Balanced score card implementation in an MNC technology company: a design and implementation study

Abstract

The BaIlanced scorecard translates vision and strategy into a tool that effectively communicates strategic intent, and motivates and tracks performance against the established goals. The Multi-National Company (Referred as AB Company in this study) introduced a Balanced Scorecard based Performance Evaluation system in 2003. This balances the traditional financial measures with the operational measures related to the company's critical success factors. All objectives and measures for AB Company's employees are classified into one of the 4 quadrants - Financial, Operational, Customer Oriented, and Employee Oriented. Project Context: This project has been undertaken to examine the process of introduction of Balanced Scorecard based Performance Evaluation system in AB Company as linked to its corporate strategy and analyze the results of its implementation so far. For this study, a small subset of the AB Company's Global Services Delivery Organization and Software R and D Organization based in India were considered. These organizations have been chosen because of the similar nature of their work and the similarity in skill sets between the workforces of these two organizations. Balanced Scorecard (BSC) Implementation was chosen because it appeared that the original intention of the management when BSC was introduced was to translate their strategy into terms that could be clearly understood by all levels in the company. The premise of senior management perhaps was that if the strategy defined at the top is broken down into actions right down to the lowest levels of the organization and if these actions are successfully implemented at the lowest levels then it would result in the organization achieving its strategic intent.