You may have been using the Balanced Scorecard (BSC) approach for some time. However,
even when applying the best supporting IT solutions, you may have not been getting
satisfactory results. The explosive use of BSC (e.g. all government departments must
use it) has contributed to an impression that it is enough to deploy the concept
and organizations will achieve a superior performance and improved competitive position.
In many circumstances, this is not the case. There are at least two reasons for that:
1. BSC is used as a rapid performance improvement tool. This may initially produce
positive results but later on will quite often lead to creation of bottle-necks and
paradoxically – lack of overall balance. The remedy is seen in CRM and ERP systems
implementation. However, that usually requires a re-definition of BSC, which is not
a very popular move. Therefore, after a short time, the company may be back in a
position where it started.
2. BSC is used as strategy management tool. This usually takes much longer to implement
(2 to 3 years to cascade the performance targets to the lowest levels). Although
the company may now be running its business more consistently, in most circumstances
it could have achieved much more for the same cost. This relates both to improving
its performance even further, as well as making the entire business more sustainable
How could the companies using BSC achieve a superior sustainable performance? The
original BSC was created to balance, within its four perspectives, the interests
of Investors and Customers, two of the main stakeholders. Today, many companies simply
forget about this untapped opportunity that balancing diverse interests may deliver.
Even balancing the interests of Customers and Investors, without balancing the interests
of other groups of stakeholders such as employees, suppliers or the community (the
backbone of the longer-term survival) the company will be out of balance anyway.
How could we resolve this situation?
Kaplan and Norton, the creators of the original BSC, have now themselves supported
the move towards adding more perspectives (stakeholders) to the original four dimensions.
Sustensis has developed its own SYMBIOSA Stakeholder Scorecard as part of its overall
approach to support sustainable growth. It fulfils all the requirements for balancing
the interests of all six groups of stakeholders and creating a sound basis for superior
Delivering balanced benefits to all stakeholders is the backbone of a company’s sustainability.
Therefore, SYMBIOSA Scorecardis supported by Sustensis’ integrated sustainability
services to help organizations achieve higher long-term sustainable growth with lower
SYMBIOSA Scorecard focuses on balancing the interests of the stakeholders first,
and only then looks at the company’s processes to check how they could deliver the
required balanced performance. To facilitate that goal, SYMBIOSA Scorecardhas its
own unique Strategy Delivery Map that balances not only the interests of the stakeholders
with each other, but also a particular stakeholder’s objectives with his contributions.
There is plenty of evidence that sustainable longer-term growth delivers superior
accumulated performance compared to a short-term growth. Sustainable companies can
increase their performance as well as market value by about 5-8% p.a. above the average.
Some have done even better, achieving about 30% additional year-on-year increase
in market capitalization over 50-year period.
Sustainable growth is quickly becoming the most important differentiator of organizations’
competitiveness. If you have been using, or intend to apply BSC, Sustensis would
help you to tune it in a way that transforms your organization into a more sustainable
business achieving superior longer-term performance.