Using Balanced Scorecard In Operational Design

Balanced Scorecards [BSC] are used to implement strategy throughout an organisation. Employing an holistic approach to the organisation, integrating people, process and technology, BSC's provide a whole new way of thinking and operating.

Balanced Scorecards make operational performance measurement far simpler than before. Previously, operational design and process performance management were largely based on Activity Based Costing. This has proven an unweildy, complicated mode of analysing and monitoring operations. Balanced Scorecards now use Time Based Costing, making process mapping, process re-enginerring, and process performance management a much easier and more valuable task.

To create a strategy-focussed organisation you need to:

1. Translate strategy into operational terms
2. Align the management of the organisation to the strategy
3. Mobilise change through strong, effective leadership.
4. Make strategy part of everyones job and KPI’s
5. Adopt strategy as a continual everyday process

The Balanced Scorecard framework is a valuable tool for operational design. It ensures that:

1. Operational processes are directly linked to corporate objectives
2. Operational KPI's roll up to contribute to corporate KPI's
3. The People, Process and Technology are equally measured, and valued as contributing to the overall effectiveness of corporate operations.

Overall, Balanced Scorecards are a management technique for organizations that aim to achieve excellence in both strategy and operations. It is THE most successful methodology of empowering an organisation to meet the fast paced demands of todays market.

Deploying Strategy Using Balanced Scorecard

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