Only a few companies understand importance of strategic planning and BSC – interview with Dinesh Kakkad
10 questions to Balanced Scorecard Expert Dinesh Kakkad, Executive Director of Excellence unLimited
1. Please, summarize in few words what is your expertise and background with Balanced Scorecard.
I have been associated with Balanced Scorecard since 2000 and was and am actively involved to roll it out from SBU level to functions and individual KRAs and goals.
2. It is known that Balanced Scorecard is used by more than 50% of Fortune companies. Do you think this concept is for big companies only?
No, even small companies can as well utilize it for systematic planning and growth.
3. While BSC concept is popular now, what other business performance measurement concepts can you recommend for companies to consider?
Benchmarking and utilization of National Quality Award models like MBNQA, EFQM and Deming Prize are advantageous.
4. Please, share your opinion about key ideas that should be kept in mind for successful implementation of BSC?
• Cross-checking “Cause and effect” linkages for initiatives across all four perspectives,
• SMART measures rolled down to functional and individual level,
• Few measures and goals to each individual to keep focus,
• An appropriate feedback and monitoring mechanism, which would review the whole process, take mid-corrections where necessary and guide whole organization towards achieving the goals and targets set, appreciate functional and individual achievement and efforts,
• Bring out periodic status reports for all concerned to know where they are and what remains to be done.
5. The BSC is a business performance measurement concept, but should only top managers and CEO use it? Or should it be used company-wide? Should BSC be implemented in all departments or for instance only in HR?
BSC is a companywide approach to be implemented by all departments.
HR has a vital role in it, as Learning and Growth perspective in bottom-up starting point, influences Internal Business Processes, which in turn influences Customer perspective and finally Financial perspective.
6. While there are certain benefits of BSC, do you see there any limitations or possible problems? Some areas where BSC does not work properly or is inefficient.
Ill defined or too much ambitious strategy as well too many functional and personal goals causes implementation problems.
7. The BSC concept is discussed widely. What do you think, if most companies understand the importance of BSC development? Are they willing to invest in BSC? Is it hard to get decisions makers to conclusion that it is necessary to use BSC?
Malady is, most companies use short and long term planning, but only a few companies fully understand importance of strategic planning and BSC. Once they embrace it, there is no looking back to old approach.
8. The practical implementation is always as important as theory itself. There are a lot of ways to implement BSC from simple Excel files to software, web-based services and full integration with company business system. What do you think is the best implementation strategy in terms of quality/price? What type of tools would you use to do implementation?
Simple Excel files are good enough. Since BSC percolates down to functional and individual KRAs, they are lot easier to deal, plot and track. For Chairman and CEO level, its aggregation may be arrived at by due software.
9. There are companies that already use BSC, we read about them in business magazines, we read their case-studies and success stories. What advice would you give companies that just start considering the implementation of Balanced Scorecard concept?
I would request companies to elevate from mere planning to strategic planning level and take help of professionals to guide them, for a few initial years, to implement BSC and see the level of improvement and achievement. This will make them ardent followers.
10. Thank you very much for your answers. I think our readers would like to know more about your company and service you provide. If possible share also your detailed experience with Balanced Scorecard here.
Excellence unLimited helps organizations to embrace all proven management tools and techniques, including BSC, for their performance improvement, growth and sustainability.
For companies that are new to strategic planning, we help them to take systematic route to identify their SWOT, assess external environment, formulate their Vision, Mission and Values, identify Strategic objectives, formulate strategic plan and roll it out through BSC and hand-hold them for a few cycles till their internal team gains expertise and confidence.
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