Linking Process and Strategic Risks for Effective Risk Management
Louisiana Workers' Compensation Corporation (LWCC) is a member of the 2011 Palladium Balanced Scorecard Hall of Fame. Ten years ago, we started a journey that began with adopting the Balanced Scorecard as a performance management tool. We used the scorecard for more than five years before we recognized that we had to evolve from a performance-focused company to a strategy-focused one. We knew this would require linking our operations to our strategy. The BSC helps in that regard by enabling organizations to translate strategy into operational terms. Measures and targets then help managers see which strategic objectives are being achieved. To drive the strategy-operations linkage deeper into our organization, we implemented driver-based budgeting throughout the company. Today, driver models constitute key elements in our budget evaluation approach.