The balanced scorecard is a strategic planning and management system that is used extensively to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. Balanced scorecard measures performance of revenues, earnings, market share, quality, employee morale, organizational learning, customer satisfaction, etc.
Balanced Scorecard Facts
- 95% of typical workforce does not understand its organizations’ strategy
- 90% of organizations fail to execute their strategies successfully
- 86% of executive teams spend less than one hour per month discussing strategy
- 70% of organizations do not link middle management incentives to strategy
- 60% of organizations do not link strategy to budgeting
- 80% of organizations using balanced scorecard reported improvements in operating performance, 66% of these organizations reported an increase in profits
Source: Balanced Scorecard collaborative report
Why Balanced Scorecard?
The advantages of a Balanced Scorecard for the enterprise are numerous. An effective Balanced Scorecard:
- Links productivity-enhancing measures and profitability with the strategic objectives of the company.
- Offers four-dimensional comprehensive performance assessment including financials, customer, internal and learning & growth perspectives.
- Requires managers and senior-level staff to think and act strategically, based on a comprehensive analysis of the key performance indicators in their business.
- Enables continual measurement of indicators, enabling the company to address problems as they arise, not after the fact.
- Emphasises performance measurement, not analysis for the sake of analysis.
Business Beam helps in effective implementation of Balanced Scorecard
Business Beam’s Balanced Scorecard consultants and coaches provide strategic, tactical and operational guidance to leaders, managers and teams. We ensure that organizational strategy is effectively translated into executable plans based on functional and teams KPIs. We also focus on developing reports and dashboards for informed decision making.
Salient features of our approach are as follows:
- Executive Coaching: We bring top management team together to debate the proposed mission and strategy statements. We ask questions about impact of successful strategy execution on customers, financials, internal business processes, and the ability to innovate, grow, and improve.
- Strategy maps: We develop strategy maps to identify and define how value is created within the organization. With the help of strategy maps, we translate strategy and direction statements into specific objectives that are more meaningful for all employees and that they can act on.
- Implementation Plan: Based on defined strategy statements and strategy maps, we develop holistic implementation plan. The plan defines the timelines, resources, roles and responsibilities, risks, etc.
- Drilled Down KPIs: With the help of middle management, we develop detailed drilled-down KPIs for departments and teams. The detailed KPIs and metrices help in finalizing the implementation plan.
- Dashboard and Reporting: Continual monitoring and reporting are extremely important for successful implementation of Balanced Scorecard. With the help of reports and dashboards, organizations can keep focus on their strategic goals and spot troubles before they appear in their financial statements.
- Workshops: We plan multiple formal and informal awareness workshops for practitioners on related topics. Specialized courses like Balanced Scorecard certification, or KPI certifications deliver additional value.
- Implementation Support: During implementation, our consultants provide complete support to implementation teams including coaching, advising and hand-holding. We ensure that organizations achieve the intended results from the framework.
- Quarterly Reviews: We review the effectiveness of the overall implementation on quarterly basis. We ensure that all identified KPIs and metrices are providing the intended value. We recommend changes, if required, to ensure effectiveness and results
Download Balanced Scorecard implementation datasheet
Contact Business Beam to learn more.
