The balanced scorecard methodology is a very useful and practical management framework for companies, private organizations, and government agencies. It highlights the strategic performance of an entity based on fixed and achievable metrics. Issues are resolved by applying a balanced scorecard system on key organizational perspectives.
Managers and executives can easily implement the balanced scorecard system on their organization or companies. The uncomplicated procedure of creating a balanced scorecard deployment plan involves three major steps.
First, the company through its managers and key personnel should grasp the essence of their own strategies and mission. This step will involve lots of discussions, board room meetings, and top level conferences. These are important because the ideas and concepts that will be produced in this stage would serve as the official company policy.
The next step involves the determination of specific objectives and goals that need to be accomplished in order to reach the strategic plan or policy. Countless hours of brainstorming, assessments and evaluations of past company performance should be carried out. This will ensure that the plan will be based solidly on concrete condition. Sessions should produce the strategy map, and a general plan of action.
The final step involves the creation of metrics that should be specifically designed for each level of the company. The nitty gritty of corporate planning will be created at this stage. Each department and business unit will receive their marching orders and managers at this level should also create their own metrics for their subordinates.