Balanced Scorecard

I. What is Balanced Scorecard (BSC)? a. Its purpose is to implement balanced management system to strategically align business practice and goals to gain competitive advantage. II. Why is it important? b. It more effectively positions HR to assume a role at the executive table as a source of collected data and analytics, and manager of tangible and intangible assets—synergy of business outcomes that are difficult to imitate, (Fottler, 2006). c. It also supports talentship (Boudreau, 2002), intellectual capital (Wu, 2005) and human capital as a strategic asset, and not as a financial cost, (Becker, 2001). d. It is versatile (although there can be challenges) for both large and small and medium enterprises (SME) companies, (Rompho, 2011) and public and private organizations. e. It has the potential and flexibility to help organizations in today’s ever-changing markets to deal with volatile changes and transformations. It can be simplified for smaller businesses, (Anonymous, 2006). III. What should we understand about BSC? f. It can only be successfully implemented through accurate identification of company mission, vision and strategic objectives. Any shortcuts or re-labeling of existing practices only leads to inaccurate reporting, unhelpful data and wasted staff effort, (Ward, 2005). Environments where internal processes and markets are changing constantly can make this part of the process very difficult, (Rompho, 2011). g. It needs to be initiated and supported from the top, and promoted throughout all levels – from CEO’s, executives, and line managers down, to encourage employee engagement and follow-through. h. It links four main perspectives: 1) internal 2) customer 3) financial 4) learning and growth. i. Sample illustration, (Pivnicka, Czech Republic) i. Mission ii. Values iii. Vision iv. Strategy v. Strategy Map vi. Balanced