The Balanced Scorecard — Measures that Drive Performance
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Imagine if you could see your entire business performance at a glance, with a simple tool that shows you how well you’re doing in every aspect of your organization. Imagine if you could easily align your actions with your goals, communicate your priorities, and monitor your progress. Imagine if you could boost your performance by focusing on the drivers of future success. Sounds awesome, right? Well, it’s not just a fantasy. It’s a reality. It’s called the balanced scorecard, and it’s a game-changer for your business performance management. The balanced scorecard is a set of measures that links your vision and strategy to four key perspectives: financial, customer, internal, and learning and growth. The balanced scorecard is more than just a collection of metrics, but a way to create a culture of excellence and innovation in your organization. In this blog post, I’ll show you how to create a balanced scorecard, how to use it effectively, and what benefits it can bring to your business. Are you ready to take your performance to the next level? Let’s dive in!
How to create a balanced scorecard
Now that you know what a balanced scorecard is and why it’s useful, you might be wondering how to create one for your own business. Don’t worry, it’s not as hard as it sounds. In fact, you can create a balanced scorecard in four simple steps¹:
- Translate your vision and strategy into objectives and measures for each perspective.
- Link your objectives and measures across the perspectives to show how they support each other.
- Establish targets and initiatives for each measure to drive performance improvement.
- Collect and analyze data on your measures and report the results to stakeholders.
Let’s go through each step in more detail and see how you can apply them to your business.
Step 1: Translate your vision and strategy into objectives and measures for each perspective
The first step to creating a balanced scorecard is to identify your strategic objectives and measures for each of the four perspectives: financial, customer, internal, and learning and growth…
