BALANCED SCORECARD - QPR ScoreCard
Balanced Scorecard (BSC) is a concept helping you translate strategy into action. BSC provides management
with a comprehensive picture of business operations and a methodology that facilitates the communication and
understanding of business goals and strategies at all levels of an organization. QPR ScoreCard helps you
automate and communicate your BSC. The QPR Balanced Scorecard helps companies create a view of their performance
that is truly "balanced" by examining the Financial, Customer, Learning and Efficiency perspectives.
What is Balanced Scorecard?
BSC starts from the company vision and strategies; from here critical success factors are defined. Measures are
constructed that aid target-setting and performance measurement in areas critical to the strategies. Hence, Balanced
Scorecard is a performance measurement system, derived from vision and strategy, and reflecting the most important
aspects of the business. The Balanced Scorecard (BSC) concept supports strategic planning and implementation by
federating the actions of all parts of an organization around a common understanding of its goals, and by facilitating
the assessment and upgrade of strategy.Traditional performance measurement, focusing on external accounting data, was
quickly becoming obsolete and something more was needed to provide the information age enterprises with efficient planning
tools. For this purpose Kaplan & Norton introduced the following four different perspectives from which a company's
activity can be evaluated:
 Financial Perspective (How do we perceive our shareholders?)
Customer Perspective (How do we perceive our customers?)
Process Perspective (In what processes should we excel to succeed?)
Learning and Innovation Perspective (How will we sustain our ability to change and improve?)
Creating a Balanced Scorecard:
You have to first identify a vision - where is the organization going? By identifying strategies you learn about how
you will get there. Define critical success factors and perspectives. What do we have to do well in each perspective?
Thereafter, ask how do we measure that everything is going the expected way? Then, it is necessary think about evaluating
your Scorecard. Consider how do we ensure that we are measuring the right things? Based on this work you should create
action plans and plan reporting and operation of the Scorecard. How do we manage the Scorecard and which persons should
have reports and what should the reports look like?
The picture below shows a very general example of a Scorecard. Where are we going? The vision: "We should dominate
the market." How? By focusing on cost efficiency, high quality and by investing in new technologies. In which perspectives
should we excel? Responsibilities and action plans for achieving targets set are defined. You can easily create a Scorecard,
but to create a manageable scorecard is a completely different thing!
Benefits
The benefits of applying Balanced Scorecard can be summarized as follows:
Balanced Scorecard helps align key performance measures with strategy at all levels of an organization.
Balanced Scorecard provides management with a comprehensive picture of business operations.
The methodology facilitates communication and understanding of business goals and strategies at all levels of an organization.
The balanced scorecard concept provides strategic feedback and learning.
Balanced Scorecard helps reduce the vast amount of information the company's IT systems process into essentials
providing more accurate, quicker, and less costly results that are used to drive business change.
eKNOWtion has developed a Fast Track to initiating a Balance Scorecard in a company allowing you
to achieve results in 50 days or less. To determine whether or not the Fast Track approach will apply
to your company, email us at ScoreCard@eKNOWtion.com and a representative will contact you within 24 hours.
Fast Track to a Balanced ScoreCard Initiative with eKNOWtion in just 50 Days:
| Mission, Vision & Strategy review and workshop preparation meeting | 5 days |
 |
Review mission, mission, strategy and operational plans as well as budgets
Outline Strategy map
Delegate workshop preparations (including software installations if required)
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| Formalised Benchmarking | 5 days |
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Select key measures and benchmark against other industry group competitors and interpret/evaluate
results (used to set targets) |
| Development workshops | 10 days |
|
Complete strategy map, select and define measures (Levels 1 & 2)
Design BSC structure and create first draft of the Scorecard
Identify Scorecard owners and delegate the creation of the Scorecards
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| Refinement & Consensus building Meetings | 5 days |
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Refine and Measure definitions, set targets and identify measures sources
Implement results immediately into the Scorecard model
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| Finalisation and communication workshop | 5 days |
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Education and communicate the BSC to key interest groups
Plan the next steps and integration of the BSC into the strategy reporting processes
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| Implementation | 15 days |
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Customer Implements |
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