Post by account_disabled on Feb 22, 2024 0:36:35 GMT -5
In the 1990s, Kaplan and Norton discovered the application of the balanced scorecard as a strategic management system. Its use in the company has become so popular that it no longer knows barriers, neither by sector nor by business size. Its advantages are well known and, furthermore, this tool is unique in being able to support four different management processes: Effective communication of the vision: although perhaps, more than communication, we should say its translation. The balanced scorecard allows you to transform abstract goals such as "be the best in an area" into operational measures that have meaning for users at the local level. However, although the vehicle to achieve this is the balanced scorecard, it requires a task of clarifying concepts and specifying objectives that is usually attributed to the highest levels of the organization and without which to describe the drivers of success in the long term would not be possible. - Strengthening links: the implementation of a strategy begins with its communication from top to bottom. It continues with the necessary qualification programs and is translated into objectives and performance measures in the balanced scorecard , to make it fully accessible to operating units and users.
Business planning: management establishes long-term objectives for the four perspectives of the balanced scorecard (financial, customers, learning and internal growth, and business processes). To achieve these goals, managers must identify the necessary strategic initiatives and allocate the resources that will make their achievement possible. Finally, specific objectives are determined, short-term goals that mark progress toward achieving the first goals. - Feedback and learning: the balanced scorecard must become the center of the information collection process, its analysis and the iterative testing of the objective data on which the Chinese Student Phone Number List strategy is based, allowing the necessary adjustments to be made to guarantee continuous improvement and avoid deviations. How the balanced scorecard works The Balanced Scorecard is still in fashion, although not everyone who talks about it knows exactly how it works. The operation of the balanced scorecard can be broken down into six perspectives defined below: - Needs and expectations of clients and interested parties: these are the main drivers of the strategies. In this definition, it must be taken into account that stakeholders are considered shareholders and employees, but also suppliers, the community, government entities and other organizations relevant to the future of the business.
Strategy: consists of the definition of goals and the means to achieve them. It is made up of individual strategies, which are the key actions a company must take to achieve its vision and objectives. - Operations: include all direct and support commercial activities that are executed within the scope of the strategy and from which products and services are derived for customers and interested parties. - Infrastructure: which allows the development of operations to efficiently satisfy the needs of the client and interested parties. - Contributions from interested parties: include products or services that are essential to operations, such as those provided by suppliers or those obtained from a technical service. - Products and services: are those provided to clients producing financial returns. Implementation of the balanced scorecard The development and implementation of effective measurement systems , such as the balanced scorecard, require the necessary dose of leadership , commitment and effort. Of course, the investment variable cannot be omitted, although its cost ends up being negligible in the long term, compared to the benefits of a well-designed measurement system that allows: - Determining whether the presence of problems or deviations in sales and the level of profits are caused by the strategies , have their origin in the operations, or are a consequence of both.