A reader recently shared with me an incredibly helpful article on ensuring a successful scorecard effort. I found it so solidly written that I thought I’d share it you all you business dashboard project implementers.
It’s from a 2007 university paper. Here’s the abstract:
The Balanced Scorecard concept has been adopted by all types of organizations (manufacturing and service, for-profit and not-for-profit, private and public) in virtually every developed and developing nation in the world and it has evolved from its initial purpose of an improved performance measurement system to become the basis of a new management system, one that aligns and focuses the entire organization on implementing and improving its strategy. Niven’s opinion is that Balanced Scorecard means three things: measurement system, strategic management system, and communication tool. The paper talks about the Balanced Scorecard philosophy and the issues that need to be solved for a successful BSC implementation an provides recommendations for the formulation and implementation of the Balanced Scorecard.
Take a look at the Top 10 Key Elements of a Successful Balanced Scorecard Project:
Some excerpts from the section about the top key to success:
Lack of Executive Sponsorship
With tenacious leadership and support a Scorecard project could ultimately succeed despite a lack of training at the outset. Without executive sponsorship, however, the effort is most likely doomed.
Many Scorecard elements will take place in stages—first strategy is deciphered and translated; objectives, measures, targets, and initiatives are then developed; the Scorecard is cascaded throughout the organization; and, finally, it becomes embedded in the organization’s managerial processes. Executive support and sponsorship is the common thread that connects the entire end-to-end process. Without a strong and vocal leader present at each and every juncture, the effort can quickly stall.