Solving performance challenge with Balanced Scorecard

They say that it is important to measure the performance of the business. Moreover, it is important to measure not just the hours spend on job, but the results and their connection to the ultimate goals.

The solution to this challenge is in proper strategy description and execution. Executives prefer to use business scorecards to formalize their challenges and report the performance against specified goals.

Find below some reports from our users. Learn more about measuring and controlling performance with Balanced Scorecard.

Measuring performance rather than effort

We use BSC Designer for measuring performance rather than effort. It has been a challenge in our small consulting firm.

Margaret Abbott, Director, Abbott Consulting & Training, Honduras

BSC Designer has allowed us to evaluate results in more than one way. Now we can reward efforts that we are sure are creating the desired results. Our staff feels comfortable with their new KPIs and haven been motivated individually and as a team as a result of the implementation of the BSC software solution.

A note from developers

Margaret, thank you for your insightful feedback. You did a great job implementing business scorecard in your company. According to recent surveys most companies use business scorecards only as a plain management tool. On your example, I see that it is implemented in your management and reward system and is actually accepted by line-level employees.

I think you are on the right track in measuring the ultimate performance, rather than measuring just an effort that has been invested. It is great that your approach works for motivational purposes. Employees need to see the big picture of what’s happening and a properly designed strategy map and KPIs will certainly help.

If you will plan to expand your KPI system to reward, check out this article first. It might be tricky using KPIs for a reward system and best practices from some companies show that it is better to avoid financial incentives.

Choose the KPI and the form of the reward program by BSC


One more motivational “trick” that we can recommend is to design a strategy map. Properly designed strategy maps will help your employees to see the big picture of what’s happening. Check out another discussion on this topic here.

What do you measure and reward in your? The work done or the performance results achieved? I invite all business professionals to share their thoughts in the comments. How can one find a balance between rewarding the for the effort and rewarding for the performance results?

Improve business performance with Balanced Scorecard

The SA Army has made a decision to implement the BSC Designer as a strategy tool in order to improve business performance.  Typical tasks will include designing of a strategy map, defining objectives, defining measures and controlling implementation using easy to follow dashboards.

Pierre de Montfort, Second-in-command, SA Army ADA School, Kimberley, South Africa

We have a very good experience with BSC Designer, as this instrument can facilitate the implementation of the Balanced Scorecard in our unit. We have been trying to design a MS Excel spreadsheet but this approach proved to be more difficult than anticipated. BSC Designer, therefore, is very welcome attempt at an electronic version of the Balanced Scorecard.

A note from developers:

Thank you for your feedback. Many business professionals tried to use an MS Excel spreadsheet for the Balanced Scorecard. It might work for smaller projects where only one person accesses the scorecard. When a team is growing employees and starts exchanging Excel spreadsheets, it becomes time consuming and involves unnecessary efforts. With this approach it is hard to use the Balanced Scorecard for strategy execution. As a result companies face a motivation problem as employees don’t like to use a tool that they are not comfortable with. Excel is fine for presenting data tables, and charts, but for the Balanced Scorecard a professional tool is preferred.

Balanced Scorecard Challenges

You mentioned that you control the implementation of the strategy using a dashboard. In the latest versions you can do even more. BSC Designer now can display performance data directly onto the strategy map. You can have your strategy map with objectives linked to each other and BSC Designer will also visualize KPIs that are aligned to business objectives. In this way you can use a strategy map to have a look at what’s going on. You can add to the strategy map performance or progress indicators. If you need more details you can switch to the dashboard.

An overarching view of the performance with strategic plan

We use BSC Designer to measure project performance relative to the overall strategic plan.

BSC Designer is simple and easy to use. It provides an invaluable overarching view of the performance levels at any point in time. It gives management a snapshot of the organization’s performance in pursuit of the strategic goals thereby allowing management to make informed decisions regarding corrective, mitigation, or evasive actions.

Informatix Industry Services (IIS)

IIS is an IT Consulting Company that is providing quality products in software application technology. We are committed in delivering products and service that meet customer’s needs. We have embarked on an exercise of quality improvements strategy by implementing ISO 9001:2008 Quality Management System standards. IIS recruits highly skilled, experienced professionals with a wide range of technology platforms and knowledge of best practices.

A note from BSC Designer experts:

Thank you for sharing your experience with BSC Designer. Glad to see that our software helps you to make better decisions basing on the information provided. I believe that this is the purpose of having a Balanced Scorecard in any company. What seemed to be complicated before, after a proper strategic mapping is getting clearer.

If BSC Designer software has an access to your data via automated interfaces (SQL indicators or Excel link), then you can check out not only actual data, but compare it to some historical values. It is really useful to plan future improvements.

There is one thing that I’d like to warn you about. I saw many companies where performance indicators are aggregated into a single performance index that suppose to show the total performance of the company. This index might be used for some bureaucratic aspects of the company, but it has nothing to do with the real performance picture. Information in this index is over aggregated and doesn’t make any sense.

Top level KPIs

Our recommendation regarding an overarching view is to focus on the most important KPIs, it might be 4-6. These KPIs will be in a top level scorecard. If necessary you can drill down to see the details and the source of the data.

Posted in BSC Designer Testimonials

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