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The Balanced Scorecard:
In 2000 Covey observed that a fundamental issue within contemporary organisations lies in the fact that
‘People and their managers are working so hard to be sure things are being done right, that they hardly have time to decide if they are doing the right things.’
The answer to this would appear to rest in the development and implementation of strategic plans. However, Kaplan and Norton (2001, 2005, 2006) have challenged the traditional structure of strategic plans;
‘Fewer than 10% of effectively formulated strategies will be successfully implemented’.
Furthermore, these researchers acknowledge that in relation to the implementation of strategic plans, only 20 % pertains to technical execution, while 80 % is bound in emotional and humanist elements. The question remains, ‘How do we optimise the capacity of an organisation when our implementation procedures are imperfect? In 1998, Handy suggested the missing link:
‘We were wrong to have put our faith in an undiluted ideology of self-interest when we should have trusted our humanity more than the system … We should trust in ourselves to be both good and great, and if sometimes this trust is misplaced, more often it will be merited, for there is that within all of us which cries out for a better and fairer world. Where better to start than where we are? ‘
The Balanced Scorecard approach proposed by Kaplan and Norton (2001, 2005, 2006) demands a humanist foundation. It identifies four key perspectives at play in any organisation:
- Financial
- Internal business practice (the systems and processes)
- Learning and Growth (professional development and cultural components)
- Stakeholders
The Scorecard works on the knowledge that, in the past, organisations have relied almost exclusively on financial indicators to gauge success. Of course these are predominantly lag indicators which do not serve to inform and redirect. The Balanced Scorecard process sets objectives, and measures the four different perspectives, each field being as critical as the other to the overall success of implementing the organisation's strategy. Each perspective is considered discretely and is assessed through consideration of both the tangible and intangible assets of the organisation, allowing real time understandings that inform strategy.
Here at Kilvington the Board of Management adopted the BSC process in November 2005. The concept was presented to the staff early in 2006 and later that year teachers from Kindergarten to Year 4, Years 5 to 8, Year 9, Years 10 to 12 and the non –teaching staff met each for a two day workshop to develop, modify and finally integrate the scorecard to fit their particular needs.
From these each staff member has drawn up an individual scorecard with carefully defined, challenging targets. These will be the benchmarks to achieve throughout the school year and will be the basis of the annual staff appraisal review.
The following Kilvington whole school and Cluster Scorecards represent months of research and focused conferences across each stream. The words are only reminders of the strategies which the staff know, understand and have determined. The Scorecards themselves live with the staff.
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