A balanced scorecard is a sophisticated approach in controlling the performance of an organizations vision and strategy. Balanced scorecards often form the basis for measuring organizational improvement, the companies objectives into measures.
Balanced scorecards traditionally focus on four attributes – financial, customers, internal business processes and learning and growth.”
Balanced scorecards can be complex and producing them can be time-consuming and require a mixture of data analytics and presentation. As such organizations will gain better results by following a robust design and implementation methodology –
Organizations should consider:
1. Ensuring a sound strategic foundation exists
2. Objectives should be set for each balanced scorecard attribute
3. These objectives should ensure that cause and effect exist
4. Measures should be set for each objective
5. Set targets for each measure
6. Identifying appropriate initiatives to deliver the targets
7. Implement the balanced scorecard
Careful consideration should be given in each of the four attributes of the scorecard financial measures alone will not do business is today’s market is governed by many things such as capability, relationships with suppliers and customers for example – therefore take time in considering what will be measured.
Balanced scorecards are now common place in industry and have generated a new level of management style ensuring that business is subjected to rigorous measures targeted and bringing quantifiable change to an organization.