Question

How are the action plans for a division (for example, a hospital division) similar to action plans for a department (such as housekeeping)? How are they different? What are the primary characteristics of unit objectives? Are these characteristics descriptive of good organizational strategic goals? Why or why not? What is a Balanced Scorecard? In what ways is it a means of focusing attention on strategy implementation?

Answer 1

answer-

Action plans, regardless of level, consist of objectives that specify how the unit is going to contribute to the strategy, what actions will be required to achieve the objectives and within what time period, who is responsible for the actions, the resources required to the achieve the objectives, and how results will be measured. Division-level action plans would tend to be more long-term than department-level action plans and require more intensive communication to share the overall strategy and to provide guidance for the units involved.

Unit objectives should: • Reinforce organizational strategic goals. • Be measurable. • Identify the time frame allowed for accomplishment. • Be challenging but attainable. • Be easy to understand. • Be formulated with the help of those who will do the work to accomplish them.

These characteristics are not different from good organizational strategic goals, in principle. The main differences between action plan objectives and organizational strategic goals are in their focus and breadth. Whereas organizational strategic goals are long-term and emphasize the vision of the organization, action plan objectives are more activity based to accomplish specific tasks that, in combination with other action plans, will accomplish the strategic goals of the organization.

The Balanced Scorecard is a tool that was initially developed as a control technique. It measures various organizational perspectives (usually about four) that contribute to organizational performance (strategic and tactical). In more recent years the Balanced Scorecard has been thought of as a strategy implementation tool. By focusing attention on the different perspectives of the Balanced Scorecard, leaders can use it as a motivational as well as a monitoring tool. The Balanced Scorecard approach links the organization’s short-term actions to its strategy. The process involves four elements: • Linking vision to organizational and unit objectives. • Effective communication to link service delivery and support strategies as well as the units that comprise them to the larger organization. • Action plans that allow the proper integration of strategic and financial plans. • Development of feedback and learning.