Strategic business management using Balanced Scorecard method and appropriate tools support decision making with the most recent information that is required at the moment. It is used as strategic tool in order to analyze the business process compliance with business goals. One of the hardest tasks while implementing business strategy in real life is to associate it with employees’ everyday tasks and on-time communication.
Balanced Scorecard is based on business processes and controlled by various, not only financial, indicators; as a result a report is generated not only on organizations’ previous actions, but with an opportunity to foresee how the company should develop its activities in future.
Balanced Scorecard consists of 4 process indicator perspectives:
- Financial perspective sums up indicators of financial activities presenting today’s financial results with relevant past activities;
- Customer perspective sums up indicators presenting clients’ activity and reaction today;
- Internal process perspective is used in order to present data regarding various development/project management/production/service indicators and it is the most efficient perspective for finding mistakes, before they have reached the client;
- Learning and growth perspective presents data regarding intellectual property and non-material opportunities that will be used today in order to improve the results tomorrow.
In order to implement Balanced Scorecard in the everyday activities of your organization, it is necessary to define:
- Business vision – where are you going and where you want to be in the future;
- Business strategy – how you will reach the vision and how you can use available resources in order to achieve the vision;
- Perspective – which business operations shall be primary in order to achieve the chosen strategy;
- Critical success factors – on which activities organization must focus in order to reach the strategy in the most efficient way;
- Measurements – which activities should be monitored in order to reach critical success factors;
- Activity plans – activities to be done in order to receive the goals set prior.
If you manage your business development strategically, you will receive following advantages:
- All activities and each individual’s performance are directed to the common strategy and result;
- Each employee recognizes his contribution to the overall growth of the organization;
- Opportunity to understand customer expectations and to be able to react faster and more efficient;
- Better internal communication between various units and employees of various levels, thus fostering stronger mutual cooperation;
- Opportunity to organize time and resources more efficiently, as a result allowing faster reaction to internal and external changes.
We can help you:
- By providing consultations in preparation and implementation of Balance Scorecard in your organization - from developing and defining the corporate strategy to distributing activities;
- By offering complete solution and tools in order to ease the preparation of Balance Scorecard for continuous control of achieving your strategy and more efficient way for reviewing performance.
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