What is the Balanced Scorecard?
The Balanced Scorecard is one of the most effective performance management tools on the market today, helping organizations to monitor business success on a strategic level.
Whether you are a CEO, a top manager or line manager, this tool can not only help increase the performance of you own work, but truly align your individual objectives to the organization’s objectives, and create an effectively optimized and successful working environment.
The Basics of the Balanced Scorecard
The concept of the Balanced Scorecard is actually quite simple, and this is the approach that we are taking in this training, where we are showing you step by step guidance on how to implement the balanced scorecard in your business.
The balanced scorecard is the tool that aligns individual objectives with organizational objectives, and measures performance in terms of progress towards desired goals.
Balanced Scorecard Scenario
Here is the simple scenario:
The executive team identifies the vision and mission of the company as well as clear objectives – for example – Become the market leader in the industry in the next five years
A strategy is put in place, or more than one, and plans are made on how the employees can work towards meeting these objective
The executive team puts in place a plan to review performance throughout these 5 years and ensure that the progress is kept on track in order for the business to achieve its ultimate goal – to become a market leader in the industry for the next five years.
Although this is the overall goal, the company will have many other individual objectives that work towards the common goals.
Learn more in eTraining: How to use Balanced Scorecard in Human Resource.