| One of the things usually not found on a balanced | | | | organization, since everyone would then be working |
| scorecard, tool vendor rating can really help an | | | | towards the same goal. Coherence would also be |
| organization save time in choosing business partners, | | | | much improved since ideally, everyone would then |
| as well as be able to work with them more | | | | know why they need to do what they are assigned to |
| consistently. The balanced scorecard is a strategic | | | | do. |
| management approach that emphasizes getting the | | | | Even in less than ideal implementations where, to some |
| big, complete picture in order to be better able to make | | | | extent, a bottom up approach also needs to be used, |
| important decisions. By using this framework, | | | | the balanced scorecard is a powerful tool. It is useful, |
| organizations can effectively orient themselves toward | | | | for one thing, in bringing clarity to an organization, by |
| their goals while being aware of the many aspects of | | | | forcing management to clearly decide on a set of |
| overall performance. The concept is not a new one, | | | | goals, and then to ensure that everybody in the |
| and it has been applied to many parts of organizational | | | | organization is made aware. |
| endeavor, from performance management to planning | | | | Another reason why the balanced scorecard is useful |
| and maintenance. | | | | is that it provides an effective way of monitoring these |
| Basically, the balanced scorecard consists of four | | | | goals from all perspectives. Performance can then be |
| integrated perspectives: financial, marketing, | | | | measured using relevant metrics against an ideal or |
| developmental, and operational. In the original | | | | desired outcome. Progress towards these goals can |
| terminology by the proponents Kaplan and Norton, | | | | be determined, and whether there is significant |
| these were the Financial, Customer, Learning & | | | | progress or not, will correlate with performance. This is |
| Growth, and Internal Business Process perspectives. | | | | in contrast to some of the hazy, ambiguous |
| As can be seen, these encompass all the activities of | | | | management and performance tracking policies that |
| an organization, and hence can rightly claim to be able | | | | have plagued many organizations since the beginning |
| to measure and integrate all of these. | | | | of humankind. |
| In an ideal implementation, the scorecard would be | | | | Using the balanced scorecard, tool vendor selection |
| developed from the top down. That is, everything | | | | and relations can be much improved. In the same way, |
| would begin with one mission or vision for the entire | | | | a complete picture of these vendors' past |
| organization, which is a long term goal. Then, in accord | | | | performance can be determined using a scorecard. |
| with this vision, smaller and smaller goals and | | | | Smooth working relationships can then be maintained |
| objectives could be formulated as necessary. Each | | | | by managing the proper department's performance, |
| department, subgroup, team, and employee would | | | | again using the scorecard methodology or concept. |
| eventually be tasked to fulfill a particular goal so that, all | | | | This flexible, powerful tool should be in any smart |
| together, they can move towards the accomplishment | | | | strategic manager's arsenal, since it can both clear |
| of the vision. This would indeed ensure unity within the | | | | things up and make them easier to track and improve. |