Find the right working group members who will be in charge of BSC project
Implementation of balanced scorecard in auxiliary departments such as HR and IT somewhat differs from BSC use on a company level. Auxiliary departments do not earn money but they create favorable conditions for other employees to bring maximum profits for the company. Thus, human resource department is hiring, educating and retaining personnel, while IT specialists provide company employees with tech and information tools that facilitate and accelerate work.
Human resource management is on the rise. Company top managers and business owners came to understand that human resource potential is the most valuable asset they have. Investments in personnel are considered to be the most effective long-term investments. That’s why, it is very important that human resource department makes an efficient use of money.
Discussion of BSC strategy is a must
When implementing balanced scorecard in human resource department it is first necessary to create a working group that will be in charge for preparation and a proper implementation of balanced scorecard in the company. There is a very common mistake – working groups often consist of top managers only, while ordinary employees stay away from discussion process. Under such circumstances ordinary human resource managers will simply ignore balanced scorecard, while some of them will consider it another management control tool. Most employees do not like to be controlled, and often balanced scorecard causes resistance.
Create a well balanced BSC working group
It doesn’t matter what strategic goals human resource department sets, the working group should consist of both top managers, external advisors and ordinary human resource managers. The point is that a typical human resource manager can tell much about company personnel, while in external advisor doesn’t know employees in person. Human resource managers are aware of current problems inside the company and they know for sure how to improve organization climate. Many top managers are so far away from ordinary employees that their ideas and suggestions may seem unreasonable to personnel.
Creation of a working group is a very important step in implementation of balanced scorecard. The wrong choice of group members will lead discussion to the wrong direction. As a result wrong key performance indicators and response actions will be chosen. The strategy will not be understood for people who work for the company. Successful implementation of balanced scorecard depends on acceptance of this system by ordinary employees. Balanced scorecard should become part of the everyday routine in the company, and human resource department in particular, and personnel should learn how to live with balanced scorecard.
