Question

Present five reasons that could impede the implementation of BSC at JCX and explain how to manage those to ensure a successful implementation

Answer 1

Five reason that could impede the implementation of Balance score card at JCX:

1). Too few measures per perspective:

A good balanced scorecard should have an appropriate mix of outcomes (lagging indicators) and performance drivers (leading indicators) of the company’s strategy. Therefore, when the organisation constructs too few measures in each perspective, it fails to obtain a balance between leading and lagging indicators or non-financial and financial indicators.

OverComing:

Obtain a balance between leading and lagging indicators.

2). Measures selected for scorecard do not reflect the organisations strategy:

This happens when the organisation tries to apply all their Key Performance Indicators (KPIs) into each perspective without screening only for the measures that are linked to its strategy. Therefore the organisation’s strategy is not translated into action and the organisation does not obtain any benefit from the Balanced Scorecard.

Overcoming:

Only select measures that are linked to the organisation’s strategy.

3). Introducing the balance score card only for compensation:

Support for the linkage of compensation to strategic measures can only occur effectively when it is part of the process of strategy translation in the organisation.

Overcoming:

Support the linkage of compensation to strategic measures when it is part of the process of strategy translation in the organisation.

4). Keep the scorecard at top:

To be effective, the Balanced Scorecard, including strategy and action to support implementation, must eventually be shared with every member of the organisation (see figure 2). If there is no deployment system that breaks high level goals down to the sub-process level where actual improvement activities reside, significant process improvements throughout the organisation fail to generate bottom line results.

Overcoming:

Involve the whole organisation in the implementation process.

5). The development process takes too long time:

If the implementation takes too long, it can happen that during the implementation process, the strategy has changed. This results in the fact that some of indicators have become obsolete and requires new indicators. Measuring with wrong indicators can distract an organisation from its strategy.

Overcoming:

Keep the development process short.