Get your business ready for BSC implementation

Implementation of balanced scorecard requires a proper preparation.  It does not matter on what level balanced scorecard will be used – for the entire company or an individual department – certain preparation needs to be done.  It’s not enough just to talk about balanced scorecard.  An extensive and broad discussion is needed.  Moreover, much depends on discussion participants.

Very often most companies start implementation of balanced scorecard with formation of working groups that will be in charge of implementation of balanced scorecard and its promotion in the company.  But there is a very typical mistake – such working group consists of top managers only or external advisors who have prior experience of BSC implementation in other companies.  The problem is that such advisors possess important and valuable information in the field of strategic management but they may now very little about the company which is going to implement balanced scorecard.  Something that is good for one company is dangerous for another.  So, use of classical BSC models may even hurt the company.

How to create an effective working group?

How to create an effective working group?

When talking about evaluation of training efficiency it is vital important to include ordinary personnel to the working group and get personnel involved in the discussion.  Employees need to understand why they should undergo training and what benefits they will have as a result of such training sessions.  The most important issue is HOW to use acquired knowledge in practice.  The training by itself is not earning money for the company, while educated employee may use new skills and knowledge to make profits for the company through attraction of new customers, offering products and services at competitive prices, using advanced marketing techniques etc.

Discussion of strategy is the first step in BSC implementation

Discussion of strategy is the first step in BSC implementation

If company personnel will view work with balanced scorecard in evaluation of training efficiency just a formality the system will never work.  Discussion of balanced scorecard should grow into development of action plan and strategy maps.  Such maps will show the rooms and directions on how training will benefit the company and help that approach strategic goals.  For example the company has the goal of gaining larger market share.  This is possible through attraction of new customers, which in its turn is possible through offerings of new products and services and use of new methods of relations with customers.  Obviously, employees need me you knowledge and skills.

Strategy map should be easy to read otherwise ordinary personnel we just ignore them and they will stay just a top management feature.

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