Implementing BSCs and Looking at Internal Business Processes

The balanced scorecard is referred to as a strategic tool used to monitor and control some of the repercussions that could result from various actions that are related to an organization's performance with the goal of enhancing that performance. By offering feedback on numerous organizational activities, the balanced scorecard assists businesses in improving both their internal processes and external effects (Cardoso, 2013). It examines the performance of the company in four categories. By analyzing the resources and training accessible to the organization, it first considers its learning and development. The aim of this is to capture how well or effective the staff of an organization uses information and creating a competitive advantage for them. The second part evaluates the business processes focusing on how goods and services are produced. Thirdly, the perspective of customers is assessed to determine their level of satisfaction in relation to the quality of the products. The last part looks at the financial performance and factors influencing it positively or negatively(De Waal, 2013). This paper will look at the BSC implementation and the internal business process perspective a case study of the BAE Company.

BAE system’s executive council formulated a corporate strategy that aims at changing their organization culture using five fundamental values that would encourage employees’ behavioral changes consistent with their firm’s goals, objective, and values. This was done by implementing balanced scorecard approach. Looking at the history of the firm, it developed from privatization of British Aerospace to BAE system after acquisition of Marconi Electronics System.

Efforts put forth by BAE system in implementation of BSC

In the implementation of BSC, BAE System first assessed its learning and growth. The firm’s management knew well that some employees would resist change and therefore it was better to construct ways to overcome resistance to change. Employees were placed into 130 groups where they were required to write a statement on reaction to discussions during their first meeting. This was to assess their learning and growth as far as new methods and changes are concerned. Secondly, BAE system evaluated their business processes by analyzing and reviewing their strength and weaknesses as well as the threats and opportunity available for them in the market. This is an evaluation of internal processes as they affect the performance of the business out in the market. The aim was to identify their areas of weakness and its effect on the overall performance and to determine the changes or improvement to make. They embedded cultural change by establishing value teams that were led by managing director and a couch. This was to enhanced cultural changes, which is part of the internal processes that will help it improve its performance. Also, the firm created a short term and long term goals with the objective of reducing the loss of momentum. The long terms goals were cut short tuned into series of short-term goals focusing on individual objectives, and behaviors hence led to the achievement of their objective. Further, they used traffic light system to monitor and control performance. Various lights showed different issues to be dealt with. The green light showed that everything is well whereas red light meant that there are serious problems to be dealt with in the organization. This assisted the firm in performance improvement(Šoltés and Gavurová, 2013).

To ensure that employees will be receptive and accept BSC, the management divided them into groups making a total of 130 groups. There were a coach and managing director in each group, and their role was to help modify the behavior of these employees to be in line with the objectives of BSC without any resistance(Šoltés and Gavurová, 2013).. Moreover, the firm created a shared vision and communicated to employees, which clarifies various issues such as direction, which the company was to move as well as the importance of the change they were seeking.

Their BSC implementation effort paid off and improved their performance as well as achieved the desired change. By dividing the long-term goals into a series of short-term and focusing on individual goals of customers, the firm’s effort to achieve success with the implementation of BSC yielded some results. This is because it is easy to achieve short-term individual goals than when they are generally long terms(Šoltés and Gavurová, 2013).. The groups they formed was instrumental in ensuring this effort were not in vain.

In conclusion, BSC is implemented differently in the organization, and the common goal is to improve the performance of the organization. BAE System used various techniques including the use of traffic light system to monitor and control performance, coaching staff as well as communicating the shared vision to employees to give them a picture of the direction the firms should take. Also, reducing long-term goals to a series of short-term goals with a specific focus on the individual employees paid off in improving their performance.

References

Cardoso Vieira Machado, M. J. (2013). Balanced Scorecard: an empirical study of small and medium size enterprises. Revista Brasileira de Gestão de Negócios, 15(46).

De Waal, A. (2013). Strategic Performance Management: A managerial and behavioral approach. Palgrave Macmillan.

Šoltés, V., & Gavurová, B. (2013). Application of the cross impact matrix method in problematic phases of the Balanced Scorecard system in private and public sector. Journal of Applied Economic Sciences, 8(1), 99-119.