Are you in a dilemma as to how to prepare for the interview? Are you tensed about what questions interviewer may ask? No, worry check on to wisdom jobs online site which offers interview tips and gives information about your career. Balanced scorecard is a strategy performance management tool that translates an organization’s strategic objectives into a set of performance objectives are measured, monitored and changed if necessary to meet the demands of organisational goals that are met. The manager role is to develop, implement, and successfully maintain balance scorecard process across multiple construction projects. Recruiters are hiring managers, balanced scorecard associates, conference manager and so on. All the job seekers try your chance by looking into balance scorecard job interview questions and answers.
Balanced Scorecard is a framework that focuses on shareholder/financial, customer, internal processes and learning requirements of a business in order to create a system of linked objectives, measures, targets and initiatives which collectively describe the strategy of an organization and how that strategy can be achieved.
Organisations benefit from using the Balanced Scorecard in the following ways:
Balanced Scorecard works on the premise that measurement drives performance. Historically, organizations measure performance based purely on financial parameters. The Balanced Scorecard approach lays strong emphasis on measuring key strategic parameters not only financial, but also non-financial parameters. By identifying the top 4-5 strategic objectives within each of the 4 perspectives, the Balanced Scorecard presents a comprehensive picture of a company's strategy.
There are several applications to use the Balanced Scorecard to improve performance:
Strategy map is a visual representation of the organization’s strategy. It identifies the strategic objectives that the management team needs to focus on, and the linkages (cause- effect relationship) that exist between them. Strategy Map is the starting point for developing the Balanced Scorecard. The Balanced Scorecard translates the organization’s strategy, as identified in the strategy map, into a comprehensive set of performance measures, targets, and set of initiatives, providing a framework for performance management.
It is a globally and regionally well-tested methodology to develop the Balanced Scorecard.
The key steps include:
A Corporate scorecard takes around 8 weeks to be developed. The first workshop to finalize the strategy map is conducted at the end of the 6 weeks point, and the second workshop around 2 weeks after that to finalize the Balanced Scorecard.
If 6-8 departmental cascades are also included, then all scorecards can be completed in around 10-12 weeks. A series of first and second workshops, each separate for Corporate and individual departments are conducted during this time.
A coordinator is extremely important in ensuring the successful implementation of the scorecard.
The responsibilities include:
The Balanced Scorecard is a flexible tool, and can be implemented by any kind of organization:
It is difficult to deliver on 20-25 performance measures even by a Group of people in an organization. Hence, it is not only difficult but nearly impossible for an individual to deliver on that many measures. It is hence recommended that a set of 4-5 key measures are identified for individuals. These could be cascaded directly from the corporate scorecard, based on the responsibility of the individual.
Example: a sales related measure is directly cascaded into the Sales head and his team's individual performance measures. Thus, with the individuals achieving their targets will ensure the organization meets its overall goals. However, the individual performance achievement needs to be linked to the bonus and rewards system.
There are a number of challenges in ensuring the successful implementation of the scorecard. However, the key one is lack of senior management commitment. What is important to the boss is important for me. If the CEO or GM is not committed in ensuring that the scorecard is reported monthly, chances are that it will not get reported!
Though not completely necessary, it is beneficial to implement an IT solution to automate reporting of the scorecard. It simplifies the process of physically compiling the data. However, only data available on the legacy/ERP system can be captured from the system. Certain measures (eg. Customer Satisfaction Index) may have to be compiled and reported into the scorecard manually. A large number of software’s are available for this purpose, based on the size and requirements of the organization.
Correct spelling is “Balanced Scorecard” or “BSC.” Wrong spelling: balanced scorecard (lower case), Balanced Score Card, BSc, bsc.
The idea was first suggested in the early 1990s by Drs. Robert Kaplan and David Norton. The website of Balanced Scorecard Institute is a must-visit reference point for historical information, as well as for practical advice on BSC.
Any organization has a strategy, even small businesses and individuals, so with some modifications the Balanced Scorecard can be used by any organization, including non-profits. According to a study by Gartner Group, over 50% of large organizations have adopted the Balanced Scorecard.
The root of the problem is that the strategic picture in the minds of top managers is not the same as a picture in the minds of line-level employees. Studies by the Balanced Scorecard Collaborative report show that more than 95% of employees don’t understand an organization’s strategy. This leads organizations to a less effective and efficient execution.
Balanced Scorecard supposed to help fix this problem by aligning top level goals with line level actions, and thus make the strategy execution process more trackable.
Here we have more facts about the Balance Scorecard that shed light on how widely it is used and what problems it solves.
In its earlier versions it looked more like performance measurement framework where measures (not necessary the key performance indicators) played a significant role. Now the measures are responsible for tracking strategy execution, but I’d say that the main part is a strategy map with business goals connected by cause-and-effect links. Metrics are still there, but they are not the main goal of the game.
I’m simplifying, but for my opinion these are 3 most important principles:
It varies from business to business and from consultant to consultant. Here is the one that we recommend for strategy execution in general, and for the Balanced Scorecard in particular.
Balanced Scorecard is a buzz word. As with any buzz word some confusion are inevitable. A set of 100+ KPIs is not a Balanced Scorecard, it is KPI scorecard. It would be more correct to call those business tools a dashboard or simply a scorecard. Here the difference between a dashboard and a scorecard is explained.
Business executives always use a combination of several tools. There are frameworks that address the problem of strategic planning and execution: Hoshin Kanri, 7-S, OKRs, Business Model Generation. And for sure there are many more supporting tools like SWOT, gap analysis, risk assessment, etc. In practice there is always a mix of different business tools.
For my opinion the answer is “yes.” Otherwise you are at risk to spend more time on the design and might face motivation problems. Check out our shopper’s guide for the strategy execution software.
A common sense note: before getting to the automation tools you need to be sure about your strategy and business goals.
According to our informal surveys the biggest challenge is motivation to start using and keep using the Balanced Scorecard. In this article we discussed how to solve the problem. Another big challenge is to find proper performance measures.
First, it is a good idea to understand the difference between metrics, measures, KPIs. The biggest mistake would be to take performance indicators from some list on the Internet. Instead, focus first on the business goals, and indicators will appear naturally. Here is the process for the KPIs that we recommend.
The idea of cascading (in the case of the Balanced Scorecard is also called “alignment”) is about translating top level objectives down to the lower levels (and vice versa). The key idea is that cascading is done by business goals, not by KPIs. Here you will find examples of some typical approaches to the cascading.
There are no specific rules for specific business niches. The guiding ideas that strategists use for a retail company are similar to the ideas that one will use for a hotel business. Still, having some examples is always a good idea.
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