Innovation Management with BSC: A Breakthrough in Strategic Planning

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Innovation management with BSC is one of the most talked about form or balanced scorecards nowadays. Because of the rapid changing environment, experts have come up with the idea of using a balanced scorecard to measure innovation performance in order to save time and resources. Check additional information about innovation management with bsc.

It is crucial to have a specific and systematic approach into measuring innovation, hence the proposal of innovation management with BSC. We all know that a Balanced Scorecard, also known as the BSC is a strategic planning and management system that is used widely by organizations in order to keep track of their performance. The BSC is separated into four perspectives known as:

-Financial Perspective

-Customer Perspective

-Internal Business Processes Perspective

-Learning and Growth Perspective

Based on the given definition above, how will you apply innovation management with BSC? First of all, innovation is a multidimensional and complex activity. It is impossible to measure using just one metric and although a lot of metrics have been developed for it, most of them are proven to be insufficient because the methods for evaluation are based only on tangible values. Just to clear it out, innovation pertains to introducing something new. When we say introducing something new, this means that the organization or company is going to release a never seen before action or product. But then again, an innovation project should also be aligned with the strategic objectives. Innovation management with BSC makes this possible.

What is the importance of innovation anyway? There is a thin line that separates innovation from changes. More often than not, companies offer uniqueness when it comes into management. This is done in order to ensure that all the needs of the personnel are met and it also forces a sense of compliance.

Basically, innovation management with BSC is mixing the innovation metrics with the application of a balanced scorecard. The scorecard will still perform its core process even though you will perform innovation management with BSC because it still emits the four perspectives (the four mentioned above). The only difference is that, it will focus on innovation with relation to financial, customer, business processes and learning and growth aspects of the company.

In innovation management with BSC, there are a number of benefits that a company can reap. Listed below are just some examples:

-Convey the organization strategy and clarify the benefits of the innovation with the entire company;

-Asses the potential value that the innovation will give to the organization;

-Properly align all innovation projects to the company's strategy, and;

-Put pressure to personnel in order to become more innovative.

Aside from these things, innovation management with BSC will also map the cause and effect relationship aspects in order to identify the sources of the innovation and company's intangible benefits. Like an ordinary balanced scorecard management, innovation management with BSC also lays out a framework but this time, it is focused entirely upon introducing something new into the organization.

Due to the rapid advancement of technology, there are a lot of available innovation management with BSC templates that you can use as your main framework. It is understandable that not all companies have enough time and resources to create their own balanced scorecards and more and more organizations are now relying upon template developers to make it for them. The main point is, treat an innovation BSC like any other BSC. The main difference is the only the focus anyway.

If you are interested in innovation management with bsc, check this link to find out more about idea management with bsc. Also, you can check other articles in Strategic Planning 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.