In the previous post of this series, we followed the microfinance institution as it went through the process of creating objectives for the strategy map and developing the corresponding measures and initiatives. Now that the strategy was in place, everyone in the organization was eager to begin achieving. This post will take a peek into the first strategy review meeting and provide a brief update on the microfinance institution's progress.

The Balanced Scorecard is a proven system that aligns the operations of an organization, but it does not manage strategy on its own. Once the Balanced Scorecard is implemented, the organization must hold strategy review meetings to track progress against objectives and focus on the discussion of strategy. If certain measures are lagging, or initiatives are not having the desired impact, the strategy review meetings provide an opportunity to develop corrective actions.

As the first strategy review meeting got under way, the microfinance institution began discussing the day-to-day operations of the organization, rather than focusing on the strategy. This is a common trap that hinders the overall effectiveness of the review meeting and needs to be avoided. While it is important to discuss the operations of the organization, that is not the purpose of a strategy review meeting and should be saved for another time. By keeping the operational issues separate from the strategy, the institution can focus on data from the measures and determine if adequate progress is being made towards achieving the objectives.

The microfinance institution had a goal of expanding geographic coverage and increasing the number of clients since its founding, but prior to implementing the Balanced Scorecard, never tracked the progress. Now, during the strategy review meeting, they were finally able to see the status of this objective and make strategic decisions based on current information. Not only did this showcase the effectiveness of the Balanced Scorecard, but it enabled management to better understand the importance of consistent and timely strategy review meetings.

It has been a unique and rewarding experience to watch the microfinance institution work through the many challenges that arise in a former communist country. There will undoubtedly be more challenges to come, but with a solid strategy in place and a commitment to consistent strategy review meetings, the microfinance institution will be well prepared. I will continue to post periodic updates on the progress of the institution throughout the year. Thank you for following along with this series and remember to continue checking our blog for more great information!