PART and procedure management, not all are

PART C

Balance
scorecard is a completely popular tool around the world. Although many
organizations have embraced the balanced scorecard as a strategic planning
technique, but there are also a few disadvantages of this method. BSC needs a
lot of consideration. However, it requires a significant investment which is a
long-term rather than a short-term solution. It isn’t something that everyone
can take it too lightly as the company actually needs to preserve a meeting to
plan what is the best objective for the company to do to attain a certain level
in each of the four above areas. Once you have clearly stated targets, you may
then start to work out these objectives in what you may need, financially, to make
these objectives to resolution. The system relates to entire level of
organization for its effectiveness, and this requires loads of work and money
to be used to put into effect.

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Secondly
is employees’ resistance. In spite of the fact that there are many people who
are strong supporters of the balanced scorecard and its use in strategic making
plans and procedure management, not all are believers. To make this BSC method
effective, everyone in the organization needs to understand the concept or
theory behind the use of it, the significance of achieving balance across the
various measures, and the way the tool can be used for process improvement.
Some employees and even managers may feel that it is just a simple thing and
oppose its implementation. This is particularly true if implementation requires
employees to go through training activities or invest additional time to learn
about the balanced scorecard and its use. Companies that is effective in the
application of the balanced scorecard need to have the support of everyone in
the organization to achieve maximum success.

 

Next,
is data collection and analysis. You may need to train users so that they
understand when and how to measure and examine data. BSC may give you useful
information on areas that require development, but you have to be able to spot
these indicators and then implement an appropriate strategy yourself. Scorecard
results can only be as good as the underlying data that supports them. If you
don’t set appropriate data measures and don’t input the right information
consistently, you run the risk of getting faulty consequences. This could
prompt you to work on areas that don’t need improvement and to disregard areas
that do.

 

Lastly,
the BSC provides you an overall view of the four areas for concern in business
growth and development, these four areas do not paint the whole picture. The
financial information included on the scorecard is limited. Instead, to be
successfully carried out, the balanced scorecard ought to be part of a bigger
strategy for company growth that includes meticulous accounting methods. When a
company is failing to fulfill its BSC goals, the goals may be re-interpreted to
the current state of affairs to meet success or avoid failure. Altering the
acceptance criteria for a good balanced scorecard is less difficult than
altering the acceptance criteria for mechanical parts and therefore the reject
rate. Therefore, DBF must plan carefully on how they would like to handle this
situation to ensure smooth transition to BSC systems.

 

 

 

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