Developing a balanced scorecard system that will guide the strategic management efforts of a company should be a primary concern of executives and managers. The balanced scorecard system can improve the quality and productivity of each sub-unit of a company. This performance management system ensures that individual tasks will serve the general strategic objectives of a company.
In developing a balanced scorecard system, companies must accomplish certain key parameters that are critical to the success of the system. The first parameter should be the clarification of set strategies in order to achieve a common corporate language. This is important because objectives can be carried out successfully if the company is united in its understanding of strategies. Having different interpretation of strategies is a common loophole in the planning process. This may result to a failed project or serious corporate schism.
The next important aspect in the development of a balanced scorecard is correct evaluation of past company performance. The key in this stage is data generation. Previous records should be assessed in order to get a clear picture of what should be addressed by the balanced scorecard.
Finally, individual capabilities and skills should be concretely evaluated by managers. The creation of key performance metrics will rely primarily on the ability of personnel that will carry out the plan. Correct delegation of task will ensure successful accomplishment of set goals and targets.
After carefully threshing out issues, the balanced scorecard system can now be developed. Companies then can confidently implement this business management system.
The balanced scorecard business management methodology has been successfully implemented in different industries. The practices and implementation of this measurement and management method is well documented. Case studies have been published by prestigious business organizations and publications that enumerate the steps taken by companies in implementing the balanced scorecard. Management professionals can easily acquire rich body of knowledge that discusses important aspects of balanced scorecard implementation. One can easily download or purchase an example of a balanced scorecard implementation from the Internet.
The examples provided in white papers, publications and business journals are rich source of best practices of the balanced scorecard method. In fact, the BSC examples that one access from the Internet usually provides concrete application of the system to concrete situations and real business environments. Managers can learn a lot from the successful implementation of balanced scorecard. The lessons and experience gained by other companies can be a useful guidance for their own balanced scorecard implementation.
The balanced scorecard measurement and management methodology is a new business innovation. However, information and data on this management system are numerous and can be easily acquired. Because of the increasing popularity of balanced scorecard, lots of business intellectuals are publishing their analysis on the system. Case studies of balanced scorecard implementations are widely documented and information from these is critical to the understanding the balanced scorecard system. It is a must for every manager to study the examples of successful balanced scorecard implementation in order to sharpen their business management skills.