Create Scorecard in Excel

Access your KPIs online;
Measure your success;

Navigation: All Balanced Scorecard Articles > BSC software

It is possible to create scorecards without purchasing expensive software. Sure, large companies will still need powerful BSC tools, but mid size or even small businesses can reveal the power of BSC using MS Excel. Read on to learn more info. Check additional information about create scorecard in excel.

Without any doubt, Balanced Scorecard is the most effective and widely used performance evaluation and strategic management tools. Since its introduction to the business world it received lots of positive reviews. These are not just words but actual business results. Companies with successful experience of Balanced Scorecard implementation have reported excellent performance results. Sure, Balanced Scorecard is not a magic stick that can run business and solve all problems. This is just a tool and success depends on how this tool is used. It should be mentioned that in order to be successfully using Balanced Scorecard one needs powerful Balanced Scorecard Software. At the same time it is possible to create own Balanced Scorecard just with a very popular application - MS Excel. In this article will talk about steps required for creation of Excel scorecard.

As known, Balanced Scorecard consists of four categories: financial, customer, internal business processes, learning and growth. Thus, the first thing you need to do is to create these categories in your Excel spreadsheet. Make sure you leave enough space to add indicators. Leave some space above the categories to calculate total performance. The next step is perhaps the most important and difficult one. You will have to choose key performance indicators within the four categories. If you don't know anything about Balanced Scorecard and key performance indicators you almost certainly have to use the power of the Internet to look for indicators that will potentially suit your case. You will have to look for key performance indicators by industry. Thus, if you need call center KPIs perform a relevant search in your favorite search engine. Keep in mind that set of key performance indicators you will find are not universal and thus cannot work equally well for all businesses. So you have to choose the ones that you think will suit your needs.

Once indicators a chosen and typed into the four categories you will have to work individually with each indicator. First, you have to set your goals. For example, if you want to handle 20 calls per hour set a relevant target. Then you will have to choose a measure unit which can be quantity, percentage, amount of money etc. The last cell for the indicator is current value which will change all the time. Perform this procedure for every indicator and regularly update them. For example, if you want to calculate average cost per call you'll need information on number of calls and total expenses related to handling of these calls.

Each category will have own performance value. Then these values evaluated and total performance is calculated. In such a way you will get a numerical expression of company/business unit progress on the way to achieve strategic goals. For example, if scorecard shows regress (negative progress value) your department of business unit may be not performing well or you have chosen the wrong indicators or measurement methods.

We have to repeat that if you do not have relevant Balanced Scorecard experience you'd better look for professional assistance.

If you are interested in create scorecard in excel, check this link to find out more about create scorecard in excel. Also, you can check other articles in BSC software category.

Balanced Scorecard Toolkit includes step-by-step manuals, documents, presentations, check lists designed to help business professionals with successful development and implementation of Balanced Scorecard. Learn more about BSC Toolkit.