The Balanced Scorecard
For Small Business
Interested in developing a system for measuring the critical components
within your business in order to strengthen your company and reach your
goals? Then the Balanced Scorecard may be just the tool for you.
The Balanced Scorecard is a measurement and management system
that can channel the energies, abilities and specific knowledge of people
in your company toward achieving long-term strategic goals. Utilization
of this tool allows a company to measure its performance in critical
areas that are key to its success.
Each business has a unique path to success. The steps to developing
a Balanced Scorecard force a company to clarify its strategy
and key success factors. The underlying principle here is that "what
gets measured gets done!" Therefore, measurements developed in
this process will focus your work on the activities that are most important
to your success.
The scorecard then becomes a tool that improves communication, empowers
people to make informed decisions and aligns work throughout the company.
It reinforces the behaviors that are important to reach your company's
goals. And it provides you with a time-efficient means to evaluate your
progress toward strategic goals. With just a few measures, you can monitor
your company's business health!
The Missouri Small Business Development
Centers (MO SBDC) now offer a nine-step process to create your company's
Balanced Scorecard:
- Step 1 - Define Your Key Success Factors
- Step 2 - Identify Common Themes (Perspectives)
- Step 3 - Select Measures for Each Perspective
- Step 4 - Establish Goals for Each Measure
- Step 5 - Narrow the Measures to a Vital Few
- Step 6 - Develop a Collection System
- Step 7 - Communicate
- Step 8 - Trickle Down the Measures
- Step 9 - Evaluate, Revise and Redeploy
The process is not difficult and can be completed in three sessions.
Further support is available from a local SBDC or UOE office to help
you implement and evaluate your Balanced Scorecard.
To find the office nearest to you,
visit the Missouri
Business Small Business Development Centers website at www.missouribusiness.net.
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Authored by: Jackie Rasmussen, Business and Industry
Specialist, University of Missouri Extension
Source: Creating Quality Newsletter, Volume
12, Number 4, April 2003
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