Balanced Scorecards

Guide to Balanced Scorecards…


Document Overview


What is a Balanced Scorecard?

A balanced scorecard is a tool that will help you to achieve your business strategy.*

It does this by helping you to look at the overall performance of your organisation. It provides a framework to focus your attention not just on financial performance but on your:

• Customers;

• Processes; and

• Staff.

Ideally your staff should be involved in developing your scorecard. This is because they can provide valuable feedback on customer requirements, your internal processes and their own development and commitment.



Why Should You Use a Balanced Scorecard?

In order to achieve your business strategy you need to:

• Establish clear objectives;

• Develop performance measures;

• Set targets; and

• Measure how well you are doing.

The balanced scorecard approach will help you to do this.

The approach has been adopted by organisations in the private, public and voluntary sectors. It is widely recognised as a simple and effective method to help you achieve your business strategy.

The scorecard can also be used to review your progress against targets and

is a handy reporting tool. This will give you early warning and focus your

attention on those areas that are performing below target.

* A business strategy is a plan that sets out where you want your organisation to be in terms of desired future performance. It also identifies what you plan to do to get there. This is covered in detail in our Guide to Business Strategy.




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