Alignment

A comprehensive and managed alignment process helps the enterprise to achieve synergies through integration.

Developing a strategy map and balanced scorecard for the new company, provides a mechanism by which managers from the two previously independent entities have an opportunity to work together toward common objectives.

The opportunities for new friendships and collaborative working relationships emerge organically from the executives' participation in the intensive process to build a strategy map and BSC.

Having a common set of measures from alliance partners is not natural act. Each party has its own reporting process and measures; each brings its own perspective of what it acts to contribute to the alliance and what it hopes to gain from the alliance.

Increasingly, companies are using alliances to fill the gaps in their own capabilities and to grow in new markets and regions.

A balanced scorecard provides a much more general contractual mechanism that allows service, timeline, innovation, quality, and flexibility to be incorporated into the relationship.

Without a balanced Scorecard, contracting with an external partner focuses only on financial measures such as price and cost.

The scorecard also provides an explicit contract by which inter-organizational performance can be measured.

When an enterprise builds a balanced scorecard with a strategic external partner, it enables the senior managers from the two entities to reach a consensus about the objectives for the relationship.

All market systems require intermediaries to help direct capital to its most productive opportunities and to monitor the performance of managers who have been granted capital by external investors.

A balanced scorecard-based governance system offers directors streamlined and strategic information.

Large multiproduct, multiregional organizations strive to achieve competitive advantage through economies of scale and scope among their decentralized units.