One will hardly ever find a large company that has no strategy. But having a strategy does not always guarantee the success of a business. It is important to link the strategic and operational management. Simply put, what is being done to achieve the strategic objectives should be linked to the objectives themselves. Often, managers of the company have very little understanding of the strategy, values and mission of the company, or does not understand the essence of strategic goals. In such circumstances, it is difficult to demand from the rank and file employees performance and the right emphasis in their work. SSP – this is just the tool that is able to coordinate the efforts of operational and strategic management. If every employee will understand their contribution to achieving the strategic goal, the company’s success is almost guaranteed.
Balanced Scorecard strategy renders. Understand the strategy – not an easy task, especially at the present time. But what if the strategy is contained in the form of simple circuits? Moreover, to measure progress towards achieving the goals using the correct indicators? Thus, we see where you have to “put pressure”, and what aspect of the enterprise and is not particularly affect the achievement of planned financial results. Balanced Scorecard was developed and first introduced in the early 1990s, when it became clear that in order to gain a competitive advantage, not simply produce goods / services of good quality and in sufficient quantities. Any company – is part of the business world, and so business contacts with many factors affecting its success. Balanced Scorecard consists of four categories (perspectives), which, in turn, include a set of indicators. Key indicators efficiency – not just numbers.
They show how well or poorly to implement strategies. However, it is extremely important to choose the right indicators, otherwise, the top management of the company will operate unnecessary and minor numbers have nothing to do with the strategy of the organization. Four perspectives of BSC is – finance, markets and customers, internal business processes, learning and growth. It is logical and correct to assume that the above categories of indicators cover everything that happens with the company on all fronts. First and foremost, top management and owners of companies put financial goals and determine the indicators of their achievement. Based on financial objectives, a strategy of relations with customers and model behavior in the market. To achieve the financial and customer categories to streamline business processes within companies, as well as develop and train staff. Thus, all the categories and indicators in some way linked, and the MTP is the best show this relationship. One need only look at the strategy map, to understand what it takes to achieve their financial goals. Moreover, do not possess any special knowledge in strategic management and business gurus have to understand the causal relationships between the perspectives of BSC. This is the main advantage of the balanced scorecard because it is accessible to ordinary employees, whose efforts, in fact, achieved results. Creation Balanced Scorecard – did not work for the day and not even a month. Do not expect quick results. Magic is not. But, observing all the rules and recommendations on the implementation of the MSP, you can expect a positive result.