Mini Lesson on How to Create a Cascading Balanced Scorecard

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Navigation: All Balanced Scorecard Articles > Cascading in BSC

Designing a BSC for your company can be exhausting but with this guide, you will be able to understand how you can create an effective BSC through cascading balanced scorecard. Read on and discover what this is all about. Check additional information about cascading balanced scorecard.

There are a number of businessmen right now who are having troubles in building the top level balanced scorecard. This is because one has to explain what the BSC is about to everyone in the company. However, this is just the start. Once you have designed the BSC for your company, cascading balanced scorecard should be next on your list. This process is where you distribute the said system of performance measurement through multiple levels based upon the organizational hierarchy.

There are tricks on how you can successfully do BSC cascade. The first one is to make sure that cascading balanced scorecard should incorporate bottom up and top down thinking. When cascading the BSC, this is all about making linkages to the different organizational levels from the top strategy. These levels are the areas where the strategies can be executed. What you need now in order for you to create the linkages is to be able to cascade the measures and the objectives. The top down component of thinking will help ensure you that there is strategic alignment in your scorecard. Meanwhile, the bottom up element assures you that you should definitely utilize the balanced scorecard for your company.

You should also realize that there is a need for your team of employees to understand what the balanced scorecard is all about. You can give them cascading workshops which will allow them to comprehend the entire meaning and use of the BSC. What you need to do is to ensure that the participants will walk out of the session motivated because there is now clarity in the objectives set by the firm. The workshop or training should only take a few hours so as not to tire or confuse your workers.

When it comes to meeting with your employees about the process of cascading balanced scorecard, there are a few things that you should not forget. The first is to be prepared for the whole procedure. In order to be prepared, you should have the right people in your company. This includes you as the manager or the owner of the business. Everyone should contribute in cascading balanced scorecard. In addition to that, you should set your expectations vividly.

Next is education in which you should provide the materials that they need to understand the concepts and the terminologies associated with the balanced scorecard. It is also useful if you are able to provide someone who will check upon the attendees so that you can observe whether or not they have really learned from the discussion.

Third is speed, which is quite critical since considering measures and objectives is a mental exercise. In this case, you should aid the team by means of setting a good and sustainable pace. Whenever a group is stuck on an idea, you can leave it and then come back. Most beginners find it hard to understand some really tough topics so skip them first and then discuss it later. Finally, it is all about rolling with the punches. Do not be surprised if some of your employees do not want to cooperate or that they do not accept the BSC system at the start. Thus, you should be prepared for anything.

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


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