Structural variables offer an implementation toolkit for identifying key levers that affect the

formulation-implementation process and ensuring formulation-implementation-performance

cycle. Within the capable organization framework suggested here, structural levers of
implementation are
1. Actions–—who, what, and when of cross-functional integration and company collaboration;
2. Programs–—instilling organizational learning and continuous improvement practices;
3. Systems–—installing strategic support systems; and
4. Policies–—establishing strategy supportive policies. Managerial skills are discretionary in
nature and vary with individual perceptions and behavior. Skillrelated implementation levers in
the capable organizations framework are
5. Interacting–—the exercising of strategic leadership;
6. Allocating–—understanding when and where to allocate resources;
7. Monitoring–—tying rewards to achievement; and
8. Organizing–—the strategic shaping of corporate culture.

The balanced scorecard (BSC) is a strategic planning and management system that organizations use to:
 Communicate what they are trying to accomplish
 Align the day-to-day work that everyone is doing with strategy
 Prioritize projects, products, and services
 Measure and monitor progress towards strategic targets

The system connects the dots between big picture strategy elements such as mission (our purpose), vision
(what we aspire for), core values (what we believe in), strategic focus areas (themes, results and/or goals)
and the more operational elements such as objectives (continuous improvement activities), measures
(or key performance indicators, or KPIs, which track strategic performance), targets (our desired level of
performance), and initiatives (projects that help you reach your targets).

BSC Terminology: Measures (Key Performance

Indicators)
For each objective on the strategy map, at least one measure or Key Performance Indicator (KPI) will be
identified and tracked over time. KPI’s indicate progress toward a desirable outcome. Strategic KPIs
monitor the implementation and effectiveness of an organization's strategies, determine the gap between
actual and targeted performance and determine organization effectiveness and operational efficiency.
Good KPIs:
 Provide an objective way to see if strategy is working
 Offer a comparison that gauges the degree of performance change over time
 Focus employees' attention on what matters most to success
 Allow measurement of accomplishments, not just of the work that is performed
 Provide a common language for communication
 Help reduce intangible uncertainty