BSC Critical Notes

Perhaps, if you start looking for Balanced Scorecard reviews you will find interesting but controversial information. Some managers claim that BSC is a perfect tool to monitor company strategy, while others say there lots of pitfalls and mistakes for inexperienced employees. In fact, these statements are true. For some managers and companies BSC is easy, for others it causes lots of problems. In this article we will look at pros and cons of using Balanced Scorecard.

Advantages of BSC

First off, BSC is used in the best companies worldwide. The stats show that almost 70 % of companies from most successful companies worldwide use Balanced Scorecard. Moreover, once BSC was implemented it is used until now. It means that Balanced Scorecard becomes a part of company philosophy. BSC helps in identifying problems before they occur or evolve into huge disasters. Secondly, BSC offers important information on company performance. The goal of every company is making profit. However, today it is not easy to succeed unless you have a strategy. Strategy implies that managers analyze information from BSC to be prepared for potential difficulties. Of course, it is easier to solve problems if you already have a few solutions. So, BSC is used when the strategy needs to be changed. Also, Balanced Scorecard offer signals on poor performance and mistakes in management. Often, it is easier to resolve the problem at early stages. Thirdly, BSC is a simple framework. Users will have to get BSC software which is normally easy to use. Thus, managers and employees do not require advanced tech knowledge to work with BSC. This does not mean, however, that rookies can implement BSC immediately.

Cons of BSC

It is not a secret that implementation of BSC is associated with lots of pitfalls. Thus, inexperienced managers face many problems. For example, it is not easy to get started and choose the right KPIs. Initial stages of BSC implementation are the most difficult. For example, if you build a house with a poor foundation it will collapse. The same happens to BSC. That is why it is very important to avoid mistakes at initial stages of Balanced Scorecard implementation.

Secondly, inexperienced managers often face problems with choosing the best Balanced Scorecard. Although there are many applications in the market, choosing the bets can be difficult. The biggest mistake is buying an expensive application which is designed for huge companies. As a result, managers overpay and do not use all features of purchased software.

To choose the right BSC software, it is imperative to consider several applications and choose the best. There are guides on how to choose software on the net. Also, you can download trial software to make a decision. Use all features and contact customer support, if necessary. By the way, they say the best way to learn the ropes of BSC is to build own scorecard. So, you may download a trial application and start designing your own BSC. Please, visit software review sites if you need help.


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Have a look at http://www.scorecardtrainings.com/we-will-critique-your-balanced-scorecard-bsc-or-kpis.htm to make a decision whether or not you actually need BSC in your company.


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