BALANCED SCORECARD
INTRODUCTION
The problem with any system of performance
management is that the performance goals are long term, but to act as an
effective control system performance targets need to be monitor over the short
term.
DISCERPTION
A Balanced Scorecard -BSC® defines
what management means by performance and measure where management is
achieving results. It is a tool used to measure an organization’s activities
and initiatives against its vision, mission and values as outlined in its
strategic plan. These measures include the following categories of performance:
- Financial
performance
The financial
aspect in BSC® is include measurements such as sales, revenue, earnings, return
on capital, cash flow …etc.
- Customer
value performance
The customer
ends in BSC® is a subject of market share, customer satisfaction index- CSI, customer
loyalty, defect level …etc.
- Internal
business process
The internal
business chapter discusses productivity rate, quality measures, timelines, cost measures …etc.
- Innovation
performance
The innovation
and creativity part in the BSC® presents the percentage of revenue expected
from the new line products, technology, employee suggestion, improvement index
…etc.
- Employee
performance
The last part
in the BSC® is relate to the employee measurements, such as morale, knowledge,
training hours, use of best practices, …etc.
IMPORTANT
The Balanced Scorecard -BSC® product will
add the following values to the customer:
- To
achieve goal and objective.
- Clarify,
update and test its strategy.
- To
keep track of the execution of business activities.
- Keep
monitor and manage day-to-day activities.
- Link
strategic objectives to long-term targets and annual budgets.
- To
make sure all organization members are understanding and aware of the
company’s long-term strategy.
- To
make sure the information from managers is incorporated into the
internal objectives.
END USER’S
The following directions in the
organization need the BSC® product.
- CEO
- Managers
- Board of directors
TIME
The above people required the BSC® product,
when they are looking for:
- Update and track the business
strategy.
- Incorporate strategic
objectives into recourse allocation process.
- Facilitate
organizational change.
- Compare performance of
geographically diverse business units.
- Increase companywide
understanding of the corporate vision and strategy.
PROCESS TO DELIVERY
To construct a BSC® product, EXCPR™ Co.
will proceed with the following steps:
- Articulate business
vision and strategy.
- Identify the
performance categories that best link the business vision and strategy to
its results.
- Set objectives that
support the business vision.
- Develop effective
measures and meaningful standards, establishing both short-term milestones
and long-term targets.
- Collect and analyze performance
data and compare actual results with desired performance.
- Issue the final report
to customer, for minimizing gaps.
LINKS
The following additional EXCPR® products
are relate to the BSC®:
- Mission
- Vision
- Objective
- KPIs
CONTACT EXCPR™
For more information about the BSC®
product and for customize requirements, you may communicate with us throw the
following channels.
P.O. BOX 21407 – SAFAT 13075 KUWAIT
Tel: +965 600-39277
Fax: +965- 224-78734
