Balanced Scorecard Cascading with BSC Designer

The goal of the Balanced Scorecard is to link high-level strategic goals to line-level actions.

  • Latest news: now you can visualize links between cascaded projects and indicators

The key to achieving this goal is to involve your people. You need to involve people on all levels of your organization when you design the Balanced Scorecard, when you implement it, and when you use it.

Introduction into Cascading

The number of Key Performance Indicators on your scorecard should be limited to three or four indicators in each category.  If you need to add more, you can create a new, lower-level scorecard.

Instead of having one scorecard for your whole company, you can have a scorecard for each business unit.  People from different business units will each work with their own Balanced Scorecard. That is how cascading works.

Cascading with BSC Designer

BSC Designer allows to create links between two BSC projects. To do this you need to use “Imported Indicators.” Here are two step-by-step manuals:

Cascade Balanced Scorecards in a company

  • With the Balanced Scorecard, business owners and top management implement company strategy into business processes.
  • The Cascading Balanced Scorecard provides collaboration at all levels of company.
  • BSC Designer software provides technical support on all levels of Balanced Scorecard implementation.

Top managers and investors:

  • Develop top-level Balanced Scorecard with BSC Designer
  • Create strategy map using BSC Designer

Cascading: Top managers delegate major indicators to department VPs;

  • Top managers analyze past performance values, plan targets for future;

Cascading: VPs delegate indicators to managers with BSC Designer;

Download detailed Balanced Scorecard Implementation plan.

Teamwork with BSC Designer

BSC Designer allows you to link indicators on your scorecard to indicators on other scorecards created with our software.  If the indicator is updated on the scorecard you’ve linked to, it will be updated on your scorecard, as well.

Linking scorecards like this is a great way to organize teamwork and manage a Cascading Balanced Scorecard.  For instance, each business unit can have its own Balanced Scorecard.  Then, indicators from each of these low-level scorecards can be linked together into one high-level scorecard for your top managers.

Importing Indicators

To link an indicator on your scorecard to an indicator on another scorecard created by BSC Designer, just follow this simple process.

1)      Open the Strategy Tree menu, and choose Import Indicator.

2)      Specify which BSC project you’d like to import from.  You can choose a project on your PC, on your local network, on your FTP server, or at a remote HTTP address.

3)      BSC Designer will list the names of the indicators on the scorecard you’ve chosen.  Now, you can select one of these indicators and click “OK” to import that indicator into your own scorecard project.

Now, any time the value of the indicator changes on the scorecard you linked to, it will change on your scorecard, as well.

BSC Designer will automatically update the values of your imported indicators every time you open your project.  To update these values manually, simply open the Tools menu and choose “Update imported indicators.”

Delegating a Project

You can also link scorecards by delegating tasks, indicators, or whole categories from a top-level scorecard to create a new lower-level scorecard.

To begin, just select a category on your Strategy Tree, right-click on it, and choose “Delegate as project.”

Then, choose the location where you’d like to save the new, lower-level scorecard.  BSC Designer will create a new Balanced Scorecard project in the location you choose, and automatically link that new project to your existing scorecard.

When your employees work with their new lower-level scorecard, and eventually improve their indicators, you will see the results on your higher-level scorecard.

In turn, you can drill down from your top-level indicators to their lower-level indicators, and start to understand how their line-level actions affect the performance of their scorecard, your scorecard, and the whole company.

Accessing Projects on FTP

When you create a new lower-level scorecard, we recommend placing it on your company’s FTP server, so that you and your employees can easily access and manage your indicators.

To access a Balanced Scorecard project on your FTP server, you will need to go to the File menu and select “Check In Project.”  This will create a new copy of the Balanced Scorecard on your local computer, so you can update your indicators and make any changes.

When you’re done, you’ll need to save your updates back to the FTP server.  Go to the File menu again, and choose “Check Out Project.”

FTP Security

If you do place your Balanced Scorecard project on the company FTP server, you will obviously want to keep your data secure.

Each user should already have a personal password to access the FTP server.  This should be managed by your server administrator.

With BSC Designer, you can also set up a special password just for your Balanced Scorecard project files.  Go to the File menu, select the “Document Properties” command, and open the Password tab.  There, you can assign a new password for reading the Balanced Scorecard, and for writing any changes.

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Aleksey Savkin Performance Management and Balanced Scorecard

Kazim Ladimeji HR KPIs and Performance Expert

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