How Cascading Scorecard Helps Your Organization

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Navigation: All Balanced Scorecard Articles > Cascading in BSC

Cascading scorecard has been done by many successful companies in the world. This method has proven that it really works and can present great advantages for those who choose to perform such. Check additional information about Cascading scorecard.

If you are using the balanced scorecard approach and you think that this framework is overhyped, you might want to think again. Go over your BSC and see what produces the negative effects for your company. Most likely, you did not opt for the cascading scorecard methodology. If this is the case, then you have to do it right now. Why? The answer is simple: when you only have one top level BSC, you should not expect that you will get the results that you want. What you need here is a structure of linked BSCs which is considered as the cascaded balanced scorecards from the bottom to the top across the entire organization. This is what will drive results into your business particularly in performance management.

When you choose to start cascading scorecard, you are able to map out the strategic objectives as well as the measures of your enterprise. Their impact will be represented both horizontally and vertically. Thus, you have successfully aligned the areas of the company. Eventually, you will be bale to grasp a powerfully analytical management framework. This will permit you to pin down the problem areas in the organization whilst they are still quite controllable instead of waiting until the difficulty becomes more complicated which could lead into a high-level crisis.

Cascading scorecard is done so that the company will be able to produce extraordinary results. Keep in mind that even if you have the most brilliant strategies at hand, there is still a need for them to be measurable. In addition, sustainable action from the supervisors to the employees is a must. Starting from strategic planning up to top-level balanced scorecard is normally a great commencement. However, you will truly see the improvements when the corporate scorecard is cascaded down and across your organization. Cascading scorecard helps you identify the cause and effect relationship between the higher and lower level results. These are oftentimes known as the leading and lagging measures respectively. In the end, you are able to connect the goals of every employee and their performances with the use of the top level scorecard of the organization.

In order to cascade the balanced scorecard effectively, there is a need for a focused effort along with a widespread understanding regarding the important cascading techniques. When cascading scorecard, you will need to remember a few things. The first one is that you should incorporate the bottom up and top down ideas. Since your main objective is to create linkages starting from the topmost strategy to different levels in the organization, you will need to derive the measures using the objectives from the entire organization itself.

Apart from that, you should ensure that your employees completely understand the essence of the balanced scorecard when it comes to their jobs. This is why there are some organizations that present scorecard meetings so that the workers can fully define and comprehend the objectives that have been given to them. When they do, they will be inspired and motivated to perform their duties because there is clarity in the goals of the company.

If you are interested in Cascading scorecard, check this link to find out more about balanced scorecard. Also, you can check other articles in Cascading in BSC category.


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