Balanced Scorecard Toolkit - Balanced Scorecard Implementation Success Factors

• Achieving nothing in the pursuit of striving for everything. Organizations in their attempts of having a perfect BSC tend to lose out on the opportunities in this process. It is to be understood that owing to the dynamicity of the environment a perfect BSC cannot be had. So it is better to start off with whatever they can and modify it with time.
• Absence of support of key Executives. The top and middle level management are responsible for majority of the strategic decisions which guide the operational workings of the organizations. Therefore, it is important to engage them in the task of BSC formulation. Besides key Executives’ participation, external stakeholders’ and staff should also be involved in the process.

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• Indicators often used for punishing and rewarding employees. This is a wrong approach as the aim of applying a BSC should be to foster a learning culture rather than a way for rewarding and punishing the workers. This would cause loss of focus and dilute the spirit of implementing a BSC.
• No. of indicators should be chosen carefull. Some of the indicators are imposed by the external factors, however, the organization is required to separate such indicators from the ones which track directly progress of company towards the goals.