Balanced Score Card Implementation & the Internal Business Process Perspective
Introduction
The balanced score card is a very important management as it can improve the overall performance of the organization (Braam & Nijssen, 2011). The tool can only be highly effective in case the organization, as a whole, is willing to implement the management changes (MacKay, 2004). In several instances, the organizations have failed to realize the target changes mainly due to the lack of enthusiasm and corporation from the members. Nonetheless, there are few cases where the use of the BSC has been deemed highly fruitful.
For instance, BAE is one of the best company where the use of the BSC tool has been proved to be highly effective. Therefore, this paper will examine the degree of the BAE system’s effectiveness in implementing the BSC management tool. In particular, it will evaluate the efforts it made in trying to compel the employees to be receptive towards the introduced BSC initiative and how the move paid off.
The Use of the Balanced Score Card by BAE System
According to Murby & Gould (2005), the BAE System was initially owned by the British government before, it was privatized in the year 1979. Therefore, the sudden change of hand in the management of the organization meant that there had to implementation and use of the Balanced Score Card tool. Nonetheless, the tool was implemented on a partial manner where the effective management skills were maintained (Murby & Gould, 2005).
There had to be the implementation of the cultural change where the five vital values. Any organizational aspect that could boost the company in realizing its values and goals in an easier manner was also encouraged. BAE endorsed a number of initiatives that would ensure there was higher reception of the management changes upon the implementation of the Balanced Score Card tool.
First, the company ensured it retained all the positive values associated with the initial British Company. It carried out analysis of the earlier management procedures where all the major strengths were identified in order to be retained. For instance, it identified that the management team had a very good reputation in addition to making use of advanced technology (Murby & Gould, 2005).
Murby & Gould (2005) also point out that the cash-flow was also positive while at the same time having an excellent outreach towards the export market. The company also enjoyed a pool of skilled employees. As a result, the company had to retain these positive value in as much it wanted to execute an overhaul in the management program.
MacKay (2004) avers that the identification and retention of the positive values and attributes associated with an organization is highly effective in trying to make the current employees in an organization feel appreciated. As a result, makes it easy for the employees to accept any major organizational changes to occur with minimal resistance as they also feel part and person of the organization.
The BAE proceeded in identifying the weaknesses of the initial company. It incurred huge production cost especially during the initial design stage (Murby & Gould, 2005). Furthermore, it also lacked proper marketing strategies when it came to the exploitation of the new markets (Murby & Gould, 2005). BAE experience a lot of poor response from the customers due to the ever changing in their tastes and preferences.
The business prospective for the company was also nose-diving mainly due to the eroding of its initial shares from the target market. BAE experienced a lot of stiff competition from the American rivals and the other Europe companies. Braam & Nijssen (2011)assert thatthe identification of the areas of weaknesses, in any organization, is highly important. It, simply, acts as an important basis for the initiation of the recommended changes.
The employees also tend to be highly receptive towards the implementation of the effective managerial changes as they would like to see their organization prosper. In short, the identification of the weakness as the basis for implementing the significant managerial changes acts as an important basis for the full cooperation from the overall pool of employees.
The management team also ensured the Balanced Score Card program was implemented in a procedural and not in an authoritative manner. At this juncture, BAE had to employ an important strategy where the businesses were arranged in an interlocking manner where each and every employee stood a chance of benefiting from the changes (Murby & Gould, 2005). Moreover, the company also dismantled the top-bottom or the authoritative managerial approach and enacted the more employee friendly, democratic managerial approach.
In fact, the move enabled each and every employee to feel valued, thus, helping in bringing the best side out of them (Braam, 2012). BAE wanted to use the Balanced Score Card tool to change the organizational culture as this was deemed the main hindrance towards the implementation of the proper working principles and the eventual realization of ever jading profit margin.
BAE used a seven-step management platform in order to implement the recommended changes. There was reviewing of the company’s competitiveness, the inclusion and the top management team, and the creation of a new vision (Murby & Gould, 2005). The proper communication channels were created in order to realize the new vision of the company in addition to the creation of important short terms objectives.
The company also implemented or created a teamwork spirit as its main organizational culture (Murby & Gould, 2005). The last step entailed the determination of the successful implementation of the cultural changes. BAE wanted to assess whether the employees remained committed towards maintaining the recommended changes.
Conclusion
Despite the use realization of an overhaul change in the management practices being a no easy thing, the BAE case can be regarded different. For instances, the dismantling of the authoritative organization system and making use of the division of the responsibility was a very important step. The change helped to boost the image of the company as its one of the most important contemporary issue where organization are required to be liberal.
References
Braam, G.J.M. (2012). Balanced Scorecard’s interpretative variability and organizational change. In C.-H. Quah & O.L. Dar (Eds.), Business Dynamics in the 21st Century (pp. 99-112). Retrieved from Trident University Library.
Braam, G.J.M., & Nijssen, E.J. (2011). Exploring antecedents of experimentation and implementation of the balanced scorecard. Journal of Management & Organization, 17(6), 714-728. Retrieved from Trident University Library.
MacKay, A. (2004). A practitioner’s guide to the balanced scorecard: A practitioners? Report based on: Shareholder and stakeholder approaches to strategic performance measurement using the balanced scorecard? Chartered Institute of Management Accountants. Retrieved from http://www.cimaglobal.com/Documents/Thought_leadership_docs/tech_resrep_a_practitioners_guide_to_the_balanced_scorecard_2005.pdf
Murby, L., & Gould, S. (2005). Effective performance management with the balanced scorecard: Technical report. Chartered Institute of Management Accountants. Retrieved from http://www.cimaglobal.com/Documents/ImportedDocuments/Tech_rept_Effective_Performance_Mgt_with_Balanced_Scd_July_2005.pdf
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