The Balance Business Scorecard, also referred to simply as the balance scorecard, started out as a way to measure performance but later evolved into a method by which we could begin implementing strategic planning methods along with full management systems.
What does the scorecard do? It actually gives CEOs, managers, and leaders a tool to use when turning a plan into a real course of action. It’s one thing to have a plan written out on paper, but an entirely different thing to actually implement that plan and see it work. What’s the point of having a vision or mission statement if you aren’t sure what steps need to be taken in order to reach those goals?
The Balance Business Scorecard looks at the following four main business perspectives:
• Learning & Growth – This category focuses on how well you train your employees, foster the appropriate organisational attitudes, and the steps you take to turn your staff into a group of valuable resources.
• Business Processes – This category directly relates to how in tune you are with process improvement and management. As a manager, you should know and understand how well the business is operating and whether or not the product you create meets the quality criteria you expect.
• Customers – This perspective focuses on whether or not your organisation is really making customers happy. Happy customers remain customers for the long haul.
• Finances – Keeping accurate financial records is as important today as ever before. Make sure your financial information is being handled effectively and that it is being treated as the sensitive personal information it really is.
Having all of this information in check will allow you to view your organisation as a whole and implement a plan to actually achieve your goals. The success of your organisation is only as good as your vision. Do you have a plan?