Most companies make these three mistakes when implementing a balanced scorecard – don’t fall into the same trap

Simangele Mzizi, Fsp Business, 04 Jul. 2014

Tags: balanced scorecard, implementing a balanced scorecard, balanced scorecard mistakes, mistakes to avoid when implementing a balanced scorecard

A balanced scorecard is a tool that allows your company to translate its vision and strategy into a strategy map and measurable objectives.

While a balanced scorecard is a useful tool, many companies are missing out on its great benefits.

The reason?

They keep on making the following three mistakes.

Take a look at these errors so you can avoid them at all costs.

*********** Top rated product ***********
Personnel files for employees? Job descriptions? Evidence of days off? Timesheets?

Relax! We've just launched the most powerful software for the digital generation of personnel documents! And all it takes is just one single click!

Find out more here…


Did you know that most companies make these three mistakes when implementing a balanced scorecard?

Mistake #1: They implement a balanced scorecard even though the company doesn’t have a clear and comprehensive strategy.

A company with no strategy will never be able to effectively use a balanced scorecard, warns AKS-Labs, a software development and consulting company that specialises on strategy management and business intelligence

Mistake #2: The company has a clear strategy, but the balanced scorecard is implemented without clear budgeting, human resource management and compensation systems.

According to AKS-Labs, about 60% of companies can’t combine a balanced scorecard with budgeting systems!

The software development and consulting company adds that if people in your company aren’t motivated, for example with a system of bonuses and rewards, a balanced scorecard is unlikely to bring positive results.

Mistake #3: It often happens that the company implements a balanced scorecard, but people in the company aren’t ready or don’t want to use it in the everyday routine of their work, says AKS-Labs.

If you don’t need a balanced scorecard as management, there’s no reason to implement it in the first place. As a rule, if you’re reluctant as management to use a balanced scorecard, the implementation of the system fails even before the initial stage.

Now that you know some of the big mistakes some companies make when implementing a balanced scorecard, don’t fall into the same trap.

PS: If you need more information on the balanced scorecard, don’t hesitate to check out the Practical Guide to Human Resources Management.

Related articles:




RSS Facebook Share the experience
Labour and HR Club
  • CCMA
  • Discipline
  • Dismissals
  • Employment Equity
  • Employment terms and conditions
  • Foreigners
  • Laws / Acts / DoL
  • Leave
  • Performance management
  • Policies and procedures
  • Recruitment
  • Trade unions
Our experts
Nichola Wainwright
Janine Nieuwoudt Robyn Walasan Tracey Ndlovu Ulrich Stander Johria van den Bergh Andrea De Jongh
A staff member asked to take leave for three weeks in 6 months time to visit his elderly mother in Australia. This was...[read more]
Published at 26 Jan. 2018 1 answer
Published at 11 Jan. 2018 1 answer
Hi, I work 5 hours a day (8am to 1pm). Am I entitled to any sort of break?[read more]
Published at 16 Jan. 2018 1 answer
Good morning, Kindly confirm if the below constitute for family responsibility leave please. I fell ill two days...[read more]
Published at 08 Jan. 2018 1 answer
My domestic worker told me she is pregnant, she will be working for me for about 2 years now and we have not registered...[read more]
Published at 06 Feb. 2018 1 answer
Video Archive Video club
Your library of Free eReports
View full library