Create Alignment and Accelerate Results when You Cascade Balanced Scorecard

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Navigation: All Balanced Scorecard Articles > Cascading in BSC

In order for companies to produce excellent results, there is a need to cascade balanced scorecard. Learn what this is all about and why you need this through this article. Check additional information about cascade balanced scorecard.

More and more people are learning what the balanced scorecard is. Now, there are several business leaders that implement this framework as their tool for aligning goals and strategies as well as in measuring their performance. The balanced scorecard can easily help companies in gauging their performance in four different aspects: the customers, the financials, the learning and growth of the employees and the internal processes. These are the four key aspects that help organizations in determining their position is in the market and how well they are able to maintain that position. Regardless of the great number of people utilizing the balanced scorecard, there are still a lot of businessmen out there that fail in exploiting the goods that the BSC has to offer. Thus, they are not able to take advantage of the benefits that are offered by the scorecard concept. In order for you to make sure that you achieve success with the help of the BSC, you can cascade balanced scorecard and implement this into your business.

When you cascade balanced scorecard, you should understand that you need strategies in order to obtain extraordinary results. However, even these business strategies that we are talking about her should be measurable and they should be linked to sustainable action. Everyone in the organization should be involved and this is where you should perform the cascade balanced scorecard concept. Most people mistake the technique of using the balanced scorecard as going from the strategic plans of the business and then moving to the top level scorecard. Although this is a great start, you will not be able to see the results in time when you actually need them.

If you have the task to cascade balanced scorecard or you have formed a team that will monitor the BSC, you will learn that this process is quite effective. If you want fast results and efficiently align the strategies of your business into the goals of your company, you will need to cascade balanced scorecard which will provide you with improvements. Cascading BSC means that you will cascade it down and across the whole organization. With the help of this process, you will be able to efficiently identify the cause and effect relationships that currently exist between the high lever and low levels of the business outcomes. These are oftentimes known as the leading and the lagging indicators. In the end, you will be able to link the goals of the employees and their performances with your BSC known as the top level organizational scorecard.

Depending upon leadership of the organization, there will be a number of tiers that will be used to identify the levels of the processes in cascading BSC. Typically though there are three tiers being used today. The first tier is the top level organizational scorecard which will be distributed throughout the company and will reach tier 2. This second tier will be for the business units, departments, divisions or such. Then, this will eventually come across the third tier which will concentrate on the teams or the employees themselves.

If you are interested in cascade balanced scorecard, check this link to find out more about Cascade balanced scorecard. Also, you can check other articles in Cascading in BSC category.


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