The balanced scorecard is a management system that enables organizations to clarify their vision and strategy and translate them into action. It is a framework for creating and managing organizational strategy. However, what should you be using the scorecard to accomplish? Is it just a set of measures or should it be used for more?
Use your scorecard to help you accomplish the following:
o Translate organizational vision and strategy into action
o The balanced scorecard describes the strategy, but it is also used to translate this strategy into operational terms as it is cascaded throughout the organization.
o Align the organization to the strategy
o It is critical that organizational resources support the corporate strategy. Key initiative and business line planning processes ensure that the plans are built in the context and in support of corporate direction.
o As a communication tool
o Strategy implies change. Communication of this strategy creates awareness for the need to change.
o If you want to implement a strategy, you have to begin by describing it. Itâ€™s not just a list of measures. The balanced scorecard is a description of the organizational strategy. This becomes a commonly understood language for the strategy within the organization.
o We believe it is important to expose the entire organization to the entire strategy. This creates opportunities for employees to find innovative ways to contribute to organizational success outside of normal job roles.
o It is a strategy management process
o It is a feedback system that creates real data on which to make decisions. It is also a process through which to manage the strategic direction of the company.