Balanced Scorecard article > Implementing the BSC; a Road Map for Success

If you know anything about the Balanced Scorecard (BSC), you may well be attracted to the common sense foundations which have profoundly informed us of the importance of non-financial measures of success.

Implementating the BSC; A holistic art

Yet scratch beneath the surface of corporate promotion and the reality of Balanced Scorecard is that many attempts to implement the BSC have NOT delivered lasting improvements in the way strategic growth is managed.
Or worse, many efforts have tarnished executives lasting perceptions of the scorecard. Like any other change initiative, implementing BSC is not as easy as installing the latest version of Quicktime.

As one of Australia’s earliest adopters and most experienced scorecard practitioners over the past 6 years, DaPo Consulting has learned a lot from implementations that have, and have not, succeeded long term. One key factor emerges as central to BSC implementation success; A holistic approach that addresses both strategic needs and cultural considerations.

Plan to succeed

An holistic implementation begins with a plan that enables engagement and buy-in to the process from the outset. Alternatively, a struggling implementation can be re-energised and directed through a holistic review and re-focus. If agreed across a senior management team, key leaders can gain greater awareness, education and ownership of the actions required and the benefits to be gained. It can also help tease out more complex cultural and leadership forces that will act for or against implementation, as well as practical resourcing and time conflicts with other existing business priorities.

This article provides an outline of an Implementation Road Map which has been used to guide some of Australia’s most successful Balanced Scorecard implementations. The proposed model of implementation can also be applied effectively to planning of other organisational change programs.

A Holistic model of Implementation

There are 2 domains of consideration for a holistic view of change, namely Strategic and Cultural, or more specifically,Task related and People related issues. Within these 2 broad spheres it is possible to consider 2 further sub categories, as shown in Table 1.

Successful change requires these to compliment each other. Yet the initial vigour and interest in the BSC can initially lead to overemphasis on the Task domain, with insufficient attention paid to People related issues. For example scorecard designs can begin before due thought is paid to the best starting points, how scorecards might be aligned across the business, or the most culturally sensitive approach to rolling out scorecards. Similarly, early planning around how the BSC aligns with existing planning and management processes can alleviate push back if people see how it can compliment or replace other current management processes and requirements.

Table 1; Key Elements for Holistic Implementation 1. Task related 1a Architecture and Resources - includes the fundamental design of BSC, that starting points and phasing of roll out, the time and investments needed to support it 1b Management controls - includes the integration, alignment or replacement of other systems and processes in place that require energy & attention (Eg. Budgeting, strategic planning, CRM, reporting) 2. People related 2a Leadership and Culture - includes the leadership style, approach to other change implementations, the active sponsorship required, and the behaviours and values that will impact take-up 2b Communication and Awareness - includes the internal promotion and education of the tool as it is rolled out, the competition for mind share with other change programes, communications with external stakeholders

These sub categories can guide decision making and consensus about a number of very practical issues regarding implementation. When discussed, agreed and documented at the outset, the decisions form the basis of an Implementation Road Map.

An Implementation Planning Guide can facilitate this wider consideration, by posing questions that arise from the holistic planning model. Examples of the types of questions to be asked are included in Table 2.

Table 2; Implementation Planning Guide; Sample questions 1. Task related 1a Architecture and Resources How will scorecards be rolled out Eg. Pilot groups, top down, bottom up? How deeply and widely will BSC be implemented, within specified time frames? What investment is needed for Champion/ Managers/Staff to use BSC? 1b Management controls What other management activities will impact, or be impacted by BSC? Which of these might BSC replace or enhance? How will management meetings utilise the BSC to advantage? 2. People related 2a Leadership and Culture How will sponsors actively endorse BSC, and for how long? What other priorities may challenge the time, focus and energy of leaders? What are potential 'silent killers' of change implementations? 2b Communication and Awareness What content needs communicating (Eg. marketing/education/ progress) What level of eduction is needed prior to initial used of BSC by people? How can BSC communication enhance existing channels and forums ? NB. This sample is adapted from the comprehensive list of Implementation Planning questions included in DaPo Consulting's 'Implementation Planning Guide'

A comprehensive planning guide will ensure the group agrees all important issues so that unseen obstacles and silent killers of change are put onto the table before implementation begins. These issues can be complex and difficult to agree on as they can touch on leadership and cultural issues that extend beyond the BSC. So there can be a reluctance to engage in such a rigorous examination. Nevertheless, it is better to discover hidden showstoppers up front than down the track when you have invested hundreds of person hours in initial BSC design.

For those who are experiencing poor traction with implementation, this process will act as a review or audit.

Implementation Team

Whether planning or reviewing, another consideration is the composition of a working group to carry out this holistic work. Traditionally, this would comprise senior managers with the assumption that they would know what is best for the organisation. Whilst this may be so, the top heavy approach provides only one view of the issues and opportunities surrounding the organisational change.
A simple innovation can deliver a more holistic and considered approach. With participation of cross functional representatives from all levels of hierarchy, BSC Implementation teams have been found to develop more sustainable approaches and wider spread ownership.
If the group is empowered by Senior Management, this models a more innovative and inclusive approach to change than the traditional top down, and helps to break down silos and us vs. them attitudes. It also enables the team to act as advocates and coaches at different points across the organisation. This role of implementation planning and review is visually represented around the Holistic Implementation Model as demonstrated in Figure 1.

Figure 1.
A Model of Holistic BSC Implementation

Using a Coach

There is a case for the use of a skilled facilitator when conducting Implementation Planning or Review. A facilitator can ensure effective communication and decision making across teh group of stakeholders, leading to consensus agreements about tough cultural, leadership and investment decisions. An experienced BSC coach can also impart lessons from other implementations that will help the group to develop a robust plan. This can deliver an indirect beneft of educating the group on common views about the benefits and pitfalls as well as the practical implications of using the BSC.

Perhaps most importantly, effective Implementation Planning can ensure ‘buy-in’ and ownership of the BSC across a key stakeholder group before getting started, or during a re-focussing phase, thereby maximising the chances of sustained effort and follow through.

A Holistic Implementation Plan is a major factor in determining the success or failure of BSC to deliver promised and sustainable results.

by
David Pointon
DaPo Consulting

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DaPo Consulting delivers facilitation and coaching services and tools to support BSC Implementation Planning & Review