Balanced scorecard

Client’s need

This method is worth to use, if:

  • many indices in the organization are good, but the income is low;
  • clients do not want to purchase the product, though it is discounted;
  • management does not want to use reports based on the outdated information;
  • management spends much time on arguing on the essence of indices and the need in indices;
  • changes in strategy or reorganization are planned;
  • the same indices are being used in the organization for several years and/or there are no indices at all;
  • personal indices of employees do not exist or are not connected with common objectives of the organization.

Essence of the Balanced Scorecard

Balanced Scorecard – the measurement system accepted in the organization. This system is used to determine, how well the strategic objectives are achieved on all organizational levels. The basis of the system is in finding cause-effect relationships for achieving general vision of organization. Classical balanced scorecard divides necessary actions into four balanced parts:

  • Finances – what shareholders and investors are waiting from you?
  • Clients – what product/service internal and external clients are waiting from you?
  • Internal processes – what should be done in order to satisfy needs and wants of shareholders?
  • Education and development – what areas should be developed to maintain competitive advantage?

Value for client

This methodology measures, how well the objectives are achieved and the weakest indices or areas are determined. The main competitive advantage of the method is that management gets the necessary for decision-making information regularly or in real time. The benefits of the method are the following:

  • Employees are better informed about the general objectives and directions of the organization, which creates preconditions for achievement of stated goals.
  • The basis for internal and external analyses is created.
  • Management may substitute opinion-based decisions by the facts-based decisions.
  • The basis for consistent development of the organization, training and feedback is created.

Experience in the following areas

  • Electronics;
  • Retail trade;
  • Financial sector.