1. Water and Environmental Management A new Strategic Management model
Balanced Success
A new Strategic Management model
@Asheesh/WEM

2. Balanced Success - BSC - what is it?
Management tool for all levels of management
A means of turning a strategy into action
Compass - guarantee of the right course of development
Combination of short and longer term success of an organisation
2006/M.Asheesh/Eng water management

3. Why do strategies fail to realise?
BARRIERS IN INTERNALISATION AND COMMITMENT
Understanding and communicating a strategy
Participation of the staff
Length of the strategy process
Awareness of the realisation of the strategy
MANAGEMENT BARRIERS
Will to shape one’s own future
Management systems and attitudes
Strategic capacity of managers/management groups
PROCESS BARRIERS
Excessive emphasis on the budgetary process in management
Separate sub-strategies
Follow-up and review
2006/M.Asheesh/Eng water management

4. Political decision- making
Voters, citizens and international stakeholders
Political
Social-political
Public economy;
expenditure, revenues and
leadership
contents and choices
capital decisions
Political decision- making
Effectiveness
Resource management
Strategic perspectives
of public sector
Processes and
structure
Renewal and
work capacity
activities
Governance and management by results
Core services;
Professional
Basic services;
Market-oriented
security and
education, social and
leadership
infrastructure services
health care services
services
Citizens as tax-payers and customers
2006/M.Asheesh/Eng water management

5. 2006/M.Asheesh/Eng water management

6. Key Questions in Public Leadership
What is our strategic foundation - vision and mission statement?
How shall we secure that our actions will fulfil the vision, the mission statement, and set targets?
What is essential in allocating resources and competencies?
How shall we know that we have proceeded in the direction of the vision and the strategic targets?
2006/M.Asheesh/Eng water management

7. 2006/M.Asheesh/Eng water management
Balanced Success Strategy Framework
VISIO
AJATUS
EFFECTIVENESS
RESOURCE
MANAGEMENT
RENEWAL
WORK CAPACITY
PROCESSES
STRUCTURES
VISION
MISSION
STATEMENT
Citizens
and
politicians
Resource
management
economy
Work
units
personnel
Organization’s capacity
efficiency
2006/M.Asheesh/Eng water management

8. PUTTING STRATEGY INTO ACTION
Balanced Success Strategy as a Process
Why do we exist?
and what are we accountable for?
What kind of the future do we
want to have?
Strategic Basis
Mission Statement
Vision
What do we need to accomplish in order to fulfil the vision and the mission statement from different perspectives?
STRATEGIC PERSPECTIVES
Effectiveness
Resource
Management
Processes
Structures
Renewal
Work Capacity
___________
___________
______________
______________
___________
CRITICAL SUCCESS FACTORS
___________
______________
______________
In which issues must we definitely succeed?
___________
___________
______________
______________
___________
___________
______________
______________
How do we know that we have succeeded?
What are different target levels for this year?
______________
______________
______________
______________
______________
MEASURES/CRITERIA
TARGET SETTING
______________
______________
______________
______________
______________
______________
______________
______________
______________
______________
______________
Who is in charge of succeeding?
Is the strategy balanced?
How does the strategy work in practice?
DEFINING RESPONSIBILITIES
BALANCING
PUTTING STRATEGY INTO ACTION
2006/M.Asheesh/Eng water management

9. Effectiveness-Processes-Resources-Renewal Critical success factors
Goal levels
Critical success factors
Assessment criteria
Min
Real
Max
Issues in which success is crucial in order to implement the vision and the mission statement over the strategic period in question (long-term view)
Criterion/measure/
method to identity/follow up the implementation of a critical success factor
The goal set for the criterion describing the critical success factor over the operative period in question (short-term view)
2006/M.Asheesh/Eng water management

10. Balanced Success - Starting Point for the Future
It is essential to concentrate on how a strategy is created in action, not on paper
The strategy must be based on the “raison d’être” and shared vision of the future
The strategy process must increase competencies and promote continuous learning
The strategy process must be based on interaction and involvement
Continuous communication is a the key to the a successful strategy process
2006/M.Asheesh/Eng water management

11. 2006/M.Asheesh/Eng water management
How to implement BSC?
Thorough orientation to the concept
Management’s commitment
Working process of the management (5-8 days) depending on the applicability of the current strategy and preparedness of the executive group
Open information and feedback
Consultant as an expert of the process and assessing supervisor of the process
Implementation on the other levels of the organisation
2006/M.Asheesh/Eng water management

12. 2006/M.Asheesh/Eng water management
Result of the process
A compact and communicative strategy basis
A decision of perspectives of strategic management
Critical success factors derived from the strategy
(3 to 5 years)
Measures/criteria for success factors
Objectives and targets for the forthcoming year
Defining responsibilities within the executive group
2006/M.Asheesh/Eng water management

13. Advantages of the Balanced Success - BSC
Strategy into action
Balance between different dimensions of management
short and long term operations
resources, knowledge, processes and systems
Involvement of the whole organisation - strategic management as a vertical and horizontal process
A frame for the result management: setting result targets and reporting on results
A compact strategy document: controllable communication inside the organisation and with the public
Interaction - the strategy does not remain only among the top management
Development process under control, there are only a limited number of critical success factors - there is no need to do everything at the same time
2006/M.Asheesh/Eng water management

14. 2006/M.Asheesh/Eng water management
Balanced Success
Potential of BS-process
Pros of BS-process
Takes into account also non-monetary issues
Integrates strategic design and budgeting process
Clarifies the Management by Results process
Strategy can be compressed to a small number of papers - less paperwork!
Strategy is easier to understand - good for the staff and management
Steers the action to the future
Focuses on key competencies
2006/M.Asheesh/Eng water management

15. Strategic space of a public organisation
Basic task
Authority
Resources
Competence
Strategic
space
Responsibility
Accountability
2006/M.Asheesh/Eng water management