Balanced Scorecard is currently used in many leading western companies (402 organizations from the "Financial Times" 2002 rating of 500 largest companies apply this management tool). According to General Director of JSC "Severstal" ?.N.Kruchinin "in the beginning of 2004 our company made full-scale transfer to the balanced scorecards system, and starting from the middle of 2004 the work will be carried out in a completely automated mode".

Implementation of the project on introduction of the balanced scorecards system at JSC "Severstal" allowed creating the management tool, which can claim for uniqueness by its characteristics and properties. The traditional methodology of constructing the Balanced Scorecard system was improved and adapted to conditions of a large Russian company. The Balanced Scorecard system at JSC "Severstal" has three-level structure, total number of cards - more than 50, total number of parameters - more than six hundred. This system allowed to transform strategic targets into specific parameters at various levels of company management. The Balanced Scorecard system is considered as the integrated tool for revealing and analyzing the reasons of problem situations occurrence in all business areas of JSC "Severstal", enabling timely provision of the management with the necessary decision making information.

It is planned to use gained experience for establishing such systems in other enterprises of "Severstal Group".

Reference:  Balanced Scorecard project started at JSC "Severstal" in July, 2002. The new system allows not only to evaluate financial indicators of the company, but also qualitative parameters such as customer satisfaction, product quality, motivation, professional skills of employees etc., and, furthermore, allows to establish interrelation between the strategic targets of the company as a whole and specific targets of divisions and individual employees.

16 Febrary 2004