Written by

Bernard Marr

Bernard Marr is a world-renowned futurist, influencer and thought leader in the fields of business and technology, with a passion for using technology for the good of humanity. He is a best-selling author of 20 books, writes a regular column for Forbes and advises and coaches many of the world’s best-known organisations. He has over 2 million social media followers, 1 million newsletter subscribers and was ranked by LinkedIn as one of the top 5 business influencers in the world and the No 1 influencer in the UK.

Bernard’s latest book is ‘Business Trends in Practice: The 25+ Trends That Are Redefining Organisations’

View Latest Book

Follow Me

Bernard Marr ist ein weltbekannter Futurist, Influencer und Vordenker in den Bereichen Wirtschaft und Technologie mit einer Leidenschaft für den Einsatz von Technologie zum Wohle der Menschheit. Er ist Bestsellerautor von 20 Büchern, schreibt eine regelmäßige Kolumne für Forbes und berät und coacht viele der weltweit bekanntesten Organisationen. Er hat über 2 Millionen Social-Media-Follower, 1 Million Newsletter-Abonnenten und wurde von LinkedIn als einer der Top-5-Business-Influencer der Welt und von Xing als Top Mind 2021 ausgezeichnet.

Bernards neueste Bücher sind ‘Künstliche Intelligenz im Unternehmen: Innovative Anwendungen in 50 Erfolgreichen Unternehmen’

View Latest Book

Follow Me

Balanced Scorecard: Implementation Pitfalls (Part 3)

2 July 2021

Balanced Scorecard Implementation Pitfalls to Avoid (part 3)

There are many Balanced Scorecard implementations where companies don’t seem to get all the benefits described above. Research and experience have identified various traps and pitfalls main ones to avoid are listed below.

  • Inflating the Balanced Scorecard with Externally Imposed Indicators. There is an increasing amount of performance indicators which are imposed on organisations by external regulators or stakeholders such as the government. It is important to separate these indicators from the Balanced Scorecard unless they match the strategic objectives identified in the BSC. Otherwise, they will dilute the strategic message and inflate the amount of indicators. This in turn causes a lack of focus and confusion and runs the danger of making the BSC seen as irrelevant and an administrative burden.
  • No Resources for the Balanced Scorecard Implementation and Maintenance. There are organisations which assume that a Balanced Scorecard can be developed and maintained with no additional resources. It is important to give people the time and financial support to make it work. Best practice would be to create an internal team that facilitates the implementation and maintain the system over time. This team needs allocated time and resources to fulfil this role, which usually includes revising and cascading the BSC, collecting the performance indicators, analysing performance information, facilitating performance reviews and reporting performance.
  • Not up-dating the Balanced Scorecard. The strategy of any organisation is not static; it has to be revised and changed as the external and internal environments change. It is therefore recommended that depending on dynamics of your environment, the Balanced Scorecard is reviewed as part of your planning cycle – usually every 12 months.
  • Lack of IT support. Many organisations still rely on spreadsheet applications such as Microsoft Excel to collect, analyse and report their Balanced Scorecard information. Research has shown that organisation wide implementation clearly benefit from more sophisticated performance management software applications designed specifically for the purpose of managing and reporting performance.
  • Running Parallel Systems. The Balanced Scorecard should be the main tool for managing and monitoring the strategy implementation and the success of the organisation. It is therefore important to align other internal processes with the BSC. Typical processes which need to be aligned include budgeting, project management and risk management. There is a clear danger of misalignment if budgets are created outside the BSC framework and if risks and projects are managed which might or might not be aligned with the corporate strategic objectives identified in the Balanced Scorecard.

Business Trends In Practice | Bernard Marr
Business Trends In Practice | Bernard Marr

Related Articles

The Exciting Technology Highlights Of CES 2022

CES 2022 will be an opportunity for technology fans and industry insiders to get a first glimpse of the latest innovations, gadgets and devices consumers will be lusting for over the next 12 months.[...]

How Do You Prioritize Data Projects?

Every business could come up with hundreds (or thousands) of potential data projects. How do you prioritize?[...]

The 5 Biggest Global Trends Every Business Must Be Ready For | Bernard Marr

The 5 Biggest Global Trends Every Business Must Be Ready For

No business operates in a vacuum. Today’s organizations are continually shaped by the world around them, and the same will be true for the organizations of the future[...]

The 8 Biggest Consumer And Customer Experience Trends In 2022 | Bernard Marr

The 8 Biggest Consumer And Customer Experience Trends In 2022

Our world is changing rapidly, and so too are consumer expectations. Therefore, if your business wants to continue to add real[...]

The 8 Biggest Business Trends In 2022 | Bernard Marr

The 8 Biggest Business Trends In 2022

Across all sectors, organizations are grappling with rapid transformation. On top of that, there are enormous global[...]

The 8 Biggest Retail Trends Every Retailer Needs To Be Ready For | Bernard Marr

The 8 Biggest Retail Trends Every Retailer Needs To Be Ready For

Like every sector, retail is going through a transformation and must respond to the forces of the fourth industrial revolution and major societal shifts[...]

Stay up-to-date

  • Get updates straight to your inbox
  • Join my 1 million newsletter subscribers
  • Never miss any new content

Social Media

0
Followers
0
Likes
0
Followers
0
Subscribers
0
Followers
0
Subscribers
0
Followers
0
Readers

Podcasts

View Podcasts