What is the Balanced Scorecard?
Developed in the early 1990s by Dave Kaplan and Bob Norton, the “Balanced Scorecard” uses a strategic cycle to ensure that managers deliver their organisation’s vision and mission. The term itself comes from the fact that organisations require a planning and performance system that provides
– a balance between different organisational perspectives (Balanced) in terms of:
- the Long and Short term
- the financial and non financial measures
- internal and external performance measures
- leading and lagging indicators
– a comprehensive view of the current (and historic) performance of an organisation (Scorecard) taken from a number of viewpoints (or perspectives) that represent the external and internal pressures facing an organisation.
What are its benefits?
- transforms strategic planning from an academic exercise into the development of clear strategies that drive your organisation forward at every level
- provides feedback about the effectiveness of business strategy
- permits managers to see their organisation more clearly from many perspectives, rather than focus solely on financial indicators, so they can make more sound and more timely business decisions
- provides diagnostic feedback to guide continuous process improvement
- makes vision and strategy clear to all, which
–allows bottom-up breakthrough improvement
–enables leading rather than lagging improvement
–ensures focus on what matters
–allows the appropriate targeting of resources
How we can help you install and use it effectively?
Developing an effective Balanced Scorecard involves pulling together ideas and information from all sectors of your organisation. It cannot be done as a paper exercise or buying in a piece of software, but requires strategic thinking, which can often be difficult without structured facilitation by people who know what they’re doing.
Our expertise and hands-on experience mean we can deliver a practical solution quickly, with best use of your management time, probably in the time that you would spend thinking about how to go about it!
We pride ourselves in delivering something appropriately structured for every one of our customers’ unique businesses, so you can be absolutely sure that we will leave you with a Balanced Scorecard that really does work for you. We have a wealth of experience in:
- working with senior management teams
- identifying and developing strategic goals
- developing and using strategy maps
- building scorecards and dashboards
- developing and supporting communication plans
- developing performance measurement structures
- creating strategic review processes
- training staff in the development and use of balanced scorecards
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