What Is A
Balanced Scorecard
What is A
Balanced Scorecard? Balanced Scorecard is a management system (not
only a measurement system) that enables organizations to clarify
their vision and strategy and translate them into action. It
provides feedback around both the internal business processes and
external outcomes in order to continuously improve strategic
performance and results. When fully deployed, the Balanced Scorecard
transforms strategic planning from an academic exercise into the
nerve center of an enterprise.
Some more
details about What is A Balanced Scorecard? Actually, Balanced
Scorecard has emerged as a proven tool in meeting the many
challenges faced by the modern organization. The remainder of the
chapter introduces you to this dynamic tool. Using the Balanced
Scorecard framework is a good place to start — allowing you to align
and support key processes — and to translate strategy into
operational objectives, measures, targets and initiatives.
What is A
Balanced Scorecard and other three keys to make implementation of
Balanced Scorecard successful:
·
Get Buy-In at All Levels: They know you've
got those at the top signed on. Here's an easy way to get everyone
else on board: Tie Scorecard objectives to individual compensation.
Works like a charm – and gets employees to think strategically about
their jobs.
·
Follow Through: Don't let the Scorecard
metrics languish. Update them as major company goals shift with the
times.
·
Use the Right Tools: You can buy or build an
application that will help you track metrics. The Balanced Scorecard
Collaborative certifies vendor offerings, which you can check out on
their website.
So, we have
seen What is A Balanced Scorecard, now some more pertinent
information. Balanced
Scorecard is a new management concept which helps managers at all
levels monitor results in their key areas. An article by Robert
Kaplan and David Norton entitled "The Balanced Scorecard - Measures
that Drive Performance" in the Harvard Business Review in 1992
sparked interest in the method, and led to their business
bestseller, "The Balanced Scorecard: Translating Strategy into
Action", published in 1996.
Companies that
use the Balanced Scorecard methodology get a more accurate,
comprehensive view of their business performance. Balanced Scorecard
approach relies on the monitoring of critical
business-strategy-oriented metrics, such as quality, customer
satisfaction, innovation, and market share—measurements that can
often reflect a company’s economic conditions and growth prospects
better than its reported earnings.
What is A
Balanced Scorecard methodology? Balanced Scorecard methodology is
more than a set of metrics; it is a system of linked objectives,
measurements, targets, and initiatives that collectively communicate
and measure an organization’s business strategy. When you implement
it effectively, this methodology can help your company face both
internal and external challenges—such as responding to increased
competition and more demanding customers, translating your vision
into measurable objectives, prioritizing initiatives and allocating
resources, and communicating business
strategies.
