Balanced Score Card

I met a few SME Towkays at an Association event recently, they heard about the successes and ease of Balanced Score Card which I have helped some of their business friends implement, asked me about BSC.
In my years of experience working directly with and supporting business owners, BSC appears to be most efficient tool in talking “sense” and “cents” with his Keymen.
Business owners, most of the time do not have the time or lack the patience or eye for details sieving through stacks of financial reports monthly to manage their businesses.
Hence, using just 1-page Score Card monthly, to track and understand his company’s performance, and still be able to pinpoint responsibility to exact person(s) who deviated from Plan, is a great Tool for Business Owners.
Balanced Score Card (BSC)
* defines what management means by “performance” and measures whether management is achieving desired results
* translates Mission & Vision Statements into a comprehensive set of objectives & performance measures that can be quantified and appraised.
Companies use Balanced Scorecards to:
* Clarify a business’s strategy
* Link strategic objectives to long-term targets and annual budgets
* Track the key elements of the business strategy
* Incorporate strategic objectives into resource allocation processes
* Facilitate organizational change
* Increase companywide understanding of the corporate vision and strategy
These measures typically include the following categories of performance:
1. Financial : Financial performance (KPIs include Sales, Profits, Return on Capital, Cash Flow, Funding )
2. Customer : Customer value performance If customers are not satisfied, they will eventually find other suppliers that will meet their needs. ( KPIs include Market Share, Customer Satisfaction measures, Customer Loyalty)
3. Process : Internal business process performance ( KPIs include productivity rates, quality measures, timeliness, SOPs )
4. Staffing : Employee performance
In the current climate of rapid technological change, it is becoming necessary for knowledge workers to be in a continuous learning mode, and be retained. ( KPIs include Morale, Knowledge, Turnover )
Follow “SMART” principles when setting KPIs in BSC :
* Specific
* Measurable
* Achievable
* Relevant
* Timing
Cascade the Critical Success Factors ( CSF ) inside your completed Financial Budget down into bite-size BSC for easy communications to the Keymen in your organization, and then track and monitor their actual achievement of those KPIs in the BSC regularly with the person-in-charge of their respective BSCs to manage them by exception ( MBE ) instead.
A good tool for business owners who have no time for details and yet want to stay in control of things in the company.
Good Luck !
If you need help, feel free to contact us at :
(O) +65 63851011
(M) +65 90880669