Using the Balanced Scorecard

Where to Start

Organisational Level

Much of the literature of the scorecard recommends starting at least at a Business Unit level. There is no doubt that the closer to the top of an organisation it is introduced, the more wide spread will be the influence of the method.

However if you currently reside at a level lower than unit boss, this presents you with 3 choices.

1. Do you attempt to sell the idea upwards in the hope that their senior executives embrace and support it's implementation.
2. Or because your early attempts at upward selling have potentially fallen on deaf ears, is it best to let it go.
3. Or do you follow the Nike school of thought, and Just Do It, with your own team, regardless of the support you may or may not gain from above.

Being proactive as a manager, we support the notion that the third alternative will provide greatest leverage for your effort, than the first option.

This raises the question of how effective an implementation project will be if it is conducted at a divisional or functional level.

Our experience is that application of the 3 Underlying Principles of the Balanced Scorecard will yield benefit for any group who designs and follows through effectively.

In a number of instances, this has led to upward leadership. In these cases, tangible evidence of the benefits being gained by a group has influenced a more senior executive to adopt the Balanced Scorecard across their entire team.

If you are a senior executive and are faced with a choice as to where you might pilot a first implementation, a key factor will be to sign up a focused, proactive and innovative leader.

In addition, your choice may be determined by the need to instigate greater change in an under performing business unit.

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DaPo
PO Box 574, Brighton le Sands
NSW 2216, Australia
Phone: 61-2-95 022 022 Fax: 61-2-95 022 133
E-mail: info@dapo.com.au