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Examples Of Balanced Scorecard

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Perhaps the greatest gift of the unified GUI of the more recent versions of Windows? is that transforming data into a format which is pleasing to the aesthetic tastes [eye and mind] of the individual viewing it is quite easy. It is so easy to manipulate final presentation mode that most software for Balanced Scoreboard Management programs includes various presentation formats as default options.



One of the more popular, and often one of the easiest to understand formats for presentation is the spreadsheet. Over the years, almost all management types have become used to seeing and using spreadsheets in the many various [computer] applications that use the spreadsheet format as the final presentation format. Many, even high-level managers are so conversant with the spreadsheet format that they are even comfortable converting spreadsheets into charts and other diagrams for their own presentations.

The versatility of spreadsheet format is what makes it so acceptable as a presentation or intermediate tool. The thought of presenting what might otherwise be complicated reporting data from various sub-operations and using various perspectives and metrics, fairly screams out for the spreadsheet as a delivery medium.

The dashboards that are offered are sort of interesting for the person who wants to be a voyeur while the enterprise chugs along, but the ability to take intermediate results on spreadsheets, and compare yesterday's production with today's or this morning's with this afternoon's is truly what spreadsheeting is extremely good at.

Not all of the various off-the-shelf Balanced Scorecard software packages come with spreadsheet output designed into them, but you don't have be in the Forbes' 500 to have an IT person who can automate the population of a spreadsheet with the raw data from any Balanced Scorecard management system, including the home-brew type.

One idea that seems to be universal in the field of management training is that every organization is unique. While, in truth, nobody has the exact same measurements as the next person, most of us can still buy ready-to-wear clothing and have a decent fit, even if it requires a little alteration. Most of the off-the-shelf Balanced Scorecard software packages allow for just such minor alterations to make the product ?fit? your specific, ?unique? enterprise. The more expensive software packages often come with some amount of training included in the package price and some small amount of individualization, built into the price.

Even if that individualization includes something as simple as the design of the spreadsheet presentation, remember to be careful to have your implementation team make the decisions, and allow the software company's person to follow their lead only. The more expensive route is the custom tailor job, and here we are approaching the scale of governmental departments and other large corporate entities with sprawling interests, before these become cost effective. These operations would ordinarily be on the order of business management consulting and the consulting firm would have the software built especially for your enterprise, although they are often using their own off the shelf parts, and only making the smallest modifications.
Examples Of Balanced Scorecard
The balanced scorecard refers to a management approach developed and introduced by Drs. Robert Kaplan and David Norton in the 1990s. Their motivation was to put forth a management system that would be able to use objective information gathered from various sources to make better decisions for the organization. That is, data and observations from various parts and aspects of the organization were going to be used to inform management decisions.

These observations and data are gathered in the context of certain so called metrics. These metrics simply represent standards by which measurements can be made. For example, the gross and net income of a company represents one of the simplest metrics that could be considered. Of course, there are many different possible metrics, with varying levels of relevance, practicality, and usefulness.

Under the balanced scorecard approach, there are four different perspectives that are taken into consideration both individually and together. It is called a balanced approach in reaction to the previous management systems and approaches, which tended to focus too much on the financial and profit aspects of the organization. In this new balanced scorecard approach, Kaplan and Norton hoped to consider the other aspects of organizational performance which they felt were just as important.

Of course, the financial perspective cannot be completely discounted, and is still an important part of the balanced scorecard system. This represents the cash flow in and out of the organization, as well as the allocations for the various operational expenses.

The customer perspective is the second one, and refers to such things as customer satisfaction and customer retention. What is important to work for in this perspective is a solid working relationship with the customers, which would ensure their continuing patronage and cooperation.

The business processes perspective is the third. This looks at those processes specific to the particular business being considered, such as the workings of the manufacturing plants, or even those administrative processes unique to an organization.

Lastly, there is the learning and growth perspective. Here, the ability of the employees and the organization as a whole to learn and adapt is focused on. This ability has become more and more important, as businesses find it necessary to be able to react quickly and efficiently to any changes that may come.

Visiting a scorecard forum could help managers to get input from other practitioners of this particular strategic management approach. A forum provides a venue for asking questions, and getting relevant answers from people who may be more experienced at the balanced scorecard approach. Typical areas of inquiry include metrics and which ones to choose for each perspective, the relationships between perspectives, and of course tips on the actual implementation of the balanced scorecard.

Learning about the balanced scorecard approach may also be facilitated by visiting a scorecard forum. In short, a scorecard forum is a potentially very useful resource for any manager considering trying the balanced scorecard management approach. With proper preparation and implementation, the balanced scorecard approach can make a significant difference in any organization's performance.
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