The implementation of balanced scorecard Essay
The implementation of balanced scorecard
The two main phases of BSC are the planning phase and the development phase. Because different organizations operate differently, it may not be realistic to expect companies to follow one particular route to the implementation of the system. But Nevin 2003 drew an implementation “map” that could aid any organization as it plows through the difficulty of planning and implementation. PLANNING PHASE: The planning phase will include conducting the companies assessment in order to define clear objectives as to what the BSC is expected to help the company achieve.
Then it will design the strategy, or the theme it would follow towards the said objective. The next step would be the definition of what measure would be used to achieve the defined performance. STEP 1……. This would be the right level to conduct a full assessment of the organization. It will entail actual analysis of the company. Then this should be followed by the development of what the companies aims to look like in the future, otherwise to draw some picture of what the organization expect to accomplish with the help of BSC.
It would be expected that the organization makes a commitment to the system, i. e to the BSC management system. Getting a commitment to stick with BSC may result into some resistance, so some exercise of patience may be necessary to make sure everyone understands that it is not a cultural “coup”. Then a sponsor team would need to be selected. It may be necessary here to elaborate more on the BSC as a system, as well as the actual project. This will help everyone to understand, and the team leader would be sure that everyone is following. STEP 2…….
This step will define the strategic themes, the vision and the mission and the values will be clearly defined. The mission statement will explain what the company wants to do in terms of the nucleus or the fundamental focus. The mission statement should be inspiring and well designed to communicate effectively to the team. The strategic themes on this level usually deals with the long and short term goals and what or how the customer would be served better by it. Also it would need to provide specific business ideas that the team will begin to work with.
STEP 3…….. This step deals with such things as deciding what perspective to choose and what objectives really needs to be expressed. So the scorecard perspective would be selected, the strategic objectives would be defined, and decision would be made as to what processest would be used to make the ideas functional. STEP 4……. This step will outline the cause and effect relationships between different strategic objectives. This is normally seen as the stage that develops the strategic map of the of the company. STEP 5……….
This step defines the performance measures, results are developed, and the expected targets are made clear. This is also where a system is developed to keep track of the progress that results from the implementation of the system. STEP 6…… This is the initiative development step, important projects would be funded and implemented, and this will reveal to the team if the chosen strategy is the correct strategy. The chosen project usually goes through a series of process before it is picked, this criteria is set up ahead of time based on such important elements as availability of manpower and financial resources.
STEP 7……. This step deals with conclude with implementation of the BSC, here we see performance information computerized, effort is made to cascade the BSC system through important levels. Then we begin to see the scorecard used to analyze and improve the execution of the system for maximum results. The structural barriers that afflict the BSC system and its implementation have been discussed, it would be essential to constantly review those, because if they not adequately addressed, they could destroy the whole effort.
University/College: University of Chicago
Type of paper: Thesis/Dissertation Chapter
Date: 17 May 2017