Balanced Scorecard in Strategic Management

Strategic management is an ongoing process of redefining organizational objectives, developing policies and plans as well as allocating resources that are needed for the proper implementation of processes to drive desired outcomes. This also involves all company decisions and consultations, not to forget the various activities of the different areas within the organization to obtain specific objectives. The balanced scorecard is one of the tools used for strategic management.

To implement strategic plans at all levels of the organization using the balanced scorecard, there are four functions that should be facilitated accordingly. First is to clarify strategy. Translating strategic objectives into quantifiable measures will result to a unified understanding of the strategy. This will also result to an increase in the awareness of company goals of every member of the organization, thus developing a more coherent consensus.

Second is to communicate strategic objectives. Communicating the strategy effectively throughout the organization is needed to unleash the potential of certain business plans and turn them into operational objectives.

Third is to plan, set specific targets and align initiatives to develop a more robust strategy. The targets set for every objective should be achievable and every initiative should be carefully thought of to effortlessly drive expected outcomes.

Lastly, change the pace of strategy implementation when feedback is received. This usually happens when organizational leaders observe the progress of a certain project if it is being executed according to plan. There is also a need to learn from such scenarios so that things will be applied differently next time as the quest involves a series of trial and error to find better and more robust strategies for the company.