BSC Designer – Balanced Scorecard Software

BSC Designer is used in DCM (Spain), company involved in designing and manufacturing tailor made machinery for food industry, mainly fish and meat processing.

We use BSC Designer to manage our strategic plans, indicators and initiatives. Also we want to use it in the near future to manage quality and environmental indicators and use it as a tool for variable retribution matrix evaluation.

Before testing some independent BSC solutions of the market, we decide to use BSC Designer because is easy to start and maintain, it is really easy to input data and the software is very intuitive. It helps us to turns our data into knowledge. It provides almost all means that we need to manage our strategic plans and probably, in the near future, all our management indicators. The best price/quality choice of the market.

Javier Peñate, operations manager of DCM (Spain)
Diseño y construcción de maquinaria automatizada S.L.
www.dcmautomatizada.com

admin Case Studies design, machinery, manage initiatives, manage quality, manufacturing, strategy planning

This tool has contributed a lot as a strategic planning and operation management solution that enabled everyone to track results at real-time and achieve assigned goals. It provides a dynamic approach to work-flow planning unlike using Excel spreadsheet. Now we saved about 50% of time wasted in understanding who was responsible for a particular task. We have got a clear picture of the time-frame for a particular job. It’s amazing tool to save resources.

admin Case Studies bsc designer, consulting, Training and Coaching

AKS-LABS customers traditionally enjoy professional support service.  Some of them are also eager to share their experience of using AKS-LABS products.  Company tech specialists and experts analyze case studies in order to improve software solutions and provide customers with quality feedback.  This article focuses on case study of a Mexican company GB PLUS, S.A. DE C.V.  The company operates in Payroll discount financing industry. They sell cash loans, electronics and business start-ups to syndicated personnel that work for the federal and states governments in México, and get paid via discount on their payroll.

Start of implementation process. Who is in charge?

José Ricardo Zea Grayeb is quality team coach that was in charge of implementing Balanced Scorecard in the company through introduction of BSC Designer.  The company made a decision to attract external advisors.  But at the same time they tried to do everything they can do using internal human resources.  So, a special team was formed in order to convey business goals into indicators.  This team was in charge of strategic planning, it set of own goals, and team leader was in charge of transforming those goals into indicators.  As already said above, the company was aided by external consultants to keep focused with an outsider vision.  It should be mentioned that attraction of external advisors in implementation of Balanced Scorecard is quite popular.  In fact, statistics show that there are few companies that really succeeded in implementation of Balanced Scorecard without professional assistance.

As known, implementation of Balanced Scorecard needs proper tech support and software solutions.  Luckily, GB PLUS, S.A. DE C.V.  has own IT department that provided BSC team and company personnel with proper support.  But still, the company has to outsource sometimes.  At the same time, they have own qualified IT specialists that develop softwares of and utilities.

Scope of implementation

It is well known, that some companies prefer to implement Balanced Scorecard on a company level, while others choose to start with the department or business unit. GB PLUS, S.A. DE C.V.  decided to start on a company level.  Implementation of Balanced Scorecard started with CEO and top management.  Then the process comes down to lower levels of organization structure.  Company specialists estimated that they need a month to spread BSC in the entire organization.

GB PLUS, S.A. DE C.V.  use quite an interesting scheme how Balanced Scorecard works.  Most of company employees are field operatives (sales people).  So, they are a major source of information.  Warehouses and other departments also provide company top management with the information that is automatically processed by software solution.  Then, this information enters the BSC system.  It should be noted that this is a very popular way of gathering information, since ordinary employees, front line managers and sales people always have accurate information on internal and external processes, customer needs, problems inside and outside the company etc.

Maintenance of Balanced Scorecard.  Strategic planning.  Roll of Balanced Scorecard in the company

GB PLUS, S.A. DE C.V.  has reported that Balanced Scorecard concept and BSC Designer helps the company to stop just “doing the job ”.  It helped focus on the real deal and find roots of the problems.  With Balanced Scorecard, a strategy is formalized based on current problems and operations.

In fact, this is the best thing Balanced Scorecard can do with the company.  It changes approaches and attitudes.  If the Balanced Scorecard becomes a part of company everyday routine it means that BSC really works.  If strategy becomes everyone’s concern, there is every reason to hope that strategic goals will be achieved.  In such a way Balanced Scorecard is not just a toy in hands of top-managers, but an effective tool for strategic management used by everyone in the company.

Business activity monitoring

As already said above, Balanced Scorecard does not only transfer strategy into action but also helps to collect information about business activities and problems. In GB PLUS, S.A. DE C.V.  BSC is being implemented at its initial stages, so they haven’t got the chance to test it.  At the same time, company top management and personnel is doing everything possible to have balance scorecard work as a tool to collect information and monitor business activity.  One of the key company goals is to provide investors, directors, managers and employees with a visual representation of the management system, linked to all sources of information.

Sometimes, it is very difficult for ordinary employees to understand company strategy.  It happens that investors and company owners always want to know what happens in the company.  BSC is a perfect a solution in this sense, since it provides all users with accurate and reliable information on company internal and external processes, as well as its progress on the way to achieve goals.

Measurement of internal processes indicators

The key goal of GB PLUS, S.A. DE C.V.  Balanced Scorecard is linked with the accounting department to control and follow-up budgets.  The second most important idea is to see how effective internal processes are, and how they can contribute to customer satisfaction, so that the company does everything possible to meet customer demands.

This example explains efficiency of Balanced Scorecard.  Strategy maps consist of measures and goals linked by cause and effect ties.  So, in order to improve customer satisfaction and make them buy more from the company, certain improvements need to be performed the company internal processes.  Sometimes it is necessary to educate personnel, acquire new skills and approaches and change the way business is done. Customers are supreme value for any business.  And it is only through customer satisfaction and loyalty that sales are increased and better financial results are obtained.

BSC Designer used for education and growth processes

GB PLUS, S.A. DE C.V.  managed to use BSC Designer to measure human resource management, efficiency of compensation systems and training sessions.  The company needs much organizational development and GB PLUS, S.A. DE C.V.  intends to use BSC Designer to improve efficiency of personnel, especially in human resource management.  They have to monitor all training processes and compensation policies since they pay commission to sales people.  So, their sales performance should be controlled in order to calculate amount of bonuses.

It should be mentioned that Balanced Scorecard just doesn’t work without personnel being motivated.  Motivation can be different in different companies.  But anyway, a comprehensive reward and bonus system is a must.  People need to understand why they should use Balanced Scorecard and what benefits they get personally.

Expectations as to Balanced Scorecard in the company

GB PLUS, S.A. DE C.V.  managers confess that they are expecting to regain stability, to increase profits and to further develop.  The key company goal is to be able to know what they’re doing in real time.  Since there are able to track performance they can offer such information to investors who love knowing what is going on with the companies they invested.  In such a way investors feel secure and protected.  The companies planning to use web based solutions to offer information to all interested parties.

Experience with Balanced Scorecard and BSC Designer

Timeline

The company set up at 90 days timeline for trials and then another 60 days to link up their sources of information and publish BSC data are on their website. GB PLUS, S.A. DE C.V. is in the set up phase now, so they don’t have the full picture regarding technical needs.  For the same time the company is already using Accounting Software as well as credit evaluation application that will be attached to BSC.  Everything is done with SQL.  The company maintains close relations with suppliers so problems are solved as soon as they occur.

Strategy maps

GB PLUS, S.A. DE C.V.  is about to complete their strategy map and they plan to use BSC Designer to keep track of everything.  The company has developed own indicators, so there are no imported KPIs. All our information is prepared in-demand by the current department responsible, they need to change this because it is a slow and imprecise process and the information is often outdated or somewhat unreliable.

Reports and BSC

GB PLUS, S.A. DE C.V. uses excel and power point reports, but the company management wants improvement in the reporting process.  The company hasn’t used reporting capabilities of BSC Designer and they have no experience in using custom formulas. GB PLUS, S.A. DE C.V. chose BSC Designer because it has this capabilities and that is what they’re looking for.

Company management realizes that Balanced Scorecard will be useless if information cannot be accessed in real time.  BSC Designer has become a good choice for GB PLUS, S.A. DE C.V.  since it offers on-time access to information and has an excellent reporting system.  This makes managerial decision-making much more easier.

To sum it up, from this case study it is evident that GB PLUS, S.A. DE C.V.  clearly understood benefits of Balanced Scorecard and BSC Designer.  The company is only making first steps in BC implementation and has already achieved some positive results.

bsc_ideas Articles, Case Studies bsc case study, BSC implementation, strategy maps development

Since implementation of Balanced Scorecard does not look like introduction of any other management control tools, some companies use different interesting and unusual methods of BSC implementation. Unlike other managerial systems, Balanced Scorecard is more than just a pile of graphs, databases, presentations etc.  Balanced Scorecard is the philosophy that has to be either accepted by the company or entirely rejected.  Experience shows that Balanced Scorecard either works in the company and changes it forever, or becomes a huge failure for an organization.

This article will cover an interesting example of Balanced Scorecard implementation in one of MOBIL company branches – New England Sales and Distribution (NES&D).  Top managers chose a very creative way to promote Balanced Scorecard and the company.  Do you remember how we were taught at junior school?  Most tasks took the form of a game.  The same approach was adopted in NES&D.  Branch director realized that it would be necessary to explain the concept of Balanced Scorecard to 300 employees at each level.  In 1995 the company moved very slowly towards implementation of Balanced Scorecard.  Before you learn how to run, you have to learn to walk.  Company top management understood that they had to make Balanced Scorecard simple and understood for all employees.  At the same time they want it to make this process enjoyable and even funny.

In late January, a week after final Super Bowl game, NES&D top management organized a huge meeting in New Hampshire.  Meeting hall was designed as a football field, and each meeting participant was given sports uniform.  Managers and employees were shown game between Green Bay Packers and Pittsburg Steelers.  They were told that the winner teams used all elements of a football game (offense and defense actions, coaches, cheerleaders) with one goal – to win.  After that top managers declared that they would organize their own Super Bowl which will consist of five key performance indicators from financial, customer and internal business processes of perspectives of Balanced Scorecard:

• Gasoline volume
• ROCE
• Customer complaints
• Mystery consumer rating
• Partnership with dealers

It was agreed that NES&D would get Super Bowl Cup if it implemented long-term goals in all five KPIs.  The reward for each project participant was $250.  Also employees would get paid vacation weekend at a popular resort.  If at least one of the tasks is not reached there will be no rewards.

Then Super Bowl project was introduced to all employees.  It was very difficult to motivate, for example, truck drivers who thought that guys from marketing department would get all the rewards.  They thought that ordinary workers wouldn’t get anything.  Moreover, ordinary personnel was asked to analyze key performance indicators and eliminate unnecessary ones.  For example, truck drivers initiated discussion regarding conditions of gas stations (dirt, poor lights, lack of customer friendly personnel).

An excellent report and feedback system was established, and top managers discussed obtained results on the five key performance indicators at each meeting.  Moreover, they communicated with ordinary personnel and discussed KPIs with them.

Results

In the end of the year, four from five tasks were completed, and some indicators even exceeded expected values.  People understood that they became driving force for success.  It was their skills, knowledge and initiatives that made such success possible. The directors’ board faced a tough choice since according to the previously set rules employees would get nothing unless all goals in all 5 indicators were reached. Others claimed that the company branch had fulfilled 4 tasks and almost completed the fifth.

It was not reasonable to refuse to motivate personnel as the company faced another fiscal year and new ambitious tasks. As a result, top management adopted decision of rewarding personnel. But paid vacation week end at a popular resort was cancelled.

It was obvious that company personnel has changed. Before implementation of Balanced Scorecard sales managers were only interested in sales. Production managers worried only about expenses. Balanced Scorecard made both managers “mini CEOs” who have to think in a creative way and be ready to assume responsibility for adopted decisions.

Super Bowl approach made it possible to set clear indicators, goals and requirements to employees. It has intensified company strategy and required minimal promotional efforts to be implemented in the company.

This example vividly demonstrates the fact that implementation of Balanced Scorecard is not just adoption of plans, development of strategy maps and presentation of company strategy to personnel. BSC must become part of everyday work for every employee. Everyone in the company should feel how BSC works. Moreover, every employee must understand how he or she can contribute to implementation of strategic goals. Without such understanding Balanced Scorecard will become an extremely expensive project that will never live up to expectations of business owners and top managers.

Summary

Super Bowl approach has changed Mobil department forever. There is no way back to traditional management systems. This example proved that Balanced Scorecard works only if the entire personnel accepts this system and uses it in eve3ryday work. Even employees on the lowest levels of the company may come up with valuable initiatives that can help in implementation of strategic goals. What conclusions can be made?

• Balanced Scorecard works only if it is properly used by ALL company employees and top managers.
• Personnel of the company must be properly motivated. Financial motivation has proven to be the most effective one, but there are also non material rewards.
• Even low level employees must be able to express their opinion
• Communication system in the company should be fast and efficient
• Even if certain results are not achieved, company personnel should be nevertheless motivated.
• Balanced Scorecard is not one time project
• Implementation of Balanced Scorecard may take unusual and creative forms.

bsc_ideas Articles, BSC implementation, Balanced Scorecard Theory, Case Studies

I am a strategy consultant for blue-chip private sector clients as well as public sector clients throughout Africa, the Middle East and North America. I utilise the Balanced Scorecard to ensure that clients implement their carefully crafted strategies.

Myles Hopkins, Head of Consulting, Qbit, South Africa

We live in an age where data needs to be turned into information which needs to be turned into knowledge and ultimately business intelligence (strategic wisdom).

There are numerous balanced scorecard software packages around and I have reviewed many of them. I totally enjoy the BSC Designer as it has extensive functionality that provides an easy-to-use and visual method for allocating and viewing all of the key elements required for managing a Balanced Scorecard. Furthermore, it allows you to create excellent dashboards and reports which are crucial in rapidly being able to identify your areas of poor to great performance.

I highly recommend BSC Designer to any company or consultant that uses the Balanced Scorecard methodology to ensure strategy implementation and monitoring.

Read more users’ opinions about BSC Designer

admin Case Studies dashboards, manage BSC, strategy implementation, strategy monitoring

I like BSC Designer because it is very flexible and lets me import data from my own database, also I can link it to my internally developed applications, customize reports and communications.  This allows us to operate in real time over the web, collaborating with my people and the managers of companies where we invested, in such manner that our communication is very effective since we deal with whatever is important, saving us time and resources.

Ricardo Zea Grayeb,

CFG SAPI DE CV, Xalapa, Veracruz, Mexico

Our business are financial and commercial services, we are investing in company that sells consumer electronics and credit to government employees and collects payments via payroll discounts.

We plan to develop the entire BSC for the parent organization from the board to the end employee and link our invested projects (subsidiaries) to it to visually track performance and quality, and report in real time to our associated investors.

Also with BSC Designer we have reports instantly prepared for the strategic management level, as well as for the operations, this allows us to quickly react and adapt to any given situation.

admin Case Studies BSC, performance, quality

“I am a strategy consultant for blue-chip private sector clients as well as public sector clients throughout Africa, the Middle East and North America. I utilize the Balanced Scorecard to ensure that clients implement their carefully crafted strategies.

We live in an age where data needs to be turned into information which needs to be turned into knowledge and ultimately business intelligence (strategic wisdom).

There are numerous Balanced Scorecard software packages around and I have reviewed many of them. I totally enjoy the BSC Designer as it has extensive functionality that provides an easy-to-use and visual method for allocating and viewing all of the key elements required for managing the Balanced Scorecard. Furthermore, it allows you to create excellent dashboards and reports which are crucial in rapidly being able to identify your areas of poor to great performance.

I highly recommend BSC Designer to any company or consultant that uses the Balanced Scorecard methodology to ensure strategy implementation and monitoring.

Myles Hopkins, Head of Consulting Qbit, South Africa

Expert_KPI Case Studies business intelligence, performance monitoring, strategy implementation

Being active in the business world as a consultant and tutor, I work specially on issues of project based organizations.

Actually I am currently engaged with the strategic planning and implementation in our company based on BSC system. We are going to see this system as a new field in our company services. As for the tool,  it impress me so much when I saw the BSC Designer Light edition applies this technique to personal life! Actually by applying this software in my life I feel more enthusiastic to follow my personal goals and I think it could be a good appetizer to make your life changed. As you know one of the key success factors in achieving personal goals is to make them tangible and BSC Designer will do it for you.

Ruhollah Ashrafian, MBA
Rahbaran System Rastak Consulting Company

Expert_KPI Case Studies bsc designer, BSC implementation, strategic planning

Working in Management Consulting services, we are regularly facing opportunities to help our customers to get a clear view on specific management concerns. It could address general management topics for which the traditional Norton-Kaplan approach is used but also more specific like building a scorecard for the IT department. We find BSC designer a very ergonomic and intuitive tool. It quickly adapts to your way to carry out the information analysis. It is simple, fast and effective. It avoid using and maintaining home-made Excel sheets and produce professional results.

Emmanuel Jaunart, founder of Mielabelo (Belgium)

Expert_KPI Case Studies bsc in consulting, building a scorecard, ergonomic bsc tool, intuitive bsc tool

In consulter enterprise, here is Brazil, I have faced the task to apply the Balanced Scorecard approach in a information technology company that produce software for public services. Having the only basic knowledge of the concept, working with BSC Designer helped me to understand the concept much better and help the company with their tasks. BSC Designer appeared to be very easy to use and it provided me with a powerful functionality to realize how BSC works for real company, not only the theory of it.

Cezar Andrade Marques de Azevedo, Consulter at Pro Max Consultoria, Brazil

Expert_KPI Case Studies Balanced scorecard approach, bsc consulting, BSC for IT, realize how BSC works