EXCPR™: BALANCED SCORECARD

Sunday, September 23, 2018

BALANCED SCORECARD

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.