Balanced Score Card: Implementation Simplified

With the information age rapidly maturing and the clear inclination of the companies towards superior competitive strategy as operational effectiveness was no more a differentiator, the challenge that companies are facing is not only to derive strategy statement but also to share and implement it effectively across the organization.

Balanced Score Card developed by Kaplan and Norton in early 90s was widely regarded as Performance Management System tool. The evolution of Balanced Score Card as Strategic Management System has filled the gap between the Strategy Formulation and Implementation.

The steps involved are highlighted below:

1) Create Vision and Strategy Statement

2) Derive integrated set of objectives and measures from vision and strategy statement

3) Communicate strategy to all levels

4) Link the organizational level objectives and measures to departmental and individual objectives

5) Integrate the Business and Financial Plans

6) Allocate resources and set priorities to achieve Balanced Score Card objectives

7) Evolve the strategy real time as per the feedback and learning

Resources are scarce for every company in the world. Utilization of those resources to achieve the competitive advantage (which will in turn help in higher returns on the capital employed) will depend upon the integration of Strategic initiatives with the Budgeting process. 

CUNIX specializes in consulting and advisory related to Balanced Score Card.

Please get in touch with us for an overview session of Balanced Score Card