Balanced Scorecard in the emotional economy

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Balanced Scorecard in the emotional economy

• Egil Sandvik Bastian Lie-Nielsen
• Partners
• Knowledge Management Group DA

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BusinessIQ -making business of knowledge
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BusinessIQ -making business of knowledge
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The story we are telling
Score Card Kaplan Norton Balanced Score Card Sveiby Intangible Assets Monitor Sandvik Lie-Nielsen BusinessIQ
tells the story of a SBU strategy making the invisible visible making business of knowledge
and measures performance linked to strategy growth, innovation, effectiveness and stability engagement, identity, learning and financial performance
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The People First Model for Value Creation
Bottomline
Value Creation
Fly wheel
Tipping point
Engaged Employees
Engaged Customers
Strategy Culture
People first
The Leader
The Role
Talents
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Maslows Hierarchy of Needs in the emotional
economy
Traditional
Present
Self Realization Recognition Social
Needs Security Physical Needs
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Theoretical foundation
Concepts and strategy Sveiby, Karl-Erik Hamel,
Gary Prahalad, C.K.

• Perspectives
• People first- perspective on Knowledge
  Management
• Tipping Point
• Fly Wheel Effect

Empirical research Pfeffer, Jeffrey Collins,
Jim Lev, Baruch Gladwell, Malcolm The Gallup
Organization (Buckingham Coffman) Investors in
People
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BusinessIQ

• Dynamic
• Interactive
• Emerging
• Simple
• Focus on developing skills and capacities to act

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Conceptual framework BusinessIQ
HCI Human Capital Index SCI Human Capital
Index CCI Customer Capital Index ICI Identity
Capital Index FCI Financial Capital Index
People first


ICI
FCI
SCI
Flywheel
.
.


CCI
10
Organizational learning
Operations/goal of team/organization
Developement (Coaching)
Feedback (webbased)
Interpretation (Workshop)
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BIQ
160 140 120 100 80 60 40 20 0
Average smartness
Time
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BIQ
If you are so smart - prove it!
160 140 120 100 80 60 40 20 0
Average smartness
Periode
2
3
1
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BSC (KaplanNorton)
Financial
Vision and strategy
Customer
Process
Learning and developement
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BusinessIQ compared with BSC
Engage- ment

Financial
Learning

Identity
.
.

Engage- ment

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Two similar units in the same company- Who, A
or B, has the better result?
A B
-Actively engaged 17 55
-Not-engaged 60 37
-Actively unengaged 23 8
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What do you ask of your manager?

1. Focus me
2. Equip me
3. Use me
4. See me
5. Care about me
6. Develop me

HCI
-Gallup-
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BusinessIQFive Capital Indexes

• Human Capital Index (HCI 24)
• Strategy Capital Index (SCI 19)
• Customer Capital Index (CCI 14)
• Identity Capital Index (ICI 21 )
• Financial Capital Index (FCI 10)
• Your score 88
• Average score100
• Max score about 150

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Human Capital Index
Expectations
Right tools
Strenghts
Engagement
Profitability
Recognition
Care
The Human Capital Index measures employee
engagement Based on research by the Gallup
Organization
Development
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Strategy Capital Index
Knowledge for value creation
Developing tools
Access to tools
Activation
Profitability
Using tools
The Strategy Capital Index measures an
organizations knowledge sharing and
implementation of its strategy Based on
theories by Dr. Karl-Erik Sveiby
Customer learning
Learning together
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Customer Capital Index
Keep promise
Fair treatment
Problemsolving
Engagement
Profitability
Pride
The Customer Capital Index measures customer
engagement Based on research by the Gallup
Organization
Respect
Perfect
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Identity Capital Index
Mission
Vision
Position
Identity
Unique and demanded
Core competence
The Identity Capital Index measures how you are
mastering your corporate identity Based on
research by Gioia, Dennis and James
Values and culture
Image
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The FCI calculates the Financial value of the
firm using the marketvalue to equity.
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Capital indexes as measurement tools

• Simple indexes that capture emotions and
  relations of customers and employees
• Simplyfies the ideas of Balanced Score Cards
• The next-generations climate-, satisfaction-,
  culture- and customersurveys.
• Builds on research on people first management,
  Fly wheel effect and tipping point theory
  (six steps)

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BusinessIQ -making business of knowledge

• Develop and manage emotions
• Manage intellectual capital to improve your
  business performance
• Make the strategy work for people
• Predict future earnings
• Making business of knowledge

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Knowledge Management Group DA - Scandinavian
branch of SKAglobal

• About Knowledge Management Group DA
• KMG DA is a company developing tools and
  processes for the knowledge-based organization.
• KMG DA runs The Norwegian Forum for Intellectual
  Capital and Consortium for Intellectual Capital.
  Counting in excess of 170 members, the Forum is
  the arena for developing knowledge management and
  intellectual capital in practice for Scandinavian
  businesses. In 2001, the Forum and Consortium was
  awarded Best Work 2001 by Sveiby Knowledge
  Associates, its work was published in Fortune
  Magazine and Thomas Stewarts book, The Wealth
  of Knowledge.
• Knowledge Management Groups vision
• KMG DA translates new knowledge of value creation
  to practical leadership for the knowledge-based
  company.
• Knowledge Management Group DA
• KMG DA assists and facilitates the development of
  strong brands and action-based organizational
  cultures by using tools and processes developed
  for the knowledge-based company.
• KMG DA emphasizes helping organizations
  understand, share and apply their existing
  knowledge of customers and organization. We want
  to make organizations better for people.

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Knowledge Management Group - The people

• Egil Sandvik (56)
• Managing Partner, Chartered Member SKA Global
• egil_at_kmgroup.no
• Bastian Lie-Nielsen (41)
• Partner, Chartered Member SKA Global
• bastian_at_kmgroup.no
• Christian Rangen (28)
• Junior Partner
• christian_at_kmgroup.no
• www.kmgroup.no