Balanced Scorecard (BSC) is a tried and tested framework for organisational success. Various business, government, and non-profit organisations use the balanced scorecard to align day-to-day activities with enterprise vision, mission, and values. Today, more than half of the Fortune 1,000 companies in North America use the BSC, which has become the trademark of a well-run organisation.
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In the early 1990s, Robert S Kaplan and David P Norton developed a Balanced Scorecard model to help organisations measure and analyse business performance using financial and non-financial data. Balanced Scorecard (BSC) is a tried and tested framework for organisational success. Kaplan and Norton articulated the five fundamental principles needed for building Strategy-Focused Organisations:
Usually, organisations begin their strategic planning and management with a paper-based solution or excel spreadsheet. Spreadsheets are not appropriate for long term process planning and execution. The collaboration of real-time data and retrieval of reports is not possible; the process is highly time-consuming and limits the entire organisational performance view. Both paper-based or spreadsheet Scorecard lacked features such as:
The most appropriate way to actually track your scorecard on a regular basis is to use a balanced scorecard software. Using scorecard software, the organisation stays up-to-date and tracks relevant information. By replacing a traditional scorecard with a digital scorecard system, organisations can improve efficiency, gain transparency over each process, evaluate and implement actions for improvement and achieve the preset organisational goals.
The Balanced Scorecard is vital in building and communicating strategies across the organisation. A strategy map shows a logical cause-effect relationship between the different strategic objectives. Strategy Map ensures harmony between interrelated strategic objectives.
Internal strategy communication is crucial to the successful implementation of the organisation's goal or plans. Regular analysis using a balanced scorecard will help employees align with organisational vision.
Key Performance Indicators (KPIs) are a set of performance measurements that help organisations achieve key business objectives. Key Performance Indicators and Balanced Scorecard aligns employees' performance with the organisation's long-term strategic goals.
The Balanced Scorecard ensures that the organisational structure aligns with the strategic objectives. Organisations should make sure that all business units and support functions are working towards the same goals. On ensuring this, organisations can execute growth plans effectively.
A proper strategy focused organisation gets better outcomes. Well implemented balanced scorecards help the organisation align various business processes such as budgeting, risk management and analytics and much more with the preset strategic priorities.
The Balanced Scorecard is vital in building and communicating strategies across the organisation. A strategy map shows a logical cause-effect relationship between the different strategic objectives. Strategy Map ensures harmony between interrelated strategic objectives.
Make a list of KPIs. Discuss with teams to identify the KPIs that are closely aligned with each department. Identify KPIs which promotes the overall business processes. Ensure that these KPIs are closely aligned with strategic plans.
Once the KPIs are listed, allocate them to the various departments such as sales, marketing, HR. Though departments will have different KPIs, ensure that all these KPIs finally contribute to the big-picture goals of the organisation.
Follow the S.M.A.R.T framework to ensure that the identified KPIs are worth measuring. Make sure the KPIs are Specific, Measurable, Achievable, Relevant and Time-Specific. SMART Key Performance Indicators are important as they will help the management team to avoid metrics that don’t have any impact on business.
Keep KPIs clear cut. Let your teams understand the KPIs so that they can make data-driven decisions to move in the right direction. Let them know what is happening within the organisation and find ways for continuous improvement.
As organisations grow, you need to revise KPIs that you currently measure. The KPIs that are no longer relevant can be avoided. Monitor what is relevant. Keep on updating the list of relevant KPIs to stay on track.
Maximise efficiency of all processes within the organisation. Align organisational goals from top to the bottom level.
Get an overview of what is happening with the maker, dealer and suppliers. Make the right decisions, every single time.
Increase customer satisfaction. Analyse and optimise revenue cycle. Easily collaborate data across different departments.
A complete solution for Strategy Planning and Management. Gather data related to different departments easily.
Regular analysis of strategic plans and actions help employees to align with the organisation's vision.
Maximise sales and other processes' performance by continuously monitoring various KPIs.
Balanced Scorecard combines the effort of both top and bottom level management resulting in effective strategic planning and management.
Maximise efficiency of all processes within the organisation. Align organisational goals from top to the bottom level.
Get an overview of what is happening with the maker, dealer and suppliers. Make the right decisions, every single time.
Increase customer satisfaction. Analyse and optimise revenue cycle. Easily collaborate data across different departments.
A complete solution for Strategy Planning and Management. Gather data related to different departments easily.
Regular analysis of strategic plans and actions help employees to align with the organisation's vision.
Maximise sales and other processes' performance by continuously monitoring various KPIs.
Balanced Scorecard combines the effort of both top and bottom level management resulting in effective strategic planning and management.
Various business, government, and non-profit organisations use the balanced scorecard to align day-to-day activities with enterprise vision, mission, and values.
Users can access multiple interactive dashboards to get meaningful insights regarding the businesses.
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Analyse and monitor KPIs associated with each strategic goal and measure their performance.
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Gain access over multiple devices. Translate strategy plans into actions with much ease.
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Automated dynamic reports give meaningful insight. Save time and visualise growth.
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Easily integrate online Balanced Scorecard system with ERP and gain multiple benefits.
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X Matrix to initiate action plans and drive continuous improvement across the organisation.
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Use Digital Balanced Scorecard to achieve the organisation’s strategic goals.
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