What a leader should know to build the best business plan

03 MISPERCEPTIONS ABOUT HOW TO USE BALANCED SCORECARD

CEO, Silkpath Hotels & Resorts - Johan Lindholm

July 1 2019

​THE RATIONALE

When a business plan is developed, a good leader needs to make sure s/he has all inputs for the most actionable one, not just a simple plan paper.

Balanced Scorecard is a conventional yet comprehensive tool to help drive what that leader wants to achieve, in alignment with his/her business owners, investors as well as the rest of the company. Without these unanimous agreement, plans will be just plans.

 

 Let's discuss the three biggest misperceptions that leaders mostly have with Balance Scorecard. 

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01. 

Top-down business goals are the most important element

On the first day at work, or even during the job interview, any C-level executives & his/her employers made a great impression that they will work with each other in long term. Simply because both sides are together looking forward to a long-term business prospect. No one just thinks of few weeks or few months of cooperation as they both know how costly it is to hire & fire an executive in a demanding & competitive labor market. 

However why was a CEO leaving a company just after 10 days? Or within 8 months, 15 C-level leaders left a corporation, making a historic record-hitting executive turnover in Vietnam? 

This is because one or both sides break the promises of long-term cooperation during the interview or on the first day at work. After few weeks or few months, either C-level leaders or owners realized the other side doesn't have the ability to communicate the LONG-TERM or SHORT-TERM goals the business plan need to target, and especially how to achieve the goals?

There are two typical cases in this misperception. One is the C-level employees failed to show owners/investors a great plan to achieve the long-term goals. Two is the owners actually never think that far about long-term goals. If CEO brought in a very well-structured business plan for long-term development, owners said it is too ambitious or too much to invest. If CEO came up with a feasible one, it depends on how timely & how consistent owners provided resources for executing the agreed business plan. 

01. 

Top-down business goals are the most important element

On the first day at work, or even during the job interview, any C-level executives & his/her employers made a great impression that they will work with each other in long term. Simply because both sides are together looking forward to a long-term business prospect. No one just thinks of few weeks or few months of cooperation as they both know how costly it is to hire & fire an executive in a demanding & competitive labor market. 

However why was a CEO leaving a company just after 10 days? Or within 8 months, 15 C-level leaders left a corporation, making a historic record-hitting executive turnover in Vietnam? 

This is because one or both sides break the promises of long-term cooperation during the interview or on the first day at work. After few weeks or few months, either C-level leaders or owners realized the other side doesn't have the ability to communicate the LONG-TERM or SHORT-TERM goals the business plan need to target, and especially how to achieve the goals?

There are two typical cases in this misperception. One is the C-level employees failed to show owners/investors a great plan to achieve the long-term goals. Two is the owners actually never think that far about long-term goals. If CEO brought in a very well-structured business plan for long-term development, owners said it is too ambitious or too much to invest. If CEO came up with a feasible one, it depends on how timely & how consistent owners provided resources for executing the agreed business plan. 

01. 

Top-down business goals are the most important element

On the first day at work, or even during the job interview, any C-level executives & his/her employers made a great impression that they will work with each other in long term. Simply because both sides are together looking forward to a long-term business prospect. No one just thinks of few weeks or few months of cooperation as they both know how costly it is to hire & fire an executive in a demanding & competitive labor market. 

However why was a CEO leaving a company just after 10 days? Or within 8 months, 15 C-level leaders left a corporation, making a historic record-hitting executive turnover in Vietnam? 

This is because one or both sides break the promises of long-term cooperation during the interview or on the first day at work. After few weeks or few months, either C-level leaders or owners realized the other side doesn't have the ability to communicate the LONG-TERM or SHORT-TERM goals the business plan need to target, and especially how to achieve the goals?

There are two typical cases in this misperception. One is the C-level employees failed to show owners/investors a great plan to achieve the long-term goals. Two is the owners actually never think that far about long-term goals. If CEO brought in a very well-structured business plan for long-term development, owners said it is too ambitious or too much to invest. If CEO came up with a feasible one, it depends on how timely & how consistent owners provided resources for executing the agreed business plan. 

 
 
 
QUICK QUIZ
1. Which reason frightens you the most?
2. If you're the staff, which case makes you willing to confront?
3. If you're the leader, which case might potentially happen to you without knowing it?
4. If you're the leader, which reason you want to get rid of the most to keep your employer branding?
Which one you think is the most common for the 06 reasons?
 

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