BALANCED SCORECARD

A balanced scorecard is an illustration of the metrics and indicators that support the goals that were outlined during the strategy formulation phase of strategic planning.  These metrics are typically grouped into four broad categories - financial, customer value, internal processes, and learning and growth.  The metrics in each of these categories helps to achieve those in the category preceding it.

BENEFITS OF A BALANCED SCORECARD

A balanced scorecard allows your company to continuously monitor its progress toward the goals set forth in the strategic planning phase.  Breaking goals down into metrics helps to isolate what must be managed.

THE BALANCED SCORECARD PROCESS

• Review the mission statement, SWOT analysis, and strategy
• Breakdown the goals into metrics that are conducive to reaching strategic goals
• Examine the feasibility and availability of the information needed to compile and maintain these metrics
• Assist the firm in the creation of reports to monitor the appropriate metrics
• Provide insight and support related to the metrics and the goals they support

FURTHER READING

These links elaborate on the topic at hand.  They serve as a good starting point for those companies that would like to learn more or would like to address these topics “in house.”  For those firms that prefer to continue to focus on their current responsibilities and would value the objective viewpoint of a professional from outside of the organization, click here. 

Balanced Scorecards explanation, examples, aims, implementation and teaching aid diagram for the concept.
Excerpt:  “Once an organization has analysed the specific and quantifiable results of the above, they should be ready to utilise the Balanced Scorecard approach to improve the areas where they are deficient. The metrics set up also must be SMART…”

course11r.pdf (application/pdf Object)
Excerpt:  “Now that you understand the purpose and terminology behind the Balanced Scorecard, let’s describe the overall process on how we will build the Balanced Scorecard. The process consists of seven steps over three phases:”

ImperoCo Business Solutions - "Developing Organizational Success."