e-Training: Practical introduction to Balanced Scorecard concept

The training is a practical introduction into the Balanced Scorecard design, implementation and usage.

• Training name: Practical introduction to Balanced Scorecard
• Recording duration: 50 minutes
• Language: English
• Target audience: investors, CEOs, top managers

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• Buy eTraining “Practical Introduction to Balanced Scorecard“ for US$ 80
• If buy together this training and BSC Toolkit you will have a 20% discount for the training. Learn more about BSC Toolkit.

Training includes 6 parts, the total duration of all parts is 50 minutes. Before placing order, please check free example below.

Training includes basic information on Balanced Scorecard and is aimed on investors, CEOs, top managers interested in using Balanced Scorecard concept.

Examples of Practical introduction to BSC Training

Part 1 – Introduction To Balanced Scorecard Training.

Part 2 – Business management from view point of Balanced Scorecard.

Part 3 – Starting Balanced Scorecard Design. Theoretical background you need to know to design Balanced Scorecard.

Part 4 – Creating indicator for customer service. How to develop good indicators.

Part 5 – Addressing Find sales partner business goal. How to develop good indicators.

Part 6 – Balanced Scorecard Implementation. Key ideas about Balanced Scorecard implementation.

Description

Training includes basic information on Balanced Scorecard and is aimed on investors, CEOs, top managers interested in using Balanced Scorecard concept.

• We start from basic discussions about what is Balanced Scorecard and why management of company need this method, what are its benefits;
• Why measurement of financial indicators is not enough today and how to involve people in your real business goals using Balanced Scorecard;
• Training shows the basic ideas about Balanced Scorecard design and implementation, giving overview of principles that balanced scorecard specialist should follow;
• Practical part reviews step-by-step how can business address problems and opportunities with Balanced Scorecard;
• We show how the key performance indicators appears, analyzed and checked. Typical problems we indicators are reviewed in details;
• Finally, training shows how to check if Balanced Scorecard is works for your company, what results to expect and how to improve business performance.

1.    Please, summarize in few words what is your expertise and background with Balanced Scorecard.

I’m the co-founder of the performance factory – a company specialized in strategy execution and the author of Strategy Execution Heroes. And I have been working with the Balanced Scorecard right from the start in the ‘90 and implemented the technique in over 50 companies. I used to be the responsible manager worldwide of the Balanced Scorecard product line for Arthur D. Little – a leading strategy consulting firm.

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?

The Balanced Scorecard can – and should – be used by both small and large organizations. The concept however should be adapted to the needs of the organization. You don’t need a canon to kill a fly.

3.    While BSC concept is popular now, what other business performance measurement concepts can you recommend for companies to consider?

We promote the 8, a strategy execution framework that also includes the Balanced Scorecard. You can read more about the 8 on our website.

4.    Please, share your opinion about key ideas that should be kept in mind for successful implementation of BSC?

Many companies have gone through the process of introducing a scorecard. It’s a good idea to do some research to get a feeling for your organization’s particular situation. This will help you avoid some of the classic pitfalls.
Here’s my list of 8 typical mistakes you should avoid:

1. Senior management is not convinced and shows little commitment
2. The scorecard is developed by ‘the happy few’
3. The internal/external project members have limited or only theoretical knowledge
4. The scorecard is only used by top management
5. The scorecard stays too long in the development stage before it’s launched and used
6. There are not enough links to the strategy and planning processes
7. The content of the Balanced Scorecard is unrealistic
8. The scorecard is only used for remuneration purposes

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?

I would like to react on the question itself. A scorecard is a measurement instrument but it is much more than that. It’s also a process that helps managers and entrepreneurs translate an overall strategy into smaller chunks. All too often, this is forgotten.

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.

I never use the Balanced Scorecard on an individual performance level.
Also, if there is too much focus on the measuring part and not enough on the strategy part, the scorecard becomes too administrative.

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?

As you mentioned before, most organizations are using the scorecard principles in some way or another. The question today becomes much more: “What’s the best way to use the Balanced Scorecard in our organization.”

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?

The most important tip I can give is to have a clear vision on automation. I believe it’s a smart idea to automate the whole or part of your performance management process… but with care.

In many cases, the ambition to automate the process is the positive driver at the start of a Strategy Execution upgrade programme but the bottleneck the year after.

Let me give you an example.

Imagine that you want to automate part of the BSC process. You start by selecting a software package. You launch an expensive IT project to customise the solution. Nine months later, you receive many suggestions (and complaints) from managers regarding the user-friendliness of the software. After a closer look, you decide they are right and agree the underlying process needs to change. But that would demand, yet again, some quite extensive IT system changes. You find it inappropriate to launch a new IT project as the previous one was more expensive than anticipated. So you decide to wait.

I would suggest you either choose a standard software solution and change your process or postpone automation until you are 100 percent happy with the underlying process.

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?

The Balanced Scorecard is a great instrument that helps you execute your strategy. But without a solid vision on the overall execution process and philosophy in your organization, you might just add more work.
So start with the overall execution approach and then see how a scorecard can add value within the total picture.

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.

The Performance Factory helps managers, future managers and organizations increase performance through best-in-class Strategy Execution.

We offer 4 services to our clients.

The Strategy Execution Barometer – Get a clear view on your Strategy Execution strengths and weaknesses. You can buy our benchmark report (1100+ companies) on Amazon.com and compare yourself with the market and your competitors. Or you can set-up a tailor-made survey to obtain the Strategy Execution insights you need.

Execution support – Receive practical expert coaching on your desired Strategy Execution topic (including the BSC). Get a second opinion on your initiative portfolio, strategy communication, or other Strategy Execution challenges. Add a seasoned professional to your execution team.

Training & Coaching – Review the effectiveness and efficiency of your existing Strategy Execution training and coaching programme. Get some guidance on the engineering of a new programme. Evaluate the quality and cost of your training partners. Deliver high-quality, high-volume skills booster programmes across the globe.

Speeches & Master classes − To date, we have delivered a wide variety of speeches, programmes and classes in 16 countries around the world − ranging from a 45-minute keynote speech, to a 1-day BSC programme, to specialised multi-day seminars and master classes on a variety of Strategy Execution topics.

Also Download two free chapters of
Jeroen’s book – Strategy Execution Heroes at http://jeroen-de-flander.com

Find more interviews with BSC experts in our “Interviews” section

1.    Please, summarize in few words what is your expertise and background with Balanced Scorecard.

I implemented Balanced Scorecard first in my previous organization, a mid size software development organization. I have developed comprehensive Dashboards for various functions, as part of the organization wide initiatives such as ISO 9000, CMMI, People CMM and Balanced Scorecard. During this journey, I gained deep insights as a practitioner of Balanced Scorecard before starting my consulting services. Now I offer end-to-end services that combine Balanced Scorecard methodology and dashboard solutions.

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?

Large organizations find Balanced Scorecard a great tool for managing complexity. However, even small organizations have their vision/mission, a strategy, a need to measure performance, and a need to accomplish goals with certainty. Since Balanced Scorecard aims to bring alignment of employees with the organizational strategy and goals, it is very much applicable for small organizations too. Small companies may not need sophisticated automated dashboards, and they can go for simple applications, Excel based scorecards or on-demand scorecard applications.

3.    While BSC concept is popular now, what other business performance measurement concepts can you recommend for companies to consider?

There are several performance measurement frameworks that an organization can choose from, some common ones are Performance Prism, Six Sigma, the GQM framework and elements of Malcolm Baldrige. However, none of these are mutually exclusive. I feel Balanced Scorecard is relatively simpler to understand and implement, and that BSC can be implemented effectively at multiple levels – the whole organization, a division or a department. In fact, I have successfully implemented BSC concepts in internal functions such as HR and IT, without an organization-wide implementation. This is helpful when there is reluctance to go for a full-fledged BSC implementation and the sponsor is a CXO other than a CEO. Quality improvement framework such as Six Sigma can complement BSC for driving initiatives that build specific organization capabilities.

4.    Please, share your opinion about key ideas that should be kept in mind for successful implementation of BSC?

One of the most important factors is the commitment from the CEO for the BSC. Clarity on the business pains that BSC will address and clarity on the potential benefits are important. The results of BSC should be made visible in a few months time. Typical techniques that are applicable for any change management initiative, need to be applied. BSC should be implemented primarily to improve business performance and not to judge people. Integrate BSC processes with the rest of the organization processes. An IT enabled dashboard for each key role in the organization will dramatically improve the effectiveness of the BSC implementation.

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?

If there are budget constraints, keep BSC at the top management level, to start with. If there are critical performance issues in just one department, BSC could be implemented there first (even though it is only a subset of the BSC). Scorecards are powerful feedback mechanisms and implementing it across the organization results in break-through productivity. Concepts of BSC can be drilled down to an individual performer – the performance management and appraisal system can be seamlessly integrated with BSC.

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.

BSC has been around for nearly two decades and it is pretty matured as a strategy execution framework. A few processes such as Strategic Risk Management is weak in BSC. It may not give detailed guideline on how to choose a measure or how to go about improving any specific business process. BSC is a top-down approach, yet there may be times when a bottom up approach is required since already an automated system is in place. For a greater success of BSC implementation, concepts such as process improvement, process automation, and dashboard design could be applied along with the BSC concepts. It has been found that the success of BSC is higher when the strategies of an organization and the inter-linkages between various strategies are clearly understood, otherwise, BSC becomes a glorified version of MIS reporting.

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?

Most CXOs I met agreed that they need a Business Dashboard based on BSC, for their effectiveness. However they have their view points on when they can afford to invest their time & money on a BSC initiative. When BSC is positioned as a solution to a very critical business problem, it is not difficult to get buy-in, provided the solution comes from a source of credibility. Of late I am seeing good interest in BSC from organizations that are coming out of the recession.

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?

This depends on their current investment in IT. For a micro organization, it is sufficient to have an Excel based BSC. For a small or mid-size organization, Scorecard applications are more suitable; ideally it should be usable without IT support. The more integration the scorecard application is having with the rest of the IT systems and processes, the better. For large organizations, I believe they will have some ERP system in place and the Scorecard/Dashboard applications need to be integrated well with the ERP system. Web based on-demand applications are suitable for budget conscious organizations; however they have usually user based licenses; for BSC to be effective, the scorecards need to be shared with the relevant stakeholders.

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?

While starting a BSC implementation, go for a scorecard at strategy level first. This could be in Excel. Once you get clarity, you can extend its capabilities by building dashboards at strategy, operational and at tactic level. This will give you quick ROI (Return-on-Investment). Get the blue-print ready before deciding the scorecard application. While choosing a scorecard application, look for its ability to scale-up for the future requirements too.

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.

CXO Dashboards offers services in implementing Balanced Scorecard and building role specific dashboards primarily for the Services Industry. We also provide advisory services on process improvement and IT initiatives typically that result out of the BSC.

We are located in Chennai, India.

For more information, please contact me at thomas.mg@cxodashboards.com

Find more interviews with BSC experts in our “Interviews” section

Price: from $1,695

Who should attend:Balanced Scorecard Directors, Managers and Co-ordinators, Executive Directors, Managing Directors, Vice Presidents, Chief Executive Officers, General Managers, Quality Managers, Financial Directors and Managers, HR Directors and Managers, Operations Managers, Corporate Planners, Marketing Managers, Strategic Managers, Strategic Planners, Performance Analysts

Topics:

• THE EVOLUTION OF BALANCED SCORECARD AND CURRENT THINKING
• BUILDING CONSENSUS ON DESTINATION
• DESTINATION STATEMENTS
• FEEDBACK AND DISCUSSION
• USING THE BALANCED SCORECARD

More information: 2GC Website

Price: from $1,695

Who should attend:Balanced Scorecard Directors, Managers and Co-ordinators, Executive Directors, Managing Directors, Vice Presidents, Chief Executive Officers, General Managers, Quality Managers, Financial Directors and Managers, HR Directors and Managers, Operations Managers, Corporate Planners, Marketing Managers, Strategic Managers, Strategic Planners, Performance Analysts

Topics:

• THE EVOLUTION OF BALANCED SCORECARD AND CURRENT THINKING
• BUILDING CONSENSUS ON DESTINATION
• DESTINATION STATEMENTS
• FEEDBACK AND DISCUSSION
• USING THE BALANCED SCORECARD

More information: 2GC Website

Price: from $300

Who should attend:Balanced Scorecard Directors, Managers and Co-ordinators, Executive Directors, Managing Directors, Vice Presidents, Chief Executive Officers, General Managers, Quality Managers, Financial Directors and Managers, HR Directors and Managers, Operations Managers, Corporate Planners, Marketing Managers, Strategic Managers, Strategic Planners, Performance Analysts

Topics:

• Balanced Scorecard Design
• Balanced Scorecard Implementation
• Enterprise Performance Management Integration

More information: ExampleCG Website

Price: from €2,500

Who should attend:Balanced Scorecard Directors, Managers and Co-ordinators, Executive Directors, Managing Directors, Vice Presidents, Chief Executive Officers, General Managers, Quality Managers, Financial Directors and Managers, HR Directors and Managers, Operations Managers, Corporate Planners, Marketing Managers, Strategic Managers, Strategic Planners, Performance Analysts

Topics:

• What is BSC?
• How to prepare the scene to implement an effective BSC system?
• How BSC will lead to the organization success?
• Why BSC should be Quantifiable? And how?
• Good BSC Vs Bad
• How to select the right BSC?
• What do I do with BSC?

More information: Settec Website

Price: from $300

Who should attend:Balanced Scorecard Directors, Managers and Co-ordinators, Executive Directors, Managing Directors, Vice Presidents, Chief Executive Officers, General Managers, Quality Managers, Financial Directors and Managers, HR Directors and Managers, Operations Managers, Corporate Planners, Marketing Managers, Strategic Managers, Strategic Planners, Performance Analysts

Topics:

• Balanced Scorecard Design
• Balanced Scorecard Implementation
• Enterprise Performance Management Integration

More information: ExampleCG Website

Price: from $4,195

Who should attend:Balanced Scorecard Directors, Managers and Co-ordinators, Executive Directors, Managing Directors, Vice Presidents, Chief Executive Officers, General Managers, Quality Managers, Financial Directors and Managers, HR Directors and Managers, Operations Managers, Corporate Planners, Marketing Managers, Strategic Managers, Strategic Planners, Performance Analysts

Top 5 Learning Objectives

1 Gain a comprehensive understanding of the latest Balanced Scorecard developments
2 Learn to manage an entire strategic management programme from design to implementation
3 Define and implement appropriate measures for Balanced Scorecard Use Balanced Scorecard effectively as a tool to
translate the strategic goals of your organisation into reality
4 Understand the process of integrating the Balanced
5 Scorecard into your existing organisational systems

More information: IIR ME Website

Price: from $4,195

Who should attend:Balanced Scorecard Directors, Managers and Co-ordinators, Executive Directors, Managing Directors, Vice Presidents, Chief Executive Officers, General Managers, Quality Managers, Financial Directors and Managers, HR Directors and Managers, Operations Managers, Corporate Planners, Marketing Managers, Strategic Managers, Strategic Planners, Performance Analysts

Top 5 Learning Objectives

1 Gain a comprehensive understanding of the latest Balanced Scorecard developments
2 Learn to manage an entire strategic management programme from design to implementation
3 Define and implement appropriate measures for Balanced Scorecard Use Balanced Scorecard effectively as a tool to
translate the strategic goals of your organisation into reality
4 Understand the process of integrating the Balanced
5 Scorecard into your existing organisational systems

More information: IIR ME Website