Introduction
British Aerospace was privatized in 1979. Since then the company operated on a platform targeting customer support services, commercial aircraft and defence systems. The company’s old structure was unfavourable to occasioning constant losses in a market that what getting continuously competitive. Despite the organizational setup and changes, the company still posted losses and or poor performance. This led to the initiative to change the system to an approach based on the balanced scorecard system. The new system assumed a tripartite character which included the dismantling of the conglomerate that had been used in running operations, the replacement of the dismantled conglomerate with an interlocking business approach that was multidimensional and multifunctional thereby incorporating several applications at one go and lastly the reduced reliance on the managerial authority, formalities, rules and procedures and the narrow application of division of work. The reduction saw the introduction of an open system that was based on decentralised authority and management of resources. The changes assumed a holistic approach that was inclusive of all the departmental managers and senior staff. In the long run the successful implementation can be credited to the approach adopted by the chief executive officer. His approach was inclusive and sensitive to the employee demands and desires as it considered the feedback gained from the implementation process.
Analysis
The balances scorecard approach at BEA can be contrasted against the traditional approach often pursued by companies. In BEA’s case, the approach is more inclusive. The chief executive officer formulated the Group 130 for purposes of inclusivity. This group involved all the senior employees at the managerial level at the formulation and attendant implementation stage. This inclusive character is often missing in the traditional approaches. In addition, the group 130 played a strategic and fundamental role as its report generated through individual feedback and analysis was used in the implementation process to facilitate a swift and smooth operational implementation. The chief executive officer had the members write individual analysis and feedback so as to get the inclusive and diverse taste and reaction of the process of implementation. This diverse character creates value and makes the employees own the process. In the long run, it enables the successful implementation of organizational changes as the changes are not alien to the workforce since they are products of the local brainstorming and interactive sessions. This diverse and local character lacks in the traditional approach that often adopts changes externally and attempts to implement the change process from a hierarchical point of view whereby employees do not participate in formulation but only get involved in the implementation. That approach often denies the process the local touch and taste.
In addition, the BAE balanced scorecard approach was premised on five key valued elements which were well articulated and communicated to the organizational workforce. The approach in articulate and well formulated communication occasioned the embrace by the employees who were able to understand and deduce from the implementation the benefits in the changes. From this approach, the employees did not conceive the changes as intended to do away with them or inconvenience them in any way. Rather, the articulate communication illuminated to the employees the positives in the program implementation, the need to change the system and the overall overriding objective which was to create value in the organization for purpose of sustainability. Some of the key valued elements that the program was predicated upon include the centrality on people, performance, partnerships, customers, and innovation. Over and above that, the values were implanted and adopted into the organizational culture in a dual approach that included the short term goals and the long term goals. In the overall, this dual approach enabled winning on both fronts. The employees were given enough time to get oriented and accept the changes as well as develop new approach for the long term adoption of the changes.
Conclusion
It is this paper’s contention that the approach pursued by the BEA through the balanced scorecard was productive and fruitful. In common organizational parlance employees would resist any attempts to upset the status quo. This is often occasioned by the alien approach to changes as employees are often not involved the formulation. In BEA, the implementation was smoothened and facilitated by the fact that the changes were a direct product of the inclusive contribution of managers and employees. In addition, the step by step approach adopted for the implementation enabled a meticulous and successful process that in the end enabled the organization cover all the essential spheres without side stepping any important components. It should be noted that in the long run, the organization was able change and become successful with application of balanced scorecard approach because of the inclusivity. The key values that placed centrality on the people in the workforce, performance, partnerships, customers and innovations in as an entirety led to the antecedent outcomes that have seen the organization implement changes. It is incumbent upon any organization implementing change to borrow from the BEA approach.
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