On first thought, some people may see the balanced scorecard as more of a performance evaluation matrix. Yes it is, but then there are a lot of things that the balanced scorecard can measure, not only performance but effectiveness of strategies, processes, and behaviors that lead to business success. Once the balanced scorecard is formally set up, the organization then can focus on the essential things that are considered necessary to satisfy not only customers and stakeholders, but employees as well. However, what needs to be done to properly implement the balanced scorecard? Here are nine steps to build a successful balanced scorecard strategy:
(1) Assess the organization ‘s mission and vision, its challenges and values. After that prepare a change management plan that will address all that was determined on the assessment process and conduct focused communication workshops to identify key messages, messengers etc.
(2) Strategic plans should be developed by workshop participants to increase their awareness of customers and organization ‘s needs.
(3) Formulate strategic objectives out of the elements developed in Steps 1 and 2, which are considered the building blocks of defining the organization ‘s strategic intent.
(4) Formalize an organizational-wide strategy map to show how the company values customers and stakeholders.
(5) Develop performance measures out of the pre-determined strategic objectives, which include baseline data and expected targets.
(6) Define strategic initiatives to be assigned to appropriate individuals.
(7) Make use of performance measurement software to automate business processes.
(8) Align strategies by cascading enterprise-wide scorecards to team and individual scorecards. In this way, objectives become more tactical and operational.
(9) Evaluate the completed scorecards to determine the effectiveness of strategies.