The Six Sigma Handbook, Revised and Expanded, 2nd Edition

2.4. STRATEGY DEPLOYMENT PLAN

Unlike traditional measurement systems, which tend to have a control bias, balanced scorecards are based on strategy. The idea is to realize the leadership vision using a set of linked strategies. Metrics operationalize these strategies and create a bond between the activities of the organization and the vision of the leadership.

Figure 2.4 illustrates these principles for a hypothetical organization. Things that will actually be measured are shown in rectangles. The dashboard metrics appear on the left side of the figure. The strategy deployment plan makes it clear that the metrics are not ends in themselves, they are merely measurements of bigger items of interest. These unobserved, or latent constructs are shown ...