Hot Spots Case Study

Gratton (2007) defines “Hot Spots” as circumstances where cooperation leads to pronounced energy, productivity, innovation and exhilaration. Hot Spots can be flourish anywhere i.e. within a workplace, team, department, company, factory, hallway or conference. Hotspots are formed when people work together in ways that are extraordinarily creative and collaborative. Hot Spots guarantee organizational success. The energy in Hot Spots encourages innovation, a core capability required to succeed in the new volatile, uncertain, complex and ambiguous business environment. Hot Spots propels people to think differently, revamp practices and reengineer processes to offer extraordinary products and services (Gratton 2007). Developing robust innovation

His text first highlights the limitations of performance measurement tools that are excessively focused on financials. The Balanced Scorecard is strategic business system that is critical for success in the fast changing 21st Century business environment. The Balanced Scorecard is a multidimensional tool that addresses the shortcomings of the financial measurement tools. Non-financial measures provide strategic information and projections that can be used anticipate and influence future results, capturing complexity and values contained in the firm (Gomes et al., 2013). The Balanced Scorecard can be implemented in line with organizational culture and helps the firm to differentiate itself from competition. To successfully implement and sustain the scorecard, the firm should have a guiding rationale for the implementation. There should be executive ownership and buy-in of the scorecard. Since the scorecard is an agent of change, proper communication and training ensure staff understanding and keen interest for adoption. The firm should define its core purpose (mission), values, vision and strategy. The Balanced Scorecard translates the mission into solid objectives, tracks the extent to which the firm lives its values. It aligns the employees into a common vision and provides an opportunity to effectively execute the organization’s strategy. The scorecard strategy compels the

Both the Hotspot and Balanced Scorecard are frameworks for change. However, Gratton and Niven offer different ways of managing organizational change. The Hot Spots philosophy suggests that organizations should be designed around the people as source of ideas and continuous innovation. To fuel the emergence of Hot Spots, leaders should focus on structural designs and reinforcing appropriate practices and processes. In contract, the Balanced Scorecard focuses on measurable factors of change, such as the return on equity, customer satisfaction and staff turnover. The Balanced Scorecard provides a balanced view by linking performance measurements and indicators to strategy (Peters, 2014). While the Hot Spots and Balanced Scorecard are different strategic tools, they complement each other to address organizational problems resulting in improved organizational