To Join or not to Join a Balanced Scorecard Forum

The measurement of performance in a certain company is quite difficult. This is because there are so many quantifiable aspects entailed in this endeavor that choosing from the many aspects can be confusing. This is precisely why companies need to develop a balanced scorecard, and try participating in a balanced scorecard forum, just to get a better grasp of the subject at hand.

But what exactly is a balanced scorecard? This is actually a certain method of performance measurement that makes use of both kinds of measures, the financial and the non-financial. Because both measures are utilized, a more balanced approach is then made possible. Managers can then analyze and interpret collected data from the scorecard in a more balanced fashion. In this manner, the information collected would then be more relevant as well.

There are so many benefits that a company can enjoy with the proper implementation of a balanced scorecard. Of course, these benefits would actually be enjoyed according to how it would be used. The existence of a balanced scorecard is far from enough because it is in knowing how to apply the scorecard correctly that the benefits would be enjoyed. As expected, many kinds of organizations and businesses have been utilizing the balanced scorecard in various formats as well. But the fact remains that two applications are commonly used here, and these are Strategic Management and Operational Control. Both applications are similar to some visual extent. However, both require the support of processes that are quite different, and provide various positive results for the management team as well.

When used for strategic management, the balanced scorecard is comprised of three aspects: formulation, communication, and control. In formulation, the scorecard asks for the goals and such that the company wants to achieve. In communication, the scorecard asks for the processes or methods needed to achieve such goals. In control, the scorecard then asks if the company is indeed achieving these goals. When using the balanced scorecard for strategic management, managers are then given the opportunity to articulate for themselves the goals and objectives of the company. The performance of a certain process is not analyzed here. Rather, analysis is on how objectives are set, and the efficiency of the proposed actions in achieving these objectives.

When used for operational control, the focus is no longer on the objectives, but rather, on a particular process. The first thing to determine is the particular process that is to be monitored. The second thing entails the aspects of the particular process that are to be measured. The third thing entails the determination of the best process ever employed by the company. With the use of the balanced scorecard for operational control, managers can then monitor the deliver of activities that have been pre-defined. The process of pre-defining here entails the search for that best practice ever employed in the company.

To have a better understanding and fuller grasp of the matter at hand, it would actually help to visit a balanced scorecard forum. This way, you can converse with fellow professionals who are currently using balanced scorecards as well. And they can answer whatever queries you may have right away.