Question

Prepare an answer to address the following concerns raised at the senior managers’ committee meeting about BSC. Those concerns were:
(a) BSC is just the latest management fad.
(b) BSC is too complex to model. By the time the strategies, objectives and performance measures are modelled, the information on which they are based will likely be obsolete due to the constantly changing nature of JCX business.
(c) That BSC is meant to be just a way to communicate strategy, not actually to manage strategies.  
(d) It would be difficult to get buy-in of all the four plant managers on what measures to use

Answer 1

Answer to Part (a) :

The buzz words ‘balanced scorecard’ may change (many would like this to happen!), but not the underlying concepts which have been around as long as there have been organisations that need to be led and managed. The concepts - thinking strategically, measuring performance, evaluating results, feedback -- are the fundamental concepts of managing organisations. The balanced scorecard methodology links and gives effect to these concepts in a more effective way than any previous management system. Executives and managers who learn and use the balanced scorecard methodology will be in a better position to lead in the future. They will have the right skills to think, plan and assess the success of their organizations -- skills which will always be in demand.

Answer to Part (c) :

The balanced scorecard (BSC) is a strategic planning and management system that organizations use to:

• Communicate what they are trying to accomplish

• Align the day-to-day work that everyone is doing with strategy

• Prioritize projects, products, and services

• Measure and monitor progress towards strategic targets

BSCs are used extensively in business and industry, government, and nonprofit organizations worldwide. Gartner Group suggests that over 50% of large US firms have adopted the BSC. More than half of major companies in the US, Europe, and Asia are using the BSC, with use growing in those areas as well as in the Middle East and Africa. A recent global study by Bain & Co listed balanced scorecard fifth on its top ten most widely used management tools around the world, a list that includes closely-related strategic planning at number one.