Ten reasons why BSCs go wrong
- Accounting approach with a systematic neglect of the human capital; no linkage between the critical success factors of the organization and the personal critical success factors of individual employees - creating human capital tensions between work and non-work aspirations.
- Emphasis mainly on financial measures rather than non-financial, leading to measures that do not connect to the drivers of the business and are not relevant to performance improvement.
- No explicit link between shared ambition and specific organizational objectives; results in insufficient employee support to work according to organizational performance measures and an implementation plan that is not grounded in reality and unable to respond quickly to unforeseen events.
- No explicit link between personal ambition and ethical behavior; a systematic neglect of personal integrity
- No explicit link between personal ambition and shared ambition.
- Poor communication of the new way of working by management; results in creation of an employee mentality that is hostile to management messages.
- Results in an individual performance plan that focuses too much on the money side and not enough on delivering organizational values, leading to a "what's in it for me" culture.
- Self learning and team learning are not stimulated; results in creation of a climate of defensiveness and mistrust and a business strategy that is poorly understood and therefore impossible to execute.
- Too many objectives defined and too many performance metrics being measured.
- Data on current individual and organizational performance insufficiently available; poor data on actual performance, negating most of the effort invested in defining performance measures by not being able to monitor actual changes in results from changes in behaviour.