It is important to understand the key or critical success factors for the Balanced Scorecard system to be successful:

  1. The leader/top management/board should walk the talk and utilizes the scorecard regularly in reviewing performance and in making plans for the future.
  2. The Balance Scorecard system should be used on its day-to-day use throughout all levels of the organization.
  3. Every individual should be aware and able to understand the importance of the performance measures and the relationship of the scorecard to the organization’s mission.
  4. Human Resources Department should ensure that the staff and management’s individual evaluations and compensation are linked from the organization’s performance to the balanced scorecard.
  5. Wrong selections of measures or having numerous measures for each perspective of a Balanced Scorecard
  6. When establishing the various perspectives key performance indicators, the objective is actually not to have numerous measures/metrics/kpi for each category/perspective but rather to select those few that best inform an organization when its operations are aligned with its mission and where to focus its attention and resources.

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