A brrief detail on Balance Score Card
The Balanced Scorecard is an implementation framework for any organisation. It helps in formulating the strategy and to chart the course of action to operationalise the strategy And how it is done .......... • The Scorecard defines the prioritized 20-25 objectives that can be achieved across financial, customer, internal process and organisational learning & growth from among the overall long term objectives identified. • The Scorecard builds linkages across these 20-25 objectives so that all key SBUs / functions / departments understand their involvement in delivering the identified objectives for the defined timeframe. • The Scorecard creates performance measures for each objective, a measure template for each such measure and hence the enterprise performance measurement framework. The Balanced Scorecard is an implementation Framework for any organisation. It helps in Formulating the Strategy and to Chart the Course of Action to operationalise the strategy And how it is done .................. • The Scorecard allocates ownership / responsibilities of each strategic objective to various executives on the management team. These can be further cascaded to individual performance measures alongwith other job responsibilities. In addition, the KRAs can then be cascaded to further levels of management down the line. • The Scorecard identifies and aligns the key projects that need to be executed for delivery of the objectives. These could be current projects and additional new ones. Only when the objectives are finalised can the organisation identify which current projects are necessary and which are not. • The Scorecard also defines the business review formats for regular monthly review of the business objectives. At the management committee level, it is necessary to prioritize activities year-on-year and track progress to be able to deliver the aggressive business plan. • Multiple objectives and initiatives need to be tracked regularly so that the business direction is correct every year. • This calls for not only a prioritisation but also a measurement framework - Revenue, profit, market share and costs. Non-financial measures e.g. No. of new successful product introductions, key activity turnaround times, no. of new skill sets needed etc. - need to articulated in order to create a balanced measurement framework. • Linkages between various objectives need to be built so that the cause and effect relationship is understood in execution terms. At the management committee level, it is necessary to prioritise activities year-on-year and track progress to be able to deliver the aggressive business plan • Overall the management committee and the operating committees / department heads should have a consensus on which 15-20 objectives are critical for the next 12-24 months from among the entire set of objectives outlined. • Once the objectives are prioritised, initiatives then need to be mapped against these objectives and hence addressed in terms of need / funding / milestones / outputs. • There needs to be a business review framework which allows the management committee to track measurement month-on-month-both at the enterprise level and the individual level.
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