The Balanced Scorecard (BSC) is a powerful management tool when used correctly. Defining each Key Performance Indicator (KPI) is fundamental for a well-functioning BSC. The changes in KPIs over time must reliably show whether or not the organization is on the right path in the pursuit of its business objectives.
Equally important, the monitoring of each KPI must be effective. Information must be easy to collect without affecting an organization’s daily routine. It must clearly represent the operational reality of the organization. The report must be reliable to guarantee that senior management uses it, and that it also receives the necessary attention by the organization as a whole.
In the end, concrete steps must be based on KPI performance, which, in turn, lends credibility to the concept of the Balanced Scorecard within the organization.
Key factors of an effective Balanced Scorecard:
Our methodology to implement balanced scorecard based management consists of three basic steps:
- Define the KPIs
- Set up a structure for monitoring
- Continuous monthly monitoring
Advantages of our methodology:
- We concentrate on identifying the KPIs that are the most strategically relevant and that lead to a competitive advantage
- Our tool provides a focus on KPIs during day-to-day business, creating a positive “state of alert” at all levels of the organization
- The deployment of the KPIs from the strategic to the operational level – utilizing our tool – helps address issues quickly
- Our tool makes it easy to capture and view each KPI