Set your organization for success by using Balanced Scorecard for your Strategic Planning
The balanced scorecard is a revolutionary management tool that has transformed the strategy execution and strategic human resource management in many organizations. A system that helps a firm to set its key strategies right is reportedly being used by not less than 70% of businesses to achieve their strategic goals.
Any organization’s success is not just defined by its profits and revenues, there are several other parameters that go into the success story of a company. These ‘other parameters’ are the metrics that have been taken into account in the balanced scorecard. Emphasizing on a holistic approach, the system has been developed encompassing four major dimensions of successful business strategy – Customer, Finance, Business Processes, and Organizational Learning
A proper understanding of the four components that form the very basis of the company’s existence is the stepping stone to success. Balanced scorecard along with the Strategic human resource planning helps you evaluate the performance of your organization and take necessary measures as and when required.
The 4 organizational pillars covered in Balanced scorecard
Satisfied and loyal customers are the real assets of any organization. The balanced scorecard helps to assess what exactly are your customers and stakeholders expectations and demands. This perspective emphasizes on brand building techniques, tapping new customers and optimizing customer satisfaction. The ultimate objective is to create a broader and better market for the company’s products and services.
The financial strength of the company is the direct indicators of the company’s financial health. Hence, all the parameters connected with the finances of the company are well-studied and accordingly, strategies are framed to meet the existing and future challenges.
Smooth and efficient business processes ensure timely and desired outcomes. Any delays or gaps can hinder the efficacy of the entire working system. Hence, streamlining the processes and adapting to the changing business requirements becomes instrumental in achieving the organization’s objectives. These are the must-have objectives in any strategic plan.
Continuous learning and incorporating the latest technologies are the cornerstones of an organization. To attain a competitive edge in the market it’s very essential that the human resources are exposed to the latest concepts and methodologies. So, that they can make the most out of it and earn advantages that work in favor of the company. Hence your strategy should provide ample emphasis on objectives dedicated to nurturing and reinforcing organizational learning and its core competence.
A balanced scorecard by covering all the above key factors helps the firm to link the strategy to the deliverables of every employee in the organization and thereby contributes in strategic human resource planning to get a competitive edge.
Balanced scorecard enhances strategic planning discipline
In bigger organizations that have vast perspectives and diverse factors to take care of, the role of balanced scorecard comes into play. With all the crucial perspectives brought under one umbrella, it becomes easier for the organization to take control of all the upcoming challenges and bottlenecks. Priorities can be set and accordingly strategies can be aligned to create a conducive environment and self-discipline towards strategy execution.
Evaluating performance metrics at different stages and levels in the light of defined strategic goals, a balanced scorecard in conjunction with the strategic human resource management helps the organization to identify the key strengths and liabilities of the company. Thus, ensuring the right measures are taken at the right time.
For all those who are still doubtful about the benefits of BSC and wonder what is strategic human resource management and how it can be helpful, the answer is simple. Consider starting with a basic balanced scorecard template or simply build your own from scratch. You can customize it to your needs and see how it eases your management issues and complexities.