Is Balanced Scorecards A Good Fit For Our Holding Company?

After publishing my article “Balanced Scorecards In Holding Companies”, I received a letter from one of my readers asking me about potential success of implementing balanced scorecards and strategy maps in her organization. Having thought that it might be on interest to other readers, I have chosen to publish it with my answer after replacing the real names with fictitious ones for privacy issues.

Hi Ahmed!

My name is Mona Mohamed & I’m currently the HR Manager of ABC Holding Group.

 

I ran into your last post about Balanced Scorecards and I’d like to implement it yet I really doubt its success in an organization like ours as well as how people will respond not having a strong performance management system for years.

 

Don’t want to overload you or take any of your time, just want to know is it worth the effort if I don’t have enough budget in addition laid back employees.

 

Mona

 

My answer to her was as follows:

Hello Mona,

Balanced scorecards BSC is a great strategic management tool, but remains one of many tools available at the management’s disposal to deal with complex business challenges. In this sense, we agree that it is a mere tool, good one though, but not a magic wand.

According to some estimates, most information systems’ implementations fail, some technology strategists suggest that more than two thirds fails. Usually they don’t fail in IT software installation, it is usually the easiest part, but rather in achieving committed business goals.

I am not familiar of your organization’s work environment and  culture, but from my general experience commitment of executive management and strong backing from leadership are basic ingredients of the success recipe. However, there are many factors that can affect the project success, such as overall readiness of the organizational systems, processes, and most importantly people.

Implementation budget is a secondary aspect since implementation does not necessarily include automation and workflow management.

To keep my answer short, BSC is a good addition to your toolkit, but can never transform a good company into a great one without great visionary leadership.

Motivation is a different story!

Ahmed

 

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