Balanced Scorecard


The Balanced Scorecard is one of the most effective from my point of view of the elements of the management system. So what is it? At the core of any company's goals are to which it aspires. This may be the operational management that is focussed on achieving results in the current environment. Strategic planning can be aimed at the company's survival in the long term, given the dynamic changing external environment. But in one form or another plan and purpose is in any company. The Balanced Scorecard is designed to deploy these strategic objectives top management at all levels of activities. Balanced system can be represented as a pyramid of indicators. If so, and do it on top of it will be financial figures or other indicators, depending on the current strategy.

Assume strategy – to earn more money, while the highest goal – profit. Strategy may be to increase market share, then the purpose is not profit but to increase market share. (As opposed to Joseph Stiglitz). The aim may be to reduce costs, loss defined number of new brands, etc. As a rule, supreme goal is determined based on the current development strategy by top management. Reaching Higher goals are always carried out after a certain influence on the market / customers, because the increase in profit can be achieved, for example, through increased customer satisfaction, increase brand awareness, opening more outlets, etc. Therefore, indicators of market / customer stand for the second stage on top of the hierarchy of indicators.

In order to achieve certain indicators of satisfaction, market indicators to be achieved in certain indicators of current business processes of the Company (Production, purchasing, sales, etc.). For example, to improve customer satisfaction, we can evaluate the quality of service, provide additional services to improve the quality of services provided. The choice of performance depends on the current development strategy and the availability of various processes in the company. And, of course, lies at the heart of all staff. After all, in order to ensure that business processes planned, staff should be adequately prepared and trained. Therefore, based on a hierarchy of indicators are indicators of learning and development, such as: qualifications, number of errors committed and others. The introduction of performance takes place at all levels and in all areas of the company, so that each employee at his place knew what contribution it makes to the development of the Company. The greatest effect reached after a review of employee motivation. On personal experience I can say that after the introduction of a single company balanced scorecard and review of motivation management staff in accordance with target values of indicators, indicators for 2 months, were improved by more than 2 times. Thus, introducing a balanced system of indicators that can target the entire company and all its employees to achieve strategic objectives.

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