A balanced scorecard might be what you just need to change the course of your business. Improve three key indicators and expect impressive financial and structural results.
A balanced scorecard might be what you just need to change the course of your business. Improve three key indicators and expect impressive financial and structural results.
Shuriken’s CEO, Andrew Jeffers, explains why you should include a balanced scorecard in your performance management strategy.
Balanced scorecard in a nutshell…
The balanced scorecard terminology is a management philosophy that emerged in the early ‘90’s. It was developed by two PhD electrical engineers, Robert Kaplan and David Norton.
They discovered a way to use KPIs (Key Performance Indicators) to grow your business. After all, it’s not all about data collection, processing, and analysis. That’s not enough for business success. You also need to interpret results and establish predictions.
One of their main philosophies was that once you look at financials you’re looking into the past. It has already happened. You can’t go back, but you can change the future.
How? Your financials are mainly a result of a few key indicators in your balanced scorecard. Therefore, you should pay close attention and put some effort into developing them.
How does the balanced scorecard influence the financial performance of your business?
There are many ways in which a balanced scorecard can improve the development and financial success of your business.
But first, you need to consider three key indicators and ensure each one is performing at optimal and efficient levels.
1. Your staff
Your employees and your team are the main operational structure of your company. As such, you should provide them with the necessary tools, knowledge, and training opportunities.
Keep in mind that choosing the right people is also crucial when it comes to business development. So, make a strict criterion while hiring new staff members.
2. Your management
What’s the efficiency of your systems, policies, and procedures? Did you know that factually, people actually want to do a good job but they’re not able to because the system doesn’t allow a smooth transition?
One of the main reasons people fail in the company is a systematic failure. That’s why it’s important to have an efficient management system that allows people to do their job.
3. Your customers
Listening to customer feedback is important. However, providing a customer service of excellent is even more important for your business.
Showing your customers that you are willing to solve any problem will definitely boost their trust levels in your brand. Besides, it will most likely turn an unhappy customer into a satisfied customer.
It’s a chain reaction…
If you do a rockstar job in your customer service, you have great systems, procedures, staff and you train them well, the financials will follow. It will get better and better.
It’s a fantastic and very effective methodology that we use in the business world. When properly implemented, it can really change your financial situation.
I’d strongly suggest you do some reading about the balanced scorecard. After all, it can propel your business forward like you wouldn’t believe.
Get in touch with me if you feel you need a little help with your balanced scorecard. Focus on your business development and ensure that success is the only way forward.