A balanced scorecard (BSC) translates your company’s mission, goals, and objectives into real actions, improving the management of your business at every level. This performance management tool allows executives and managers to connect the dots between the big picture and more operational elements using key performance indicators (KPIs).
A successful scorecard includes a focused set of metrics that are actionable, measurable, and comparable. The balanced scorecard enables you to:
- Communicate goals across your organization
- Align day-to-day tasks with strategy
- Manage exceptions
- Measure and monitor progress
- Share best practices and rewards
The scorecard offers an ongoing, holistic view of your company or department, reinforcing positive behaviors and revealing opportunities for improvement. We partner with your team to take a deep dive on your business and determine the few critical metrics that truly reflect the health of your business. We then design a process to collect, present and communicate these metrics throughout your organization or department so that everybody is on the same page.
A well-designed balanced scorecard has the following characteristics:
- Commitment from senior leaders
- Ongoing effort
- Assigned resources to manage it
- Dynamic and flexible to evolve with your business
It is not a static dashboard, nor a one-time project that is complete upon implementation. It is an ongoing effort that requires resources to support its administration. These critical roles should be assigned from the beginning:
- Executive leader
- Tool administrator
Through the scorecard, analysis typically focuses on customers, financials, and operations. The interplay between these three pillars keeps your company from overemphasizing any one areas—i.e. sales at the expense of profitability or expense control to the detriment of the customer experience. Striking the right balance ensures that everybody is contributing toward the same strategic goals.
With evolving consumer behaviors as well as the growth of digital, we help you determine customer metrics that address market conditions most relevant to your business.
We take a hard look at your operations to identify the metrics that tease out the metrics that are the best indicators of your company’s success. The metrics are often designed to help you monitor and close any existing gaps in your current processes – labor productivity, shrink, customer service, safety protocols.
We define metrics which are critical to measuring the financial health of your business. From margins to store level performance, we determine the indicators that are most likely to drive bottom line results, including any individual programs that have the capability to bring a competitive advantage.
Correctly designing and utilizing the balanced scorecard ensures your company maintains its focus on value-generating activities to achieve sustainable results over time.