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Survival of a growing business supported by Balanced Scorecard

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While organization growths old performance management method become ineffective. Getting bigger a company might experience higher employee turnover rate; firms lose focus and fail to achieve desired results. Learn how to use Balanced Scorecard to survive the growth stage.

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Survival of a growing business supported by Balanced Scorecard

  1. 1. WHY A BALANCED SCORECARD IS CRUCIAL TO THE SURVIVAL OF A GROWING BUSINESS Based on http://www.bscdesigner.com/bsc-is-crucial-to-the-survival-of-a-growing-company. htm By Kazim Ladimeji
  2. 2. TRANSITION FROM OPERATIONALLY IMMATURE ORGANIZATION
  3. 3. BSC DESIGNER
  4. 4. BSC DESIGNER THE ORGANIZATION IS OPERATIONALLY IMMATURE • There can be lots of: energy, creativity, activity, and goodwill,
  5. 5. BSC DESIGNER THE ORGANIZATION IS OPERATIONALLY IMMATURE • There can be lots of: energy, creativity, activity, and goodwill, • But this is often not channeled correctly, meaning there is a lot of wastage and a lack of focus in the right areas.
  6. 6. TRANSITION FROM OPERATIONALLY BSC DESIGNER IMMATURE ORGANIZATION • There is a time in every start-up’s life when they must start making that transition to being a mature organization.
  7. 7. TRANSITION FROM OPERATIONALLY BSC DESIGNER IMMATURE ORGANIZATION • There is a time in every start-up’s life when they must start making that transition to being a mature organization. • Organizations start needing to make this transition from immature start-up to mature SME (Small and medium enterprises) when they hit around 50 people.
  8. 8. TRANSITION FROM OPERATIONALLY BSC DESIGNER IMMATURE ORGANIZATION • There is a time in every start-up’s life when they must start making that transition to being a mature organization. • Organizations start needing to make this transition from immature start-up to mature SME (Small and medium enterprises) when they hit around 50 people. • If this transition phase isn’t correctly handled, the organization can run into quite serious trouble.
  9. 9. FIRMS OFTEN LOSE FOCUS AS THEY TRANSITION FROM A START-UP TO AN SME
  10. 10. BSC DESIGNER SKILLS' EMPHASIS SHIFTS • A group of managers and staff who have been hired and groomed to work well in small, tight informal teams of people.
  11. 11. BSC DESIGNER SKILLS' EMPHASIS SHIFTS • A group of managers and staff who have been hired and groomed to work well in small, tight informal teams of people. • They are geared toward working in a smaller environment.
  12. 12. BSC DESIGNER SKILLS' EMPHASIS SHIFTS • A group of managers and staff who have been hired and groomed to work well in small, tight informal teams of people. • They are geared toward working in a smaller environment. • However, those skills that were suitable for operating in a company of 20 people, are less suitable for working in a company of 100 people.
  13. 13. BSC DESIGNER HIGH EMPLOYEE TURNOVER • High employee turnover at this stage as the less adaptable, early stage start-up employees leave and are replaced by SME geared employees.
  14. 14. BSC DESIGNER HIGH EMPLOYEE TURNOVER • High employee turnover at this stage as the less adaptable, early stage start-up employees leave and are replaced by SME geared employees. • A lot of the knowledge and information used to operate the business leaves with those departing employees as documentation and systems tend not to be a priority.
  15. 15. BSC DESIGNER THE RESULTS • This makes it harder for incomers as the information they need to do their jobs is often not available.
  16. 16. BSC DESIGNER THE RESULTS • This makes it harder for incomers as the information they need to do their jobs is often not available. • All this change in my experience can lead to a loss of focus, direction and energy.
  17. 17. BRING BACK TEAM COHESION, FOCUS AND DIRECTION WITH A BALANCED SCORECARD
  18. 18. BSC DESIGNER SOLUTION • The solution to this problem is for me simple and that is that employees need to be channeled so they are working in line with business goals.
  19. 19. BSC DESIGNER OBSTACLE • The problem is that small business geared senior managers are often not equipped to communicate business goals in a larger more established business.
  20. 20. BSC DESIGNER OBSTACLE • The problem is that small business geared senior managers are often not equipped to communicate business goals in a larger more established business. • It needs a much more sophisticated system of communication and management than a quarterly town hall meeting, to engage and unify the efforts of a large work force.
  21. 21. BEST PRACTICE: USING BALANCED SCORECARD
  22. 22. USING BALANCED SCORECARD • This is exactly the time that businesses should be using a balanced score card. BSC DESIGNER
  23. 23. USING BALANCED SCORECARD • This is exactly the time that businesses should be using a balanced score card. • A balanced score is a simple management concept where you establish high level business goals BSC DESIGNER
  24. 24. USING BALANCED SCORECARD • This is exactly the time that businesses should be using a balanced score card. • A balanced score is a simple management concept where you establish high level business goals • These goals are handed out to senior managers and may be divided further into sub-goals and handed out to middle managers and eventually staff, right down to the cleaner. BSC DESIGNER
  25. 25. USING BALANCED SCORECARD • Having this kind of balanced score card is the most effective way to motivate and channel employee performance towards meeting organizational objectives. BSC DESIGNER
  26. 26. USING BALANCED SCORECARD • Having this kind of balanced score card is the most effective way to motivate and channel employee performance towards meeting organizational objectives. • Used properly it can create, restore and maintain, team cohesion, focus and direction in organizations going through the stormy transition between start-up and an established business BSC DESIGNER
  27. 27. SOFTWARE SUCH AS THE BSC DESIGNER MAKES BALANCED SCORECARD IMPLEMENTATION EASY
  28. 28. BSC DESIGNER MAKES BALANCED SCORECARD IMPLEMENTATION EASY • Using a tool like BSC Designer means you are not starting from scratch like you would be if you were doing it in Excel. BSC DESIGNER
  29. 29. BSC DESIGNER MAKES BALANCED SCORECARD IMPLEMENTATION EASY • Using a tool like BSC Designer means you are not starting from scratch like you would be if you were doing it in Excel. • The system has inbuilt: intelligence, tutoring and a framework which you can follow to implement a balanced score card in your business. BSC DESIGNER
  30. 30. BSC DESIGNER MAKES BALANCED SCORECARD IMPLEMENTATION EASY • Using a tool like BSC Designer means you are not starting from scratch like you would be if you were doing it in Excel. • The system has inbuilt: intelligence, tutoring and a framework which you can follow to implement a balanced score card in your business. • And so if your executive team are too stretched, a smart business intern or PA could quickly set up and manage this system for your management team, if you didn’t have an executive free to do it. BSC DESIGNER
  31. 31. SCORECARD IN BSC DESIGNER
  32. 32. BSC DESIGNER HIGH LEVEL BUSINESS GOALS • The system allows you to quickly add relevant KPIs/goals to each high level business goal. You can then add further levels of sub-goals to reflect your operational hierarchy.
  33. 33. BSC DESIGNER HIGH LEVEL BUSINESS GOALS • The system allows you to quickly add relevant KPIs/goals to each high level business goal. You can then add further levels of sub-goals to reflect your operational hierarchy. • You can easily assign people to these goals and sub-goals, thereby aligning employees with organizational goals.
  34. 34. BSC DESIGNER HIGH LEVEL BUSINESS GOALS • The system then allows you to assign the parameter for each goal
  35. 35. BSC DESIGNER HIGH LEVEL BUSINESS GOALS • The system then allows you to assign the parameter for each goal • You can assign update intervals for each goal which means the system can also facilitate the updating process.
  36. 36. BSC DESIGNER HIGH LEVEL BUSINESS GOALS
  37. 37. TRACK OVERALL PERFORMANCE • The BCS Designer system makes it easy for you to track overall performance against business objectives and to identify which specific areas of the business are failing to deliver effectively against performance goals. BSC DESIGNER
  38. 38. TRACK OVERALL PERFORMANCE
  39. 39. BSC DESIGNER REPORTS & DASHBOARDS • A range of reports can be automatically generated on the fly, including: Strategy Maps, Digital Dashboards, and Risk Indicators Reports.
  40. 40. BSC DESIGNER REPORTS & DASHBOARDS
  41. 41. BSC DESIGNER A SUMMARY • The BCS Designer is an example of a modern enabling tool that will make it much easier for you to manage your balanced scorecard implementation,
  42. 42. BSC DESIGNER A SUMMARY • The BCS Designer is an example of a modern enabling tool that will make it much easier for you to manage your balanced scorecard implementation, • And align your organization to your company’s goals, which is a crucial management challenge which companies must overcome as they move from a start-up to an established small to medium sized enterprise.
  43. 43. Find more insightful articles about the Balanced Scorecard in ”Articles” section at www.bscdesigner.com BSC DESIGNER MORE ABOUT THE BALANCED SCORECARD
  44. 44. BSC DESIGNER THANK YOU! Feel free to send us your questions using the contact form at www.bscdesigner.com

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