Scorecard – A Strategic Map to Steer Global Business Services

Introduction

How should leaders within Global Business Services (GBS) navigate the strategic evolution of their organizations? The implementation of a scorecard as a strategic framework provides a comprehensive approach to steer the GBS organization. This framework elucidates the governance structure of the GBS organization, assesses the performance of process owners, and clarifies the prioritization of objectives.

Scorecard Framework

Drawing on empirical evidence, we propose an exemplary scorecard designed to empower GBS leaders. This scorecard delineates eight critical priorities:

1. Strategic Alignment with Key Stakeholders: ensuring that the objectives are congruent with the broader goals of key stakeholders.

2. Data Management: implementing robust data governance and analytics capabilities.

3. Digitalization of Processes and Subprocesses: leveraging digital technologies to enhance operational efficiencies.

4. Operating and Sourcing Model: optimizing the organizational structure and sourcing strategies.

5. Service Demand and Quality: balancing service delivery with quality assurance.

6. Governance Framework: establishing a robust governance structure to oversee operations.

7. Internal Control and Risk Management Environment: strengthening internal controls and mitigating risks.

8. Cost Efficiency: enhancing cost-effectiveness through strategic resource allocation.

 Practical Application

The following figure (Figure 1) illustrates this scorecard, which serves as a strategic map to steer the GBS organization. The priorities identified in this figure are illustrative and not exhaustive.

Figure 1 The scorecard

Benefits of the Scorecard

The integration of the scorecard into GBS operations yields several benefits: 1) Enhanced Stakeholder Collaboration 2) Strategic Adaptability and 3) Complexity Management. In other words, the scorecard fosters a collaborative environment with key stakeholders, equips GBS leaders to navigate business uncertainties effectively, and assists them in addressing the complexities of both internal and external environments. The scorecard serves as a strategic map that refines the operating model of the GBS organization. It not only stimulates strategic exploration through stakeholder dialogue but also establishes a comprehensive reporting philosophy. Consequently, the scorecard aids in defining metrics to monitor GBS operations performance.

Continuous Improvement

It is crucial for GBS leaders to avoid the pursuit of a perfect scorecard, as the dynamic nature of contemporary business environments necessitates regular review and adjustments. Leaders should prioritize incremental improvements rather than attempting to resolve all issues simultaneously. Further, overloading the scorecard with too many directions can obscure critical information and generate confusion among stakeholders.

Conclusion

In conclusion, the adoption of a scorecard as a strategic framework for GBS organizations catalyzes constructive stakeholder dialogue, enhances the experience of process owners, fosters stronger partnerships with corporate function leaders, and translates strategic imperatives into actionable steps. The scorecard thus serves as an essential analytical tool, enabling GBS leaders to identify key areas of focus, formulate pertinent questions, and interpret results effectively.