A few tips before you use the balanced scorecard template:
- Ensure there is a consistent and individual owner for each KPI The balanced scorecard can be an evolving business tool and is not something which is written at one point in time and then leave it as it is.
- A designated owner on the management or executive team should support the balanced scorecard on an ongoing basis. Specify objectives An activity is required to establish the business objectives that will form part of the balanced scorecard report. Each division may have some sort of varying view as to what should be included but the report should always reflect strategic objectives.
- A number of sessions may be required to agree these objectives and this may need to be derived from a process of collective work. There should be no real contention, however. In the event that an objective polarizes opinion, then there are issues around how the business metrics is being managed.
The balanced scorecard dashboard report may be seen as being a type of key performance indicator system where key metrics are identified at the corporate level, cascaded down to the departments and ultimately to the individuals within the organization.
At the strategic as well as tactical management level, key performance indicators relating to the four perspectives define how the organization should look. The metrics or measures relate to a number of questions for each perspective.
Balanced scorecard quick cheat sheet:
- Identify the financial outcomes that are most important for your business to track. These typically KPIs incorporate a measure of current profitability along with a measure of growth as well as business and revenue growth.
- Determine what the key of these financial key performance indicators are. You may want to include measures of process efficiency, customer satisfaction, and even employee satisfaction or retention. Some experts like to include metrics that represent progress in employee learning and development, product or service innovation, and systems effectiveness.
- Review the set of metrics you have developed, including both output measures and key drivers. Ensure that you have represented all stakeholder groups and that the scorecard as it is reflects your business goals and priorities.
- Map the scorecard metrics onto the set of functional areas and core processes in your business. Each metric should tie to at least one area of operations and at least one core process.
- Share the new company, department and employee scorecards with everyone affected by these metrics and reporting. Clarify the reasons for the selection of the included metrics.
- Review your scorecards periodically to ensure that they continue to match your business goals and that they remain balanced. Consider employee and customer feedback when assessing the effectiveness of your scorecard report.
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