What is your biggest frustration or challenge with Balanced Scorecard (BSC)?

Balanced Scorecard frustrations and challenges reportWe are always looking for a new ways to provide our customers with better information and service. Today we decided to come up with a single question:

  • What is your biggest frustration with Balanced Scorecard? – answer this question to get a balanced scorecard consultation for free!

Why should one spend time to participate? Because you will have a solution! We know that your time is valuable and we are not just gathering the information to create a useless statistic report, we are actually going to find solutions that will help you to solve these Balanced Scorecard problems.

Balanced Scorecard Challenges

Once we analyze problems mentioned by our customers, all participants of this survey will have copy of our responses. This  is actually a free balanced scorecard consultation, which normally is expensive.

Take your chance to share your ideas about the biggest frustration with Balanced Scorecard and you will get some ideas that will help to solve your problem. Please, use comment box below to post your thoughts!

Some typical frustrations

Frustration: „I would like to know how to implement my good theoretical knowledge in BSC in practice in my organization in hospital service in suburban Timor Indonesia?“

Solution: If your goal is to implement the Balanced Scorecard concept in hospital or any other company you need to make sure that stake holders of the company understand all the benefits of future implementation and are ready to process and support the implementation with resources and their own time.

You can find some general information about implementation of BSC concept inBalanced Scorecard Implementation Guide.

It is good idea to represent to stake holders some statistic and case studies about Balanced Scorecard.

Finally, you can become our partner and suggest implementing BSC Designer as a affordable solution.

Frustration: „Does anyone have “best practice” experience working with the busy entrepreneurs operating small businesses?“

Solution: I believe „busy“ entrepreneurs are much easier to deal with that large corporations. The best motivation for entrepreneurs to use the Balanced Scorecard is that with measures from BSC these people can actually delegate the business processes to employees. In this case delegate means not just forget about doing something, but outsource the process keeping key measures in-house.

Frustration: Lack of effective information while developing BSC

Solution: It is important to understand what kind of information is lacking. The two biggest challanges while developing Balanced Scorecard is motivation and design of KPIs.

On the motivation stage it is necessary understand who real stake-holders of future Balanced Scorecard are and what will be the information flow between line-level employees and actual stake-holders.

As for KPIs, there are certain rules about making them. There is a eTraining: „How to design winning KPIs“ where this question is researched in details.

The detailed guide on the implementation process can be found in BSC Toolkit.

Frustration: „Lack of aligning HR system with BSC“

Solution: The problem here is more with particular Balanced Scorecard implementation, not with the concept itself.

Follow this scheme to make the process easier:

  1. Define the type of aligning between HR and Balanced Scorecard. If you want align compensation plan or you want to measure efficiency as a part of control system or you might want to optimize hiring process or you can use Balanced Scorecard to measure education efficiency. Start with the area where you feel you need clear defined indicators.
  2. Implement Balanced Scorecard in desired way for the control group of your employees.
  3. If the group of measures was successfully implemented use it for the whole HR.

Frustration: Balanced Scorecard (BSC) for monitoring and value addition for construction

I wish to utilise BSC for close monitoring and value addition for our on going Civil construction projects all across India. I am interested particularly in Highway construction, Bridge Construction, Tunnel construction. Certainly it will give me pleasure if i can utilise BSC otherwise it is a big frustration for me.

Solution: It is relatively big question, for the general understanding of BSC implementation process I’d recommend to start with Balanced Scorecard Implementation Guide. For more practical guides and training you can check BSC Toolkit and BSC Training.

Frustration: Implement Balanced Scorecard (BSC) in IT area

My biggest frustration with BSC is the way to implement on an IT area as a PILOT. I have not found some guidance on how to do this. I have seen may templates on HR or IT operations but from the strategic perspective involving the complete area have not seen yet.

Solution: The point here is to divide two ideas. The first idea is the idea of Balanced Scorecard framework. You can learn more about general implementation rules inBalanced Scorecard Implementation Guide and eTraining.

The second idea is that depending of your area you might need specific measures. You can get some ideas about measures for IT in the library of KPIs. For instance for IT might be usefulComputer Networking measures and IT security KPIs.

Frustration: „How to effectively cascade a BSC from a unit level down to an individual level. While still aligned to performance management aspects.“

Solution: Detailed answer to this question was reviewed in eTraining: Cascading Balanced Scorecard.

Here are some ideas to make the process more effective:

  • Involve people, not just send them information about KPI that they need to use;
  • Think about cascading as delegation, lower levels should work on more detailed tasks, but cascading (as well as delegation) is not just about dropping the task to the lower level and hoping that it will be solved;
  • Do cascading only when it is necessary. If manager has more than 5-8 indicators then cascading sounds like a good idea. If manager has less then cascading will not be effective.

Frustration: Cascading the measures systematically from the corporate level to the department and individual.

Solution: Here are two possible issues. One is how to actually do cascading, another is how to do the cascading systematically.

The systematical update of the Balanced Scorecard should be planned when the Balanced Scorecard is designed. We talk about this in the eTraining: Testing the Balanced Scorecard.

As for cascading itself it should be a simple structured process, as described in another eTraining:Cascading Balanced Scorecard. The key idea is to involve managers from corporate level as well as managers from the department level.

Posted in Frustrations

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