The Balanced Scorecard (BSC) is a widely used strategic performance management tool for analyzing the proper alignment of the small operational activities with the company’s main vision, strategy and business objectives. By focusing not only on financial outcomes but also on the operational, marketing and developmental inputs to these, the Balanced Scorecard helps to provide a more comprehensive strategic analysis of a company.
Design of a Balanced Scorecard is mainly about identifying small number of financial and non-financial parameters which can help to conduct strategic performance management. By checking all the small parameters and key points, we can easily identify their current performance and whether they are meeting the expectations or not. If there are any deviation from the expected results, Company managers have to focus more on those key parameters and have to come up with a solution for improved performance.
The balanced scorecard suggests that we view the organization from four perspectives, and to develop metrics, collect data and analyze it relative to each of these perspectives
Benefits of Balanced Scorecard
Balanced Score Card is mainly used for strategic performance management tool which helps to analyze the performance of for some key financial and operational activities. It offers the benefits
One Sample Balanced Score card for one Financial Institution
Planning a strategy is relatively easier than successfully implementing the same. Successful implementation of a strategy needs more attention and efforts to achieve the desired result.
Business processes face lots of hurdles in terms of current issues, employee dissatisfaction, improper policies etc. All these hurdles can be overcome by efficient use of proper improvement and analysis methodology including “Balance Score Card”. Finally the successful implementation of performance management is done by the companies with very high level of maturity in using existing information and different strategic tools.