What reward systems are to be used in BSC?
It is extremely important to properly motivate company employees when implementing balanced scorecard and introducing strategy maps. Of balanced scorecard requires great involvement of the entire company personnel. Of course, it wouldn’t be reasonable to demand deep knowledge of BSC and company goals from every employee. But at the same time the more personnel knows about company strategic goals the better it will perform in order to achieve them.
Why is reward system important in BSC implementation?
Motivation in balance scorecard implementation is one of the preconditions for success. Indeed, if the employee is motivated in the right way he would do his best to show the highest performance. Besides, balanced scorecard and strategy maps very often cause a broad discussion within the company. And very often the most creative ideas come from ordinary personnel. Top managers are sometimes unaware of peculiarities of customer conduct while front line managers sometimes know their customers even better than their friends because they deal with them on the everyday basis.
What motivation now we’re talking about when implementing balanced scorecard? Well, sure thing this is financial motivation. Employees must be financially interested to improve performance and reach strategic goals at the intermediate and final stage.
Proper motivation is important for BSC use
The same time implementation of strategic goals is not only about having expected values of key performance indicators in the four perspectives: financial, customer, internal processes, learning and growth. Strategy implementation is about having future vision and personal interest in the company success. So, motivation gives employees reasons to show their best performance.
As a rule, reward programs are introduced to the level of department or a business unit. In such a way it is easier to control all business units and the company and communicate goals and tasks of different departments.
It would be interesting to mention that motivation can be also nonfinancial. For example, top performing employees may be offered such rewards as attendance of some business seminar, additional time for personal project, meeting with the business guru George is having additional vacation or time off to spend it with family and friends.
Remember that even if balanced scorecard is implemented observing all norms and conditions it will not work unless company personnel is truly interested in it. Indicators and requirements should be understood for ordinary employees otherwise they will start considering balanced scorecard to be another control system which will cause opposition or even anger. A properly motivated employee is an employee who is interested in his personal development and growth, as well as company success in general.
Tags: call center evaluation, motivation system, reward system in BSC
