Palladium Announces 2015 Hall of Fame for Executing Strategy
On November 3rd, Palladium announced the ten organisations inducted into the 2015 Palladium Balanced Scorecard Hall of Fame for Executing Strategy® at Palladium’s annual Strategy Execution Global Summit.
The Hall of Fame honours organisations that have achieved outstanding performance results using the Balanced Scorecard, a strategy management framework created by Drs Robert Kaplan and David Norton, founders of the strategy consulting arm of Palladium. Today, the Balanced Scorecard and Kaplan-Norton strategy management system are among the most widely-used management frameworks worldwide. Past honourees include more than 200 organisations from nearly 40 countries, including corporations, government entities, and non-profits.
John McClellan, managing director of Palladium’s thought leadership group, said, “The Hall of Fame has been a cornerstone of Palladium’s research agenda since it began in 2000, and the insights winning organisations provide are invaluable sources of best practices. The positive impact this diverse group of winners has created for their stakeholders, employees, and communities through their thoughtful and intelligent application of this framework is inspirational, and I extend my sincere congratulations to all of our winners.”
The 2015 winners are:
Bursagaz – Bursagaz, a Turkish natural gas distributor, has been using the Balanced Scorecard since they privatised in 2004. Over the last decade, their gas volume has grown by a factor of ten, their subscribers have grown nearly fourfold, customer satisfaction has shot up to 90% and their net profits have nearly tripled. Beyond the financial benefits they have enjoyed, Bursagaz has played a significant role in Turkey’s social, economic and environmental development.
CHRISTUS Health – In 2011, US-based healthcare provider CHRISTUS Health implemented the Balanced Scorecard to bring consistency to the strategy planning and execution process, drive greater accountability for implementation and demand strategic justification for capital expenditures. In the past several years CHRISTUS has thrived in the changing healthcare environment, improving its position as the #1 charity care provider in its peer group, expanding operations in the US and Latin America and growing adjusted discharges and net operating income, all while improving outcomes, safety and patient satisfaction.
Club América – Club América, a subsidiary of Televisa, is the most popular football team in Mexico and the first professional sports organisation to be inducted into the Hall of Fame. Since adopting the Balanced Scorecard in 2011, they accomplished strong results despite having a lean team. They regained profitability, grew fan participation by 27%, increased stadium attendance by 13%, saw a 14% increase in their television ratings and grew social media participation more than fourfold.
DeFacto - DeFacto is one of the fastest-growing clothing retailers in Europe and the Middle East. They turned to the Balanced Scorecard in 2009 to manage their ambitious growth plans. Their ambitious vision paid off: in the last five years they have quadrupled their number of stores, expanded internationally, grown their market share and share of wallet, and they consistently rank at the top of brand awareness scores amongst clothing retailers in Turkey.
Janalakshmi Financial Services – Janalakshmi provides banking, loans and other financial products to underserved urban customers in India. During the early part of the global recession, micro-finance in India was growing rapidly, but Janalakshmi was lagging behind. In 2010, the organization implemented the Balanced Scorecard to drive an aggressive growth and technology agenda, increase staff productivity through personal metrics and shift the culture to reflect a greater balance between social benefit and profit. Since 2011, Janalakshmi has out-performed its peers, growing its loan portfolio and customer base more than 2,000%, increasing customer and employee retention and quintupling profits generated for its sole shareholder, Jana Urban Foundation, to reinvest in social impact programs.
PlayCity Casino – Mexico’s PlayCity Casino launched the Balanced Scorecard in 2011, seeking to differentiate themselves from their competitors and grow market share through outstanding operations and outstanding service. Their efforts paid off: they saw revenue growth of 30% by 2014 and they nearly doubled average revenue per user. Soft benefits also abound: they are consistently recognized in written media, by their customers and by their competitors as the best-operated casino in Mexico, and they have slashed their employee turnover in an industry that usually sees around 100% turnover annually.
Portuguese Navy – The Portuguese Navy has focused on strategic planning since the 1980s, but they recognized that a gap still existed between strategic planning and real-world execution. Since they adopted the Balanced Scorecard to bridge that gap in 2010, they have seen a marked cultural change toward long-term, strategic thinking and a 32% decrease in disengaged employees. Today, their military investment implementation rate is nearly 100%, and they have dramatically expanded the types of international naval and marine operations they are able to execute.
Renault Australia – Renault entered the Australian market with plenty of promise in 2001, but by 2009 industry experts were already predicting their exit. Their excellent implementation of the Balanced Scorecard contributed to a dramatic turnaround. After three years, they nearly tripled sales and more than doubled their dealers nationwide, and they have also won public recognition as a best employer. They also successfully navigated the depreciation of the Australian dollar in 2013, increasing sales volume despite the economic downturn.
San Fernando – San Fernando, the capital of the province of La Union in the Philippines, was selected by the Institute for Solidarity in Asia to pilot a Balanced Scorecard program in 2004. The city sought to use innovative management systems to enhance its delivery of public services, focusing on enhancing the quality of life for constituents and improving financial and resource management. San Fernando saw extraordinary benefits: the incidence of poverty dropped 74% over only seven years, and the number of businesses grew precipitously. They have won numerous awards as a business-friendly and competitive city.
Wanxin Media - Wanxin Media, a state-owned enterprise operating primarily in the Anhui province of China, faced a challenging new environment with the growing liberalisation of China’s markets and the changing consumption of reading materials. When their growth remained lukewarm despite a deep enterprise reform in 2008, Wanxin Media adopted the Balanced Scorecard in 2011. From 2012 to 2014, revenue grew by 58% and earnings per share grew by 38%. Furthermore, Wanxin Media expanded their offerings to better meet customer needs and customer satisfaction reached a high of 95%.