Using The Balanced Scorecard Can Help Your Business

The Balanced Scorecard gives businesses a well-rounded view of performance

Relying on financial metrics alone to tell you how your business is doing and guide management decisions is kind of like trying to drive a car forward while looking in the rearview mirror. Financial metrics can only tell you where your business has been, not where it’s going.

For a more complete picture of how your business is performing on your strategic goals and objectives, you need more information. The Balanced Scorecard can help.

What is The Balanced Scorecard?

For a more complete picture of how your business is performing on your strategic goals and objectives, you need more information. The Balanced Scorecard can help.

What is The Balanced Scorecard?

In the 1990s, Robert Kaplan and David Norton of Harvard Business School developed The Balanced Scorecard to help companies set, track, and achieve key business objectives. The Balanced Scorecard consists of four sections or “legs” that describe different aspects of business performance. By considering how all of these legs support the company’s ability to achieve strategic goals, developing objectives for each leg, and then tracking performance on these objectives, management can secure the well-rounded information they need to make intelligent improvements.

The four legs of The Balanced Scorecard are:

Customer Value Performance

If customers are satisfied, this is a clear sign that your company is delivering quality products or services. Customer satisfaction can be tracked with metrics like market share, customer loyalty, complaints, and complaint resolutions.

Internal Business Performance

This leg focuses on all the critical processes and tasks your company needs to complete when conducting business. Examples of metrics to track include productivity rates, quality control measures, and timeliness.

Financial Performance

Financial performance is and always will be a key part of a business success. It’s important to measure financial indicators like revenues, earnings, ROI, cash flow, debt ratios, etc. You just can’t make these the only measures you use to evaluate your business.

Knowledge, Education, and Growth

How you train and educate your employees, how you gain and capture new knowledge related to core business activities, and how you use this knowledge to become more competitive will all have an impact on the success and growth of your business. You’ll want to develop ways to track and evaluate employee turnover, employee training, and employee performance in general.

Get the Tools to Start Tracking Your Scorecard

In order to implement The Balanced Scorecard, managers will need a tool for tracking and measuring key performance indicators. MyFieldAudits is an ideal choice because it provides a simple, streamlined tool that you don’t have to be an expert in analytics to use. MyFieldAudits can connect to existing systems to capture financial data, and it also supports digital auditing. Data can be analyzed using robust reporting functions, with the results displayed in real time on dashboards and in shareable reports. This will give you the agility you need to identify issues and trends within the four legs of The Balanced Scorecard and take action on them quickly to achieve optimal business outcomes.

For a free demo of MyFieldAudits, please contact us at info@MyFieldAudits.com today.