Cost and Time
Balanced Scorecard is effectively used by many companies aloud to use it as a strategic planning tool, but it is quickly recognized that it is also a costly and time-consuming tool. In order to use this tool properly, you need to fully understand the process. Unless someone in the organization has experienced it, you need to use an external consultant to assist the process. Knowledge of how the scorecard works is necessary to manage the process using the strategic planning process and balanced scorecard and track the results. For maximum effect, the whole organization understands the theory behind the use of Balanced Scorecards, the importance of balancing various measures, and how you can use the tools to improve the process need to do it. It is not a small feat, but small organizations can challenge to achieve.
The usefulness of the balanced scorecard approach is dependent on the value of the information that is driving the process–garbage in, garbage out. While the tool can work, it will only work if both the right elements have been selected for review and if the information used to evaluate progress is complete, accurate and relevant to the area being addressed. For instance, in evaluating the effectiveness of training efforts, the number of people being trained is not as relevant as the training they received.
While there are many people who are strong supporters of the balanced scorecard and its use in strategic planning and process management, not all are believers. Some employees–and even managers–may feel that it is just “the flavor of the month,” and resist its implementation. This is particularly true if implementation requires employees to go through training activities or invest additional time to learn about the balanced scorecard and its use. Companies that are effective in the application of the balanced scorecard need to have the support of everyone in the organization to achieve maximum success.
Cost and Time