In theory, Balanced Scorecard implementation is a clear and not so 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.

1. International Conference Business Excellence 16 - 17 of October 2009 Balanced Scorecard implementation in SMEs: from theory to practice

2. About us Acumen 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 practice In 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 path The premises Benefits of Balanced Scorecard Balanced Scorecard in SMEs Limitations Balance Point Conclusion

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. Star Processes Employees Resources

7. Star Company

8. Performing company Just 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 company One way to increase the performance of a company is to use business tools, like Balanced Scorecard.

10. The path The premises Benefits of Balanced Scorecard Balanced Scorecard in SMEs Limitations Balance Point Conclusion

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

12. An ability to focus and prioritize

13. Organizational agility Management 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 path The premises Benefits of Balanced Scorecard Balanced Scorecard in SMEs Limitations Balance Point Conclusion

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

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 SMEs In 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

25. Management Agenda Design

27. Identify tools and instruments for performance management

29. Review and Approve First Scorecard Report

30. Link Initiatives to Strategy Map

32. Identify Departments for Cascading

33. Balanced Scorecard Education

34. Indicator Selection and Target Setting

36. Link the Budget to the Scorecard

37. Link Performance Evaluations to the Scorecard

39. Top Management support & leadership.

40. Educating the employees about the importance of Balanced Scorecard and its impact on the organization and themselves.

41. Making BSC a part of Strategy and conducting monthly review meetings.

42. Committed team with a good Coordinator.

45. Focus on sales and extensive growth

46. Feedback is received immediately

47. Strategy vs execution

50. Growth requires efficiency

51. Execution does not follow strategy

52. Many branch / business units

54. The path The premises Benefits of Balanced Scorecard Balanced Scorecard in SMEs Limitations Balance Point Conclusion

55. Conclusion In SMEs, the Balanced Scorecard benefits can be achieved without the need for developing a complicated and administratively demanding measurement regime by simply using the measures as a mental or verbal frame of reference for addressing strategic and operational change issues, resulting from the pursuit of long-term goals.

56. Conclusion Successful Balanced Scorecard implementation in SMEs, as in any organization, requires sustained management commitment to using it, making sure it drives the necessary behavioral changes within the organization, starting with the managers themselves.

57. Conclusion There is undoubtedly a place for the balanced scorecard in the SMEs business strategy – and the possibility that the balanced scorecard might be even more influential for the SMEs than it is for the large corporations.

58. Questions

59. For more information or questions, please contact us! www.acumenintegrat.com