Why is the balanced scorecard software tool called "20-20"
In eye testing perfect vision is 20-20.
When strategies are formulated and implemented the vision of what is to be achieved should not blur as it is transmitted into the organization. Both management and implementers should have a clear view of what is to be achieved, how, and the progress towards implementation.
"20-20" drives the strategy implementation process by ensuring that the organization has a clear and unambiguous understanding (view) of how the operations will create the desired results. This creates a sharp ("20-20") picture that ensures strategic results are achieved.
How to use "20-20"
Set out below are the steps to be taken when designing a balanced scorecard system:
- Define the vision and / or mission of the organisation.
- Decide the strategies needed to accomplish the organisation’s objectives.
- Identify the key perspectives that the organisation will consider, typically financial, customer, internal processes and innovation (also called learning, growth, renewal, and development).
- For each strategy identify the key objectives. These objectives will take into account all of the perspectives. Assign who will be responsible for each objective.
- Each objective must have one or more measure. Identify appropriate measures and put in place mechanisms to collect measurements at appropriate intervals.
- After building the balanced scorecard, use the software to monitor and communicate performance. How is the organisation as a whole doing? Is it doing equally well in each of the key perspectives? Are the strategies on track? What is the analysis per person or per department or per process? The software automatically provides this information both on the screen and in reports.
The secret of success is to keep the scorecard simple and straightforward so that it is relevant to its users. The scorecard should reflect how the business will improve and grow its activities to achieve the vision it has set. It facilitates implementing strategic decisions and review.
Steps can be implemented to take advantage of new opportunities revealed by the scorecard process and to avoid inefficiencies.
How do you use the features of "20-20" in your organisation?
You enter the strategies and key perspectives. For each strategy enter objectives and how they will be measured. Measurements are recorded. "20-20" uses your information to analyse and monitor the abilities and achievements of the business in implementing its strategies.
Use "20-20" for making strategic decisions and monitoring their implementation.
You will find that…
1. You get a realistic performance analysis by organisation, department, person, process and sector quickly and easily.
2. Results are shown in detail for strategies and objectives. You can view performance on the screen, graphically and in well-organised printed reports.
With "20-20" you can…
· Get a realistic assessment of how well the organisation is performing and planning for future sustainability and growth.
· Manage strategy implementation.
· Identify and control inefficiencies in the organisation.
If you want to focus your attention directly on the strategy implementation of a business, and want an easy to use, intuitive program that gets you to an answer quickly, use "20-20".
To get familiar with balanced scorecard jargon see the glossary of balanced scorecard terms
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