The Balanced Scorecard (BSC) can be a good metric to have in an organization. It is not really a new concept, as it has been in use for about a quarter of a century, when the Harvard Business Review published a paper on this topic from Robert S. Kaplan and David P. Norton. Initially developed by these two; the BSC was hailed for introducing the human element in conjunction with the financial aspects of the organization, calling for alignment between the two disciplines. This fusion was considered a pathbreaker at the time of its introduction.
By the mid-1990’s, its initial small flaws had been polished, with the result that from then on, the Balanced Scorecard has been adapted by many organizations around the world. Hailed as one of the most significant management ideas of the past 75 years; the Balanced Scorecard differs from other management principles and tools in a qualitative manner. As time passed, with the advent of newer technologies and more management techniques; the Balanced Scorecard evolved, too, and integrated more functions other than Finance, giving rise to variations such as the following among others:
- Performance prism
- Results-based management
- Third-generation balanced scorecard
The core value a present-day Balanced Scorecard serves can be summarized in the ways in which it helps in the following:
- Communicating what the organization is trying to accomplish
- Aligning employees’ day-to-day work to the organizational strategy
- Prioritizing and harmonizing the organization’s products and services and its projects
- Quantifying and monitoring the path to strategic targets
Putting all factors into place
The Balanced Scorecard is a very powerful tool in coordinating and gelling together crucial parameters of the organization, such as mission and vision, aims and objectives, focus and strategy, goals and results, and initiatives and measures.
Given the comprehensives and the effectiveness of the approach the Balanced Scorecard tool takes; it is no surprise that according to a study by Gartner, around half of all American fortune 1000 companies and around two fifths of all European fortune 1000 are using the balanced scoresheet. Its prominence has been rising in parts of Asia and Africa.
Widespread scope for implementation
Yet, the problem is, at the global level, far too many organizations are yet to adapt the Balanced Scorecard. This means that the potential for the adaption of this tool is vast. The ways of how to do it for raising the organization’s rate of success will be explained at a highly entertaining webinar from TrainHR, a leading provider of professional trainings for the human resources industry.
At this session, the speaker is Grant Schneider, who is president and founder of Performance Development Strategies, which helps organizations achieve greater results by aligning people in the organization with the organization’s mission and strategy.
Want to explore the ways of adapting this powerful tool to boost the overall performance in your organization and derive the benefit of Grant’s experience and learning? Then, please register for this webinar by visiting TrainHR Viewing this webinar, its entirety qualifies for a recertification credit hour that may be counted toward SHRM-CP and SHRM-SCP recertification from SHRM.
Credit is awarded based on the actual educational time spent in the program. This webinar has been approved for 1 HR (General) recertification credit hours toward aPHR, PHR, PHRca, SPHR, GPHR, PHRi and SPHRi recertification through HR Certification Institute (HRCI).
All that needs to go into creating a Balanced Scorecard
At this webinar session, Grant will help participants get an understanding of how to construct a Balanced Scorecard. He will show which inputs and variables need to be factored in and how to survey the key deliverables for success, how to measure them, how to set standards, and how to assign values to each, all of which constitute the heart of a Balanced Scorecard.
Apart from these, Grant will also explain how to use the balanced scorecard as a basis for a bonus system for managers and executives. To illustrate this, he will show an actual example from the restaurant/hospitality industry for creating a Balanced Scorecard.
Building a thoroughly designed Balanced Scorecard helps an organization achieve balanced results. It will prevent improper and incomplete utilization of human capital within the organization that happens when employees focus on one task or objective at the expense of another, often equally important or impactful one. For example, extreme focus on achieving sales should not come at the expense of customer satisfaction. Many such examples and instances can be avoided using the Balanced Scorecard.
During the course of this webinar, which HR professionals such as CEO, Senior Vice President, Vice President, Executive Director, Managing Director, Regional Vice- President, Area Supervisor and Managers will find highly useful; the speaker will cover the following areas:
- The Purpose of the Balanced Scorecard
- Background of the Balanced Scorecard
- Selecting the entity to use for the Scorecard
- Reviewing and Summarizing the Measurable Things
- Assigning Weights and Values
- Creating the Dashboard
- An example used by the Restaurant Hospitality Industry
- Using the Balanced Scorecard to Bonus and Compensation.