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HOW TO BUILD A BALANCED SCORECARD©

Summary and Conclusions

by

Arthur M. Schneiderman  

 

In this e-paper, I have argued that the BSC must be viewed as part of an organizationís on-going strategic planning system.  Iíve described that process using a 9-step model that integrates many of the contemporary elements of effective strategic planning including strategic focus and intent, critical success factors, core competencies, stakeholder satisfaction (and their associated result metrics of loyalty and retention), process improvement, performance measurement, and assessment.

The linchpin in this process is a focus on stakeholders and their unsatisfied requirements.  Understanding who the strategically determined stakeholders are and the important opportunities for improving their satisfaction forces the process to move from ubiquitous statements (e.g. ďÖ to be the market leaderĒ) to tangible and assignable actions directed toward that end.

But integrating these concepts into a single comprehensive process in the environment of increasing complexity and chaos requires the use of unfamiliar tools.  Although admittedly tedious, their use is not difficult given proper facilitation and the use of readily available automation support tools.

The benefits of this approach can be significant.  Done correctly it draws on the knowledge that is widely dispersed throughout the organization and integrates that knowledge to arrive at a strategy that best utilizes all of the organizationís assets: physical, human, and intangible.  Although the allure of a quick solution is ever present, it takes time to draw together existing knowledge and generate new knowledge where necessary.  But what can be more important to an organizationís survival than a well-conceived strategy and an associated focused action plan that enrolls the entire organization in the required course of action that will assure its achievement?  

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Part 3

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Last modified: August 13, 2006