Case study : THE WORLDCLASS LIGHTING 1. The implementation of the Balanced Scorecard had improved Worldclass management review practices. Previously the management review was done only with the general manager and the controller. Where as with introduction of Balanced Scorecard now management review is done with the whole management team. Furthermore the balanced scorecard practised by Worldclass essentially measures both strategic and operational targets i.e organizational and departmental.
Actually this is the beauty of using the Balanced Scorecard as a performance measurement tool. One can choose how deep to cascade the …show more content…
When these unquantifiable/ difficult to quantify KPIs were listed in the scorecard, it became difficult to manage. It brings little meaning and was difficult to set agreeable targets. It then had a further effect of getting the right data. When it becomes obvious to the staff that he/she will miss the target, they hide compliance information from disclosure to the scorecard in the review. This is done to avoid impact of the scorecard on their bonuses. This is actually to the contradiction of the very purpose the implementation of the scorecard.
3. With the implementation of Balanced scorecard right to departmental level; even services department such as HR, Administration will have their own KPI and targets to be met. However many of these measurements are measurement of work process achieved for that period. It doesn’t show the impact to the company. For example under quality improvement competition – the KPI is % of employees participating. The higher percentage does not translate into better effectiveness of work process. If each of the process identified in each group are implemented then only the company benefits from the exercise. Even then a measurement of the impact needs to be measured and monitored to determine if there is any real impact.
This is the case of myopic measurement behavior whereby the