Balanced scorecard: A strategic planning and management system used to align business activities to the vision statement of an organization.
A balanced scorecard is a tool used to measure the intangible assets of a company. It is an organized, traceable method to transform strategy into action by harmonizing all aspects of a business to meet common goals.
What does a balances scorecard look like?
A balanced scorecard considers different areas of a business, including…
- Learning and Growth: Employee training and satisfaction, enhancing human capital, high performance, and employee retention.
- Business Process: The efficiency of the company, internal business processes, the desirability of the product to customers, how well the company is performing overall, business process problems and strengths.
- Customer Perspective: Customer satisfaction levels, customer retention and market percentage, customer wants and needs, and how well the company meets them.
- Financial Perspective: How well the company is performing financially, cash flow, results, financial risks and return on investment.
Balanced scorecards are a great way to map out strategy by starting with the company’s mission, then investigating the four areas listed above. A strategy map is a communication tool that can be used throughout your organization to teach and reference step-by-step connections between objectives and daily performances.
A balanced scorecard could result in improved business efficiency, motivated and well-equipped employees, greater customer satisfaction, and an organized method to monitor progress.
Want to learn more about balanced scorecards, and create one for your company? Consider attending a learning seminar and workshop on February 19 to 20.