Top 4 Phases of Balanced Scorecard and its Benefits

Today, we find that companies have many departments, employees, and goals. Therefore, the organization of them is a crucial part to achieve the success of the company, an effective method is the Balanced Scorecard or CMI. In this post, we will talk about the process to be carried out to implement the CMI and the benefits that it would mean for the company.

The Balanced Scorecard or CMI, is a process in which the company expresses its business strategy defining the objectives in a structured way. It aims to achieve, along with a series of indicators for performance evaluation and correction of possible deviations towards the development of a better strategy.

Phases of implementation Balanced Scorecard.

Phase 1 – Analysis of the company and definition of strategic goals

To develop an adequate balanced scorecard, in its first phase of design, meetings should be held to learn about the situation of the company and its strategic vision. For this process in the design of the strategy to be following the reality of the company, an analysis of the current market and search for information about the company such as action guides, operational reports, expenses, and investment budgets and annual accounts must be carried out. Once the information is gathered, the exchange of ideas and opinions can begin.

It is important to address these four key perspectives for the company: financial, commercial, internal processes, and training. But each company has its characteristics and therefore it may be necessary to add one.

Phase 2 – Setting objectives and strategic indicators.

Once the strengths and weaknesses have been defined along with the purpose of the company, it will be time to establish objectives that reflect the goals to be achieved and lead us to fulfill that purpose.

These objectives must start as basic and short-term, facilitating the achievement of the final objective.

To know if these objectives have been adequately met, a series of strategic indicators must be implemented to know what is failing and thus be able to correct it.

Phase 3-Quantification of objectives.

In this phase the objectives must be quantified. For this, the values ​​for each indicator will have to be determined according to their characteristics and capabilities.

This will help identify the most difficult objectives to meet. Thus it will be able to establish support for those areas to better achieve the established goals.

Phase 4-Implementation of Balanced Scorecard.

In the implementation of the CMI, it is necessary to reach all levels of the organization. For this, communication between the different areas of the company must be produced. It must be in addition to the education that will be sought to achieve these objectives.

In the implementation of the CMI, the evolution of the results obtained in each area will be known to correct possible deviations. It may arise, providing solutions such as training courses, new material, and computer tools, hiring of personnel, the establishment of follow-up meetings and all those measures that can contribute to the achievement of the objectives.

Carrying out all this monitoring process can be difficult to manage. For this some applications will help to do it more efficiently. Among them is Clicked, whose objective is to simplify these phases. It registers data more quickly as objectives are achieved.

This saves the administrator time in team meetings by having the recorded data available. Also, the worker will have all the registered information of his colleagues. It ensures that the entire team knows the aspects of improvement or processes that have not been optimal.

Benefits of the Balanced Scorecard

Given a good design of the Balanced Scorecard, the benefits derived from it are:

• Measure the objectives to determine the weaknesses of the company. Also, be able to apply improvement measures.
• Transmit the goals of the company to the business team.
• More assiduous manager-worker communication.
• Create a good work environment by being clear about the functionalities of each member of the company.
• Increase in labor performance in the short and long term.
• Align the efforts of different departments to achieve higher goals.
• Increase worker motivation.