Why Use the Balanced Scorecard Strategy? - dummies

Why Use the Balanced Scorecard Strategy?

By Charles Hannabarger, Frederick Buchman, Peter Economy

Part of Balanced Scorecard Strategy For Dummies Cheat Sheet

Sometimes you have to convince people to use the balanced scorecard approach, and often, you have to keep reminding people why such an approach can benefit your company and its goals. If you find yourself in either of these situations, here are some great responses:

  • To grow your business, increase your market shares, improve your business processes, and have fanatically loyal customers

  • To have a clear picture of what your business is really doing and why

  • To effectively manage your business and beat the pants off the competition

  • To establish a system for measuring your business performance and to allow you to make the right decisions, on time, every time

  • To enable your people to do the right things right, the first time

But these responses are only empty promises if you don’t use the balanced scorecard strategy correctly. Don’t lose sight of these tips as you follow through with the balanced scorecard approach:

  • Don’t view the balanced scorecard strategy as a flavor-of-the-month approach to quick and easy answers to your problems.

  • Be persistent and thorough in establishing your strategies, tactics, and key performance indicators.

  • Communicate your scorecards and dashboard throughout your business and advertise how you’re doing, what you’re doing, and why.

  • Use teamwork and involve your people in your balanced scorecards.

  • Never give up the ship!