The document discusses the implementation of the balanced scorecard in small and medium enterprises (SMEs), highlighting that it requires customization tailored to their unique characteristics. It outlines the benefits, limitations, and practical steps for implementing the balanced scorecard within SMEs while emphasizing the importance of management commitment. The conclusion suggests that the balanced scorecard could be more influential for SMEs compared to larger organizations.

1. International Conference Business Excellence16 - 17 of October 2009Balanced Scorecard implementation in SMEs: from theory to practice

2. About usAcumen Integratis a Romanian management consulting company specialised in performance management solutions, project management and technology integration services. Our business model is based on working along organisations to understand their objectives and challenges and identify customised solutions that add value to their activities. Our vision is to be recognised as one of the most capable, progressive and innovative Romanian consulting companies.

3. Balanced Scorecard implementation in SMEs:From theory to practiceIn theory, Balanced Scorecard implementation is a clear and not very complicated process. While the implementation and usage of a performance management system in large companies has been thoroughly analyzed, the characteristics of the SMEs raise question on how should a Balanced Scorecard be customised and implemented in order to generate the benefits a SME needs.

4. The pathThe premisesBenefits of Balanced ScorecardBalanced Scorecard in SMEsLimitationsBalance PointConclusion

5. No matter the size and industry, every organization wants to achieve performance, and strives to find new and better ways for this purpose. Organizations aim for:

6. StarProcessesEmployeesResources

7. StarCompany

8. Performing companyJust as performance, profit is an implicit desire of any company. If profit is never let at free will, and there are always being searched new ways to maximise it, why shouldn’t this happen with performance too?

9. Performing companyOne way to increase the performance of a company is to use business tools, like Balanced Scorecard.

10. The pathThe premisesBenefits of Balanced ScorecardBalanced Scorecard in SMEsLimitationsBalance PointConclusion

11. A clear sense of directionSource: “Dilbert - A Treasury Of Sunday Strips: Version 00” by Scott Adams, (Andrews McMeel Publishing 2000)

12. An ability to focus and prioritize

13. Organizational agilityManagement teams need systems that are simple and easy to use. With Balanced Scorecard this aspect can be achieved, so the organization will not have to deal with formulas or graphs like these.

14. A profound understanding of the business model

15. A profound understanding of the business model

16. The pathThe premisesBenefits of Balanced ScorecardBalanced Scorecard in SMEsLimitationsBalance PointConclusion

17. Balanced Scorecard in SMEsSmall business should think about Balanced Scorecard in a different way than large-sized corporations do.

18. Balanced Scorecard in SMEsLow degree of formality needed to monitor

19. Quicker and easier re-prioritization

20. No expensive administrative procedures

21. Fewer time to act upon the Balanced Scorecard measurementLess complexity and fewer people generally speeds up the process in SMEs, and changes are much more easier to be managed.

22. Balanced Scorecardin SMEsIn a large organization, much of the impetus behind the balanced scorecard’s design will be driven by a desire to get a clear picture of the business. As organizations grow and become more complex, senior managers can lose track of their business’s culture and lose control of its performance as a result – something a balanced scorecard can fix.Managers in an SME don’t have this problem, and can focus instead on creating a strategic vision and set of objectives for the business – which they can then easily and clearly share with the rest of the organization.

23. Steps in Balanced Scorecard implementation

24. Steps in Balanced Scorecard implementationManagement engagementProcess Owners Identified

25. Management Agenda Design

26. Identify purpose and objectives for Balanced Scorecard implementationCurrent state analysis Assess the company reality

27. Identify tools and instruments for performance management

28. Create an analysis report to start withStep2Step1Step3Step4Step5Balanced Scorecard design andstrategy alignmentFirst Report, Targets and Initiatives

29. Review and Approve First Scorecard Report

30. Link Initiatives to Strategy Map

31. Implement “Strategy Focused” Management AgendaCommunicate the strategy – Organizational engagementCascading and Department Integration

32. Identify Departments for Cascading

33. Balanced Scorecard Education