Using Balanced Scorecard Metrics to Push Corporate Growth

The balanced scorecard metrics are the financial and non-financial measures used to determine the level of performance of planned work and the consequent growth of the company based on these plans. There are leading measures which are used to help achieve objectives and lagging measures that determine if objectives and goals were achieved. Balanced scorecard metrics are powerful management tools to clearly see the overall performance of every company unit or department.

Congruent to these metrics are four balanced scorecard perspectives. These areas are the ones being measured. The four balanced scorecard perspectives are Financial, Business Process, Customer, and Human Resources. Measures are set to determine if the goals of the balanced scorecard perspectives are being met. For example, measures will be set to determine if the company is succeeding in the area of customer relations. The tasks to develop customer satisfaction and to meet customer demands will be measured. If the objectives are being met, then it could be said that the company is succeeding. Otherwise, managers will implement corrective actions and investigate why some tasks are not being carried out. Having specific metrics for every company tasks is very important. It will enable the company to keep its focus and stick to the general strategy. Without these metrics, managers will not be able to determine if assigned work and objectives are being carried out to the fullest.

Balanced scorecard metrics started as a measure of individual performance. With its development as a strategic management tool, the balanced scorecard metrics are being used now to push the overall growth of companies.