Balanced Scorecard Benefits

The balanced scorecard model was the first managerial model, which introduced the full involvement of Human Resources into the process of the development of the new business strategy and to the process of the definition of the strategic goals for the organization.

Additionally, the balanced scorecard did not assign the individual goals to the individual managers, but it introduced the concept of the shared goals, which is an excellent situation for Human Resources. HR is not responsible for the employee satisfaction on its own; it shares the responsibility with other managers in the organization. It is good, isn’t?

The balanced scorecard model requires more from Human Resources. HR has to become co-responsible for reaching the goals in other areas and the bonuses in HR are influenced by the overall business results. It is a natural part of the HR job to teach people new products and develop new HR procedures for the improved processes. It sounds easy, but it can be extremely difficult in some situations.

HR has to develop its knowledge of the business processes and it has to develop the HR tools to identify the gaps in the people area quickly as it can react to the real needs of the managers and not sending the general messages.

HR should prepare its own balanced scorecard for the HR department as it can fit with the rest of the organization. HR cannot forget about its role in the organization, but it has to focus on building the better organization every day.