GOOD DAY ONE AND ALL, I AM STUDENT OF MBA(HR) AT AMITY BUSINESS SCHOOL. I WANT CERTAIN INFORMATION ON BALANCE SCORECARD IMPLEMENTATION STRATEGY AND METHODOLOGY. Can somebody help me pls anurag
From India, Delhi
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From India, Delhi
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The Balanced Scorecard is a management system that enables organizations to clarify their vision and strategy and translate them into action. When fully deployed, the Balanced Scorecard transforms strategic planning from an academic exercise into the nerve center of an enterprise.
A prerequisite for implementing a Balanced Scorecard is a clear understanding of the organization's vision and strategy. The basis for the vision and the strategy should be the holistic view and the information the management receives during systematic strategy work.
The implementation of a BSC should always be organized as a separate management system development project. The project should be planned in the same detail as any other project in the organization, and standard project management procedures should be followed. The actual implementation of a Balanced Scorecard can be divided into five phases: Model synthesis, technical implementation, organizational integration, technical integration, and operation. Many of the above phases can be performed in parallel. This will shorten the total project schedule significantly.
During the model synthesis phase, the organization seeks consensus about their vision and strategy and derives the needed measures. Furthermore, the organization's strategy is quantified into measures or Key Performance Indicators (KPIs). The measures can be derived from the strategy using Critical Success Factors (CSFs) or alternatively using Strategy maps. The key properties of each of the measures in a Balanced Scorecard are also defined.
In the technical implementation phase, the visions, strategies, critical success factors, measures, etc., are entered into the system. The technical implementation steps include installation of the software, training, building of the scorecards, setting target and alarm levels, setting data consolidation rules, as well as defining graphs and possible customized reports.
The objective of the Organizational integration of the Balanced Scorecard is to integrate it with the management and reporting processes of the organization and communicate the BSC to all the members of the organization.
Technical integration is performed to reduce the effort needed to collect measure data. The Balanced Scorecard system is integrated into operational IT systems, databases, and/or data warehouses such as financial reporting systems, Enterprise Resource Planning (ERP) systems, or Customer Relationship Management (CRM) systems.
The benefits from the Balanced Scorecard are realized when the Balanced Scorecard is used in day-to-day operations. Data update, analysis, and reporting are performed regularly within the management and reporting processes. From time to time, it is also necessary to refine the Balanced Scorecard. The Balanced Scorecard should be a standard tool used by the management team in their strategy work.
Due to the nature of a Balanced Scorecard project, exact time and cost estimates for the whole project can be difficult to make in advance. The needed effort depends very much on how far the organization has advanced in its Balanced Scorecard thinking as well as the complexity and number of Scorecards implemented. The total costs for a typical Balanced Scorecard project consist of: Time used by customer's own resources (50%), outside process consultancy (20%), outside implementation consultancy (15%), software licenses (15%).
A fast-track approach to implementing a Balanced Scorecard can be used successfully when implementing Balanced Scorecards with organizations that have already used Balanced Scorecards or to create a fast pilot Balanced Scorecard implementation.
Maybe the above information can help you.
Regards,
Divya
From India, Bangalore
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13A prerequisite for implementing a Balanced Scorecard is a clear understanding of the organization's vision and strategy. The basis for the vision and the strategy should be the holistic view and the information the management receives during systematic strategy work.
The implementation of a BSC should always be organized as a separate management system development project. The project should be planned in the same detail as any other project in the organization, and standard project management procedures should be followed. The actual implementation of a Balanced Scorecard can be divided into five phases: Model synthesis, technical implementation, organizational integration, technical integration, and operation. Many of the above phases can be performed in parallel. This will shorten the total project schedule significantly.
During the model synthesis phase, the organization seeks consensus about their vision and strategy and derives the needed measures. Furthermore, the organization's strategy is quantified into measures or Key Performance Indicators (KPIs). The measures can be derived from the strategy using Critical Success Factors (CSFs) or alternatively using Strategy maps. The key properties of each of the measures in a Balanced Scorecard are also defined.
In the technical implementation phase, the visions, strategies, critical success factors, measures, etc., are entered into the system. The technical implementation steps include installation of the software, training, building of the scorecards, setting target and alarm levels, setting data consolidation rules, as well as defining graphs and possible customized reports.
The objective of the Organizational integration of the Balanced Scorecard is to integrate it with the management and reporting processes of the organization and communicate the BSC to all the members of the organization.
Technical integration is performed to reduce the effort needed to collect measure data. The Balanced Scorecard system is integrated into operational IT systems, databases, and/or data warehouses such as financial reporting systems, Enterprise Resource Planning (ERP) systems, or Customer Relationship Management (CRM) systems.
The benefits from the Balanced Scorecard are realized when the Balanced Scorecard is used in day-to-day operations. Data update, analysis, and reporting are performed regularly within the management and reporting processes. From time to time, it is also necessary to refine the Balanced Scorecard. The Balanced Scorecard should be a standard tool used by the management team in their strategy work.
Due to the nature of a Balanced Scorecard project, exact time and cost estimates for the whole project can be difficult to make in advance. The needed effort depends very much on how far the organization has advanced in its Balanced Scorecard thinking as well as the complexity and number of Scorecards implemented. The total costs for a typical Balanced Scorecard project consist of: Time used by customer's own resources (50%), outside process consultancy (20%), outside implementation consultancy (15%), software licenses (15%).
A fast-track approach to implementing a Balanced Scorecard can be used successfully when implementing Balanced Scorecards with organizations that have already used Balanced Scorecards or to create a fast pilot Balanced Scorecard implementation.
Maybe the above information can help you.
Regards,
Divya
From India, Bangalore
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