The "7 Deadly Sins" to avoid when implementing the Kaplan & Norton Balanced Scorecard (BSC) approach for strategy implementation

1. “7 Deadly Sins”
in Implementing the
Balanced Scorecard
Achal Raghavan
achalraghavan@yahoo.co.in

2. Contents
BSC: The vertical stack-up
7 Deadly Sins in implementation
Sum up

3. BSC: The usual visualisation
FINANCIAL
CUSTOMER Strategy PROCESS
LEARNING &
GROWTH
(PEOPLE)

4. BSC: The vertical stack-up
Financial
Customer
Makes BSC
easier
to understand
Process
People

5. 7 Deadly Sins in
Implementation

6. Sin #1: “Boss wants it”
BSC thrust upon company by
corporate office / CEO
Top-down directive implemented –
for lack of choice
No ownership at operating levels

7. #2: Flavour of the month
No serious intent to use BSC
long-term
Seen as new exciting tool by
CEO
People’s reaction: “This too will
pass”

8. #3: Stand-alone system
BSC not integrated with company
management review process
“Stuck on” to existing systems and
processes
Operates in isolation – no real
impact

9. #4: People not clear why
“Why Balanced Scorecard” - not
explained to people
Seen as extra work - “Forms to be
filled”
“How does it help me do my job
better?”

10. #5: Impatience (for results)
BSC not given enough time - to
make an impact
Fundamental change in way of
managing business
Organisational inertia
underestimated

11. #6: Too many initiatives &
metrics
Too many initiatives and metrics –
due to over-enthusiasm
People struggle to cope
Leads to fatigue and demotivation
Max 4 initiatives X 4 perspectives

12. #7: Poor strategy
BSC does not ensure sound
strategy – it is an
implementation methodology
Poor strategy + BSC =
Poor results!

13. 7 Deadly Sins in
BSC implementation
“Boss wants it”
Flavour of the month
Stand-alone system
People not clear why
Impatience (for results)
Too many initiatives & metrics
Poor strategy

14. Sum up
Avoid the 7 Deadly Sins
Start BSC only if you
mean it!

15. Thank you!