BSC is business philosophy
What is better: to have an excellent strategy and show poor implementation, or to have satisfactory strategy and do everything possible to fully implement it? Well, experience shows that in course of time strategy can be amended and change. Companies are operating in volatile markets with frequently occurring changes. That’s why, strategy should be adjusted according to new market conditions. But if company top management and personnel refuses to change, it will do very little to implement strategic goals. In fact, they will think that they are performing actions aimed at implementation of strategic goals but those actions will have nothing to do with the strategy.
Tasks of BSC team
That’s why it is extremely important to form competent working groups and teens that will be in charge of development and preparing for balanced scorecard implementation. Balanced scorecard is not a get rich overnight scheme. Unfortunately, some companies view balanced scorecard as a magic tool. BSC will not solve any problems it will only help company find the right way to implement strategic goals. BSC does not substitute strategy. BSC team members have to understand this.
The 4 BSC perspectives
One of the most common mistakes is that balanced scorecard team consists of top managers only or the entire BSC project is completed by one top manager. It is interesting that this top manager has the most complete and profound knowledge of the company strategy. His balanced scorecard will have all necessary key performance indicators and clear cause and effect ties. But the problem is that balanced scorecard will be used by just one person – top manager who has developed BSC. Other top managers and ordinary personnel will be only presented with a strategy map and that’s it.
In order to make balanced scorecard work it should become a part of everyday routine for every employee. Moreover, balanced scorecard should be understood by personnel. Everyone in the company should be aware of his/her contribution to implementation of strategic goals.
That’s why, BSC team should consist of representatives of company business units and departments since they know much about business processes on the operational level. Top managers must understand that they have to change managerial style in order to initiate changes in the company. It is better to have the right approach is to strategy implementation one and then amend strategy if necessary then to implement the best strategy using old fashioned of managerial styles and approaches.
Tags: bsc implementation, BSC use, KPIs evaluation
