Case Note: Building a Balanced Scorecard for a public broadcasting organisation. (Simulation only)
This case study consists of the outcomes of a simulation exercise undertaken with an MBA class to demonstrate and to test the process of developing a Balanced Scorecard for a public Broadcasting organisation. The British Broadcasting Company (BBC) was chosen to test the procedure.
The BBC: mission, purposes, and limitations.
The BBC is the national public broadcasting organisation of the UK. It operates under a Royal Charter of 1926, and under a constitution, both of which are now under review (in July 2006).
The motto of the BBC is ...view middle of the document...
This is supplied by means of (a) television, radio, and on-line services, (b) similar or related services which make output generally available and which may be in forms or by means of technologies which either have not previously been used by the BBC or which have yet to be developed. The BBC is also allowed to carry out other activities which directly or indirectly promote the Public Purposes, but such activities should be peripheral, subordinate, or ancillary to its main activities (i.e. must be in proportion to them).
Finally, the BBC is independent in all matters concerning the content of its output, the times and manner in which it is supplied, and the management if its affairs.
(The reader should consider this information in the context of theory on corporate missions described earlier.)
http://en.wikipedia.org/wiki/BBC [sourced June 2006]
http://www.bbc.co.uk [sourced June 2006)
Setting system boundaries.
Although the BBC transmits both radio and television programmes, the biggest part of the broadcasting business, in terms of both consumers (listeners and viewers) is in television. This part of the business is expected to expand in the future with the development of satellite and digital broadcasting systems. It was therefore decided to concentrate on television for this exercise, although developing a Balanced Scorecard for radio would be a very similar process.
The process of developing a Balanced Scorecard is indicated here by the diagrams that were developed. However, in a real situation, underpinning these diagrams would be group strategy meetings with both internal and external stakeholders to try to gain the consensus necessary for successful implementation.
The Systems Map.
In developing a Balanced Scorecard for the BBC a systems map was first drawn to present an holistic view of the organisation, the subsystems within it and the lines of influence connecting them. The systems mapping technique is primarily a tool from the SI school of change management. (refer to figure).
The Objectives Tree
The objectives tree, very similar to a value tree used in systematic decision making (Goodwin and Wright, 1991), is also a tool which is frequently used in both the SI and OD schools of change management. It cascades the corporate mission down to operational objectives. In its development the quality and financial aspirations of the business are developed within the political and legal constraints imposed upon it. It is obvious that cause-effect relationships which should be embedded in a Balanced Scorecard are beginning to be identified.
The Strategy Map.
Strategy maps were introduced by Hamel and Prahalad in the Harvard Business Review in the early 1990s, and expanded upon in a subsequent strategy text (Hamel and Prahalad, 1994). The...