Having a Balanced Score Card for Your Business

11 January, 2013

Successful businesses have learned to create a balanced view to their stake holders. The financial reports are important but they usually indicate the performance at any one time of the business.  There must be a balanced approach to the business performance as a whole. This is based on the company goal or strategy of why there are in business and where the business is heading – or company vision. The execution of this vision is typically this is broken down into 4 major areas – customers, learning and growth, internal processes and financial. Each area has defined and measurable objectives.
This activity is very important as if the company vision is to grow revenue at a rate of 45% over last year, then how to make that vision happen is analyzed in these areas to give the leadership a realistic view of what is required to execute and achieve the vision. For instance, to reach the 45% growth in revenue, the internal processes of the business must be analyzed. Do we need more people, can we achieve better efficiencies with computers etc? Do we have the proper customer base to sustain much of the desired revenue growth? What proportion of new customers, and existing customers will create the new revenue? Are new products or services involved? What activities in learning and growth are required? More training of staff with new products or services? Then of course what if any of these areas falls behind, what impact on the financial numbers will occur and is that acceptable? These are all issues that many businesses find difficult to do, but when the scorecard is balanced the risk to the busines is lower and both customers and employees know the vision of the company and where they play a role.
At Numbers Plus we have an effective measuring tool for your business that uses real numbers and gives you real answers to your business questions. Check out the Youtube video on our youtube channel (don’t forget to subscribe) and give us a call. We can help you put more cash in your pocket.

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