What is the problem or issue that necessitates that such an article be written?
The article was written to discuss the change that was implemented in the measurement of performance. There is a need for measuring the performance of the employees as this creates focus for the future and communicates important messages to all organizational units and employees.
A Balanced Scorecard program as a change project was introduced. The article discussed the factors that contribute to the successful implementation of such a program as well as its advantages. It describes the new system that evolved out of this new Balanced Scorecard program.
What strategies or techniques are used to solve the problem or address the issue?
In the Balanced Scorecard program, several strategies or techniques are used in solving and addressing the issues/problems. Organizations that adopt the Balanced Scorecard program for their new strategies understand the need for a new measurement framework and see it as a powerful tool for driving change initiatives.
The executive leadership that creates the Balanced Scorecard becomes the guiding coalition for driving change in the organization. The process of building the scorecard builds both the team and its commitment to the strategy. The scorecard makes the vision and the strategy operational. Words do not sufficiently communicate change initiatives, since the same words mean different things to different people. It's when word statements are translated into measures that everyone in the leadership team understands clearly what the vision and the strategy are about.
The organizations that adopt the Balanced Scorecard have strategies that include a strong growth component. To increase their profits, they don’t simply do this by cutting costs, downsizing and eliminating unprofitable business units because they believe that cost and productivity improvements typically deliver only the short-term component of the strategy. Instead, what they do to improve profitability long-term is through expanding their revenues.
Building executive teams are also used as a strategy in the Balanced Scorecard program. Within the team, a shared vision and strategy is created. A tremendous amount of cross-fertilization takes place as each element of the strategy becomes translated into the scorecard format.
Your conclusions and recommendations.
The Balanced Scorecard program should be used by organizations that are firm in their decision to change for the better. This program introduces the use of meetings report and a discussion of all relevant measures to the strategy and the initiatives designed to improve measured performance along with the usual traditional meetings.
As presented in the article, it is recommended to have the meetings scheduled in advance. Meetings should be done every month and performance of the employees discussed. The Balance Scorecard program helps drive change in the organization and empower the employees.
Your assessment of how the article contributes to helping practicing managers.
Practicing managers can gain insight from the article that was presented. They can compare the traditional ways of how performance measurement is done with the new ways like the Balanced Scorecard program. This in a way will help the practicing managers to keep on the right track with their performance and monitoring of employees’ performance.
Provide a list of discussion questions useful for leading a discussion of the article.
The following discussion questions could be useful in leading a discussion of the article on Balance Scorecard program:
- Why should a Balanced Scorecard program be a change project and not a metrics project?
- In what ways can the Balanced Scorecard program be effective?
- What is the advantage of organization’s issues being considered as a team problem rather than considered as the domain of a single functional executive?