(i) Use of technological system in BSC.
(ii) Implementing time factor in BSC
(iii) Applying the interpretations of automated systems in BSC
The challenge of achieving a BSC, identifying, measuring and implementing KPI’s can be solved by the use of technology. The use of modern technology not only provides means or strategies to determine the KPI’s, but provides automated means for accomplishment and upholding of BSC (Sanger, 1998). The automated data establishes a centralized means in the formulation of strategies that aim at the vision. The idea here is to deviate from traditional profit and loss financial analysis, as the only method of determining progress, and develop other management and planning systems that do not only help in establishing the strategies, but also monitor the implementation of the strategies.
The performance of an organization is in most cases measured based relatively on a time factor. This is normally in terms of days, weeks or monthly (Sanger, 1998). In order to assess the effectiveness of the KPI’s the selected scorecard system should accommodate time periods. The idea here is that, if for instance if a quarterly performance is to be measured, the inclusion of the summaries in the model would only summarize the progress. This would provide for accuracy since omissions and errors are minimized. It would also promote better monitoring of the KPI’s.
The application of scorecard automation systems is not enough in determining the best strategies. The results of the system require proper analysis and interpretation to reach a management decision. The process may involve the interpretation of different graphical representations to determine the best strategy. In order to formulate a successful strategy under the system, the management should avoid overreliance on graphical representations (Sanger, 1998). Data should be investigated from different perspectives; this may include the time factor, region, and the expected output.
Sanger, M. (1998). Supporting the Balanced Scorecard. MCB University Press: USA