Destination Statement

 

To facilitate the link between the Balanced Scorecard concept and the mission/vision statements, a “destination statement” approach emerged from practice (Andersen, Lawrie and Savic 2004, Lawrie, Cobbold and Marshall 2004, Lawrie, Cobbold and Issa 2004, Lawrie and Cobbold 2004).

 

Lawrie and Cobbold (2004) are part of a group of consultants that were the first to use “destination statements”, tracing its roots back to late 1990s, when the interest in validating strategic objectives and targets as part of the development of Balanced Scorecards lead to initial version of such a concept.

 

The “destination statement” represents a description of how the organisation will probably look like at a particular future date, achieved through a combination of categories that include statements that reflect the impact of implementing the strategy and the results achieved by the organisation (Lawrie and Cobbold, 2004).

 

Destination Statement through case studies

Andersen, Lawrie and Savic (2004) illustrated the use of the destination statement by a commercial organisation through a case study. The case presents how the organisation used the destination statement to describe the long-term strategic goals and align their strategic priorities to the destination statement through the use of other strategic management tools such as the Strategy Map.

 

Lawrie, Cobbold and Issa (2004) presented another case study covering the use of strategic priorities incorporating destination statements in practice: “The destination statement consisted of about sixty distinct descriptive statements grouped in four headings: financial and market characteristics, external relationships, activities and processes and organisation and culture”.

 

A third case study where destination statements were used in practice was published by Lawrie, Cobbold and Marshall (2004). This time the concept was implemented in a governmental organisation that included in it topics areas that the management considered it could directly influence: “The destination statement described the future unit around four main topics: environmental outcomes; external relationships; resources, organisation and culture; and activities and processes.” (Lawrie, Cobbold and Marshall 2004). The future date used in the destination statements described by these case studies is five years away from the time of their development (Andersen, Lawrie and Savic 2004, Lawrie, Cobbold and Issa 2004, Lawrie, Cobbold and Marshall 2004).

 

Destination Statement value added

Overall, the Destination Statements is intended to offer a snapshot of what an organization is expected to be like at a specific point in time, as the organization works towards achieving the elements of its vision. The Destination Statement offers a helicopter view of the results obtained in the chosen period of time, financial details, stakeholders’ expectations, work processes, organizational culture and so on. Some elements of the destination statement are numerical targets – such as projected revenue – while others are descriptive – such as organizational culture.

 

 

References

  • Andersen, H.,V., Lawrie, G. & Savic, N. (2004), Effective quality management through third-generation balanced scorecard, International Journal of Productivity and Performance Management, Vol. 53, Iss. 7, pp. 634-645.
  • Lawrie, G., & Cobbold, I. (2004), Third-generation balanced scorecard: evolution of an effective strategic control tool, International Journal of Productivity and Performance Management, Vol. 53, Iss. 7, pp. 611-623.
  • Lawrie, G., Cobbold, I. & Marshall, J. (2004), Corporate performance management system in a devolved UK governmental organisation, International Journal of Productivity and Performance Management, Vol. 53, Iss. 7, pp. 353-370.
  • Lawrie, G., Cobbold, I. & Issa, K. (2004), Designing a strategic management system using the third-generation balanced scorecard, International Journal of Productivity and Performance Management, Vol. 53, Iss. 7, pp. 624-633.

BSC concept : Components

 

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