Balanced scorecard is a fascinating and extremely effective business tool. There is no doubt about it. However, you can occasionally come across different stories that concern the failure of this system, especially if it is applied in human resources. Why does it happen and are there any ways to avoid such situations? This is what we will talk about in this article.
Basically, it is frequently underlined that BSC implementation may fail if not done properly. In other words, you should never hurry to introduce this system until you get as much useful information about it as possible. Thus, the prevailing amount of companies tend to use balanced scorecard in separate departments and underestimate the importance of executing this system when it comes to HR. This is because they believe that this business unit does not make serious contributions into the company’s development. Moreover, top managers are not satisfied with money expenditures that result from the work of this department. Unfortunately, it is one of the most drastic mistakes they can make, which will eventually lead to substantial financial loss. You just have to realize that the HR department seriously affects the work of other business units within the company, since it is responsible for its proper organization. In the long run, this can help a company go through tough times. Consequently, there is no sense in economizing money by means of implementing the HR balanced scorecard.
At present, we may differentiate between 3 basic steps in the process of human resources scorecard implementation. They include the application of BSC in HR, improvement of personnel satisfaction and operation efficiency and watching the effect, which may result in better performance and higher revenue.
Unfortunately, you will hardly succeed in the implementation of this system if you do not know what it is and what processes exactly it involves. Furthermore, there are numerous key performance indicators (which are also frequently referred to as “metrics”) that constitute a significant part of balanced scorecard and, therefore, have to be closely studied. If you wish to learn the BSC background and the importance of this tool for the quality of HR performance, there are hundreds of online sources you can use. Another variant is to consult balanced scorecard specialists or even hire them so that they could execute this system professionally. This will undoubtedly help you avoid dozens of potential problems.
All in all, managing HR performance by means of using the balanced scorecard has never been a simple task. However, if you are serious about your aspirations and understand the benefits provided by this system, you will eventually get the expected result.