With increased data, companies need tools to analyze and evaluate their success. One of the tools that has captured the attention of many businesses is the Balanced Scorecard. The move to incorporating balanced scorecard in evaluation processes has benefitted Executives or Team Leaders for it has encouraged professional growth.
Balanced Scorecard being a strategic planning and management system, it has helped organizations assess their business activities and measure the effectiveness of a strategy under the overall goals or vision of the company, visually! The tool focuses on the customer or client outcomes.
Depending on the company’s needs, an organization may choose to use a balanced scorecard quarterly, monthly or yearly. Cynet has a hands-on experience in defining and creating perspectives by following the following steps:
- Financial data: Gather financial data from the accounting department to understand sales, profits, expenses and yearly projections. After receiving this data, distribute it to internal and external stakeholders to assist with strategic planning.
- Learning and growth: Use the human resources department to evaluate the learning and growth of the organization. For example, assess the effectiveness of team training to determine if they meet industry standards.
- Business processes: Review the company’s operational documents and production results to analyse the effectiveness of business processes. Use this information to determine if certain practices, like technology and time management work efficiently.
- Customer perspectives: Acquire fecustomer feedbacky sending surveys or speaking directly to the client base. Seek to understand their concerns and make changes to preserve loyalty and improve customer satisfaction.
As Cynet, we are mindful and concerned of your continuous improvement! Improving your strategic planning by gathering as much information as possible to be used in the assessment process helps us evaluate and lead you into better strategic planning. We guide and nurture your team to align your projects with your goals and objectives. By considering the above perspectives, we help companies measure performance effectively. The four perspectives provide clear categories to analyze each practice or procedure within the company. Completing a balanced scorecard can give a company tangible information to share with internal or external stakeholders. This can communicate the success levels of the business, show stakeholders the progress of the company, and help build a relationship of trust and collaboration.
How we create a Balanced Scorecard
Creating a Balanced Scorecard requires dedication and collaboration from multiple departments. In our implementation strategies, we believe in the following steps for creating a balanced scorecard:
- Outline your purpose
- Create specific objectives and performance measures
- Strategically map each perspective
- Analyze performance
- Share and communicate results
- Develop strategic changes and initiatives
- Implement the changes
