Having a balanced scorecard strategy map comes in handy when developing your balanced scorecard. This map acts as a guide that you can use as reference in developing your tool.
With all the hype about balanced scorecards and whatnot in the corporate setting, do you ever wonder just what is up with all that? What makes the balanced scorecard the valuable tool that it is? Or is it really valuable? Does it really live up to its reputation or is this all just hogwash? First and foremost, the balanced scorecard does live up to its reputation – the one where people claim it to be a tool valuable towards the success of any existing enterprise. This is indeed why it is important to have a balanced scorecard strategy map outlined as well. In fact, any analyst would tell you that this is actually one of the best practices that any company could ever take on. The great thing about having this strategy map onboard is that it can really give your company huge leverage against its competitors – which is understandable, being one of the best practices and all.
Before you go on and begin developing your very own balanced scorecard, you have to understand that it is important to incorporate a few aspects into your tool. These aspects are communication, accountability, and focus. Communication, of course, should be prioritized because there really is no purpose in developing a balanced scorecard if you would not make the members of your organization aware of its existence. After all, the balanced scorecard exists to show the members of the organization how far along the company is from achieving its goals and objectives. Thus, you need to disclose to your people the current state of the company as well as how the balanced scorecard works and how it can help each and every member of the organization.
So, what is this strategy map all about? You may not know this but every company already has a strategy map of its own. All it has to do is incorporate the components of this map into the balanced scorecard that it would be using. For those who are not in the know, this strategy map is a mere depiction of the company’s goals and objectives. Of course, being a strategy map in nature, the goals would be depicted in such a way that the more pertinent ones would be situated topmost while the less pertinent ones would be plotted on the lowest levels.
The goals and objectives here would actually be grouped according to their nature. Four groups are usually used here, including financial, customers, internal processes, and learning and growth. Another term for these groups are perspectives and these are utilized for the incorporation of the interests of stakeholders. These perspectives can also be modified so that the interests of future stakeholders could also be accommodated over time.
Next, your balanced scorecard strategy map should also include KPIs or key performance indicators, now that you have your perspectives. These KPIs are the quantifiable measures that you use to gauge the company’s present position in achieving its goals and objectives. Make sure to choose only a relevant few so that you will not make analysis and interpretation of data any more complicated than it already is.