A balanced scorecard converts an organization's behind the scenes strategic business model into its daily marching orders. This scorecard sets the stage for what needs to be done in the future and lays out a plan of attack to achieve that goal.
The business and its employees are "scored" in different categories which allows management to see opportunities for improvement. Balanced scorecards provide a framework for how a business should be run and enable executives to track their progress along the way.
First and foremost, to be a useful, a scorecard must contain the proper measures and targets. The ultimate goal of the scorecard's design is identifying a small number of business measures and coupling objectives with them. When they are referred to later on, it should be possible to conclude whether current performance is on track or not.
Once these four elements have been carefully considered and laid out by management, a scorecard can be created to grade efficiency. The destination statement defines the final goals an organization is attempting to reach by implementing this management tool in the first place.
The strategic linkage model is a cause-and-effect outline of how the organization will ultimately reach its end goal. This is usually a strategy map linking activities to their hypothesized outcomes. Goal and measurement definitions are important to make sure management and associates remain on the same page. These need to be clear and concise in order align objectives with performance.
InetSoft's Style Intelligence software offers unique capabilities for data mashup, which enables data from disparate sources to be combined for a unified view of corporate performance. This is especially important for management scorecarding since the key performance goals span multiple departments and operational systems.
Copyright © 2024, InetSoft Technology Corp.
