If the balanced scorecard works, why doesn’t everyone experience the same positive results? While an estimated 65% of companies have embraced the tool, a much lower number have experienced significant benefits. Many companies wonder whether it’s really as good as they’ve heard. It’s probably for the same reason that most companies failed to execute their strategies prior to implementing the scorecard.
The question we need to be asking is “How effectively was the scorecard implemented?”
If you’re looking for some ideas on why you’re not seeing the results you need, ask yourself these questions:
– Does every person in the company understand the direction, and how they contribute to it?
– What level of support does your CEO and executive give?
– Do you use the scorecard to cascade executive direction to teams and individuals?
– Is your strategic planning cycle ongoing and integrated with other functions within the company (ERM, Research)?
– Is strategy an ongoing conversation in your company, do you plan through the scorecard?
– Do you manage through your scorecard? Is it the framework for your reporting?
Balanced scorecarding, as with strategy, is all about people. If people don’t understand the strategy, they can’t execute it. Once you have created the direction at the board level and executive levels, the work begins with creating clarity within your work force and then building alignment to the direction.