Top Reasons to Organize Metric Discussions

Access your KPIs online;
Measure your success;

Navigation: All Balanced Scorecard Articles > BSC for HR

Every business owner and top manager should understand that BSC tields positive results only when used by everyone in the company. That is why it is important to organize metric discussions among employees at all levels. Check additional information about metric discussions.

Many companies are making the same common mistake - Balanced scorecard becomes a secret document used only by top managers. One should not expect any results from a BSC which is being discussed only on top management level. The truth is that Balanced Scorecard does not work unless it is used by employees at all levels. Sure thing, it is impossible to get the entire personnel involved. There are people who never want to develop and that is why they will never participate in BSC discussion. They can pretend they are eager to use BSC but in fact they will remain ignorant on Balanced Scorecard and the way it works. However, it is task of top management to motivate personnel participate in BSC discussion. It should be noted that is 80% employees understand how BSC works and how they can contribute to implementation of strategic goals, this can be considered excellent results. At the same time, this percentage depends on the company type and industry. For example, IT specialists are more conscientious than workers at auto making company. This article will focus on major reasons why company personnel should focus on discussion of BSC and adopted metrics.

Reason #1. As already said above, participation of most employees in BSC discussion means that the entire personnel will work with BSC. This is one of the most conditions for successful Balanced Scorecard use. Even the best strategy map will never work if employees have no idea of what BSC is all about and why they have to enter some data using weird software. Very often, employees view BSC as another tool to control them. Naturally, this evokes opposition and resistance. In such a case BSC will surely fail.

Reason #2. Very often ordinary employees possess information that top management does not have. For example, an ordinary sales manager knows much more about company customers than a top manager. Those who directly contact customers every day know what customers need and what they expect from the company. This information must be used in strategy development. There is another example. An ordinary office manager may have suggestions on how to save on electricity bills and decrease cost per 1 m2 of office space. If company employs thousands of people, savings may reach millions of dollars that can be spent for another purposes.

Reason #4. Company employees should understand why they have to use Balanced Scorecard otherwise many of them would give the wrong data in order to live up to expectations of top management that sets goals. In such a way, top management will think that everything is going OK in the company, while in fact the company will move into entirely different direction. If employees understand why they use BSC they will be honest. Do not punish employees for failure to reach goals but think of the reasons to correct the situation.

Reason #5. Balanced Scorecard must become philosophy of a company. One has to remember that a company is above all its employees.

If you are interested in metric discussions, check this link to find out more about metric discussions. Also, you can check other articles in BSC for HR category.

Balanced Scorecard Toolkit includes step-by-step manuals, documents, presentations, check lists designed to help business professionals with successful development and implementation of Balanced Scorecard. Learn more about BSC Toolkit.