1. The implementation of the Balanced Scorecard had improved Worldclass management review practices. Previously the management review was done only with the general manager and the controller. Where as with introduction of Balanced Scorecard now management review is done with the whole management team. Furthermore the balanced scorecard practised by Worldclass essentially measures both strategic and operational targets i.e organizational and departmental.
Actually this is the beauty of using the Balanced Scorecard as a performance measurement tool. One can choose how deep to cascade the implementation of the scorecard down to the operational departments. By doing this the organization is getting as many employees as possible involved in the process. At the same time Worldclass tie this process to the computation of the compensation scheme involving the payment of bonus. The staff can see that their yearly bonus is dependent on their input of the reporting of the targets set in the KPI. That explains for the tremendous support for the balanced scorecard reporting in the earlier stage of implementation. This clearly shows what gets measured gets managed and what gets rewarded gets done!
At the same time in the previous practice the management concentrated more on the financial indicators. These were however the lagging indicators. With the implementation of Balance Scorecard non financial perspective provide leading indicators tied to the lagging financial indicators. This proved to be crucial to the company in improving its bottom line.
2. The Balanced Scorecard provide information from four perspectives namely customers, financial, process and learning & growth. Worldclass has put financial perspective as the most important as this is a going concern which will rely on its financial...