Balanced score card is an important business management methodology. It helps organization to achieve their business objectives and execute key strategies. The balanced score card aims to balance the strategic goals and overall vision of an organization by identifying, measuring and managing four main business perspectives: Customer, Financial, Internal Business processes, Learning & Growth. At present 70% of business use a Balanced score card to manage their strategic goal.
The Benefits
- Allows for better strategic planning.
- Allows to make communicating Strategy.
- Provide effective performance reports.
- Improved Project Alignment
How to create a Balanced Score Card
Step1. Look at the Business or Project from 4 Perspectives.
Step2. Choose strategic objectives.
Step3. Flesh out the Strategy Map.
Step4. Measure the Company Success.
2CG, a strategic execution consultancy firm, has been conducting yearly surveys about the Balanced Scorecard since 2009. Of the Organizations that participated in the 2017 survey:
- 77% report that their Balanced Scorecard is extremely or very useful.
- 75% use the Balance Scorecard to influence business actions.,/p>
- Of the 64% of organizations that have refreshed their Balanced Scorecard.
5 ways The Balanced Scorecard can help the Company
- Gain transparency throughout the organization.
- Grow the bottom line by looking at other perspectives.
- Operations will align along with mission.
- Higher the goals, higher the tangible actions.
- Consolidate the strategic plan.
By Ms. Pragya Jain (Student MBA Ist Year)
