It is quite important for organizations to turn their strategic goals and objectives into reality. And over the years, they have devised many different ways on how they can get the organization closer to its goal. We have seen organizations succeed and fail at reaching their objectives and perhaps, many have us have this bigger question: what makes an organization succeed in its efforts? What are the indicators of a successful organization? Business experts refer to the answer as a balanced scorecard. And more than just being a descriptive term for success, this word is a tool used in strategic performance management. And in time, it has evolved into a formula or framework for success.
To most business experts, a balanced scorecard is more than just a tool for strategic performance management. It is also a structured report based on a proven design of methods and automation tools. These can be used by organizational leaders and managers in monitoring the activities of employees, as well as the consequences that might arise from such activities.
There are several other kinds of tools to encourage and measure performance, like results based management that promotes the development of a results leadership group, but the balanced scorecard concept has emerged to be one of the most popular and effective in modern-day organizations. Perhaps one reason for its popularity and effectiveness is the value it gives to financial, as well as non-financial measures. These measures are then compared to target values using concise reports. In some organizations, there might be some confusion in the reporting part because some leaders view the reports as replacements for traditional operational and financial reports. However, these reports must be viewed as summaries that can give the management relevant information, depending on the kind of manager reading or reviewing it.
Some might think it is complicated to implement this kind of concept in an organization. Others believe that this concept follows strict guidelines and the littlest mistakes can spell disaster. What many of these leaders and managers do not know is that the concept has evolved over the years and it has become more flexible and more effective.
These days, several business leaders, executives, and managers are pushing towards the idea of having a balanced scorecard in their organization. And indeed, this concept has changed a lot that it can now fit a good range of organizations and methods based on this concept are now easier to design and use.