You can download a free balanced scorecard sample to be edited as
per your needs. It will save your and your company money and time
needed to write it from the beginning. It can be used by any
institution though it was created for a bank. You can properly
download it free on a document in Word format.
Definition of balanced scorecard
Organization Thoughtware International &Visum Solutions, Inc. has
defined balanced scorecard as a framework of an organization used
for managing and implementing strategy at its all levels by linking
initiatives, measures and objectives to the strategy of an
organization. It provides the view of overall performance of an
organization. It combines internal business processes, key
performance indicators around customer perspectives, and
organizational growth, learning and innovation with its financial
measures. Balanced scorecards are used by strategic business unit,
corporate, hundreds of individual organizations and shared service
function all over the world in public and private sectors both,
since its inception in 1992.
According to them, balanced scorecard has proved to be a powerful
framework for performance management. Still a successful idea allows
thinking in a different manner to encourage a larger group to move in
the same direction and achieve a better cultural change. By using the
balanced scorecard as a strategic navigational chart success can be
achieved in institutionalizing it and linking it to the strategy of the
Balanced Score card Approach
The division of balanced scorecard of a business into various
sub-sections is its most distinctive feature according to Lafferty
Publications. Initially Norton and Kaplan divided into customer,
financial, innovation and learning and internal business subsections
as all these components are principally found in any sensible
strategy. These components were described by Organizational Thoughtware International &Visum Solutions, Inc. under the heads
learning and growth
perspective and internal perspective.
Another way to increase the revenue of a business is to produce the
things required by its customers. Your products will compel people to
buy them from you than from your competitors. According to business
experts Operational Excellence, Customer Intimacy and Product Leadership
are the three generic value propositions for a business. Operational
Excellence allows timely differentiation of products and services on the
basis of their quality, price and fulfillment capability. Customer
Intimacy differentiates products and services on the basis of personal
relationship with the customers. And Product Leadership differentiated
them on the basis of their features, overall performance and
Every effort links with financial result at the end. Financial
performance can be improved in two ways - either through revenue growth
or productivity growth. Revenue growth can be achieved either by
producing wider variety of products or increasing the worth of existing
products. Productivity growth depends upon reducing cost or reducing
supporting capital of the business. Note: A good balance navigational
scorecard can maintain balance between long term and short term
strategies and revenue and productivity growth.
It relates to proper deployment of efforts to cope up with customer
perspectives and financial perspective. The customers should be allowed
to touch and feel the innovative or value added products produced by an
organization to know that they have got what they needed otherwise it is
just an assumption. Unless the customer is allowed to measure the
comfort or difficulty level of the product it is only like a
technique-less philosophy. According to business experts four internal
processes can be used to implement a strategy in this regard. They
Introduction Process for New Services/Products which
includes the innovations to build the business. Management Process
for Customer Relationship used as a strategy and commitment to
develop long lasting and deeper relationship. Value Stream Process
from Order Entry to Order Fulfillment to provide continuous flow
of providing customer value along with supply chain management, demand
generation, material conversion, information conversion, asset
utilization, demand fulfillment and quality and cost management.
Corporate Citizenship Process to build and maintain
relationships with outside stakeholders including environmental
entities, regulators, citizens and law-enforcers etc.
It designs the future shape of the business. At this point
implementation of a strategy becomes possible after controlling it
critically. Some of the precious organizations which have reached this
point have set aside the cause-and-effect linkage and financial
objectives to achieve it as it is important for the progress of an
organization. It can be divided into three important fields:
Core Competencies and Skills of the employees: to get
significant return it is important to invest strategically on human
capital. An aligned development and training plan will help an
organization to utilize it fruitfully. Generation, development,
maintenance and reward of knowledgeable workers are the fundamental
necessity as they are the lifeline of a business.
Technological ability: It is required to control the central
capabilities of a business. Managing the repeatable and routine events
comes under technological ability. ATM machine of a bank is a good
example of technological ability as it manages relationships along with
fulfilling personalized needs by leaving money after handling the
process predictably and repetitively.
Corporate Culture: It relates to every day guesses carried to
a business. If the culture is sensible and communicable then it will
respond to Strategic Navigational Chart of the business. By
understanding its place in the cause-and-effect hypothesis an
organization can know its contribution in corporate culture instead of
connecting with distant and uncontrollable concept of customer delight
and shareholder equity.
The attributes of a successful scorecard were explained by
Five fundamental requirements have been outlined for a good
scorecard by Rick Anderson from a company which has extensively
implemented scorecards, BP, including suitable, acceptable,
effective, aligned and feasible. Other attributes are summarized as
It should not be financial excessive.
The score should be embodied precisely to the strategy of the
It should be included in a learning process.
It can be implemented successfully.
It should be balanced.
At last Organization Thoughtware International, Lafferty Publications
as well as Visum Solutions, Inc. are thanked for providing information
about balanced scorecard.