There are some facts about Balanced Scorecard that one should check before starting implementation of this performance management system. As a result, we are sure, you will be interested in trying to implement this concept in your business. Please, try our BSC Designer for this purpose.
2019 2GC Balanced Scorecard Usage Survey
- Most common use scenario of the Balanced Scorecard is to implement organizational strategy
- 56% of organizations use some kind of automation software
According to Management Tools & Trends – 2018 by Bain & Company
Business tools ranking based on usage:
- Strategic Planning (48%)
- Customer Satisfaction (38%)
- Mission and Vision Statements (32%)
Among 25 most popular tools:
- Agile Management (2nd place)
- Balanced Scorecard (3rd place)
- Complexity Reduction
- Mission and Vision Statements
- Strategic Planning
According to 2014 Global State of Strategy and Leadership Survey Report
- 72% of the surveys executives answered that their business model “will be under threat in the next five years.”
- 54% of respondents reported poor vertical alignment.
- For strategy description executives use: 61% SWOT, 55% Financial Modeling, 49% Balanced Scorecard
According to annual BSC Usage Survey for 2014
- 64% of participants responded that they use the BSC for their strategic management.
- 44% of the participants also responded that they report according to the BSC monthly.
According to study by Cranfield University
- More than 50 percent of large enterprises use some type of a balanced scorecard
- 95% of typical workforce does not understand its organizations’ strategy
- 90% of organizations fail to execute their strategies successfully
- 86% of executive teams spend less than one hour per month discussing strategy
- 70% of organizations do not link middle management incentives to strategy
- 60% of organizations do not link strategy to budgeting
According to BSC Frustration and Challenges report
- 30% of BSC frustrations and challenges are associated with Balanced Scorecard motivation aspects
According to 2GC Balanced Scorecard usage survey:
- 31% of companies reported Balanced Scorecard as extremely helpful, 42% as a very helpful
- 34% of interviewed companies use BSC for strategic management, 35% for reporting, 17% for operational management
- 29% of companies used external consultants to design Balanced Scorecard
- The most significant impacts of BSC implementation were found in business actions (83%) and behaviors (58%); Appraisal has impact of 63% and reward system has lower impact (about 30%)
- Most Balanced Scorecards were used for the purpose of planning (79%), budgeting (70%), goal setting (51%)
- 80% of organizations using balanced scorecard reported improvements in operating performance
- 66% of these organizations reported an increase in profits
- About 70 percent of organizations had at least partially implemented a balanced scorecard by 2006.
- 50 percent of Fortune 1,000 companies are using the balanced scorecard
- 30% of companies think that the most important to their company today is performance management
According to “Annual Business/Balanced Scorecard Survey“
- 37% of respondents are not satisfied with the way they measure their organization
- 67% of respondents use spreadsheets
- 19.5% use specialized performance management software
- 19.5% answered that their business scorecard provides the right level of information to make strategic decisions
- 31.2% have 11-20 KPIs on their scorecards and 37.7% have 1-10 KPIs
- 40.3% of respondents confirmed that scorecard has a commitment from executive management, only 18.8% responded that there is a commitment from departments
- For 44.2% of participants a business scorecard is still a measurement, not management tool
- 20% of companies successfully implemented performance management software products and reported a positive influence of their scorecards on the ultimate business performance.
According to Indeed.com Salary Survey
- For the title “Balanced Scorecard” average Yearly Salary as of 2012 is $112,000.00
- Average balanced scorecard salaries for job postings are 84% higher than average salaries for all job postings.
What experts say
- We interviewed a number of performance management experts. Check out what they think about BSC, KPIs, and other popular business tools.
When we do a presentation of BSC Designer software people often ask: Who is the typical user of the BSC Designer? I’d formulate this question wider: Who is the typical user of the Balanced Scorecard concept?
While most business professionals can benefit from this concept there are certainly some specialists that are in our main user profile.
- CEOs, company founders
- Business Strategy and Strategic Planning professionals
- Change Management, Process Improvement and Business development specialists
- Process Management managers
- Business Analysis and Management Consulting professionals
- Quality Assurance managers
- HR specialists
- Supply chain managers
- Marketing managers
- Operations directors
Advantages and Disadvantages
We also analyzed some advantages and disadvantages of the Balanced Scorecard framework. You can find the results of this analysis here.