Issue No: 175 A fortnightly newsletter to keep Henley Alumni Association – Malta (HAAM) members informed with latest management practices and with news and activities of HAAM.
The contents of this edition are:
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This section contains a quick rundown on some essential business ideas. Remind yourself and get to grips with key mangement concepts in a language that's easy to understand. ________________________________________
To take companies beyond the often limiting measurement of financial criteria, David Norton and Robert Kaplan developed the balanced scorecard: “a strategic management and measurement system that links strategic objectives to comprehensive indicators.” Norton is cofounder of the consulting company Renaissance Solutions, and Kaplan is Marvin Bower Professor of Leadership Development at Harvard Business School. The duo developed the balanced scorecard concept at the beginning of the 1990s, in research sponsored by KPMG.
The result was an article in the Harvard Business Review (“The Balanced Scorecard,” January/February 1993). The article had a simple message for managers: What you measure is what you get. Norton and Kaplan compared running a company to flying a plane: The pilot who relies on a single dial is unlikely to be safe. Pilots must utilize all of the information contained in their cockpits. “The complexity of managing an organization today requires that managers be able to view performance in several areas simultaneously,” said Norton and Kaplan. “Moreover, by forcing senior managers to consider all the important operational measures together, the balanced scorecard can let them see whether improvement in one area may be achieved at the expense of another.”
Norton and Kaplan suggest that four elements need to be balanced:
the customer perspective—companies need to ask how customers perceive them;
the innovation and learning perspective—companies must ask how they can improve and create value; and
the financial perspective—the company needs to ask how its shareholders perceive it.
According to Norton and Kaplan, by focusing energy, attention, and measures on all four of these dimensions, companies become driven by their mission rather than by short-term financial performance. Applying measures to company strategy is crucial to achieving this goal. Instead of being beyond measurement, the balanced scorecard argues that strategy must be central to any process of Scorecard measurement: “A good balanced scorecard should tell the story of your strategy.”
Identifying the essential measures for an organization is not straightforward. One company produced 500 measures on its first examination. This was distilled down to seven measures Scorecard (20 is par for the course). According to Norton and Kaplan, a good balanced scorecard contains three elements. First, it establishes cause-and-effect relationships: Rather than being isolated figures, measures are related to each other and the network of relationships makes up the strategy. Second, a balanced scorecard should have a combination of lead and lag indicators. Lag indicators are measures, such as market share, that are common across an industry and, though important, offer no distinctive advantage. Lead indicators are measures that are company- and strategy- specific. Finally, an effective balanced scorecard is linked to financial measures. By this, and Norton and Kaplan mean that initiatives such as reengineering or lean production need to be tied to financial measures rather than pursued indiscriminately.
In many ways, the concept of the balanced scorecard is brazen commonsense. Balance is clearly preferable to imbalance. (The counterintuitive reality is that unbalanced companies, usually driven by a single dominant individual, have often proved short-term successes.) The Balanced Scorecard is now widely championed by a variety of companies. Indeed, it has, somewhat ironically, become a management fad. Its argument that blind faith in a single measurement or a small range of measures is dangerous is a powerful one. However, effective measures of elements, such as management competencies or intellectual capital, remain elusive.
Key Reading Robert S Kaplan, S & Robin Cooper. Cost and effect: Using integrated cost systems to drive profitability and performance, 1998 Robert S Kaplan & David P Norton. The Balanced Scorecard: Translating strategy into action, 1996
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Leading Managment Thinkers
This page gives a short profile and backgrounder on the leading management thinkers, past and present.
C. K. Prahalad (b. 1941) is Harvey C. Fruehauf Professor of Business Administration, professor of corporate strategy and international business at the University of Michigan and an independent consultant. He has recently announced that he is to spend more time with his consultancy.
Prahalad is particularly well known for the work he has conducted with fellow strategy expert Gary Hamel. This includes the articles The Core Competence of the Corporation (Harvard Business Review, May-June, 1990), Competing in the New Economy: Managing Out of Bounds (Strategic Management Journal, Vol. 17, No. 3, March, 1996) as well as the bestselling book Competing for the Future: Breakthrough Strategies for Seizing Control of Your Industry and Creating the Markets of Tomorrow (1994).
Prahalad’s current research interests include the strategic management of large diversified corporations and the role of top management.
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MEMBERS SECTION This page is dedicated to the contribution of our members. Members are invited to contribute to this page by submitted e.g. their own profiles, research studies, job opportunities, product/service advertisements, etc. All contributions must be in Word 97 format and not greater than 200K Bytes so as to facilitate distribution through this Newsletter. HENLEY ALUMNI NEWSLETTER
Welcome to the May Alumni Newsletter which replaces the Spring issue of the Henley Manager. To open please click here
This issue contains further the proposed merger together with news of alumni events around the world.
We are now taking bookings for Members' Day on Saturday 5th July. At your request, we have organised additional boat trips this year which will be allocated on a first come, first served basis. For full details please
For the autumn, on Saturday 11th October, we have planned the HenleyAlumni Ball with the aim of raising £25,000 towards the Henley Alumni Scholarship Fund. Why not book a table with friends from your course, company or country? For full details please click here
In future, if you would like to receive a printed copy of this publication, please email us with your current postal address.
The Henley Alumni Team
June, Chris, Amanda, Irina, Vanessa, Amy & Liz
Henley Management College
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NEWS FROM HAAM Latest news, appointments, events can be found in this page.
FOURTEENTH ANNUAL GENERAL MEETING
Notice is hereby given of the 14th AGM of HAAM to be held at the St. Edward College, Birgu on 28th May 2008 at 18.00 hrs. The following is the Agenda of the meeting.
Reading and approval of minutes of the 13th AGM held on 27th April 2006
Address by the Chairman of the meeting
Treasurer’s report for year 2007 – see enclosed Statement of Income and Expenditure
Approval of audited accounts for year 2007
Election of the 2008 – 2009 Committee
Appointment of Auditors for 2008
Motions and Amendments to the Statue
All paid-up members as at after the date of the AGM are entitled to vote at the AGM.
A member entitled to vote may appoint a proxy to attend and vote instead of him/her using the Form of Proxy already mailed to you. To be valid this Form of Proxy must reach the Secretary at P.O. Box 20, Rabat RBT 01 by not later than 23rd May 2008.
The secretary will receive nominations for members of the Committee on the form (already mailed to you) at P.O. Box 20, Rabat RBT 01 by not later than 26th May 2008.
d. Members who want a copy of the Statue for their perusal, are asked to contact the Secretary HAAM on 21 242407 or preferably on e-mail: firstname.lastname@example.org
After the meeting members are invited for a presentation by a foreign Guest Speaker Mr. Chittenden - Headmaster at St. Edward College on “Leadership – Leading Learning Communities”.
Mr. Chittenden has University degrees from New Zealand and Australia, gaining a Masters in Ed Admin from Deakin University in Victoria, Australia. He has held leadership positions in 5 Colleges in Australia and 3 in international settings. His expertise lies in setting up and building Colleges in developing countries. His educational interests are in Mathematics, Psycholinguistics, and leading learning communities.
Refreshments will follow the presentation. Unlimited car parking is available in the College grounds.
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