Medusa

ISSUES AFFECTING IMPLEMENTATION OF THE BALANCED SCORECARD

<p style&equals;"text-align&colon; justify&semi;">The deployment or implementation of the balanced scorecard and its related software is not an easy process for any company&period; Several issues can arise during the implementation process&comma; which need to be addressed as soon as possible for the process to be successful and beneficial to the company&period; Some of the major issues that can hamper the deployment process include&colon;<&sol;p>&NewLine;<ol style&equals;"text-align&colon; justify&semi;">&NewLine;<li><strong>Fear<&sol;strong><&sol;li>&NewLine;<&sol;ol>&NewLine;<p style&equals;"text-align&colon; justify&semi;">A balanced scorecard is designed to measure the performance of a certain element of the company&period; The scope of the balanced scorecard is wide and it can be used to measure performance and improvement on an individual level as well as on the organizational level&period; The unfortunate thing about tying an individual’s performance with the scorecard is that it creates fear in individual employees&period; Too much reliance on using the BSC to measure individual performance will scare employees&comma; hindering their productivity&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">In addition&comma; using the scorecard to measure the performance of the individual will also eradicate the incentive for the management to be responsible for strategic management in the company&period; The purpose of the balanced scorecard is to encourage the management to be more proactive when it comes to strategic planning and management&period; The situation gets even worse when balanced scorecard software is put in place&comma; and the management washes its hands of the responsibility of strategically planning its human resource&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Experts recommend that the data gathered from the BSC should only be used in the aggregate&comma; and not for evaluation of individual performance&period; The collective performance of the different branches&comma; or teams should be the main concern for upper management&comma; and not the performance of specific individuals&period; Once everyone understands this aspect of the BSC&comma; then the fear involved with employee evaluation will diminish&period;<&sol;p>&NewLine;<ol style&equals;"text-align&colon; justify&semi;" start&equals;"2">&NewLine;<li><strong>Cost<&sol;strong><&sol;li>&NewLine;<&sol;ol>&NewLine;<p style&equals;"text-align&colon; justify&semi;">The cost of the <strong>balanced scorecard software<&sol;strong> is another major concern for most companies intending to implement the BSC&period; Most of the vendor software created to support the BSC is often marketed to Fortune 100 companies&comma; indicating that they may be too pricey for average companies&period; Even if a company can afford the expensive software&comma; they soon realize that it cannot collect the required data needed for measurement&period; The gathering of the data is a labor-intensive process and can cost the company a lot of money&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Many companies would prefer to develop the software in-house&comma; which also has its own challenges&period; However&comma; bringing in an external consultant to design the software and conduct surveys will be more cost-effective in the end&period; In addition&comma; designing the software in-house will ensure that the software meets the specific needs of the company&period; This means that the software will be tailor-made for the company&period;<&sol;p>&NewLine;<ol style&equals;"text-align&colon; justify&semi;" start&equals;"3">&NewLine;<li><strong>Objectivity<&sol;strong><&sol;li>&NewLine;<&sol;ol>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Another worrying issue that affects the implementation of the balanced scorecard is the objectivity of the information that will be produced&comma; as well as disseminated throughout the organization&period; As information moves across the organization&comma; there is always likelihood that it will be massaged and managed&period; The worry is that the <strong>balanced scorecard software<&sol;strong>&comma; like other information management systems before it&comma; will be used to micromanage the information that flows throughout the company&period;<&sol;p>&NewLine;

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