Balanced Scorecard

The Balanced Scorecard is a measurement and management system that can channel the energies, abilities and specific knowledge held by people throughout the company towards achieving long-term strategic goals. It 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. Measurements developed in this process focus activities that are important to 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 in people that are important to reach the company goals.

The process is not difficult. It involves nine steps that are covered in three, two-hour sessions. It requires about an additional hour of work between each session.

The nine steps are:

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

Session 1 helps you clarify the critical strategies for business success and begin developing measures for those things critical to your success.

Session 2 focuses on establishing goals and narrowing them down to a critical few in order to provide a snapshot of those things that will lead to success in the company.

Session 3 provides guidelines for you to implement your scorecard in the daily work of your business.

To help you get started:

• For more information about the Balanced Scorecard, download:
  Introduction to Balanced Scorecard
  Recommended Reading List

Learn more about MO SBTDC management tools:

• SMART
• Balanced Scorecards
  
• fisCAL