Is it easy to set the right goals?

One of the most common mistakes and BSC implementation is failure to set the right goals and objectives.  At a first glance goal setting seems quite easy. “I want my company to earn a lot of money” or “I want to earn a million.” Well, if the goal is formulated in such a way there is very little probability that it will be reached.  Goal setting is not only about deciding what you want but also about identification of implementation means.  How will I earn this million?  How will my company earned a lot of money?  Do I have necessary tools and intellectual potential to implement these objectives?  These are very important questions which need to be answered.

Goals setting, KPI choice, counter actions

Goals setting, KPI choice, counter actions

Balanced scorecard is sometimes mistakenly viewed a substitution for strategy.  This is a very common myth.  Balanced scorecard is just a tool which may be useless unless it is properly applied.  So, why is goal setting is such an important thing?

If top management sets the wrong goals or goals that cannot be objectively achieved the entire scorecard will be built in an inappropriate way.  The wrong goals will cause selection of the wrong measures and key performance indicators.  Top management will have to react on changes in the internal and external environment and undertake counter measures.  As a result, the company will simply go in the wrong direction.

How customer satisfaction influences business performance

How customer satisfaction influences business performance

Goal setting in call centers and customer support services is very important as these are customer oriented services.  Earning a lot of money is a good goal, but at the same time company management should define the ways this money will be earned.  So, it would be good to include such goals as “the improvement of customer satisfaction”, “increasing the number of first resolution calls”, “increasing the number of sales attempts per employee” etc.

In course of time employees in company management will see cause and effect ties between these indicators and financial goals.  Customer satisfaction will result in growth of sales as satisfied customers are more likely to buy from the company.  The increased number of first resolution calls will improve customer loyalty, and existing customers are more likely to convert into regular customers.  Increasing the number of sales attempts per employee will increase sales volumes as a result to which the company benefits and employees will get increased bonuses.

Thus, as you can see, goal setting in implementation of balanced scorecard is not all about financial figures.

Read more on goal setting here

Tags: , , , ,


Free Balanced Scorecard Mp3 Training Free Balanced Scorecard Mp3 Training