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Balanced scorecard is a framework used in strategic planning and system management. Properly developed, the system can guide a company towards success and encourage employees to concentrate on positive outcomes. A scorecard is not just about tracking a score; it encompasses people, planning, methodologies, and know-how.
To successfully incorporate the scorecard framework into your business, you need to understand a few key ideas. First, you should not merely focus on measuring the performance of your current system, although this is quite important. Instead, you should concentrate on what you want your business to achieve.
Establishing a good scorecard is akin to solving a jigsaw puzzle. Strategic elements must be created one by one, evaluated for suitability against other components, and finally put together to form a complete system. Among the major components you need to consider are core values, mission and vision, leadership, rewards program, and evaluation.
After all of the strategic components are put in place, the scorecard system must be passed on to each constituent of your business organization. The success of installing the system into your business largely depends on incessant self-evaluation and profound discovery and analysis. Begin your balanced scorecard with the idea that this system requires long-term commitment and should benefit your customers, business partners, and employees. For more on balanced scorecard, visit the links on the Business.com page.
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