7/30/2019 BSC Notes

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BALANCED SCORE CARD NOTESBalanced Score Card is a management TOOL that provides feedback about yourorganizational health - about how you are moving forward, successfully or notRequires the right environment

- Must understand what factors (financial and non-financial) drives your operations- Struggle between past present-future in developing measures (forward vs

lagging indicators of performance)

- Struggle with how much does and indicator measure (all the organization or partof it)- Willingness to question and even disregard old premises, ideas, practices- Being willing to be responsible & accountable- Understanding measurement driver of future movement

o NOT a judgment about past performance (it is a way to learn)

o NOT a basis for doing performance reviews

o NOT

- Culture of trust and open communications - Employees and Managers alikeo Cannot play agendas / be secretive must be open and trusting with wide

open communications channels

o Cannot be command & control (inhibits open communication &information sharing)

- Managers & employees alike must be willing to tackle change regardless of oldways or the rules; must be willing to look in the mirror and see oneself forwho one is as an organization the goal is to understand yourself

Organization must have top supportOrganization must have a clear future direction that is depicted in practical/ functional /realistic terms doableValuesVisionMission

Strategy for implementation is it too focused (income, TAT, specifics)?Requires that you know what you want to do and how you want to do it

- Must be clear in the meaning of vocabularyo Monitoring observing behavior and coaching

o Measuring -

o Managing vs. Performance Management motivating, coaching,

facilitating, enabling, empowering individuals /teams knowingspecifically what/how resources are to be deployed at all times

o Direction setting defining strategic directions in a realistic, practical,

manner that everyone in the organization can identify with and relate to inday-to-day operations

o Performance measurement- Must be clear about the limits of the

Requires maturity, as an organization, to implement.We had to mature there was fear about measuring processes & results. The measureswere viewed as outcomes of something more important (TAT vs Process Components)Going in circlesListed too many things wasteRequired a long learning curve

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7/30/2019 BSC Notes

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Created some stress / pitfallsWe were bogged down in defining the right measuresNot enough to develop it, it must be used at all levels in decision making for it to befunctional and effectiveMust relate decisions to resultsNot something that an organization can just do or jump intoNot a stagnant process it is ever changing ever growing and requires the

organization to be willing to adapt according to the data/findings sometimes requiresfast change/ other slower; sometimes $ investment in changeBest is to first focus on 1 or 2 clearly defined projects prove the concept and tehnexpand to more complex operations

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