“7 Deadly Sins”in Implementing the Balanced Scorecard

Achal Raghavan

achalraghavan@yahoo.co.in

Contents

� BSC: The vertical stack-up

� 7 Deadly Sins in implementation

� Sum up

BSC: The usual visualisation

LEARNING &

GROWTH

(PEOPLE)

FINANCIAL

CUSTOMER PROCESSStrategy

BSC: The vertical stack-up

Financial

Customer

Process

People

Makes BSC

easier

to understand

7 Deadly Sins in Implementation

Sin #1: “Boss wants it”

� BSC thrust upon company by corporate office / CEO

� Top-down directive implemented –for lack of choice

� No ownership at operating levels

#2: Flavour of the month

� No serious intent to use BSC long-term

� Seen as new exciting tool by CEO

� People’s reaction: “This too will pass”

#3: Stand-alone system

� BSC not integrated with company management review process

� “Stuck on” to existing systems and processes

� Operates in isolation – no real impact

#4: People not clear why

� “Why Balanced Scorecard” - not explained to people

� Seen as extra work - “Forms to be filled”

� “How does it help me do my job better?”

#5: Impatience (for results)

� BSC not given enough time - to make an impact

� Fundamental change in way of managing business

� Organisational inertia underestimated

#6: Too many initiatives & metrics

� Too many initiatives and metrics –due to over-enthusiasm

� People struggle to cope

� Leads to fatigue and demotivation

� Max 4 initiatives X 4 perspectives

#7: Poor strategy

� BSC does not ensure sound strategy – it is an implementation methodology

� Poor strategy + BSC = Poor results!

7 Deadly Sins in BSC implementation

� “Boss wants it”

� Flavour of the month

� Stand-alone system

� People not clear why

� Impatience (for results)

� Too many initiatives & metrics

� Poor strategy

Sum up

�Avoid the 7 Deadly Sins

� Start BSC only if you mean it!

Thank you!