Here’s a quick tutorial on Balanced Scorecards. It’s absolutely free and you can use this link for a direct download of the pdf version of the course: The Balanced Scorecard: Step by Step Guide to Build a Balanced Scorecard.
Here’s a quick look at the overall process of building a balanced scorecard:
The process consists of seven steps over three phases:
- Phase I: The Strategic Foundation
- Step 1: Communicate and align the organization around a clear and concise strategy. This is the fundamental starting point behind everything else. Your strategy is what“feeds” the Balanced Scorecard.
- Step 2: Determine the major strategic areas or scope for getting the organization focused on those things the organization can actually do.
- Step 3: Build a strategic grid for each major strategic area (step 2) of the business. Out of all the steps in the entire process, this can be the most difficult since we must take our entire strategy (step 1) and transform it into specific terms that everyone can understand. And everything must be linked to form one complete strategic model.
- Phase II: Three Critical Components
- Step 4: Establish Measurements: For each strategic objective on each strategic grid, there needs to be at least one measurement. Measurement provides the feedback on whether or not we are meeting our strategic objectives.
- Step 5: Set Targets for each measurement: For each measurement in your scorecard,establish a corresponding target.
- Step 6: Launch Programs: Things will not happen unless the organization undertakes formal programs, initiatives or projects. This effectively closes the loop and links us back to where we started – driving the strategy that was formulated in phase I.
- Phase III: Deployment
- Step 7: Once the Balanced Scorecard has been built, you need to push the entire process into other parts of the organization until you construct a single coherent management system. This pulls everything together, allowing successful execution of your strategy.
And here’s a look at some of the tools in the course: