Introduction to the Balanced Scorecard

Outcomes and Benefits

The Balanced Scorecard has the capacity to address these challenges and can act as a catalyst for significant cultural and behavioural change.

1. Focus on strategy

With rapid adaptations in strategy needed to respond to changing market conditions, it seems useful for organisations to develop a mechanism that enables rapid and effective execution of strategy. The scorecard enables such a mechanism, acting as the `nervous system' of your organisation. Translate your strategy into key objectives in financial and non-financial perspectives. Have people focus more consistently on how to move along the pathways being pursued by the organisation.

2. Alignment through Communication

Tell the story of your strategy powerfully and clearly by linking your strategic objectives, through common sense cause and effect relationships. Define critical measures which will focus behaviour and learning on achieving strategic objectives. This also enables people to see how what they do fits in to the bigger picture.

3. Support the right actions

Drill down on work activities, and facilitate understanding at all levels of your business, by aligning initiatives and projects that support the strategic direction. Say no to projects that do not reinforce strategic themes. Align budgeting processes with strategy.

4. Feedback and learning on the move

Detect obstacles faster, and gain strategic feedback through a structured review process against the scorecard framework. Cultivate two way feedback on progress so as to accelerate learning. This enables earlier identification and correction of obstacles and allows refinement of strategy when necessary.

Continue to Underlying Principles ...

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