Tuesday, November 29, 2011

A peek into Sustainability Balanced Scorecard for Enterprise


“        Sustainability” is a term I was familiar with, but my recent read of Paul Hawken’s “Ecology of Commerce: A Declaration of Sustainability” helped me realize that it is a much bigger and important concept. Two important things (or the 2Rs of sustainability) caught my attention: 
  1. Wise use of economic and natural Resources 
  2. Respect for people and other living things
The goal of a Balanced Scorecard, as I understand, is a management tool for communicating the enterprise strategy for execution. Pursuing sustainability goals may not be the top priority for most businesses, but I believe a strategy-based balanced scorecard system aligned with principles of the sustainability ‘Triple Bottom Line’ will offer corporations a way to accomplish social and environmental goals while integrating them fully with financial performance and competitive advantage.

In an effort to understand how the ‘Sustainability’ theme can be described through each of the four perspectives of the balanced scorecard, I created a sustainability balanced scorecard as a 6 step process. 


In case you are wondering, the above 6-step sustainability strategic planning through execution process was created using MS Powerpoint. Creating a pretty balanced scorecard picture like this is easy though, but monitoring the impact of the corporate initiatives and measuring the performance on a timely and regular basis is where the challenge lies in. So, are there any software tools/solutions that will help management teams discover the power of enterprise performance management (EPM) to improve transparency, insight, and decision-making? 

Acquiring the right technology is key to improved enterprise planning, and spreadsheets were the most commonly used tool to support business intelligence and EPM processes. Oracle’s Hyperion Performance Scorecard is one solution I am aware of that provides a flexible approach to development of scorecards supporting recognized scorecarding methodologies and industry benchmarks. You can read more about Oracle’ EPM solution here 

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