Balanced Scorecards? We need Imbalanced Scorecards!!!

Aware of importance of deeper measurement of business performance, many companies use techniques like Balanced Scorecard (by Kaplan & Norton). These companies expect that a this will drive strategy implementation and ensure business transformation that they were hoping for. I think there are some missing links in such assumptions -Balanced Scorecard can not ensure that business processes are correctly defined. Managers tend to define business processes within their responsibility areas, mostly constrained by functional boundaries. So there is a risk that incorrect measurement parameters are chosen. -The Balanced Scorecard method does not force identification of business processes critical for reaching business goals. Their “balanced” characteristics itself poses limitations. There is nothing “balanced” about any business context and there is nothing “balanced” about the mix of processes that need to be fixed and improved! -Due to poor process definitions sub-process visibility and diagnostics can suffer -Finally, the Balanced Scorecard method has no business process breakthrough mechanism. Most business goals can only be achieved through important breakthroughs in business process performance. W hat do you say? Hemant


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