What is it? The balanced scorecard system involves the use of KPIs to assess performance in achieving strategic goals. However, unlike the classical system, the BSC does not have priority criteria.
How to implement? Development and implementation of BSC occurs in stages: starting with the analysis of goals and ending with the construction of a map of indicators and monitoring the effectiveness of the activities carried out.
The article explains:
Prerequisites for the instagram database implementation of a balanced scorecard system for a company
The concept of the balanced scorecard
Goals and objectives of the balanced scorecard
Advantages and Disadvantages of the Balanced Scorecard
Components of the balanced scorecard
Preparing for the implementation of the balanced scorecard
Stages of implementation of the balanced scorecard system
An example of the application of the balanced scorecard system
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Prerequisites for the implementation of a balanced scorecard system for a company
Nowadays, companies are in a highly competitive and constantly changing market situation. To achieve success, they have to quickly adapt and get ahead of their competitors by expanding the range of goods and services, improving their quality and offering them at a price that is attractive to the consumer.
In order for management to make the right decisions quickly, it is necessary to have up-to-date information about the state of affairs in the company. In addition, the current activities of the enterprise must be coordinated in such a way as to facilitate the implementation of long-term goals, otherwise development will stop. Therefore, it is necessary to correctly define tasks and think through ways to achieve them, as well as be able to direct all possible resources to achieve the planned result.
Prerequisites for the implementation of a balanced scorecard system for a company
The success of any company largely depends on how correct the chosen strategy is and whether it is clearly formulated. It is also important to set realistically achievable goals.
What should a strategy look like? There are different opinions on this matter. In some companies, the development plan consists of a few key words. Other organizations draw up multi-page documents called “Long-Term Planning,” which detail all the goals and steps to achieve them. The common opinion is that the content is most important, and the form in which the strategy is presented is of lesser importance. But this point of view is gradually losing ground.
It becomes clear to company managers that for the course to be successfully implemented, it must be understandable to all employees. Therefore, in order to increase the chances of achieving goals, they must be presented in an orderly form. For this purpose, there is such a tool as the balanced scorecard (BSC) (the abbreviation consists of the initial letters of the English phrase Balanced ScoreCard ).
BSC is the name of the company's strategic management system. Its purpose is to measure and evaluate the organization's performance according to specific indicators.
The data is selected so that it reflects all aspects of the company's activities, not just financial ones. The word "balanced" in the name indicates a balance between goals (short-term and long-term), indicators (financial and non-monetary), parameters (main and auxiliary) and factors of activity (external and internal).