Identifying and Avoiding BSC Design Pitfalls PPT
This PPT slide, part of the 23-slide Performance Measurement PowerPoint presentation, outlines common pitfalls encountered in the design of a Balanced Scorecard (BSC), emphasizing the importance of adhering to best practices. It is structured into 4 key areas of concern, each detailing specific issues that can arise if not properly addressed.
The first pitfall is "Failing to Articulate Strategic Intent." This section highlights that a lack of clarity in strategic goals can lead to generic industry standards rather than tailored strategies. It points out the risk of adopting unintegrated perspectives, failing to define what customers truly value, and missing the connection between internal operations and strategic objectives.
Next is "Creating Unbalanced Measurement." This area warns against the dangers of having too many performance measures, which can dilute focus and lead to unrealistic expectations. It stresses the importance of ensuring that measures are repeatable and meaningful, rather than merely financial or misleading.
The third pitfall, "Institutionalising a Dysfunctional Process," addresses the lack of executive consensus and the risks of premature rollouts. It notes that tying incentives to incomplete processes can create confusion and hinder progress. Additionally, it mentions the danger of involving too many people for too long, which can result in lost momentum.
Lastly, "Establishing a Rigid Management Philosophy" critiques approaches that prioritize control over communication. It suggests that a strategic learning agenda should be inclusive rather than limited to management, promoting a culture of engagement and adaptability.
Overall, the slide serves as a cautionary guide for organizations looking to implement a Balanced Scorecard effectively, stressing the need for clarity, balance, consensus, and flexibility in their approach.
This slide is part of the Performance Measurement PowerPoint presentation.
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