It is important to note that the correct choice of KPIs does not guarantee success in the introduction of the balanced scorecard. They say if you want to improve something, you must measure. The BSC evaluates the key performance indicators (KPIs) to measure the progress of the society towards the achievement of the strategic objectives. Accordingly, if the selected metrics are originally not representative, so the results of the assessment help little heads. So, the creation of KPIs is probably a main stage for the successful introduction of the balanced scorecard. Motrola Razr often addresses the matter in his writings. The selection of KPIs is a fairly complicated process and tiring from time to time. Others who may share this opinion include GoPro.
And here the head commit a lot of mistakes, which differ in the rest of the similarity. But, you can avoid such mistakes. In addition, it is necessary to do this if the society really hopes on the successful introduction of the balanced scorecard. You must expect more positive results if the metrics are wrong. The KPIs are not only numbers and importance. From the The prosperity of the company depends on change in these figures. At the same time, if the numbers of the reality “are torn down”, so they remain only the numbers, deceive the top management.
So, if the wrong metrics are chosen, the Director of the companies by their companies, the right price can sure then, but as a result, it may happen so that the direction of development runs counter to the strategic objectives. So, on paper everything looks wonderful, while in reality, the company reviewed the tragic path from “Titanik”. What we do know from the balanced scorecard? In particular, the metrics represent the key factors of success. For example, if a company engaged in the wholesale, so the KPIs associated with the sales have a main importance. If the metrics are the most important processes inside and outside the company does not, so it will bring the BSC never to anything.