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New Post 1/31/2008 11:29 AM
  SuzyQ
2 posts
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Rewards and Incentives 

Could you give me some information about "reward management" that may arise from the use of the Balanced Scorecard".
 

 
New Post 1/31/2008 11:36 AM
  GPerry
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Re: Rewards and Incentives 
Balanced scorecards as strategic management systems are becoming the management system of choice in many private, public, and not-for-profit organizations world wide. The reasons for their popularity are: aligning vision to the work people do, understanding the customer value proposition, developing the strategic objectives that link performance drivers to results, transparency, and improved internal and externals to employees and stakeholders.
 
The Balanced Scorecard is a strategic management system that integrates strategy, organization learning, performance measurement, employee development, technology, process efficiency, customer value, and financial performance into an integrated system for managing to organization desired strategic results. The BSC answers the question: "how are we doing against our expected performance goals, and what actions should we taking today to get desired results tomorrow"? As a management system, it is built on periodic reporting of results against targets...anywhere from transactions (real-time) to daily, weekly, monthly, or quarterly, and on specific strategic initiatives to attain the results.
  
I am not sure in what context you are asking about "reward management."  The team that works to develop and implement the balanced scorecard as the organization's strategic management framework should be rewarded in meaningful ways for their contributions.  Each organization is unique; therefore when we consult with our clients, we include change management and communications planning in each step of the project so that the organization properly plans for and follows through on recognition and rewards for the team members, as appropriate.  
 
In terms of performance appraisals, I would say that the benefit of the balanced scorecard is strategic alignment. A fully cascaded Balanced Scorecard will often include measures related to teams and individual performance. Your performance appraisals can be much better designed if you can describe the desired behavior you want to see from your employees and align that with the overall mission and vision of the organization.  And typically, employees are rewarded for individual performance through job promotions, salary upgrades, or bonuses.  We generally do not recommend using the Balanced Scorecard simply for the measurement and punishment of individuals but rather as a tool for organizational performance improvement. 
 
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