Guidelines for building balanced scorecards and its benefits (Part 3)

According to a study by Conference Board, strategy implementation is the number one important job. Bain and Company – a global management consulting business, has found BSC to be one of the 10 most used strategic management tools.

BSC is supporting businesses: 31% of businesses find this tool extremely useful and 42% consider it helpful. Another 29% of businesses use software similar to BSC, like Microsoft Office, to create Scorecards. Nearly half of organizations answered that they apply at least 1 BSC in their operations, with an average of 12 BSCs. In particular, BSC is employed by both small and large organizations, about 56% of which have less than 500 employees.

4 ways BSC helps your business:

It can be said that BSC is appreciated by businesses that use it. So let’s take a look at 4 important benefits you can gain after starting scoring.

1. In-depth analysis of your operational strategy.

Although when you survey your team members or colleagues what they are doing and describe the activity in your department, you can gather quite complete information. However, it is still difficult to accurately and comprehensively analyze these activities. So how can grading fix this? Visualize your business performance as a map. The main directions are the goals, metrics, initiatives, and objectives. Without directions, your maps will become obsolete. But with specific instructions, team members will find the right strategy and go to success.

2. Develop your basics by looking at multiple data sources.

Traditional reporting erroneously does not take internal opinions or other factors (except financials) into the list. BSC recognizes that finance is only one aspect of organizational performance, the other three are: internal processes, customers and innovation. Analyzing all 4 aspects above allows you to turn your strategy into action and initiative.

3. Balance your strategy and mission.

By aligning your work and strategy (also known as a strategy map), you keep your team focused on only the important goals. Once you have eliminated all unnecessary comments or tasks, you can choose the right paths to help your goal.

4. Alter old methods to move towards the target mission.

Businesses using the BSC can identify factors that are detrimental to their business and design a strategy to change to deliver better results. By listing what you are doing now and ideas for future change, you will create better chances of redirecting your business to success.

According to research by Bain (a well-known global consulting firm) published in 2011, BSC has entered the top 10 most widely used management tools in the world (6th place).

Source: Clearpoint Strategy