The What, How and Why of Cascading in BSC

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Navigation: All Balanced Scorecard Articles > Cascading in BSC

Cascading in BSC is a process in which the management will translate all the organizational goals so that the communication between the senior corporate personnel and employees will be ensured. Promoting an understanding about the given measurements of the system will easily be conveyed through cascading. Check additional information about Cascading in BSC.

Balanced scorecard cascading, or Cascading in BSC as others call it has everything to do with the organizational alignment. As the term suggests, alignment pertains into visually and technically setting a straight line between two or more different case points. In business, it is aligning decided organizational measures with the target goal. The system that is to be implemented should be realistic, relevant and well-thought.

Despite the system having all those qualities though, most companies still tend to fail and never get the results that they have pined for. Some of them might have forgotten that cascading in BSC is what's going to translate all their visualized goals and methodologies. Now, we all know that communication is important, not just among the corporate board members and managers, but with the regular employees as well. Failure to communicate equates to relationship failure and it all goes downhill from there.

Cascading in BSC could be successful if you will keep in mind the following tips:

1.Cascade objectives instead of measures.

-This is a common mistake that managers do when cascading in BSC. They tend to cascade measures, rather than their organizational objectives. While it is true that it is important for the staff to recognize the "means", it wil be more effective if they would know "why" they have to comply. This way, the organizational focus will not be strayed and everyone will be performing their tasks to achieve a common goal.

2.Pick out the axis point of the cascade.

-Cascading in BSC can be confusing so in order to make it easier without swinging away from your organizational targets, it is best to pick a focus in which the cascading process will revolve around. If your strategy map focuses on processes alone, it will become the pivot of the cascade. Dividing strategy maps into different themes will make it easier for the organization to comply and force the idea of cooperative thinking and working.

3.Cascade the cause and effect model.

-Cascading strategy themes is a very crucial process to perform in order to keep in touch with all the company's philosophy. Isolated examination of scorecards is a no-no as doing so will make you lose the performance driver that the cause/effect model and strategy map described in the first place. Don't forget the main purpose why you must conduct cascading in BSC, except for communication is to maintain your grip on your chosen context and philosophies.

Now that you already get the idea of successful cascading in BSC, the remaining question is how to successfully execute it. How do you efficiently relay the translated data messages to your entire staff? Obviously, you have to break it down to them in a manner that they will understand. As much as possible, do not aggregate measures as this can lead to confusion and misunderstanding. Also, you must tell them directly what you want to achieve. Remember that if your staff and employees will understand what you are asking for them, they will find ways to achieve it, no matter what. Forged linkage that cascading in BSC presents will lead to the success of the organization or at least minimization of its losses and attraction of more profit.

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


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