These terms need to be defined, differentiated and used in the right context
Language-wise and within a balanced scorecard/corporate performance context, there are several terms that are overlapping and used interchangable sometimes and as if they are different things in other times
1- Goals, Targets and SMART objectives.
being all tangible, quantifiable and measurable
2- Initiatives, action plans, and activities;
Again, I need your answer from both a language viewpoint and also from a balanced scorecard terminology and implementation view too
(Question posed by Mohammed Thiab on LinkedIn)
Jennifer Carlisle’s answer:
These are fairly basic concepts, although you are correct that the terms are often used interchangeably (and incorrectly). From a language standpoint, we could argue terminology all day, and still end up with similar meanings for all of these phrases. Therefore, it only makes sense to discuss them in terms of practical application. The very definition of a balanced scorecard is to measure results against plan across different perspectives of your business. Typically, these perspectives include financial, customer, and internal processes, as well as another dimension such as organizational capacity or growth. Within each dimension, an organization establishes specific objectives through which they accomplish their strategic goals, which are tied to their overall mission. Note that objectives can, and often do, support multiple strategic goals. You mention SMART, which is simply an acronym that describes attributes of those objectives that makes them reasonable. Sometimes the organization maps their strategic goals along their scorecard dimensions, sometimes not.
The key to scorecard success, however, is to identify the element to be measured and the metrics, or targets, associated with the specific objectives within each dimension. See the top down relationship between these elements in the following example (within customer perspective):
- Vision: World-class provider of finance and accounting services
- Goal: Fully satisfy customer requirements and aggressively resolve problems to deliver best value services
- Objective: Improve client/customer satisfaction Measure: Client/Customer Satisfaction
- Target: Increase by 10%
Within each functional area, these objectives are further broken down into initiatives designed to support the strategic goals. These are often defined within operational maps, which are laid out similar to strategy maps, but focus on the specific action plans to be implemented within that functional area. To continue my example:
- Objective: Improve client/customer satisfaction
- Measure: Client/Customer Satisfaction
- Target: Increase by 10%
- Initiative: Needs Assessment
- Action Plan: Conduct new client needs assessment during pre-sales
- Activities: Develop needs assessment instrument by x date, pilot in field by x date, roll out by x date
