BALANCED SCORECARD (BSC)

Description

The purpose of implementing a Balanced Scorecard (BSC) system developed by Kaplan and Norton is to develop a strategy focused organisation. The balanced scorecard is a framework that helps organisations translate strategy into operational objectives that drive both behaviour and performance.

The focus is not just on financial but also non financial factors. This ensures that the focus is not just on the short term but also on the long term making the system a strategic one.

Implementation of a balanced scorecard takes time, energy and resources. However it is worth remembering that you only get out of the process what you put into it.

The BSC development process requires the formation and the operation of three teams - Core team, Leadership team and Measurement team as well as several steps right from process preparation, strategy mapping, identifying measures and targets, mapping and prioritising initiatives and getting to the first report.

Deliverables

A BSC system that includes:

• Strategy Maps
• Scorecards
• Automation

Our Approach

We follow a step by step approach,

Readiness Assessment: Understanding the organisation's rationale of the BSC initiative is absolutely necessary for the execution of the strategy by the executive team.

• Study the business needs
• Study the organisational vision, mission and values
• Clarify organisational objectives and strategic plan

Project Organisation: Identify a team leader to champion the balanced scorecard initiatives and partnership with the internal team. This will also include customised training in the process of cascading and change management.

Training and Communication: Initial training and communication effort needs to be completed, before building the scorecards.

Cascading Process: Once the Corporate Scorecard is implemented, the process can be cascaded to build the business divisions and individual scorecards.


Review: Review, validate the objectives and measures for stabilisation and final checks before commencing automation. Develop and implement the performance analysis process and reporting framework.