If utilised correctly, the Balanced Scorecard can be a powerful strategic planning tool, mapping out objectives and targets in the most fundamental areas of your business.
To make the most of the Balanced Scorecard, you have to ensure it is communicated to everyone responsible in your organisation, along with the rest of your strategy. You simply can't hope for it to be effective if only those at the very top of the company know how it works.
That is where business strategy software such as StrategyBlocks can help out, by hosting your Balanced Scorecard on a cloud platform and making it easily accessible throughout the organisation.
A quick overview of how StrategyBlocks works is all that is required to see how compatible it is with the Balanced Scorecard.
For example, the software's unique 'Blocks' are the individual components that outline which objectives have to be attained, by whom and by when. By breaking down the wider strategy into these easily digestible units, everyone in the organisation has a clearer idea of what is expected from whom.
Similar Blocks are then grouped together into focus areas, which provide a wider scope of the specific, individual areas of your business that are serviced by the strategy.
In terms of the Balanced Scorecard, its four categories – Financial, Customer, Internal Business Processes and Learning and Growth – can be considered as focus areas, providing a general framework on which to base your strategy.
Delving deeper into each individual category, you can use StrategyBlocks to outline the individual objectives and metrics required, which can be represented as Blocks.
In the Customer category, for instance, measures such as customer satisfaction and market share could form the Blocks that make up this particular focus area.
And with all involved having real-time access to the Balanced Scorecard, your organisation can ensure its strategy is carried out seamlessly.