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MODELLING YOUR BUSINESS WITH BALANCED SCORECARD EXAMPLE

MODELLING YOUR BUSINESS WITH BALANCED SCORECARD EXAMPLE

The resounding successes achieved by companies who have adopted the Balanced Scorecard Example (BSC) approach must be credited to those who drove the process in these organizations. It is common knowledge that employees, that is, people are the driver of processes in organizations giving rise to the common cliché which states that: “An organization is only as good as its people”. Thus, care must be employed when adopting the BSC, not to view it as an infallible concept, but concentrate on achieving business goals with constant monitoring as a guide.

If you intend to adopt the Balanced Scorecard example, it pays to understudy a number of companies within your industry who have implemented it to see where they got it right and where they went wrong. This will help you to properly benchmark and most likely know where to avoid the pitfalls on the learning curve. Regardless of the benchmark you choose, the approach you intend to adopt must be able to answer the four critical questions namely:

How do we look to shareholders? – For financial measures
How do customers view us? – For customer related measures
What must we excel at? – For internal business process measures
Can we continue to improve and create value? – For learning and growth measures

Also, for proper modeling of your business with a Balanced Scorecard example, you must clearly understand where your company currently stands in terms of performance metrics, and where your proposed benchmark company stood as at the time they adopted the approach. This will help you achieve maximum benefit from the program. Thus, it is usually recommended that you originally carry out a gap analysis to determine where your company stands before taking any approach.

Also read testimonials from staff of the model company, because these insiders can accurately tell you how it was before adoption of BSC, what the journey was like and how it feels in the new business space. Finally, it must be noted that one approach can achieve varying results across different business units and departments due to the variance in processes.

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