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Agora.BusinessPerformanceManagementr1.28 - 31 Jul 2020 - 15:56 - GregorioIvanoff

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Should the Balanced Scorecard be a guiding force in business performance management?

Some say it's too much effort -- but the results can be stellar.

What lies at the heart of a successful business performance management (BPM) initiative? Above all, it's building powerful combinations. Effective BPM projects link key software, such as business intelligence, with performance management processes and use metrics to align an organization's activities with corporate strategy. BPM is a profoundly holistic way to view how well a company is doing. Logically, then, you might expect that the Balanced Scorecard, a strategic management tool for gauging an organization's performance in all areas -- nonfinancial as well as financial -- would be a natural part of any BPM effort. Frequently, however, that's not the case.

"Balanced Scorecard implementations often fail to deliver anticipated benefits because they are not integrated with the BPM processes, particularly those used at an operational level," says Frank Buytendijk, research vice president of Stamford, Conn. -based Gartner Inc. "We believe that by the end of 2003, 80 percent of enterprises that fail to integrate the Balanced Scorecard into BPM will drop the Balanced Scorecard and return to a less-organized set of metrics."

If that happens, it won't be due to any deficiencies in today's Balanced Scorecard software applications, which have grown substantially more sophisticated over the past two or three years. "Sixteen different software vendors have achieved functional standards [a measure of Balanced Scorecard effectiveness]," says Dylan Miyake, director of Balanced Scorecard Collaborative Inc., a training and consulting firm in Lincoln, Mass.


Pillars of Excellence

Companies implementing a scorecard as part of a BPM initiative tend to focus on the metrics they believe are most critical to their success, creating what might more accurately be called an 'unbalanced scorecard' -- in contrast to one that gives equal emphasis to each of the four perspectives. Also, although real-world scorecards often include performance measurement categories similar to those of the standard model, many fail to link metrics tightly to the company's strategic plans and goals, as the textbook version of the Balanced Scorecard requires.

At Memorial Healthcare System in Hollywood, Fla., the organizational scorecard consists of "seven pillars of excellence," says Veronica Budwig, manager of financial systems. "The pillars, which were created by a cross section of senior executives, are quality, safety, customer satisfaction, people, financial, growth and being proactive within our community," she notes.

"Those different categories encompass over 250 key performance indicators located in 13 different OLAP cubes, and the BPM system we purchased from ProClarity enables us to access all of them," says Budwig. "We've also developed a report card for all of our managers, department leaders and administrators. It evaluates their performance in terms of quality, safety and customer satisfaction."

Budwig says the system provides an integrated view of organizational performance. "Before we implemented it a little more than a year ago, our previous performance management system was haphazard [ without order or planning ], focusing mostly on financial measures. You'd have to look for performance information in one server and then search for other bits of data located in another server," she says. "With ProClarity, we can bring financial and nonfinancial performance data together and create more measurable outcomes. That helps us in terms of time and accuracy as well as documenting cause and effect. It's enabled us to stay better focused on the things that matter most to us."

Memorial Healthcare has not yet linked its scorecard metrics to its strategic goals. "That's a weakness at the moment," Budwig concedes, "and we realize that as our strategic goals change, we need to adjust our stable of metrics to maintain alignment with those strategies."

[...] (LEAHY, 2003).

-- GregorioIvanoff - 26 Jan 2010

[...] Those who have implemented BPM report that it has lived up to its hype and delivered many of the expected benefits. In the 2006 BPM Pulse Survey, 68 percent of respondents say that BPM has met or exceeded their expectations, although another 23 percent say it's too early to tell. Those companies that have completed a core BPM project are now looking at taking it company-wide. Many others are in the midst of planning or implementing their initial foray into BPM.

As for those organizations that have no plans for BPM, or have put it on the back burner, they need to get their heads out of the sand and look around at their competitors. If they wait too long to jump on the BPM bandwagon, they may just get left behind in the dust (SCHIFF).

Keywords: key performance indicators, business process management, balanced scorecard, quality standards, research initiative, reporting

Palavras-chave: jogos vivenciais

Business Performance Management: One Truth. Disponível em < >. Acesso em 15 ago. 2009.

CHICALESKI, P.M.D. O que é Business Performance Management? Disponível em < >. Acesso em 15 ago. 2009.

CHICALESKI, P.M.D. Sopa de letras para um mesmo significado: PM (Performance Management). Disponível em < >. Acesso em 15 ago. 2009.

Grupo LinkedIn. Business Analytics. Modelos em negócios. Disponível em < >. Acesso em 30 abr. 2012.

LEAHY, Tad, 2003. The Balanced Scorecard Meets BPM. Disponível em < >. Acesso em 26 jan. 2010.

SCHIFF, Craig. The Current State of Business Performance Management, BPM Partners. Disponível em < >.

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-- GregorioIvanoff - 26 Oct 2006
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