The Corporate Scorecard is one of the most important management and leadership tools we have. In the same way that vital signs are simple indicators of personal health status, an optimally balanced scorecard will tell us where we are out of balance as a system. In an upcoming white paper; Miracle Cure: Rebalancing the Corporate Scorecard for Supersymmetry, we show that by simply tuning the entire system to supersymmetry (i.e. tangible-intangible equivalence), the fractal strategies we employ to move the four levers of economic, operational, team, and customer performance can be dramatically simplified, owned at every level, and brought to life by the entire fabric of process owners in the system, leading to a dramatic upshift in total system performance. How is this possible?
In predicting tomorrow’s measurement systems, intangibles measurement guru Brenda Rarey issued the call for more effective intangibles measurement more than a decade ago: “The current reality of business measurement does not match the current reality of the environment. Future measurement systems will have a direct impact on the success of the business by integrating overall corporate strategy with system measures that include intangibles, such as employee fulfillment, customer satisfaction, knowledge, data, and intellectual capital. The benefits will be enormous. An astonishing number of managers are still not aware of the difference a shift in culture can make. Cooperation, engagement, creativity, employer-employee values alignment – these dramatically affect the bottom line.”
In an arresting article, “When Balance Sheets Collide with the New Economy,” Denise Caruso of the New York Times lamented, “Today’s sophisticated knowledge economy is stuck with the equivalent of an abacus for measuring the actual financial value of corporate assets and liabilities. . ..today’s markets are being transformed by intangibles, and a growing number of companies are scrambling to find the methods that will help them better use, develop and communicate about them.”
Traditional performance methods and performance management practices that focus almost exclusively on tangible metrics have an inherent blind spot. Business governance that overvalues the tangible aspects of the organization cannot help but sub-optimize the system’s long-term performance and decrease its health. As you can see, the principle of supersymmetry applies at every system level – from individual to enterprise.
When it comes to optimizing total system performance, the simplest and surest solution is a supersymmetric approach.
When reframed for supersymmetry, the physiological-psychological equivalence of mind-body comes unmistakably and clearly into view. By modifying or tuning most of the scorecards in use today, organizations can move to a simpler framework that goes with the flow of nature instead of against it, and that not only strengthens but assures the optimum health of the system. From this view, it’s easy to see both the mind-body connection as well as the brilliance of Kaplan and Norton’s balanced scorecard.
To work smarter and not harder in the future, all systems, from the largest of enterprises to the tiniest of teams, have available to themselves an inherent symmetry that is there for the taking.