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Implementation of Balanced Scorecard is quite a complex process that requires dedication and sufficient human and monetary investments. It is important to do everything in the right way since mistakes made at one implementation stage will surely result in future BSC failures. Check additional information about bsc building.

One can hardly find a business or a company that is not talking about Balanced Scorecard or not using this system. BSC gained tremendous popularity in all business spheres and industries all over the world. It is considered the first strategic management tool that communicates operational and strategic management. "Putting strategy into action" is perhaps the best slogan that describes Balanced Scorecard concept. Indeed, BSC urges companies to change for better. Those companies not ready for changes as a rule have a negative experience of using Balanced Scorecard. That's why BSC has both its ardent fans and critics. Companies that managed to double sales growth rates with Balanced Scorecard over the years claim that they cannot imagine their business without BSC, while those who considered Balanced Scorecard a universal magic tool that can solve any and all business problems overnight think of Balanced Scorecard as of waste of time and money.

Development of Balanced Scorecard is a unique process for every company. Of course, it is always helpful to refer to someone else's experience of BSC implementation, but at the same time one needs to remember that something that is good for one company may be harmful for another. That's why when building Balanced Scorecard it is very important to start from the ground up. BSC building process starts with strategy development. One of the major reasons why Balanced Scorecard implementation fails is lack of strategy. It's impossible to reach destination without knowing where you are driving at. Moreover, a strategy should be easy to read and comprehensive for ordinary personnel. Balanced Scorecard works only if the entire personnel is involved in development and maintenance process. It is important to attract BSC specialists and company insiders to strategy development.

Once the strategy is fully developed it is time to create key performance indicators in the four categories of Balanced Scorecard: financial, customer, internal business processes, learning and growth. Again, one needs to remember that Balanced Scorecard is individually designed for every individual company. This also concerns set of key performance indicators, their number and weights. That's why every key performance indicators should be carefully selected. KPIs should be measurable and easy to understand. Besides, one should always have the possibility to change or substitute it. Choice of key performance indicators solely depends on company structure, its strategic goals, current and potential problems, competition in the market, economic conjuncture and conditions of business environment.

When key performance indicators are selected in the four categories, company management should think of the ways to collect and analyze information so that indicators reflect actual and genuine data. The company needs a reliable and easy to use feedback and reporting system, as well as it requires automation tools to analyze information.

Flexibility is one of BSC key advantages. If something goes wrong and a certain indicator is deemed to be secondary it can be given less weight or be deleted at all. Maintenance of Balanced Scorecard is equally important process that requires much investments, human resources and time.

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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.