Less that 20% of mid-sized organizations are using Balanced Scorecards for performance measurement. This can be concluded from an investigation by Source for Consulting and software firm Advanced Business Solutions. They interviewed 21 IT consultants that gained experience together at over 500 medium-sized organizations.
Clear value added
Based on the consultants' experience, it was highlighted that less than 20% of the 500+ organizations they have worked with use Balanced Scorecards - also known as Dashboards - in some way. Interestingly, the MKB firms do acknowledge the value added. Over 70% of those surveyed identified that the main benefit of a well-implemented Balanced Scorecard approach is the alignment of the senior management team. The second and third most important benefits highlighted by respondents is the positive impact that Scorecards have on an organization's ability to track progress towards agreed goals and the clarity they provide throughout the organization on what needs to be done.
Barriers to using Balanced Scorecards
The research identifies that the key barrier to implementation of Balanced Scorecards is the lack of a clear owner or champion for the project - over 40% of respondents highlighted this as an issue. Another key barrier is an organizational culture that doesn't support analysis and objective decision making.
Fiona Czerniawska from Source for Consulting: "Starting down the Balanced Scorecard route may seem a challenging journey, however it does not have to be costly and disruptive to the business. By considering the key elements of success from engaging senior management through to harnessing the right technology, a Balanced Scorecard approach can be implemented effectively, providing mid-sized organizations with valuable performance insight."