How to Create Balanced Scorecard for your Organization
A balanced scorecard can be referred to as a business framework that facilitates managing and tracking an organization’s strategies. As the name suggests the balanced scorecard provides an opportunity to assess the business from different perspectives and at different levels. It primarily looks into four major perspectives that encompass education, processes, end-users, and financials.
Although imperative for a healthy working organization, it requires precise expertise and knowledge. This is the reason why today several companies consider opting for balanced scorecard consulting solutions.
CerveauSys is one of the leading business consulting companies that have enabled multiple business projects to take off smoothly. Working as a strategic management consulting agency, where we will help you understand the principal steps to create a balanced scorecard.
1) Assess business/project from 4 vital perspectives: The 4 perspectives as mentioned before play a critical role in grading your business health and hence must be assessed carefully.
- Education: Here you need to focus on the learning and development of your employees. You need to find out whether your talent resources are aware of the latest trends, they are getting the desired training and the knowledge sharing process is taking place in the right manner. Basically, you need to evaluate how you can make your organization education-friendly. Then, with the help of strategic planning consulting services implement tools and systems to make it a reality.
- Processes: This involves assessing the efficiency at different levels within the organization. Ask yourself, if the departments are operating smoothly and are there scope for system improvement by working upon downtime, reducing wastes and eliminating other business obstacles. Such questions will help you keep a check on your business operations, leading to improved productivity, cost reduction, and better financial health.
- End-User: Now you need to look into your customer’s requirements and their satisfaction level. You must find answers to the following questions- Is your team bringing a steady stream of new buyers? Are you able to achieve repeated sales with increasing success? How your brand is viewed in the market? Look for ways to improve your connection with your customers and build stronger channels that can generate more lead and reduce turnover rates.
- Financials: Assess your financial aspects. Look at how your spending is generating revenues. Here it’s important to note that financials are a lagging indicator. This means you can only assess what already happened and not what the future holds. Hence, looking at an organization through the financial lens alone is the wrong perspective. It is only when all four perspectives are given equal credence; your business stands a greater chance of succeeding.
2) Draw Strategic Objectives: Now frame strategic objectives for each perspective like how to increase company profits and reduce waste during the manufacturing process. This is where the balanced scorecard starts to pay dividends. Known for the best consultancy in Pune, we have a few tips for you in regard to choosing the right objectives. Must keep following things in mind –make long and measurable objectives, get your team involved and make your objectives action-oriented.
3) Work out a Strategy Map: At this point you are prepared to flesh out a visual map, combining the four perspectives and your company objectives that can serve as your guide. This map should clearly highlight the goals of each perspective and the strategy to attain it. Depict the cause and effect chain that you intend to follow. Having a visual guide of your objectives and strategies will help you make more judicious moves and take strategic decisions as per the defined perspectives.
4) Evaluate Company Success: The final step is to measure your company’s advancements or progress. See if you are moving closer to your set targets or farther away. For instance, if you are planning to improve the customer satisfaction rate, you may try to track your company’s NPS score (a customer satisfaction benchmark).
If results are positive you can continue with your defined strategies but if the actions are not yielding desired output then make changes. Remember to track one or two metrics per strategic objective.
As trusted strategic business startup consultants in Pune, we have been in the industry for long and can help with your action plans. Whether you are at the nascent stage or already well-established, our approach and solutions can be highly productive for your business goals. Call us today to know how we can help you.