Co-authored by Harvard Graduate School professor Dr. Robert Kaplan and Dr. David Norton, the Balanced Scorecard (BSC) is an innovative yet practical management philosophy that provides organizations with a framework to deploy strategy.
The BSC translates an organization’s vision and strategy into a comprehensive set of performance measures that provides the framework for a strategic measurement and management system. In addition, the organization is able to document and define the cause-effect relationships between key measures, processes and functions. By linking measures directly to strategic initiatives, the organization stays focused and is able to move towards the long-term goals.
Balanced Scorecard takes into consideration of all aspects of business while deploying strategy. This ensures all parts of the firm are getting impacted and the impact is properly impacted. Following parameters prove beneficial- Financial, Customer, Internal and Infrastructural. The Balanced Scorecard describes how value will be created across four business perspectives based on strategy that has been defined.
Fundamental to the BSC methodology is an underlying requirement to gather and share critical information throughout the strategic business unit, and across business functions. The feedback element of the BSC is essential to the process since it prepares the organization for change. Once changes have been made the process of monitoring strategic indicators, relaying the information and then managing change starts all over again.
The above stated fundamentals of good implementation of BSC are captured in the BMGI framework-
To drive the BSC journey BMGI India provides total support or partial support as required. The organization can pick the specific intervention required.
BMGI has evolved a robust BSC deployment methodology based on a decade of deployment experience. The key aspects of the approach that make a difference are-
To know more about how your strategy deployment initiative can be made more effective by application of Balanced Scorecard, contact BMGI.