How to motivate employees? This is a very serious problem solved by human resource managers in a variety of different ways. Motivation is very important, no matter what goals the company pursues. When it concerns implementation of balanced scorecard it is impossible to successfully use this system without proper personnel motivation. The thing is that BSC is such a system that should ideally initiate changes in the company, including performance and conduct of personnel. That’s why, if company employees are reluctant to use balanced scorecard and use it as another system of control no positive results are possible. Use of balanced scorecard in a such a way equals lying to yourself. Thus, balanced scorecard will be just an ordinary system of managerial control. Of course, it can be used this way but creators of BSC thought about somewhat different destination of this revolutionary strategic management tool.
Implementation of balanced scorecard starts with development of company strategic goals. Strategy maps will help visualize strategy which make it comprehensive and understood for ordinary personnel. On the other hand, it is very important to get personnel involved in development of strategy maps. Sometimes ordinary employees know much more about business than company owners and top managers. That’s why they need to participate in discussion of company strategy and strategic goals.
But at the same time employees have their own duties, tasks and responsibilities, besides Balanced Scorecard. How to get their attention? How to keep them interested in use of balanced scorecard? Of course, company top management needs to introduce a reliable and effective reward system that would seem fair to personnel at all levels. In other words every employee in the company should beware of his benefits for contributing to company success.
Experience shows that when balanced scorecard is imposed from the top to the bottom company employees are not very happy with this system. Moreover, Balanced Scorecard sometimes causes serious opposition and resistance. And in such a way BSC becomes useless. Besides, balanced scorecard implementation is quite expensive. So, of failure to successfully implement balanced scorecard automatically results in losses.
That’s why human resource department should think of an effective reward system. But choosing several indicators from the dashboard to become the basis of reward system is not enough. Employees should be rewarded for decisions and actions that directly influence company’s progress on the way to implementation of strategic goals.