extension of the sublease agreement the sublease shall be given a period not less than a year to find a market price to sell (the) business,” he said.
He said Suleman was informed that he was going to vacate the premises in a period of a year from June 2023 and that he had to pay rentals for that period at the rate of the rental payment immediately before the expiry of the sublease agreement.
He said other cited parties were further informed that they should no longer pay rentals to Ha Seotsanyane (Pty) Ltd.
He said to his surprise Suleman responded that Molapo does not have any authority to represent Litjotjela.
He said there is a court order issued on April 27, 2023 that he together with ’Mamphaphathi Katiso and Mpeuoa Mafike will remain in control and administration of Litjotjela Mall until the dispute has been resolved by the court.
He said Suleman is now benefiting from occupying the premises of Litjotjela without paying anything to him.
He said he has a right to receive rentals from its premises from the tenants occupying the premises.
He emphasised that his authority to represent Litjotjela in this matter cannot be questioned.
The lawyer who designs wedding dresses
Fikile ’Makhang Khang has always loved working with her hands, designing and producing fabulous patterns of knitwear.
“The sewing has always been something I have always liked to do,” Khang says.
“While I was still at the NUL (National University of Lesotho), I would crochet and sew my own skirts and even for others. It was common practice that I would be seen walking around working with a crotchet.”
Years after graduating with a degree in law from the university, Khang has now transformed her hobby into a booming business. She now designs wedding outfits for lovebirds.
She told thepost this week that for one to thrive in business, they must follow their passion.
Khang says although she graduated as a law student, she just could not fathom spending the rest of her life in the courtroom and in her chambers drafting legal documents.
It was for that reason that she decided to follow her passion by designing wedding gowns.
Khang was admitted as an advocate in the High Court of Lesotho in 2007.
Although the financial rewards as a lawyer aren’t satisfactory, it is a job she says she finds really fulfilling.
“In October 2010, I needed to be more focused in my craft and therefore abandoned practising as an advocate and concentrated on the bridal boutique business full time,” she says.
In an effort to meet the high standards for her clients, she would travel abroad in search of the most impressive wedding gowns she could lay her eyes on.
She would travel as far as China searching the best bridal collection.
She says her husband, who has been very supportive, has always advised her to search for other ventures to supplement the family’s income.
It was against that background that she thought of venturing into the sewing business.
Each and every generation has a way of conducting a wedding ceremony and the question of fashion is always pinned to it.
At some point in the past, shiny apparels were considered to be eye-catching.
Today, when people plan a wedding, Khang suggests that brides should go for heavy bead work, melano draped gowns with exaggerated shoulders, side trains and corsets.
On the other hand, grooms should go for a tuxedo, army green and wine coloured three piece suits.
Khang has not refuted the fact that, although vintage, there are timeless designs out there which remain relevant to this day.
A dent of cultural taste is also acceptable, she says.
It is undeniable that anyone can have a nuptial anytime of the year but for many they consider certain aspects which might impact on their occasion.
For instance, some people may prefer to host a wedding when it is warm so that everyone can showcase and flaunt their fashionable looks.
Moreover, other people can opt for end of year weddings when the majority of people are on holidays so it wouldn’t interfere with their schedules.
This explains the reason why spring marks the beginning of the wedding season.
“September to April is the best time to set a date for a wedding because it is warmer and people are at liberty to sew any design they desire,” Khang says.
Currently, it has proved that a lot of people are discouraged and shying away from having wedding ceremonies for different reasons.
Among them, others feel it is a waste of money as it is costly while others are appalled by alarming divorce rates which have nothing to do with whether one had a wedding ceremony or not.
Khang has however spoken highly of the need to normalise having wedding ceremonies in celebration of matrimony which unifies two devoted hearts in love.
“The celebration of a union between two people is very important,” she says.
“It brings the two families together. It makes everyone in attendance feel included and honoured to be part of the beginning of the union.”
Due to frustrations that often come up on the wedding day, many people are now resorting and adopting to outsourcing the services of wedding planners.
This gives opportunity to the bride and the groom to have a moment of their lives without having to be bothered to attend to the hurdles that are presented by the occasion.
“In the past, this was the role reserved for cousins or any immediate family members but I’m not sure if they are still willing to carry it out,” she says.
With a wedding planner in place, a space for calmness by the bride and the groom is at least guaranteed to a larger extent as there is someone overseeing that all is in order.
Although it’s optional, Khang says everyone can do with some help.
Organising a wedding can be tedious and stressful, a lot of brides never get to enjoy their special day.
If one can afford the services of a wedding planner, then they can go for it.
Khang has also highlighted that from the outlook many people believe that nuptials are for the sophisticated people due to their demands.
For ease of presentation, she has outlined necessities of a wedding: officiator, rings, music, cake, décor, photographer and refreshments.
In a nutshell, Khang is of the opinion that people should make wise decisions when planning for their weddings.
“The wedding day is a joyous day for everyone involved from the couple to their friends, family and colleagues,” she says.
“Everyone anxiously anticipates the day. The mood is always blissful and peaceful. The only thing that could go wrong is when couples fail to celebrate within their means and make ridiculous and unnecessary decisions.”
She says lately, anything seems to go when it comes fashion.
A lot of couples are breaking traditions and doing what best represents their style and preferences.
“Brides have been seen wearing coloured gowns for instance,” she says.
Khang now designs and makes wedding gowns, thanks to the skills she learned at the Bloemfontein Fashion Academy in 2016 which has beefed up her art.
Lawyer in trouble
Trio in court for killing ‘witches’
Opposition fights back
Harnessing imagery in writing
All set for Lesotho Tourism Festival
Joang locked in rentals row with tenants
Drugs crisis fuels gangsterism
Lesotho shines on MCA scorecard
Politicians’ propensity to score own goals
Co-option tactics for self-preservation
M13.6 million for police cars
Matekane’s new Cabinet
Weekly Police Report
Reforms: time to change hearts and minds
The middle class have failed us
No peace plan, no economic recovery
Coalition politics are bad for development
Academic leadership, curriculum and pedagogy
We have lost our moral indignation
Mokeki’s road to stardom
DCEO raids PS’
Literature and reality
The ABC blew its chance
Bringing the spark back to schools
I made Matekane rich: Moleleki
Musician dumps ABC
Bofuma, boimana li nts’a bana likolong
Mahao o seboko ka ho phahama hoa litheko
Contract Farming Launch
7,5 Million Dollars For Needy Children
Ba ahileng lipuleng ba falle ha nakoana
Ba ahileng lipuleng ba falle ha nakoana
Weekly Police Report
Mahao o re masholu a e ts’oareloe
‘Our Members Voted RFP’ Says Metsing
Matekane’s 100 Days Plan
High Profile Cases in Limbo
130 Law Students Graduate From NUL
Metsing and Mochoboroane Case Postponed
News2 months ago
SA tycoon angers MPs
News2 months ago
Young Mpeka’s big dreams
News2 months ago
I’m here to help, says Mashudu
News1 month ago
𝐏𝐫𝐨𝐦𝐨𝐭𝐢𝐧𝐠 𝐇𝐢𝐠𝐡-𝐐𝐮𝐚𝐥𝐢𝐭𝐲 𝐁𝐞𝐥𝐭 𝐚𝐧𝐝 𝐑𝐨𝐚𝐝 𝐂𝐨𝐨𝐩𝐞𝐫𝐚𝐭𝐢𝐨𝐧 𝐟𝐨𝐫 𝐚 𝐁𝐫𝐢𝐠𝐡𝐭𝐞𝐫 𝐅𝐮𝐭𝐮𝐫𝐞
News2 months ago
RFP member fights election disqualification
Business1 month ago
A fitness festival in Butha-Buthe
News2 months ago
‘Fake’ prophet swindles duo of M13 600
News2 months ago
Man claims M5 million damages for lost eyes