BSC in India
Once, with the uptake of the Indian economy, an increasing number of companies started to adopt the Balanced Scorecard as a new performance measurement and management system. Among the most renowned companies in India that have adopted the Balanced Scorecard is: Godrej – GE Appliances Limited, Goodlass Nerolac Paints Limited, Philips Electronics, Infosys Technologies, Tata Consultancy Services, Castrol India, Taj Group or India Hotels (Singh and Kumar, 2007).
A research study performed by Anand et al (2005) about the state of Balanced Scorecard adoption in Indian Companies revealed several interesting aspects of the particularities of the Balanced Scorecard implementation in the Indian corporate organizations. The study targeted a total of 575 companies considered as representative for the corporate India. The questionnaire was sent to the CFOs of these companies and registered a response rate of 8, 52 %. The results of the study, based on the interpretation of the data gathered from the 53 respondent companies revealed the following aspects:
- The Balanced Scorecard adoption rate is round 45% in corporate India
- The Financial perspective has been found to be the most important (87,5%) followed by the customer perspective (66,6%), internal business perspective (54,2%) and learning & growth perspective (54,2%).
- 54,2% of the respondents agreed that the initial choice of KPIs at the design stage of the Balanced Scorecard has been substantially validated at the review stage
- The Indian companies monitor the indicators as per ISO 14000 norms in the environmental and social perspectives of the performance scorecard
- The establishment of the cause and effect relationship among perspectives has been found the most critical aspect of the Balanced Scorecard implementation process
- Most companies recognized that the implementation of the Balanced Scorecard has resulted in cost reductions and improvement in the bottom line
For more details about the Balanced Scorecard implementation In Indian companies you can access the study at the following address: http://www.vikalpa.com/pdf/articles/2005/2005_apr_jun_11_26.pdf
- Anand, M., Sahay, B., S. & Saha, S. (2005), Balanced Scorecard in Indian Companies, Vikalpa, Vol. 30, No. 2, pp. 11-25, available at: http://www.vikalpa.com/pdf/articles/2005/2005_apr_jun_11_26.pdf.
- Singh, M. & Kumar, S. (2007), Balanced Scorecard Implementations – Global and Indian Experience, Indian Management Studies Journal, Vol. 11, pp. 21-39, available at: http://www.smspup.ac.in/imsj/oct2007/oct2007_2.pdf.