Linking balance score card with Market Research
Construction of the Balance Scorecard: Financial and Non Financial Measures
- Success BSC? Mixture of Financial or Non Financial Measures grouped into 4 distinct perspectives of F, Int. Bus Process, Customer and L&D.
- Objective of any Business unit: Motivate all managers and employees to implement successfully the business unit’s strategy
- BSC: Method of translation of the strategy into a measurement system. Companies who do so are able to EXECUTE their strategy because they can communicate their objectives and goals.
- This communication focuses managers and employees on critical drivers, enabling them to align investments, initiatives and actions with accomplishing strategic goals.
- SUCCESSFL BSC: Communicates a strategy which is an integrated mix of financial and non financial measures.
Construction of a BSC which communicates the business unit/company’s strategy: Why is it important?
- Scorecard describes organization’s vision of the future to the entire organization; creation of shared understanding.
- Creation of a holistic model of the company strategy which allows employees to see how they contribute to organizational success. Without such a linkage, individuals and departments can optimize their local performance but not contribute to achievement of the overall company strategic objectives.
- BSC focus on: Change Efforts. If the right objectives and measures are identified, successful implementation is likely to occur. If not investments and initiatives will be wasted.