Volume 1, Number 8
Newsletter for Executives & Leaders
Building Capability: The Fifth Element W hat will determine future performance success in business? We now have tools and research highlighting essential and critical issues that must be considered to achieve sustainable high performance. Mike R. Jay is a business and executive coach, happeneur and speaker on personal and organizational development. Now widely accepted, the Balanced Scorecard (BSC) has gone from fad to practice. The Balanced Scorecard is a matrix of corporate performance measurements that view the organization through four perspectives—critical issues in four systems: financial, internal, external, and developmental (innovation, learning, and growth).
Research states that brand loyalty, growing loyal customers and employee engagement are also leading indicators of future performance potential. (Coffman & Harder, 1998)
Historically, investors have used trailing indicators as a method of determining future value. Measures such as profitability, revenues, return on capital, cash flow and economic value added (EVA) are among many other strategies for determining the capacity to perform, or what some refer to as Value Creation.
He is the author of COACH2 The Bottom Line: An Executive Guide to Coaching Performance, Change and Transformation in Organizations and the founder of B\Coach Systems, a business and executive coach training system. If you would like more information on creating coaching programs for managers, leaders or executives, we welcome your inquiry for your coaching and development requirements.
However, in the real time economics of the future, one thing and one thing only will provide the key to future performance—capability. Companies who build capability will survive and prosper in the coming years as turbulence and accelerating change rapidly erode traditional business models.
Mike Jay can be contacted at 1.877.901.COACH (2622) or by email at coach@Leadwise.com.
Building capability starts with the individual and is compounded or increased exponentially as it spreads to work groups, teams and finally throughout organizations in a network effect.
Key Performance Indicators
What Business Coaches Do