Why should one start BSC implementation with goal setting?
Productivity of any business is measured as compared to established goals and objectives. Company performance is called success or failure in case of implementation or non-implementation of strategic goals. However, evaluation process may turn to the wrong path if goals were set in the wrong way were unachievable goals were set. No wonder why so many companies fail these days. Running business without a strategy will do no good. Imagine that you are driving a car and you don’t know where you going. Or, for example, you want to go to the point A, while you need to go to point B. You will be very surprised when you find out that you chose the wrong way. It goes without saying, that measurement of productivity will not make sense in such a way.
At a first glance it’s not so difficult to set goals. And the same time just goals sitting alone is not enough. You need to keep these goals realistic otherwise the company is doomed to fail. For instance, if a small company undertakes to gain and 50% market share it will be impossible to achieve such a goal without revolutionizing the market.
What makes a good strategic goal?
The goal, and especially strategic goal, is the vision of future. In other words, you decide what future you want to see for your company and how we will achieve such future. If you set strategic goals and hope there will be no problems and obstacles you are business romantic who will fail. Strategic vision and strategic goals should forecast possible problems and obstacles. The wrist of competition in the market and the res no way you can avoid this competition.
In use of balanced scorecard goal setting is a number one challenge. This is where the implementation process begins. With the wrong goals you’ll pick the wrong key performance indicators. Thus you will measure some secondary things which are nothing to do with key success factors in your business area. Of course, your strategic goals should be compliant with the mission and values of your company.
Results of setting the wrong goals
Only with the right strategic goals and the right set of key performance indicators it will be possible to successfully use balanced scorecard system in order to communicate strategic and operational management.
Through measurement of productivity it is possible to locate strengths and weaknesses of your business and find relevant solutions to existing problems.
Read more about goal setting here
Tags: bsc implementation, kpi evaluation, pruductivity measurment
