Chemical Bank case

2161 WordsApr 3, 20149 Pages
Case 1: Chemical Bank: Implementing the Balanced Scorecard see page 233-252 Questions for the case: 1. What does Mike Hegarty want to accomplish with the BSC ? 2. Comment on the BSC implementation at Chemical’s Retail Bank ? 3. What pitfalls need to be avoided for a successful BSC project? Balanced Scorecard Implementation Pitfalls to Avoid There are many Balanced Scorecard implementations where companies don 't seem to get all the benefits described above. Research and experience have identified various traps and pitfalls; main ones to avoid are listed below. Taking Strategy Design shortcuts. Many companies take a balanced scorecard that has been designed by a similar organisation in their industry and just copy it. Others…show more content…
It is important that key individuals in an organisation are committed to the strategic objectives and performance indicators identified in the Balanced Scorecard. The best way to achieve this is to closely engage them in the process of designing the Balanced Scorecard. Not Involving Staff and External Stakeholders in the Balanced Scorecard design. The Balanced Scorecard is often seen as a top management initiative in which they define what needs to be done and what needs to be measured. However, creating a Balanced Scorecard is a fantastic opportunity to engage with a wider group of internal staff and key external stakeholders. Involving them will yield a better Balanced Scorecard and most importantly help to create buy-in and support. Lack of Balanced Scorecard Understanding. Many organisations assume that once senior management have agreed on their Balanced Scorecard, strategic map and their indicators everyone will happily implement it and collect and report the data. Don 't underestimate the need for training and communication about the Balanced Scorecard initiative and its aims and objectives. Again, this is especially important since there are so many different interpretations of what a Balanced Scorecard is and what it is for. Experience has shown that the support of lower and middle tier managers is essential for the success. Using the Balanced Scorecard for Additional Top Down

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