Strategic planning with the Balanced Scorecard approach
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Strategic planning with the Balanced Scorecard approach
A Balanced Scorecard is a register used to measure achievement or progress towards a specific goal. A Balanced Scorecard has several advantages which include:
Clear organization goals breakdown presentation that is uniquely connected. These goals include Financial, customer, internal, and people (“MyStrategicPlan.com.”n.d.). The Balanced Score framework looks at these goals in different perspectives and how there are related to the achievement of organizational objectives. From a financial approach, the Balanced Scorecard looks at how financial goals can be achieved in an organization. From the customer approach, the Balanced Scorecard elaborates on the value needed to be provided to customers to gain customer loyalty that will lead to achieving financial objectives. From an internal perspective, the Balanced Scorecard looks at the internal practices in a company needed to meet customer expectations to achieve the financial goals targeted by the company. Lastly, on people’s perspective, the Balanced Scorecard looks at the skills the company employees will require to perform the internal practices in a company to achieve value to customers to meet financial targets.
Another merit of Balanced Scorecard is that it plays a big role in bringing organization strategies to life. This is achievable because tracking strategic performance in the company is enhanced by Balanced Scorecard.
Managers can use Balanced Scorecard to monitor and guide their performance as it provides a strategic map that shows the measure of performances. Managers can easily trace all the activities in a company by regularly monitoring regularity of performance using Balanced Scorecard. With the knowledge provided by Scorecard, the managers can easily understand the goals intended to be achieved by a strategic plan, for example, improving customer satisfaction. The manager will then be able to know the measures put in place to achieve such goals, for example, delivery time, and then managers will know the targeted delivery time to be met. Hence Balanced Scorecard helps managers to monitor and guide their performance.
References
MyStrategicPlan.com. (n.d.). Strategic Planning with the Balanced Scorecard. YouTube. https://www.youtube.com/watch?v=AdXt8BfiGJg&feature=youtu.be