Many businesses are recognizing the value in producing balanced scorecard results to measure key performance indicators within their organizations. The balanced scorecard provides a set of industry standard metrics surrounding operational procedures. When analyzed, they provide deep insight into performance, bottlenecks, throughput rates and other essential metrics.
To take full advantage of the benefits of the balanced scorecard method, companies must invest time and resources to truly understand the concepts and process. A commitment from senior management makes a huge difference in the rate of adaptation and success of a strategic balanced scorecard program.
1. Research balanced scorecard information to understand the concept.
2. Determine your requirements for a balanced scorecard provider.
3. Perform detailed analysis of the balanced scorecard results.
Implement the balanced scorecard methodSchedule a few hours in your calendar and research the balanced scorecard method. The method uses strategic planning and management tools to monitor internal activity against institutional goals with the end result of improved cohesion and cooperation. The balanced scorecard looks at four aspects of business--financial, internal business process, customers, learning and growth--and creates metrics to analyze the correlation between plan and action.
Interview balanced scorecard providersFind balanced scorecard providers familiar with your industry. These firms provide experience and expertise in the implementation of a balanced scorecard approach. The full implementation of a strategic balanced scorecard often requires a significant change in current practice.
Find the balanced scorecard measure most relevant to your firmEvaluate metrics used in your industry to gain perspective on the standard requirements when developing a balanced scorecard list. Next, review current processes and evaluate the value added. These reviews help isolate the key areas where metrics can add value.
- The balanced scorecard method allows senior management to manage all the aspects of the business while delegating responsibility to the area manager. It requires executive support and a least one dedicated business analyst to yield the greatest benefits.