How to Implement a Balanced Scorecard in 16 Weeks Not 16 months

Here is a process that you must follow in order to implement bananced score card in your organization in just 16 weeks and not in 16 months.

There are 11 different steps that should be followed. These are:

1. Appoint an external project facilitator: A skilled external project facilitator should be hired. Without this position being filled, dangers lurk everywhere. The external project facilitator should be free of any proprietary applications, be well versed in performance measures, have well-rounded consultancy skills, have the credentials so that the senior management team (SMT) will listen and follow his advice.
2. Begin with senior management team commitment and education: The SMT attitude is crucial—any lack of understanding, commitment, and prioritizing of this important process will prevent success.
3. Start off with a six perspective balanced scorecard template: The traditional scorecard needs modifying to encompass two additional areas, staff satisfaction and environment/community perspectives. These were underestimated in the original groundbreaking work of Robert Kaplan and David Norton. The six key areas are: Financial Areas, Customers, Environment or Community, Internal Process, Employee Satisfaction and Learning and Growth.
4. Focus on the critical success factors: Ascertaining an organization’s critical success factors (CSFs) and start working on them as they will ensure success or faliure of any organisation..
5. Follow the 10/80/10 rule: I believe the 10/80/10 rule is a good guide. 10 key result indicators (KRIs), up to 80 performance indicators (PIs) and result indicators (RIs) and 10 key performance indicators (KPIs).
6. Select a small KPI team: KPIs can be designed successfully by a small team. A team approach with between two to four staff is recommended, supported by an external facilitator, who, should involved right at the beginning.
7. You should do it: The exact structure of key result indicators, performance indicators, result indiactors and KPIs is rarely ―right the first time. The project team should be empowered to take decisions regarding this.
8. Use existing systems for the first 12 months: It is important that existing in-house applications are used for the first 12 months, to avoid the diversion of a major purchase.
9. Trap all performance measures in a database and make them available to all teams: During the 16 weeks, a number of performance measures will be found, which, while not in the top 10 KPIs, will still be highly relevant to business and service teams. The project team needs to establish a database to record these measures and communicate them through a KPI intranet home page.
10. KPI reporting formats are an ―art form, not a science: What is required is a reporting regime that thoroughly addresses those performance measures relevant to the CSFs and the six perspectives. It is recommended that the SMT leave the design of the reporting formats (24/7, daily, weekly, and monthly reports) to the KPI team, trusting in their judgment.
11. Maybe you need to rename: You might have to rename the process to make people fell more comfortable and they are not afraid of the terms.

Follow these 11 steps and you will do a 16 month task in 16 weeks and thus saving your time and money.