The balanced scorecard is an approach to future planning. A business scorecard starts with a vision defining where the company is heading in the long term and a mission to justify its existence in the shorter term. Balanced scorecard strategy is the top level of decision making for the changes necessary throughout the organization to achieve the vision in a defined period of time.Scorecard strategies wont necessarily be equally important so usually you use weightings to designate importance
“How can the organisation achieve a competitive advantage?”
“What should we be doing to achieve our vision?”
“How can we compete more effectively? Should we have a strategy to improve (whatever)?”
“Should we develop new products or services”
“What can we do to improve (whatever)?”
Scorecard strategy examples
Increase turnover by 15%
Optimise the production process
To increase the value of the business
Achieve sales of —- per annum
Clearly identify our target markets
Become the supplier of choice for toy manufactures.
Each strategy is examined from each of the scorecard perspectives – Financial, Customer, Internal processes & Innovation. A perspective is the aspect from which the strategies are viewed. i.e. how should we appear to the shareholders?, how should we appear to the customers?. To satisfy shareholders & customers what business processes must we improve?. How will the ability to change & improve be sustained or how will the infrastructure be provided to enable the objectives of the other 3 perspectives to be achieved?.
See how strategies fit into the progressive implementation of the balanced scorecard with 20-20 Balanced scorecard software.
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