The Balanced Scorecard.
This is one of the most widely used strategic performance management tools in the world and is generally used by managers to keep track of their staff activities and indeed, the consequences that come from these actions.
“Research has shown that 90% of companies fail to execute their strategy. Balanced Scorecard helps to ensure follow-up and strategy-based commitment to the longer term.” Balanced Scorecard Collaborative.
Implementing the Balanced Scorecard system in your organisation should be the key to the successful realisation of the strategic plan/vision.
With the Balanced Scorecard:
- Strategy becomes part of everyone’s everyday job.
- Commitment is increased – if you don’t understand, you can’t be committed.
- Efficiency and motivation are increased through clear, targeted communications.
- Target setting is done from every perspective.
- All components of strategy – objectives, measures, initiatives – are linked and aligned allowing for fast reaction to changes.
Transfer the view from short-sighted financial management to long-term strategy-based management.
The Balanced Scorecard enables target setting to be done from each of the Financial, Customer, Internal Business Process and Employee & Development perspectives - with a balanced follow-up on performance. This enables a quick reaction to change.