Internal Business Process Examples for Balanced Scorecard Development
Using a balanced scorecard in your organization can greatly improve your day to day results. For those who are new to balanced scorecard. It’s basically a tool you use in your organization to help manage its performance in 4 main categories. These are Financial, customer, internal business process and learning and growth. You are then going to set objectives and use key performance indicators to help measure the different performances.
This will help you to monitor the different performance over a period of time to make certain everything is working well.
To elaborate more on the 4 perspectives that is really important to grasp the whole concept of the balanced scorecard.
You can see Balanced Scorecard Internal Business Process Examples in more detail below:
• Financial – In the financial area of your balanced scorecard. You are going to create objectives and track your financial performances over a period of time.
• Customer – You need to put objectives and indicators in place to improve your customer service, customer loyalty, create better quality products etc.
• Business internal processes – You are going to basically create internal objectives to improve your organization’s operations. Examples of these would be better distribution strategy, faster production time etc.
• Learning and growth – lastly in this section you are going to focus on improving your employee’s skills, ensure that the organization has the right culture etc. Additionally investing in research and development should also be another objective of you company. So that you can bring in a new stream of innovation to ride the wave of new opportunities.
One of the main areas of your balanced scorecard that you must focus on and probably even one of the most important areas is your internal business processes.
The reason for this is because your internal business processes and just how your business operates on a daily basis. Largely determine whether your organization fails or not. So it’s really necessary to put a lot of thought and time into it when you’re focusing on this section of your organization.
Most organization’s internal business processes are different. But below you can see a good list of examples of what can normally be on a balanced scorecard internal business process.
• Improve our production cycle time by 10%
• Increase the efficiency of our distribution strategy
• Create a better supply chain management strategy which will improve our operations and help us to cut cost
• Decrease the rate of our manufacturing material wastage
• Increase our accuracy of order fulfillment
• Reduce our rate of on the job accidents
• Improve internal communication to help information spread faster and more efficiently within the organization
• Increase the rate of our machine uptime by 5%
• Make better use of our equipment in order to make our production operations perform efficiently at a cheaper rate
• Improve the operations in our inventory management system
In summary the examples shown above is just to give you an idea of what kind of objectives you are going to have in your internal business process section. Ensure that whatever you are going to track will have an impact on your organization.