Business Intelligence, Data visualization, KPI
"If there were a one free of risk method for reaching the business success, all people would be billionaires, now."
Balanced scorecards are thought to be a revolutionary invention which today's performance management couldnt live without. Although people rather do not doubt in scorecards usability, more and more often they ask
questions about their generality. As the scorecards often are being compared to magic wand, comes the question whether the wand truly is
magic. And whether the scorecard is enough to turn manager into a business sorcerer. Nonetheless, both these allegories lead to one common, totally
serious doubt.
Is building a scorecard a guarantee for the business success?
Looking for the philosophers stone is quite a common obsession.
Unfortunately,
that is exactly how looking for 100% success guarantee in business should be called.
No system, including scorecards, dashboards, and maps, guarantees the success. It strictly is not possible in todays business. Surely,
using a scorecard increases our chance for reaching what we've wanted, but even that is not the rule, after all.
Everyone should keep in mind that the balanced scorecard is solely a tool. And
- in all aspects of life and business - tools do not matter as much
as the ones who use tools do.
Thereupon, we usually have equal chances to reach the business success when we are using a scorecard and when
were not. Nevertheless, its not to say that scorecards have no influence on company's management. They have, as they significantly facilitate
controlling strategy executing process, but the final success is a secondary question. In a word, it usually is easier to manage with scorecards
than without, but there are a few exceptions, as well.
Although the balanced scorecard is commonly-thought to be a free of error solutions, there are several factors that trouble its work. The consequences of misplaced scorecard are easy to imagine, but the possible causes are the things managers sometimes forget about. These are as follows:
Managers also need to remember that development and implementation requires quite a lot of time and efforts. Then, people could be not likely to turn to scorecards - changing ones habits never is easy.
Finally, in some cases scorecards just don't match. But its only possible to check in practice, though.
After all, the business success never is unattainable. Even though scorecards cannot guarantee the success, it is for sure worth considering them. All in all, scorecards certainly are worth-implementing, nonetheless they're not a philosophers stone. In today's business everybody has a chance, though.