Bsc Implementation Case Study

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2.2.8.Challenge and Pitfalls of BSC Implementation Kaplan and Norton (2001), stated that although many companies enjoy the benefits from their Balanced Scorecard management systems, implementation failures do occur. More often than not, these disappointing results are self-inflict, owing to factors internal to the business rather than attributable to outside events. These pitfalls tend to fall into two types: design failures and /process failures. Design Failures Kaplan and Norton (2001), argued that some failures occur when companies build poor Balanced Scorecards. This implies that, the organization may use too few measures in their perspectives, failing to obtain a balance between the outcomes they are trying to achieve and the performance…show more content…
Lack of senior management commitment. To be effective on BSC, senior management must articulate the organization’s strategy and bring about consensus if consensus about the strategy is difficult to achieve. Similarly, they must also be emotionally committed to the strategy, investing time and resources to see the strategy through (ibid). Too few individuals involved. Commitment must come from the appropriate decision-makers in an organization to keep business practices in line with strategic goals. The excuse that individuals (particularly key senior managers) “already attend too many meetings” is nota valid one. Therefore, optimum level of individual involvement is necessary to achieve BSC in the organization(ibid). Keeping the scorecard at the…show more content…
Some groups believe they only have one chance to launch the scorecard, so they want to produce the perfect scorecard, spending months refining it so long, in fact, that it never gets implemented. However, The most successful implementations of BSC, start with missing measurements; the organizations simply learn by doing. Hiring inexperienced consultants. Also, Kaplan& Norton ,argued that ,using inexperienced consultants or consultants who deliver their favorite methodology under the rubric of the Balanced Scorecard is a recipe for failure. Therefore, any organization should be taken care if hiring the consultants. Introducing the Balanced Scorecard for compensation only. Obviously, linking strategy to compensation is a powerful lever to gain the attention and commitment of individuals to strategy. Some companies, however, forget that they must translate the strategy into terms each of their employees can understand and use in their everyday activities a key component of implementation
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