Balanced Scorecard Toolkit - Examining Company before Scorecard implementation

A study reveals that as many as half of the users of BSC were not able to derive the benefits they hoped for. Successful Implementation of BSC requires an accurately and appropriately set stage and applying it with rigor and discipline. This in turn can be ensured by:

• A thorough SWOT analysis is to be done to strike a balance between external Opportunities and Threats and internal

• Strengths and Weaknesses. This would clarify on which measures are to be considered and how are they to be measured. Also organizational BSCs have to be aligned with individual BSCs.

• Processes of the organization should be analyzed.

• Enough Executive Sponsorship to reinforce the Scorecard’s value in the organization.

• Appropriately formulated metrics, which not only reflect the past but also help in ensuring future success. Tired and lagging indicators should not be used.

• Management systems are to be revised and refined on a continuous basis to prevent futile rewarding of performances only on financial grounds.

It has to be understood that the BSC implementation process is a change project. There are three stages experienced in it which differ in Leadership Objective, Core Competency and Management Role.

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