- Intent of Balanced Scorecards
- Understand the health of organisations
- Current Status of the Business
- Bringing balance in the internal as well as external organisation
- Measuring Performances
- Growth- Balanced Scorecard Capability
- To find out the Problem areas
- What is a Scorecard?
Keeping ‘balance’ aside a scorecard can be anything ranging from a Class 2 report card or Class 10 mark sheet. The scorecard can also be the summary of a cricket match’s statistics.
- What is Balance?
Balance is nothing but to get the right mileage or the right outcome. It can be a toddler balancing himself to learn to walk or a cyclist trying to balance his bicycle.
- Scorecard has been embedded in our lives right from the beginning. Balance is what we have to learn.
- Balanced Scorecard Linkages:
- Investors/ Stakeholders
- People- Process and Variable Pay
- Organisational level Balanced Scorecard- Functional Scorecard
- Key Result Areas
- Learning and Development
- Success of Balanced Scorecard
Success of a Balanced Scorecard depends on how much we engage people in our Key Result Areas. Quality of discussion of goal setting is what really matters. If the culture in an organisation is poor, and we don’t know how to conduct people conversation, BSC’s in KRA’s are bound to fail.
- Group Activity
Preparing a balanced scorecard taking insights from the movie The Guns of Navarone, where a small commando team is sent to destroy huge German guns on the Greek Island of Navarone in order to rescue Allied troops trapped on Kheros.
The participants came up with interesting classification of the KRA’s taking cues from the story line of the movie.
- Identify a leader to climb and destroy the Guns of Navarone.
- Identify the right skills and train them
- Form a team- Bomber, Climber etc.
- Reach the 4000ft rock by 10 pm and climb it by 6 am in the morning
- Building the right mechanism to destroy the Guns of Navarone within the time frame
- Successful evacuation of 2000 people trapped on Kheros.
The session ended with a small background on the origins of Balanced Scorecard that can be traced back to 1990 when Nolan Norton Institute sponsored a one-year multi-company study, “Measuring Performance in the Organization of the Future.”
The speaker also suggested books like The Balanced Scorecard: Translating Strategy into Action which is an insightful book by Robert Kaplan to help go deeper into the realms of Scorecards.