Balanced Scorecard
Success of the Balanced Scorecard
The change can be described as a success when the BSC is working well, this can occur when certain goals and conditions are met. Those conditions will be described in this section. Once a project aligned with goals and strategies of the organization is chosen, project members selected, and proper communication of goals has been provided to the project team, it is possible to develop a balanced scorecard to monitor the project (Devine et al., 2010).
According to Barglas et al. (2004) the most effective scorecards have six characteristics in common: focus, balance, scope, audience, technology, and implementation. First, focus refers to day-to-day tools to guide executive actions. Second, balance includes a mix of leading and lagging indicators that are keyed to internal and external financial and operating metrics.
Third, scope is about providing a limited number of balanced metrics at the top. Fourth, audience because scorecards are used for all employees. Fifth, technology is matched to the need for timeliness in reporting and analysis. Sixth, implementation is important. Less than
20% that use scorecards have mature implementations that are creating value (Barglas et al.,
2004).
Research of De Geuser et al. (2009) demonstrates that the BSC contributes positively to organizational performance. Their study provides empirical evidence that the BSC contribution depends to a large extent of three conditions of the Kaplan and Norton SFO model; better translation of strategy into operational terms, strategizing becomes a continuous process, and the alignment of various processes.
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It can be argued that the following variables will contribute to the success of the Balanced
Scorecard; clear vision and goals, right members selected, proper communication, focus, balance, scope, audience, technology, phases of implementation, tasks transferred properly, culture, handle resistance, acceptance of advice and leadership.
The change can be described as a success when the BSC is working well, this can occur when certain goals and conditions are met. Those conditions will be described in this section. Once a project aligned with goals and strategies of the organization is chosen, project members selected, and proper communication of goals has been provided to the project team, it is possible to develop a balanced scorecard to monitor the project (Devine et al., 2010).
According to Barglas et al. (2004) the most effective scorecards have six characteristics in common: focus, balance, scope, audience, technology, and implementation. First, focus refers to day-to-day tools to guide executive actions. Second, balance includes a mix of leading and lagging indicators that are keyed to internal and external financial and operating metrics.
Third, scope is about providing a limited number of balanced metrics at the top. Fourth, audience because scorecards are used for all employees. Fifth, technology is matched to the need for timeliness in reporting and analysis. Sixth, implementation is important. Less than
20% that use scorecards have mature implementations that are creating value (Barglas et al.,
2004).
Research of De Geuser et al. (2009) demonstrates that the BSC contributes positively to organizational performance. Their study provides empirical evidence that the BSC contribution depends to a large extent of three conditions of the Kaplan and Norton SFO model; better translation of strategy into operational terms, strategizing becomes a continuous process, and the alignment of various processes.
10
It can be argued that the following variables will contribute to the success of the Balanced
Scorecard; clear vision and goals, right members selected, proper communication, focus, balance, scope, audience, technology, phases of implementation, tasks transferred properly, culture, handle resistance, acceptance of advice and leadership.