Guidelines for building balanced scorecards and its benefits (Part 2)

Today, the application of Balanced Scorecard (BSC) is no stranger to many businesses around the world. 2CG, a strategic execution consulting firm, conducts annual surveys on BSC to better understand why it has become so popular and how useful it can be.

The results show that 87% of businesses think that using BSC has a positive effect on their business. They use BSC regularly: 44% of businesses use it monthly, and 33% use it quarterly.

In general, organizations that are benefiting from the application of BSC believe that BSC is a tool that needs to be maintained regularly, and preparation is always very important to the success of the organization. Here are some notes on the way to build a BSC for your business:

Building a Statement of Goal

A goal statement clearly communicates how you become different from your competition, and it should cover three different aspects: Objective + Advantage + Scope. Simply put, a statement of your goal tells the world what you will do (your goal), how you will win (your advantage), and where you will do it (break your micro).

Design the roadmap to change

If the goal statement is an outward activity, then the path of change will play a leading role within your organization. What do you need to improve in your organization to achieve your goals? What levers can you pull to drive change? Your change path is a simple flowchart of the changes that will occur in your organization as you execute your strategy.

Strategy charting

Without a map to guide you to your destination, it’s easy to mistakenly turn the detours on the strategic route. A strategy chart is a simple, one-page drawing of a visual representation of your strategy goals, with cause and effect associations. It paints a picture of your strategy, something that anyone can understand.

Create great solutions

Once you have your chart, it’s time to think about the solutions. Solutions do two things: They help you manage (understand what’s not working) and they help you motivate (people react to what’s being measured, even when there’s no compensation attached. with it.) Choose solutions that help you guide your strategy.

Launch some initiatives

The initiative (or project that people speak of) is where your strategy comes to fruition. What projects do you need to initiate to implement this strategy? And, equally important, what will you stop doing to focus on your strategy? Keep a close eye on these projects as they will drive your success.

Source: Clearpoint Strategy