How Balanced is you Organization’s Score Card?
Do you know what the most successful of companies are using to track their progress?
Can you measure all aspects of your company in one metrics?
How to know the perfect Balanced overview of your organisation?
What are the key points of a balanced score card?
The balanced scorecard is a management and measurement system that enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results. When fully deployed, the balanced scorecard transforms strategic planning from an academic exercise into the nerve center of an enterprise.
The balanced scorecard retains traditional financial measures. But financial measures alone are adequate for industrial age companies where investments in long-term capabilities and customer relationships were not critical for success. The financial measures are inadequate, however, for guiding and evaluating the information age companies that create future value through investment in customers, suppliers, employees, processes, technology, and innovation.
Recognizing some of the weaknesses and vagueness of previous management approaches, the balanced scorecard approach provides a clear prescription as to what companies should measure in order to ‘balance’ the financial perspective.
Here are some characteristics of good performance measures
- Meaningful — significant and directly related to the mission and goal.
- Responsibility Linked — matched to an organizational unit responsible for achieving the measure.
- Organizationally acceptable — valued by those within the organization.
- Customer focused — reflect the point of view of the customers and stakeholders.
- Comprehensive — include all key aspects of the organization performance.
- Balanced –– include several types of measures, i.e., outcome, efficiency, and quality measures.
- Timely — use and report data in a reasonable time-frame.
- Credible — based on accurate and reliable data.
- Cost Effective — based upon acceptable data collection and processing costs.
- Compatible — integrated with existing financial and operational systems.
- Comparable — useful for making comparisons with other data over time.
- Simple — easy to calculate and interpret.
To create a Balance Score Card of your organization using the above criteria’s get in touch with The idea smith.