Question

How to design a balanced scorecard for a new business venture

Answer 1

The Balanced Scorecard, also termed as BSC, refers to a strategic planning and management system which is widely used in business and industry, non-profit organizations, and government worldwide to align activities of business to the goals, strategy and vision of the organization, enhances the internal and external communications, and monitor performance of organization against strategic targets. The new business can design the balanced scorecard by following the below mentioned steps:

-- A purpose statement that tells how you’ll be different than your rivals and it must include three different aspects: goal, benefit, and scope. It focuses on the identification of the strategic goals for each business perspective: internal business processes, learning and growth, customer, and financial.

-- Make a strategy map which is a diagram that displays the connectivity or relationships between the strategic goals and guides you business to it's destination. It demonstrates how each individual, team or department contributes to the broader targets of the company

-- The specific metrics should be created to measure success for each strategic target. Measures should be created to help management if there are deviations and they help you motivate employees