Improve Balanced Scorecard

Balanced Scorecard

A management model based on both financial and non-financial parameters. The philosophy points to the importance of understanding that other factors than just the economic “driver” of a company’s ability to succeed. Balanced Scorecard is always divided into perspectives and associated control parameters.

Each perspective consists of the control parameters that you want to use to manage the company. Control parameters are either “lead” or “layers” indicators. Lead indicators are drivers (see this), while the “layers” are performance indicators.

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“In 2012, Vizada Networks was looking for a professional Sales Training course, who could tailor the training course to meet our needs.
ResultatPartner and Ronny developed the Training content from scratch and in order to gain sustainable, measurable results; we used Improve Performance and Training Systems (IPTS) providing us a personal Sales Skills Profile with individual Training Plan and KPI`s as well as Knowledge Tests after each Training sessions. During the 5 months sales training course, Ronny conducted an excellent training for the entire sales team. Ronny was very inspiring giving examples from real life, as he understood the challenges we were facing within our business. Through his deep understanding of the sales cycle, we received excellent feedback and he and motivated and challenged us to think out of the box with focus on our competitive advantages. I enjoyed the training session and I strongly recommend him in any future sales training program.”

Stein Bexrud
Sales director, Vizada Networks

Improve Balanced Scorecard

The Improve Balanced Scorecard translates mission and strategy into objectives and measures, organized into four perspectives; financial, customer, internal business process, and learning and growth.   The scorecard provides a framework, a language, to communicate mission and strategy; it uses measurement to inform employees about the drivers of current and future success. By articulating the outcome the organization desires and the drivers of those outcomes, senior executives hope to channel the energies, the abilities, and the specific knowledge of people throughout the organization toward achieving the long-term goals.

But they strive to get commitment, understandings and motivation.

Corporate development is a continuing process of improvement.

Corporate development refers to the planning and execution of strategies to meet organizational objectives. The kinds of activities falling under corporate development may include management team recruitment, phasing in or out of markets or products, arranging strategic alliances, identifying and acquiring companies (M&A), securing corporate financing, divesting of assets or divisions, and management of intellectual property. The activities encompassed are often the role of the CEO.

The Learning and Growth Perspective covers the intangible drivers of future success such as human capital, organizational capital and information capital including skills, training, organizational culture, leadership, systems and databases.

Improve is a digital Software developed for decades covering some unique features related to Training and Performance Management.

The Improve Balanced Scorecard Perspectives

Process
Perspective

The Internal Processes / Process Perspective covers Business Idea, Vision, Goals, Strategies and corporate Values. Our starting point is to evaluate and analyze these five perspectives and based on the results we customize plan to improve.

Leadership
Excellence

Leadership excellence is all about inspiration, motivation and strategy execution! Excellence in leadership is more about the numbers, it`s about making people committed to goals and strategies.

Customer
Capital

Recent management philosophy has shown an increasing realization of the importance of customer focus and customer satisfaction in any business. These are leading indicators: if customers are not satisfied, they will eventually find other suppliers that will meet their needs. Poor performance from this perspective is thus a leading indicator of future decline, even though the current financial picture may look good.

Finance
Capital

For most organizations, the financial themes of increasing revenues, improving cost and productivity, enhancing asset utilization, and reducing risk can provide the necessary linkages across all four scorecard perspectives.

Human
Resource
Perspective

This perspective includes employee training and corporate cultural attitudes related to both individual and corporate self-improvement. In a knowledge-worker organization, people — the only repository of knowledge — are the main resource. In the current climate of rapid technological change, it is becoming necessary for knowledge workers to be in a continuous learning mode.

Improve
Balanced
Scorecard

The Improve Balanced Scorecard translates mission and strategy into objectives and measures, organized into four perspectives; financial, customer, internal business process, and learning and growth.   The scorecard provides a framework, a language, to communicate mission and strategy; it uses measurement to inform employees about the drivers of current and future success. By articulating the outcome the organization desires and the drivers of those outcomes, senior executives hope to channel the energies, the abilities, and the specific knowledge of people throughout the organization toward achieving the long-term goals. But they strive to get commitment, understandings and motivation.

Corporate Development KPI`s

1.      Administrative expense / total revenues (%)

2.      Processing time, outpayments (#)

3.      On-time delivery (%)

4.      Average lead time (#)

5.      Lead time; product development (#)

6.      Lead time; from order to delivery (#)

7.      Lead time; suppliers (#)

8.      Lead time; production (#)

9.      Average time for decision-making (#)

10.    Inventory turnover (#)

11.    Improvement in productivity (%)

12.    IT capacity [CPU and DASD] (#)

13.    IT capacity / employee (#)

14.    Change in IT inventory ($ or %)

15.    IT expense / administrative expense (%)

16.    Emissions from production into the environment (#)

17.    Environmental impact of product use (#)

18.    Cost of administrative error / management revenues (%)

19.    Contracts filed without error (#)

20.    Administrative expense / employee ($)

 

Strategy development

  • Customer Perspective
  • Human Capital Perspective
  • Process Perspective

Measuring and tracking Key Performance Indicators in realtime is giving you sufficient insight to make good decisions.

Strategic plan development

  • Performance
  • Results

Research beyond the business plan

Good strategy is the antidote to competition. Strategic thinking is the process of developing a strategy that defines your value proposition and your unique value chain. This process includes market and competitive research as well as an assessment of the company’s capabilities and the industry forces impacting it.

Digital dashboards may be laid out to track the flows inherent in the business processes that they monitor. Graphically, users may see the high-level processes and then drill down into low level data. This level of detail is often buried deep within the corporate enterprise and otherwise unavailable to the senior executives.

Three main types of digital dashboard dominate the market today: stand alone software applications, web-browser based applications, and desktop applications also known as desktop widgets. The last are driven by a widget engine.

Specialized dashboards may track all corporate functions. Examples include human resources, recruiting, sales, operations, security, information technology, project management, customer relationship management and many more departmental dashboards.

Digital dashboard projects involve business units as the driver and the information technology department as the enabler. The success of digital dashboard projects often depends on the metrics that were chosen for monitoring. Key performance indicators, balanced scorecards, and sales performance figures are some of the content appropriate on business dashboards.

Like a car’s dashboard (or control panel), a software dashboard provides decision makers with the input necessary to “drive” the business. Thus, a graphical user interface may be designed to display summaries, graphics (e.g., bar charts, pie charts, bullet graphs, “sparklines,” etc.), and gauges (with colors similar to traffic lights) in a portal-like framework to highlight important information.

Digital dashboards allow managers to monitor the contribution of the various departments in their organization. To gauge exactly how well an organization is performing overall, digital dashboards allow you to capture and report specific data points from each department within the organization, thus providing a “snapshot” of performance.

 

Benefits of using digital dashboards include:

  • Visual presentation of performance measures
  • Ability to identify and correct negative trends
  • Measure efficiencies/inefficiencies
  • Ability to generate detailed reports showing new trends
  • Ability to make more informed decisions based on collected business intelligence
  • Align strategies and organizational goals
  • Saves time compared to running multiple reports
  • Gain total visibility of all systems instantly
  • Quick identification of data outliers and correlations

A performance indicator or key performance indicator (KPI) is an industry jargon for a type of performance measurement. KPIs are commonly used by an organization to evaluate its success or the success of a particular activity in which it is engaged. Sometimes success is defined in terms of making progress toward strategic goals, but often success is simply the repeated achievement of some level of operational goal (for example, zero defects, 10/10 customer satisfaction, etc.). Accordingly, choosing the right KPIs is reliant upon having a good understanding of what is important to the organization. ‘What is important’ often depends on the department measuring the performance – the KPIs useful to finance will be quite different than the KPIs assigned to sales, for example. Because of the need to develop a good understanding of what is important, performance indicator selection is often closely associated with the use of various techniques to assess the present state of the business, and its key activities. These assessments often lead to the identification of potential improvements; and as a consequence, performance indicators are routinely associated with ‘performance improvement’ initiatives. A very common way for choosing KPIs is to apply a management framework such as the balanced scorecard.

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