how to convince the stakeholders to use the balanced scorecard concept | bscdesigner.com

HOW TO CONVINCE THE STAKEHOLDERSTO USE THE BALANCED SCORECARD CONCEPT

By Aleksey Savkin, bscdesigner.com

BSC DESIGNER

http://www.bscdesigner.com/


Is recognized world-wide by

companies' executives

THE BALANCED SCORECARD

BSC DESIGNER




All key employees,

business owners, and top managers must be involved

BSC DESIGNER




All key employees,


The biggest challenge is a motivational

problem

BSC DESIGNER




All key employees,


The biggest challenge is a motivational

problem

Before starting a Balanced Scorecard

project it is necessary to explain

this business approach to all

stakeholders

BSC DESIGNER

THE BALANCED SCORECARD IS ALREADY USED WIDELY

More than 50 %of large enterprises use some type of a balanced scorecard.— Study by Cranfield University

THE BALANCED SCORECARD IS ALREADY USED WIDELYBSC DESIGNER

31%of companies reported Balanced Scorecard as extremely helpful; 42% as a very helpful.— 2GC Balanced Scorecard usage survey


34%of interviewed companies use BSC for strategic management, 35% for reporting, 17% for operational management.— 2GC Balanced Scorecard usage survey


70%of organizations had at least partially implemented a Balanced Scorecard by 2006.— Bain & Co


50%of Fortune 1,000 companies are using the Balanced Scorecard.— Bain & Co


BALANCED SCORECARD was one of the 5 most used business tools in 2013.— Bain & Co, Management Tools & Trends 2013


Find all the mentioned statistics in the BALANCED SCORECARD FACT SHEET AND STATISTICS section at— www.BSCDesigner.com


http://www.bscdesigner.com/balanced-scorecard-fact-sheet.htm

http://www.bscdesigner.com/balanced-scorecard-fact-sheet.htm

WHY COMPANIES USE THE BALANCED SCORECARD?

By now we see that the

Balanced Scorecard is used widely, but WHY

is it used?

of typical workforce does not understand its organizations’ strategy.— Balanced Scorecard Collaborative

97%

PROBLEMS THAT ALL COMPANIES FACE AND THAT BALANCED SCORECARD ADDRESSES

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of organizations fail to execute their strategies successfully.— Balanced Scorecard Collaborative

90%


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of organizations do not link middle management incentives to strategy.— Balanced Scorecard Collaborative

70%


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BALANCED SCORECARD ALLOWS ONE TO SEE THE BIG PICTURE


LINE-LEVEL EMPLOYEES start seeing the connection between what they are doing

now and the strategy of the company.

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EXECUTIVES enjoy the top view of what's happening in the company, why it’s

happening and what is the response of the business on this.


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ANALYZE YOUR LAST FAILURE


IF YOU WOULD HAVE EXECUTED IT BETTER IF YOU WOULD SEE A BIG PICTURE OF WHAT'S GOING ON?

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IF YOUR EMPLOYEES WOULD ACHIEVE BETTER RESULTS IF THEY WOULD HAVE KNOWN WHAT STRATEGIC PLAN STANDS BEHIND THEIR JOB?

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IF YOUR PROJECT WOULD BE MORE PREDICTABLE IF YOU WOULD USE CLEARLY DEFINED MEASURES AND KPIS?

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HOW EXACTLY CAN THE BALANCED SCORECARD HELP?

stakeholders need to see the big picture of what's happening in the business and why.

Management initiatives should be aligned with strategy and we need KPIs to know that we are on the right track.

TO EXECUTE A BUSINESS STRATEGY EFFECTIVELY


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THE BALANCED SCORECARDobligates top managers to formalize their strategic ideas into a form of a strategy map.

Business objectives should be linked with each other by a cause-and-effect connections.


BSC DESIGNER

With the Balanced Scorecard KPIs will be aligned to business objectives.

We will know if we are on the right track towards achieving the business goal.


BSC DESIGNER

In the Balanced Scorecard for each business objective we will have an action plan.

It will tell employees what they should do to achieve the specific business goal.


BSC DESIGNER

The Balanced Scorecard project will be cascaded.

BSC project will be delegated to department levels.


BSC DESIGNER

YOU STILL NEED YOUR PROJECT MANAGEMENT TOOLS

The Balanced Scorecard is not a replacement for classical project management tools.

The BSC addresses the strategy execution problems, not a task management challenges.

YOU STILL NEED YOUR PROJECT MANAGEMENT TOOLSBSC DESIGNER

The Balanced Scorecard gives a business context for operational tasks.

Instead of just doing their job, employees will be able to understand why they are doing it and why it is important.


Companies that have implemented the Balanced Scorecard have reported significant increases in ultimate business performance.

The Balanced Scorecard allows changing the perception of the job.


83%found the most significant impacts of Balanced Scorecard implementation in business actions.— 2GC Balanced Scorecard usage survey

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80%of organizations using Balanced Scorecard reported improvements in operating performance.— Balanced Scorecard Forum

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66%of these organizations reported an increase in profits.

— Balanced Scorecard Forum

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A BALANCED SCORECARD AND A DASHBOARD ARE NOT THE SAME

Most businesses have some type of a dashboard. A dashboard and a Balanced Scorecard are not the same business tools.

They are designed for different purposes.


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Dashboards are great for monitoring of the current business state.

Dashboards help to generate some business insights.


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You will need a scorecard that will track your progress towards specified business objectives.

Use the Balanced Scorecard when it comes to new challenges.


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Learn more about the difference in the article:"What’s the difference between a Dashboard and a Balanced Scorecard?“ on www.bscdesigner.com


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WHAT ARE THE BENEFITS OF THE BALANCED SCORECARD?

BSC FOR A TOP MANAGER

Visualizes strategic

information on the strategy map

BSC DESIGNER

Displays the big picture of what's going

on in the company

BSC FOR A TOP MANAGER

Helps to formulate and

execute the strategy

Top manager have the understanding of the cause-and-effect

connections between involved

business objectives and suggested

business solutions

Visualizes strategic

information on the strategy map

BSC DESIGNER

Helps to monitor the

current performance

BSC FOR A BUSINESSS UNIT MANAGER

BSC DESIGNER

Helps to monitor the

current performance

BSC FOR A BUSINESSS UNIT MANAGER

Helps to tracks the progress

towards business

objectives

Top level initiatives are translated more logically. Managers

focus on what matters, and avoid a job that doesn't help

the company to execute its strategy

Visualizes important

performance information

BSC DESIGNER

Shows how the current

task is linked to the

company's strategy

BSC FOR LINE-LEVEL EMPLOYEES

BSC DESIGNER

Shows how the current

task is linked to the

company's strategy

BSC FOR LINE-LEVEL EMPLOYEES

Tracks the current

performance transparently

Knowing the ultimate goal helps

employees to do their job more

effectively

Employees are happy to do a job

where a final objective and the

progress measures are

clearly defined

BSC DESIGNER

BALANCED SCORECARD'S DON'TS

DO NOT RUN THE BSC PROJECT BY YOURSELF. Top managers like to play their business toys alone. In the case of the Balanced Scorecard this won't work. Involve your team as soon as possible. In this way you will come up with better KPIs, business objectives, action plans and finally will achieve better results.

BALANCED SCORECARD'S DON'TSBSC DESIGNER

DO NOT USE REWARD KPIs. Linking rewards to specific KPI will make the life of HR much easier, but it is not recommended to use Reward KPIs on your scorecard.Researches and best practices also confirm this point of view. Check out "Compensation and reward KPI best practices" article on www.bscdesigner.com for details.


DO NOT COPY KPIs FROM OTHER BUSINESSES. You need to map your business objectives and then come up with KPIs that will measure your progress towards business objectives or monitor your current performance. Business objectives come first, not KPIs. For that reason it doesn't make sense copying KPIs from others.


WE ALREADY HAVE KPIs! WHY DO WE NEED ANYTHING ELSE?

They can give some insights, but they lack the connection with strategy, business objectives and action plans.

— Learn more in the article:"Why most KPIs don't work and what to do about this."

KPIS ARE FOR MEASUREMENT, NOT FOR MANAGEMENT.

WE ALREADY HAVE KPIs! BSC DESIGNER

CHOOSING AN AUTOMATION TOOL

As it was shown the Balanced Scorecard is not about few KPIs and it is not for the top managers only.

To help company execute its strategy, the Balanced Scorecard should be a part of the business toolkit of all departments.

CHOOSING AN AUTOMATION TOOLBSC DESIGNER

Excel is a great choice when you are on the stage of a prototype.

To help company execute its strategy, the Balanced Scorecard should be a part of the business toolkit of all departments.


When it comes to the strategy map, cascading, sharing your BSC, choose a professional Balanced Scorecard software like BSC Designer.BSC Designer you can link a KPI to your data in MS Excel.


Facts tell, stories sell. We shared many facts about the Balanced Scorecard.

To be really persuasive one need to share stories about the Balanced Scorecard with their stakeholders.



Simple installation

— Ivan Lim, Blurmath Tuition Company, Singapore

"The interface looks rather intuitive and is

able to allow the user to know his/her way

around easily. Also, it does not require

complicated installation, unlike some BSC

software in the market."


Simple installation







Easy to maintain and input data

— Javier Peñate, Operations Manager, DCM S.L., Spain

"After testing some independent BSC solutions of the market, we decided to use BSC Designer because it is easy to start and maintain, and it is really easy to input data and the software is very intuitive. "


Simple installation










Learn BSC method

— Abdula Ali, Sales Director, MIC, Saudi Arabia

"BSC Designer helps with the implementing of company’s strategy. It seemed to me that I can learn from BSC-Designer more than from what I have studied in different costly courses. "


Simple installation










Learn BSC method



Hierarchical KPIs

— Davide Gentile, Strategic Advisor, Davide Gentile

Management Consultancy

"BSC Designer allows creating categories and sub-categories where you can put Key Performance Indicators; it is possible to represent hierarchical structure of KPIs."


Simple installation










Learn BSC method



Avoid Excel sheets

— Emmanuel Jaunart, founder

of Mielabelo, Belgium

"It is simple, fast and

effective... BSC Designer

helps you to avoid using and

maintaining home-made

Excel sheets and produces

professional results."

Hierarchical KPIs

— Davide Gentile, Strategic Advisor, Davide Gentile

Management Consultancy

"BSC Designer allows creating categories and sub-categories where you can put Key Performance Indicators; it is possible to represent hierarchical structure of KPIs."

80testimonials from users from various businesses from all over the world.

— www.bscdesigner.com/about-us/testimonials


http://www.bscdesigner.com/about-us/testimonials

http://www.bscdesigner.com/about-us/testimonials

Business people like to see not just user's testimonials, but the case studies with even more facts and details.

Share with your stakeholder one of the business stories from case study section on www.bscdesigner.com


STILL DOUBT ABOUT THE BALANCED SCORECARD?

MORE ABOUT THE BALANCED SCORECARD

Find more insightful articles about the Balanced Scorecard in ”Articles” section at www.bscdesigner.com

BSC DESIGNER

http://www.bscdesigner.com/balanced-scorecard-articles.htm



THANK YOU!

Feel free to send us your questions using the contact form at www.bscdesigner.com

how to convince the stakeholders to use the balanced scorecard concept | bscdesigner.com

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