Are you thinking about taking your company to the next level? Are you thinking big? Think big. Think strategy. The balanced scorecard is all about strategising in an organised and clear manner.
Better strategic planning
The outlook of a well-crafted balanced scorecard is better planning a decision making. The balanced scorecard provides a powerful framework for building and communicating your company’s strategy. The balanced scorecard is powerful way of articulating your strategy in a clear, systematic and crisp manner. Think of it as a dashboard where you can put your key measures and monitor the results on an ongoing basis.
Focus on both financial and non-financial factors
The balanced scorecard looks at both financial and non-financial aspects of performance. The non-financial aspects are also important elements to consider if you would like to take your business forward. Non-financial aspects of performance include things customer satisfaction, efficiency and effectiveness, well-motivated employees and so on.
Motivated and high performing employees
Having a good balanced scorecard can result in your company having motivated, high performing employees. It is a useful tool for motivating employees. It helps focus their attention on things that are critical to the long-term performance of the entity rather the immediate of short-term financial results.
Better cascading, communication and execution of strategy
Having a concise, clear and well articulate scorecard with objectives, appropriate measures, target and initiatives allows your company to easily cascade and more importantly communicate your company strategy. It is important for your employees to understand the strategy. Having a balanced scorecard not only leads to better implementation of your company’s strategy but also makes your strategy more impactful.