What Are Some Of The Critical Success Factors Of Implementing/ Establishing A Balanced Scorecard System

May 20th, 2009 Comments off
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From earlier articles, we see that a proper Balance Scorecard System when properly implemented will be an extremely useful tool for an organization to relate the following:

 

  • Strategic management process
  • Performance management
  • Communication tool

 

The ultimate purpose is that all level of management should worked together to achieve the visions/goals.

 

CRITICAL SUCCESS FACTORS OF A BALANCED SCORECARD SYSTEM

 

  • The leader/top management/board should walk the talk and utilizes the scorecard regularly in reviewing performance and in making plans for the future.

 

 

  • The Balance Scorecard system should be used on its day-to-day use throughout all levels of the organization.

 

 

  • Every individual should be aware and able to understand the importance of the performance measures and the relationship of the scorecard to the organization’s mission.

 

 

  • Human Resources Department should ensure that the staff and management’s individual evaluations and compensation are linked from the organization’s performance to the balanced scorecard.

 

 

· Wrong selections of measures or having numerous measures for each perspective of a Balanced Scorecard:

– When establishing the various perspectives key performance indicators, the objective is actually not to have numerous measures for each category/perspective but rather to select those few that best inform an organization when its operations are aligned with its mission and where to focus its attention and resources.

 

Click here to go to all topics on Balanced Scorecard

 

 

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