The balanced scorecard is not just a tool but a whole strategy that, properly implemented, offers much more than tactical and operational reports. To that transcends its potential, it is necessary to establish a management process to be controlled effectively, the center will be the scorecard, and which must be guaranteed at least the following factors:
- A / The establishment of a management process for monitoring implementation of the strategy and for adjustment.
- B / La sufficient understanding of the difference between reviews of the strategy and operational monitoring.
The balanced scorecard itself consists of the following parts:
Strategic Map: where the strategic objectives that describe the added value of the organization are collected. Its mission is to provide the necessary vision to align with the overall strategy. Often, these types of maps are divided into themes, each of which is linked to various perspectives and describes a specific part of the strategy.
Indicators: KPIs that serve both to communicate aspects of major strategic importance to the organization, to measure progress in implementing the strategy.
Projects: o critical programs, which carry the strategy into practice getting generate added value able to meet the expectations of stakeholders.
Implementing the Balanced Scorecard
The major difficulty in the implementation of the balanced scorecard lies in choosing the right data, or what is the same, the approach of the right questions. With more and more data is available, how do you know that they are analyzing the right data to support the strategy?
- Suitable data are:
- Relevant in strategic terms.
- Precise, to monitor the results.
- Complete, in terms of obtaining information that will be transformed into knowledge.
Punctual, because they have to allow risks to be anticipated in time to adapt to changes imposed.
A combination of the best practices in the selection of the indicators that generate this data and appropriate technological choice will produce the necessary steps to meet the strategic objectives metrics.
Corrientes balanced scorecard
There are three main currents in the methodology of the balanced scorecard that every business should know:
Balanced scorecard and predictive analytics: This combination optimizes the results, especially in the areas of budgeting and reporting that, by linking with forecasting functions achieve more flexible organization.
Balanced scorecard and BI : the business intelligence must be understood as inseparable from the scorecard, to be the only possible combination that allows deeper and understand the root causes that motivate fluctuations and changes that occur in levels performance. This combination of balanced scorecard with business intelligence (BI) occurs much deeper, accurate and complete than either of the two approaches separately results.
Balanced scorecard and systems : this merger is the centerpiece in the runtime system of high quality and must be from the same stage of design of any system of business management.