It is important to understand the key or critical success factors for the Balanced Scorecard system to be successful:
- The leader/top management/board should walk the talk and utilizes the scorecard regularly in reviewing performance and in making plans for the future.
- The Balance Scorecard system should be used on its day-to-day use throughout all levels of the organization.
- 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.
- 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.
- Wrong selections of measures or having numerous measures for each perspective of a Balanced Scorecard
- 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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