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Implementing the Balanced Scorecard
Implementing Balanced Scorecards is another critical part of the project, specifically in who does the work, what the roles are, and who has the responsibility for operating the scorecards. While many companies use consultants to guide them, it is important to recognize that Balanced Scorecards reflect the unique features and functions of the company. As such, the rank and file need to be involved with the design and support of Balanced Scorecards.
Every business unit that has a scorecard needs to have someone assigned to it, someone accountable for it. A special taskforce may often be required to launch the training for staff and to agree on how the scorecard should be designed and supported. It is advisable that the scorecard be implemented using some application software and made available on an Internet network. This provides a number of benefits:
Reduces paper and/or local files that might get lost or not be secured.
Allows for easy "role-up" of multiple scorecards to a summary level.
Access via the Internet (using an external secured hookup); allows the scorecard to be maintained from multiple locations. This is particularly attractive for staff members and management who travel.
According to Olve et al (2003), there are five primary responsibilities that can support Balanced Scorecards:
1. Business Stakeholders: this is typically a senior manager who is responsible for the group that is using the scorecard. This individual is an advocate of using scorecards and requires compliance where deemed necessary. Stakeholders use scorecards to help them manage the life cycle of a technology implementation.
2. Scorecard Designers: these individuals are responsible for the look and feel of the scorecard, as well as its content. To some extent the designers set standards for "look and feel," text, and terminology. In certain situations the scorecard designers have dual roles as project managers. Their use of scorecards helps them understand how the technology will operate.
3. Information Providers: these people collect, measure, and report on the data in the Balanced Scorecard. This function can be implemented with personnel on the business unit level or from a central services department. Reporting information often requires support from IT staff, so it makes sense to have someone from IT handle this responsibility. Information Providers use the scorecard to perform the measurement of project performance and the handling of data.
4. Learning Pilots: these individuals link the scorecard to organizational learning. This is particularly important when measuring organizational transformation and individual development.
The size and complexity of an organization will ultimately determine the exact configuration of roles and responsibilities that are needed to implement Balance Scorecards. Perhaps the most applicable variables are:
Competence: having individuals who are knowledgeable about the business and its processes, as well as knowledgeable about IT.
Availability: individuals must be made available and appropriately accommodated in the budget. Balanced Scorecards that do not have sufficient staffing will fail.
Executive Management Support: as with most technology projects, there needs to be a project advocate at the executive level.
Enthusiasm: implementing Balanced Scorecards requires a certain energy and excitement level from the staff and their management. This is one of those intangible, yet invaluable variables.
Ultimately the importance of the Balanced Scorecard is that it forces an understanding that everything in an organization is connected to some form of business strategy. Strategy calls for change, which requires organizational transformation.
My next article will address how the Balanced Scorecard can act as a management tool to improve IT communication with the business.
References:
Kaplan, R. S. and Norton, D. P. (2001) The Strategy-Focused Organization, Cambridge, MA: Harvard University Press.
Lucas, H. C. (1999) Information Technology and the Productivity Paradox. New York: Oxford University Press.
Olve, N., Petri, C., Roy, J. and Roy, S. (2003) Making Scorecards Actionable: Balancing Strategy and Control, New York: John Wiley
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