I have been with both small and huge companies. When I think about a balanced scorecard, I think "huge company". I like the idea, but am concerned implementing it would take my SMB tech company too much time, money and ongoing resource to manage. What is your take on that?
Is the balanced scorecard just for big companies?
Answers
Mark,
You ask a good question - in my experience, it would not. The definition of, communication of, measurement of, and accountability to strategic business drivers can be done - with widely varying degrees of detail - with companies as small as five people. The common misconception is that the BSC is a down-to-the-DNA measurement model. In reality, there are some variables that smaller businesses need to consider:
* How often to update metrics and review goals/initiatives.
* How detailed, and with how much allowed deviation, the metrics should be.
* Whom is responsible and how much to hold their feet to the fire.
* What parts of the core business to begin with.
These are just a few of the considerations that SMEs may face, but the BSC can be managed with existing tools and resources if the commitment level is appropriate. I am more than happy to have a more detailed conversation with you at any time, feel free to contact me at swholley at frankrimerman dot com.
Best
Sam
Mark:
A choice of a few simple metrics that you can maintain at a reasonable cost and effort is certainly possible. The balanced scorecard idea does not require an elaborate study or system to develop and operate, but does require developing an understanding of customer, product, peole, and other metric critical to your business. Fewer that 10, and the close to five the better.
Barrett
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