Balanced scorecard strategy

What is balanced scorecard strategy

The balanced scorecard is an approach to future planning. A business scorecard starts with a vision defining where the company is heading in the long term and a mission to justify its existence in the shorter term. Balanced scorecard strategy is the top level of decision making for the changes necessary throughout the organization to achieve the vision in a defined period of time.Scorecard strategies wont necessarily be equally important so usually you use weightings to designate importance

The strategies of the organisation are usually decided upon by a small group. Ask questions like
"How can the organisation achieve a competitive advantage?"
"What should we be doing to achieve our vision?"
"How can we compete more effectively? Should we have a strategy to improve (whatever)?"
"Should we develop new products or services"
"What can we do to improve (whatever)?"

Scorecard strategy examples

Increase turnover by 15%

Optimise the production process

To increase the value of the business

Achieve sales of ---- per annum

Clearly identify our target markets

Become the supplier of choice for toy manufactures.

Each strategy is examined from each of the scorecard perspectives - Financial, Customer, Internal processes & Innovation. A perspective is the aspect from which the strategies are viewed. i.e. how should we appear to the shareholders?, how should we appear to the customers?. To satisfy  shareholders & customers what business processes must we improve?. How will the  ability to change & improve be sustained or how will the infrastructure be provided to enable the objectives of the other 3 perspectives to be achieved?.