The balanced scorecard management system is a powerful tool to achieve the goals and strategies of a company. This methodology has been developed to answer the increasing demand for a management methodology that is simple yet effective. The balanced scorecard provides simplicity because it is composed of measurable set of tasks assigned to different levels of the company. This success of implementation of these tasks can be easily determined by managers because fixed metrics are in place.
To start a balanced scorecard model, the manager should make a thorough review of company strategies and main objectives. This is important because the balanced scorecard metrics that will be created should be based on actual company strategy. The next phase in creating a balanced scorecard model is to determine the capabilities of personnel that will implement the tasks. It would be no use to assign a work to an employee that has no competency to deliver. Managers should carefully work out and select individuals that will be responsible in delivering assigned tasks. The final step in creating the model is the actual design of balanced scorecard system. This is the critical planning process. The stages, goals, and expected results of tasks will be determined in this stage. Creating a graph that could clearly show the relationship of different company levels would be very helpful. Objectives are defined and these are aligned to the general strategy of the company.
The balanced scorecard model can succeed if managers carefully plan the specific goals and key functions of each personnel. A good model can ensure smooth implementation of company tasks which is vital to its success.