Peculiarities of BSC discussion
Have you ever thought why balanced scorecard has so many critics? Some managers claim that this system has become an inseparable part of their everyday routine in the company while others say that balanced scorecard is just waste of time and money. Everyone has his own reasons to say so since the most successful world companies have gained competitive advantage with balanced scorecard while others failed to implement this popular strategic management tool.
There are various reasons for BSC failures. One of the most common mistakes is perception of balanced scorecard as of some magic tool that can solve any business problems. Some managers view balanced scorecard as a project which has its start and end date. In fact balanced scorecard is a continuous process. It is either implemented and becomes a part of company’s everyday life or it is use in an inappropriate way. In such a case balanced scorecard becomes the most expensive managerial tool.
How to prepare for BSC implementation
Some companies have reported to use balanced scorecard as a extensive database or an accounting tool. The reality is that balanced scorecard should initiate changes in the company. Implementation of balanced scorecard starts with discussion. One of the most common mistakes is that this discussion is held on the top level of the company only. Of course, without any doubts, top managers are experts and strategic management, and they know much about markets the company operates in. But the power of balanced scorecard is ability to transfer strategy into action and that’s why it is necessary to communicate strategic and operational management, this is where heads of departments and even ordinary employees can help, and that is the reason why they should participate in discussion of balanced scorecard.
Most common BSC mistakes
Sometimes discussion of balanced scorecard is restricted to the first seminar or presentation of balanced scorecard project and strategy maps to the company personnel. Employees start to think that this is just another unnecessary control tool that will require them to spend their time and efforts. Such use of balanced scorecard equals to lying to yourself. BSC will never work unless every employee in the company is properly motivated to use this tool. Company personnel should be aware of their contribution to implementation of strategic goals. And do not forget about proper motivation since employees must have their reasons to use balanced scorecard.
Formation of BSC teams that will initiate discussion of balanced scorecard and development of strategy maps prove to be one of the most important stages in BSC implementation.
