BSC working group and its tasks

Many companies are making a very serious mistake in implementation of balanced scorecard – they do not start an extensive discussion and research of strategy maps inside the company.  The fact is that balanced scorecard will never work if it will be just another top management project which is not understood to ordinary personnel and mid-level managers.  As a rule, company top management is recommended to create a working team that will assume responsibility for implementation of balanced scorecard and promotion of this strategic management tool inside the company.

But creation of a working group itself will not solve the problem.  The company should find the right people who will have desire, motivation and time to promote balanced scorecard and manage discussion of strategy maps.  Some of these people should be discussed and moderators.

Working group members must represent different managerial levels in the company

Working group members must represent different managerial levels in the company

The common mistake is inclusion of external advisors and company top managers only to the working group.  Sure, these people are very competent in the fields of strategic management.  Of external advisors have prior experience and skills in implementation of balanced scorecard, while top management possesses valuable information on the company itself.  But without participation of ordinary personnel development and design of strategy maps will restrict itself to one time presentation of balanced scorecard and strategy maps to the company.  If ordinary personnel in the company does not understand why they should use this system and what their personal of interest is, there are very few chances to succeed in implementation of balanced scorecard.

How BSC strategy is discussed

How BSC strategy is discussed

BSC becomes philosophy for the company.  It should always cause changes and discussions inside the company.  Discussion on the top level will mean nothing to ordinary personnel who actually bring money and contact customers.  And ordinary sales manager may tell you a lively picture of who his customers are.  He will tell something that a top manager never new.  That’s why combination of professional knowledge in the field of strategic management and the dissipation of ordinary personnel will give the best results.

Working group members should lead discussion on all themes and topics which might be relevant to strategy development and use of balanced scorecard.  BSC must be promoted and working group members should rather act like preachers (of course in a good sense of this word).

It has been observed that companies that initially failed to use balanced scorecard in the right way them and get back to the system, while companies with the positive BSC experience will never part with it.