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

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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.

 
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