The Implementation of BSC SWOT

In the corporate world, we inevitably like to think that all efforts exerted by employees, in one way or another, help achieve corporate goals and objectives that have long been set by the company. This is something that all of us would really like to think. However, you cannot really say for sure that the ideal scenario here is indeed the scenario in reality. This is precisely why there is the need to implement the BSC or balanced scorecard. The metrics and quantifiable aspects included in the BSC all work together to come up with a more accurate and concrete representation of all figures at hand. While you are at it, it would really pay to consider going that extra limb and plotting the BSC SWOT instead, with emphasis on the SWOT analysis.

But why not just make the usual BSC or balanced scorecard? Why is there a need to go the extra mile? The BSC is indeed valuable all on its own, primarily because the elements of metrics are already defined here. However, when only the BSC is developed, there would hardly be enough time for higher-level employees, particularly those at the executive level, to fully commit to research, interviews, and executive sessions; all of which are needed in creating only the best corporate strategies and then translating it to be plotted on the BSC. It is precisely because of such cases that there has to be the element of SWOT included in the process.

With the combination of both the BSC and SWOT, all of the company’s strengths, weaknesses, opportunities, and threats are evaluated so that the most appropriate strategy or group of strategies is then determined. When considering all of the factors at hand, you have to understand that focus should be placed on both the short-term and the long-term goals and objectives.

The typical SWOT format is then modified so that there would be subtle but firm incorporation of the four perspectives that are used in the development of the BSC. This way, a bridge is then created, which in turn makes it easier to facilitate the transfer of relevant SWOT findings to the strategy map utilized by the BSC.

The new format, interestingly, was developed by three people, namely, Bush, Brown, and Norberg back in 2001. The committee assigned to create the format is then brought together for a session – which usually lasts a day or two. The first step of the session is a review of the typical and traditional process brought about by SWOT. The next step is still a review – this time, it is the BSC methodology that undergoes scrutiny. Moreover, the committee is delegated to analyze what it can do to develop an organization that is more powerful and more focused on strategy. Questions that incorporate the four perspectives of the BSC, namely Financial, Customer, Internal Process, and Learning and Growth are then used.

As the members of the committee answer the different questions posed, these answers are then plotted under the appropriate SWOT categories, which are also placed under the BSC perspectives as headings. You can then say that this would form some sort of grid. After these responses are summarized, you would then have your BSC SWOT implemented right then and there.