Achieving the future state also requires instituting reliable Key Performance Indicators (KPIs) to enable continual monitoring and timely adjustments to the rapidly changing external and internal business environment. The organization needs to establish a robust process with clear roles and responsibilities to methodically evaluate and continually improve the performance measurement system and ensure appropriateness, security, confidentiality, and integrity of data. The Balanced Scorecard, originally introduced by Kaplan and Norton (1996), should be customized to track overall organizational performance from different perspectives that include not only traditional financial measures, but also qualitative measures and leading indicators that are important to the organization’s success. The underlying rationale for establishing leading indicators is that organizations need to measure areas where timely and direct management intervention is possible in order to achieve desired outcomes. The Balanced Scorecard represents a valuable technique to align strategic initiatives, convert strategic goals and objectives into a logical set of performance indicators, facilitate constructive feedback, and communicate results.
Monitoring progress and controlling implementation of the action plans is vital for positive reinforcement and ensuring that strategic goals are achieved according to the strategic plan. If monitoring and controlling do not get sufficient management attention there is a real possibility that all the effort put into strategic planning will be wasted. Many organizations are quite complex entities and a number of unexpected developments may make the action plans inoperable or employees may simply be unable to meet their commitments. Monitoring and controlling processes involve setting realistic performance targets, measuring and comparing actual performance with targets, taking necessary corrective actions, and re-establishing performance targets when indicated. Strategic planning status review meetings should be scheduled on a regular basis to update and share information about the new developments, action plans, strategic projects and initiatives, and related issues and challenges. The status review meeting is one of the essential means to sustain effective communication and participation of stakeholders at every level of the organization.