Some Issues When You Cascade Balanced Scorecard and How to Resolve Them



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Navigation: All Balanced Scorecard Articles > Cascading in BSC

A lot of experts have recommended that there really is a need to cascade balanced scorecard. How is this properly done and how do you address common issues regarding the said process? Check additional information about cascade balanced scorecard.

The balanced scorecard is a tool that has gained popularity because of its simplicity, flexibility and usefulness. Its versatility allows every type of business to utilize this tool without having to worry about its compatibility with their business structure. No matter how small or large your company may be, you can employ the BSC framework in accordance to your goals and strategies. For those who operate huge firms, it is needed that you cascade balanced scorecard in order to support the unit scorecards.

When you cascade balanced scorecard, you help connect the top level organization with the whole company. Typically, there are three levels when you cascade balanced scorecard. The first one involves the organizational level scorecard or the first tier. This is where the high level objectives and strategies are illustrated and this BSC is utilized by the executives or the business owners. The second level is the business or support unit. This is generally the scorecard that is being used by managers or the supervisors. Each department usually has a main objective which coincides with the chief purpose of the whole business.

Finally, we have the third tier which consists of the team or individual balanced scorecard. Smaller teams of the employees or the workers themselves have targets. These targets should be met in order to contribute toward the progress of the organization. While it sounds a little bit simple, cascading strategy or the BSC is not that easy especially since we are talking about a huge corporation. There are certain issues that should be addressed in order for you to successfully cascade balanced scorecard.

When you cascade balanced scorecard, one of the first things that you will notice is that it is difficult to find the linkage between the strategy map objectives or the strategic directions and the operational business plans. Searching for the best practices in cascading strategy does not happen overnight. You will have to find this one out by yourself through experience. Even though there are guides about the best practices for cascading the balanced scorecard, you will find that not all of them are applicable to your own organization.

Another is to connect the performance appraisal of the individuals with the balanced scorecard. A huge company will definitely find it difficult to keep track of each and every employee all the time. This is why there are measures that you will have to choose from. These measures reflect the things particularly the work characteristics that truly matter to the appraisal of the performance of your employees.

Strategies change when the businessmen notice that their plans are not effective. If this is the case, you might think that you will have to redo your metrics, indicators or even the balanced scorecard itself. Therefore, this means that you will have to modify your BSC since it should always be linked to the strategies and vision of the business. Revising your strategies alongside the balanced scorecard is a good practice but will definitely take time. You will have to cascade balanced scorecard once again but the key benefits will be visible in no time.

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



 

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