In my previous article, I wrote on “Top 10 mistakes when trying to implement the balanced scorecard”
I discussed various mistakes organizations make when implementing the balanced scorecard system.
Let us have a look at some of the benefits of the implementation of the balanced scorecard framework within your Organisation.
1. A useful tool for strategic planning
The Balanced Scorecard provides a powerful tool for building and communicating the organization’s strategy. The BSC framework is best visualized through a Strategy Map which helps leaders to think about cause-and-effect relationships between the different strategic goals and performance objectives. The benefit of creating the strategy map ensures that there it fosters collaboration between the different departments which removes the process of “people working in silos”.
2. A visual tool which enables communication of the strategy
Having a strategy map displayed in common areas is a great way to facilitate the understanding of the strategy and helps to engage the various stakeholders and employees in the delivery and review of the strategy. This mitigates the risk of employees creating a lack of understanding of the strategy.
3. Creates a better alignment between the projects and the initiatives
The Balanced Scorecard enables the departments within an organization to map out their projects and initiatives aligned to the different strategic objectives, which in turn ensures that the projects and initiatives are closely monitored and reported against.
4. Provides for improved management information
The Balanced Scorecard approach helps organizations design key performance indicators for their various strategic objectives. This ensures that companies are measuring what matters. Research shows that companies with a BSC approach tend to report higher quality management information and better decision-making.
5. Improved Performance Reporting
The Balanced Scorecard can be used to guide the design of performance reports and dashboards. This ensures that the management reporting focuses on the most important strategic issues and helps companies monitor the execution of their plan.
6. Better Organisational Alignment
The Balanced Scorecard enables companies to better align their organizational structure with the strategic objectives. To execute a plan well, organizations need to ensure that all business units and support functions are working towards the same goals. Cascading the Balanced Scorecard into those units will help to achieve that and link strategy to operations.
7. Better Process Alignment
Well implemented Balanced Scorecards also help to align organizational processes such as budgeting, risk management, and analytics with the strategic priorities. This will help to create a true strategy focused organization.
Vision Activ has implemented the Balanced Scorecard framework for various organizations.
The Vision Activ electronic performance management system (ePMS) is designed with an option to select the Balanced Scorecard framework which provides for objectives and key performance indicators to be aligned to the strategy of the organisation and cascade from top to lower-level employees.
The ePMS system provides for seamless integration between the strategy and individual performance management to enable automated performance agreements and provides ease for monthly progress reporting.
Click on the link below to gain an insight into the Vision Activ ePMS system which helps to improve performance management processes.
#balancedscorecard #strategydevelopment #performancemanagement #improveperformance #visionactivepms #keyperformanceindicators #visionactiv #ashvirdilrajh