Curious About Balanced Scorecards? Steps to Start One in Your Organization

Hi Friends,

I would like to know about a Balanced Scorecard. If we want to initiate this in an organization, what should be the process?

Cheers,
Anisha

Hope this might help you all.

http://www.cio.com/archive/051502/scorecard.html

Also attaching a PPT, which would help you get an overall view of the balanced scorecard and its implications.

Vinod Vijapur

Hi Anisha,

Thank you for your message. In layman's language, I believe the balanced scorecard links employees' Key Results Objectives (KRO) to organizational growth, and for that, it needs to be connected to four key factors: financial, customer satisfaction, internal processes, and learning and development. Your understanding seems correct.

Cheers,
Anisha

Hi Anisha,

Balanced Scorecard is an extremely useful tool, especially for developing the strategic goals of an organization and making every employee accountable for contributing towards this. The basic philosophy behind this tool is "Happy people, use good processes, Make happy customers, and get the company lots of money."

In our organization, we develop the strategic goals for our company keeping in mind the direction that the company would be taking in the year. Following this, every team is asked to prepare their BSC goals for the year which would link with the Company Strat goals. Once this is finalized, the performance review objectives are set for every employee aligning them to the company and team goals.

We have been using BSC for a few years now, and it definitely gives every employee a better understanding and appreciation of why they are doing a particular task and linking everything to the bigger picture.

If you are planning to introduce it in your company, maybe a good idea to get an external consultant fluent in BSC to facilitate this and most importantly 100% commitment from the executive team.

Prachi

Hi there,

We have implemented BSC in our organization, and it's going very smoothly and successfully. It's basically about balancing the present and future business objectives. The BSC is based on four important aspects of business: financial objectives, customer focus, internal processes, and learning and growth. Generally, the financial and some customer objectives are considered in present performance parameters, while the last two, which are more qualitative, are major contributors to long-term objectives.

I suggest reading a book on the subject. The best one is by Robert Kaplan, the man who invented this concept. Visit websites. Seeking expert consultation will also help you. They would approach it more scientifically.

Hope you will find this helpful. Do let me know if you need any other information.

Goodbye,
Sulekha - Pune

Hey guys, welcome.

Also, to pitch in more... just found a very interesting case study. Anisha, before pitching BSC in your organization, you can study this case study and find out how exactly it can be implemented. You would get a feel of it. Hope everyone agrees, we need to do our homework :)

URL: [http://lib.virginia.edu/bsc/metrics.html](http://lib.virginia.edu/bsc/metrics.html)

Click on "view all metrics once" to know how exactly Virginia has broken up the metrics and fixed up the targets. Sounds really interesting.

Vinod Vijapur

Hi Vinod,

Your presentation was superb! I too have to make a presentation on General Electronics (G.E). Can you suggest something? Also, if you can tell something about E.TOP analysis, please, because I have to make a presentation for G.E using these. Waiting for your reply. Please reply quickly.

Regards,
Seema

Hi Seema,

Sure, please mail/post the details on what exactly you need so that I can dedicate my time to help you out.

My pleasure.

Cheers,
Vinod Vijapur

Hi Vinod,

First of all, let me tell you that my name is Seema, and yes, thanks for the help. Well, I have to do an E-TOP Analysis and have to make a Balanced Scorecard for General Electronics (G.E). I have to make a presentation for this company, but now I'm stuck in between as I'm not able to find out exactly what G.E is doing. So, I'm trying to guess about GE's BSC and E-TOP Analysis. If you have any idea or suggestion, please help me out.

Regards,
Seema

Hi Seema,

Good news!! I just contacted one of my friends at GE. They do have a BSC in place. I have also asked my friend to send the BSC so that I can share it with everyone on the forum.

So, back to your question, with the details that you have provided, the aspects we can look at are as follows:

- ETOP analysis & BSC for GE
- Presentation for the company
- To find out what exactly GE is doing?

So let's answer one by one:

- GE already has a BSC in place. If you want to do an ETOP analysis, I doubt it.
- Yes, a presentation can be made to GE. Here, I suggest:
- As GE has BSC in place, develop a questionnaire to analyze BSC compatibility and how it has helped GE. If yes, in what way? If no, how can it be improved.
- Create a presentation outlining how the evaluation of BSC would be conducted.
- Think creatively: You could propose creating a case study on "How GE Implemented BSC" and publish it as a paper.

To find out what exactly GE is doing, I will upload the details once I receive the BSC from GE.

Cheers,

Vinod Vijapur

Hi Prachi,

A very useful presentation. One question: How is it implemented? Any examples?

Kindly revert.

Regards,
Sachin

Hi Vinod,

Thank you so much for all the effort you put in for me. It was really nice of you. I apologize for not replying earlier as I was in Mussoorie. Thanks a lot for your help.

Regards,
Seema

Respected Vinod Sir!

How are you? Actually, today, the red color round logo below my name has changed to yellow, as you can see. I just wanted to know why this color change occurred, what it signifies, and what the criteria for this change are. Additionally, I am curious about the meaning of the sign below your name. I apologize for bombarding you with multiple questions at once, but I am eager to understand all of this. Looking forward to your reply.

Regards,
Seema

Respected Sir,

Could you please tell me how I should create a GE Matrix/McKinsey Matrix for the company General Electric (GE)? Whenever you log in to citehr today, please email me if you have something to share with me on this matter. It would be a great help as I need to complete this task today.

Regards,
Seema