BALANCED

SCORECARD

HOW TO IMPLEMENT IT?

DEFINITION OF BALANCED SCORED
The balanced scorecard (BSC) is a strategic planning and management system.
Organizations use BSCs to:
Communicate what they are trying to accomplish
Align the day-to-day work that everyone is doing with strategy
Prioritize projects, products, and services
Measure and monitor progress towards strategic targets
The name “balanced scorecard” comes from the idea of looking at strategic measures
in addition to traditional financial measures to get a more “balanced” view of
performance.
The concept of balanced scorecard has evolved beyond the simple use of
perspectives and it is now a holistic system for managing strategy.
FINANCIAL (OR Views an organization’s CUSTOMER/ Views organizational
financial performance STAKEHOLDER performance from the
STEWARDSHIP)
and the use of financial perspective of the
resources. customer or key
stakeholders the
organization is designed
to serve.

INTERNAL views the quality and ORGANIZATION Views human capital,

PROCESS efficiency of an AL CAPACITY infrastructure,
organization’s technology, culture, and
(OR LEARNING
performance related to other capacities that are
the product, services, or
& GROWTH) key to breakthrough
other key business performance.
processes.
 BENEFITS OF A BALANCED SCORECARD
77% report that their Balanced Scorecard is extremely or very useful.
2CG survey 75% use the Balanced Scorecard to influence business actions.
Of the 64% of organizations that have refreshed their Balanced Scorecard,

1. BETTER STRATEGIC PLANNING

4. BETTER MANAGEMENT INFORMATION
The Balanced Scorecard provides a powerful
The Balanced Scorecard approach helps
framework for building and communicating
organisations design key performance indicators for
strategy.
their various strategic objectives. This ensures that
The process of creating a Strategy Map
companies are measuring what actually matters.
ensures that consensus is reached over a set
of interrelated strategic objectives

BETTER ORGANISATIONAL ALIGNMENT BETTER PROCESS ALIGNMENT

The Balanced Scorecard enables companies to better align
their organisational structure with the strategic objectives.
Organisations need to ensure that all business units and
support functions are working towards the same goals.
Cascading the Balanced Scorecard into those units will
help to achieve that and link strategy to operations.
Well implemented Balanced Scorecards also help to align
organisational processes such as budgeting, risk
management and analytics with the strategic priorities.
This will help to create a truly strategy focused
organisation.
THE PROBLEMS WITH BALANCED SCORECARD
IMPLEMENTATION

NO PROCESS IMPROVEMENT
POORLY DEFINED METRICS TOO MUCH INTERNAL FOCUS
METHODOLOGY

LACK OF EFFICIENT DATA TOO RIGID, NOT ACCOUNT

LACK OF A FORMAL REVIEW
COLLECTION AND FOR CHANGES IN THE
STRUCTURE
REPORTING BUSINESS LANDSCAPE.

Problems Implementing a Balanced Scorecard | BPMInstitute.org. (n.d.).

https://www.bpminstitute.org/resources/articles/problems-implementing-balanced-scorecard?
fbclid=IwAR0g4CplaFriCh7qecmLm8m8omoFYnysWsiI2olvdyhACY8Rq82XIbKQChg

BALANCED SCORECARD
IMPLEMENTATION MISTAKES
NINE STEPS
STEP 1: ASSESSMENT STEP 2: STRATEGY STEP 3: STRATEGIC OBJECTIVES
analysis of the current internal and strategic theme level
external environments development of the strategy organization-level
SWOT analys

STEP 4: STRATEGY MAPPING STEP 5: PERFORMANCE STEP 6:STRATEGIC INITIATIVES

MEASURES
develop the critical leading and focus the organization on the
lagging measures needed to manage execution of the most prioritized
strategy execution strategic projects

STEP 8:ALIGNMENT STEP 9 : EVALUATION

STEP 7: PERFORMANCE
ANALYSIS review and refresh
STAGE 2:
DEVELOPMENT OF
THE STRATEGY
STEP 4: STRATEGY MAPPING
THE RIGHT WAY TO IMPLEMENT A
BALANCED SCORECARD
STEP 5:
PERFORMANE
MEASURES
STEP 8: ALIGNMENT
 REFERENCES
Balanced Scorecard Institute. (2022, December 19). Balanced scorecard basics. Balanced
Scorecard Institute. Retrieved December 29, 2022, from https://balancedscorecard.org/bsc-
basics-overview/?gclid=CjwKCAiA76-dBhByEiwAA0_s9bPX_rDbsb9eMMHWBhz0T-NFrx_SMoP-
UMpwIg5aOAw__mBh2yRxZhoCvOAQAvD_BwE

Bernard Marr. (2021, July 13). 7 benefits of a balanced scorecard. Bernard Marr. Retrieved

December 29, 2022, from https://bernardmarr.com/7-benefits-of-a-balanced-scorecard/?

fbclid=IwAR2VIiJReXdR4j06FPtUuO1T1-mpqWxAi8qurciApWfzfSuOezMaOg9a98I

Sailus, M. (2022, January 3). 20 companies using the Balanced Scorecard (& why). ClearPoint
Strategy. Retrieved from https://www.clearpointstrategy.com/companies-using-the-balanced-
scorecard/?fbclid=IwAR0d3qUVIT5_uyEnapaEpowxDME3QyJx2ZERpzB0tlVeAvwLJk1fdOoMSBY

Problems Implementing a Balanced Scorecard | BPMInstitute.org. (n.d.). Retrieved from

https://www.bpminstitute.org/resources/articles/problems-implementing-balanced-scorecard?
fbclid=IwAR0g4CplaFriCh7qecmLm8m8omoFYnysWsiI2olvdyhACY8Rq82XIbKQChg