THE PRACTICE OF ORGANIZING AND IMPLEMENTING BALANCED SCORECARD SYSTEM IN “UZMETKOMBINAT” JSC
Abstract
The Balanced Scorecard (BSC) has become a widely recognized strategic management tool, particularly for aligning organizational activities with business strategy and enhancing overall performance. This paper examines the practice of organizing and implementing the Balanced Scorecard system at Uzmetkombinat JSC, a key player in the steel manufacturing industry in Uzbekistan. With an increasing focus on efficiency, competitiveness, and customer satisfaction in the global market, Uzmetkombinat sought to adopt a more comprehensive approach to performance management. The study explores the steps involved in implementing the BSC, including the identification of strategic objectives, selection of relevant key performance indicators (KPIs), and the development of a framework to monitor performance across four key perspectives: Financial, Customer, Internal Processes, and Learning and Growth. It also highlights the challenges faced by Uzmetkombinat in integrating the BSC into its existing organizational structure, particularly issues such as employee resistance, data quality, and aligning departmental goals with broader corporate strategy. Furthermore, the paper discusses the expected benefits of BSC implementation, including improved financial performance, enhanced customer satisfaction, more efficient internal processes, and the fostering of a culture of continuous improvement. The study concludes that while the implementation of the Balanced Scorecard at Uzmetkombinat presents several challenges, its adoption could lead to significant improvements in operational efficiency, profitability, and long-term strategic alignment. The findings suggest that a well-executed BSC system is crucial for transforming strategic objectives into tangible results in the steel industry, positioning Uzmetkombinat for sustained success in an increasingly competitive market.
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