The Balanced Scorecard - Implementation Challenges
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The document discusses the '7 deadly sins' of implementing the balanced scorecard (BSC), which include lack of ownership, short-term commitment, isolation from management processes, unclear purpose, impatience for results, excessive initiatives, and poor strategy. Each sin highlights significant pitfalls that organizations encounter when attempting to adopt BSC. The key takeaway is to approach BSC implementation with earnestness to avoid these common mistakes.
The Balanced Scorecard - Implementation Challenges
- 1. “7 Deadly Sins” in Implementing the Balanced Scorecard Achal Raghavan achalraghavan@yahoo.co.in
- 2. Contents BSC: The vertical stack-up 7 Deadly Sins in implementation Sum up
- 3. BSC: The usual visualisation FINANCIAL CUSTOMER Strategy PROCESS LEARNING & GROWTH (PEOPLE)
- 4. BSC: The vertical stack-up Financial Customer Makes BSC easier to understand Process People
- 5. 7 Deadly Sins in Implementation
- 6. Sin #1: “Boss wants it” BSC thrust upon company by corporate office / CEO Top-down directive implemented – for lack of choice No ownership at operating levels
- 7. #2: Flavour of the month No serious intent to use BSC long-term Seen as new exciting tool by CEO People’s reaction: “This too will pass”
- 8. #3: Stand-alone system BSC not integrated with company management review process “Stuck on” to existing systems and processes Operates in isolation – no real impact
- 9. #4: People not clear why “Why Balanced Scorecard” - not explained to people Seen as extra work - “Forms to be filled” “How does it help me do my job better?”
- 10. #5: Impatience (for results) BSC not given enough time - to make an impact Fundamental change in way of managing business Organisational inertia underestimated
- 11. #6: Too many initiatives & metrics Too many initiatives and metrics – due to over-enthusiasm People struggle to cope Leads to fatigue and demotivation Max 4 initiatives X 4 perspectives
- 12. #7: Poor strategy BSC does not ensure sound strategy – it is an implementation methodology Poor strategy + BSC = Poor results!
- 13. 7 Deadly Sins in BSC implementation “Boss wants it” Flavour of the month Stand-alone system People not clear why Impatience (for results) Too many initiatives & metrics Poor strategy
- 14. Sum up Avoid the 7 Deadly Sins Start BSC only if you mean it!
- 15. Thank you!