Balanced Scorecard (BSC) is a strategic performance management tool – a semi-standard form of the report is structured and supported by proven design methods with automation tools that can be used by managers to monitor the implementation of activities by staff within their control and monitor the consequences arising from this action.
Modern Balanced Scorecard thinking has evolved considerably since the initial idea proposed in the late 1980’s and early 1990’s, including the performance of the tools of modern management. Balanced Scorecard is significantly improved to be more flexible (in accordance with a range of organizations wider) and more effective (also design methods have evolved which makes it much easier to design and use).
The design of the Balanced Scorecard in the outline is on the identification of a small number of financial measures and non-financial to include targets to be addressed, so do the reviews it is possible to determine whether the current performance has been ‘meets expectations’. The idea is, that by knowing that it can be more focused managers to monitor and improve the performance areas that deviate from expectations, they can be encouraged to focus their attention on these areas, and trigger improved performance within the organization he leads.
Four-step design process Balanced Scorecard:
1. Translating the vision into operational goals;
2. Communicate the vision and link it to individual performance;
3. Business planning; indexes setting;
4. Feedback and learning, and adjust your strategy accordingly.
The steps above are not only beyond the simple task to identify a small number of financial and non-financial measures, but also describes what are the requirements for the design process suitable for use in thinking about how the resulting Balanced Scorecard will integrate with the wider business management