Advantages of the Balanced Scorecard
The Balanced Scorecard (BSC) is a tool for effective and efficient management that provides the company with:
- Business success by facilitating management and leadership through the integration of short-term monitoring and control with the vision of its strategic plan. Furthermore, the scorecard can incorporate indicators or KPIs relating to quality management, environmental management, safety and social responsibility.
- Customer satisfaction. It focuses the company on its customers, helping to implement the value proposition that generates sales for our organisation.
- It engages staff because they understand and share the strategic objectives, thereby securing their commitment, motivation, communication and focus on achieving goals. It facilitates the implementation of a performance-related pay system.
- Integrated with your ISO certification. The BSC can serve as the process monitoring tool required by ISO 9001, ISO 14001, ISO 45001, ISO 27001 or CSR certification, amongst others.
Methodology for implementing the Balanced Scorecard
Process analysis based on the process map
Process analysis based on the process map will take existing documentation into account. This involves:
- Reviewing the strategic plan and medium- to long-term goals, or the objectives of the ISO-certified management system.
- Identifying and updating the mission, vision and values, as well as the various approved policies on quality management, environmental management, safety and social responsibility, and then translating these into indicators for each perspective.
- Conducting a SWOT analysis (strengths, weaknesses, opportunities, threats) based on an analysis of the context and stakeholders.
- Engaging senior management and the management team through face-to-face meetings to understand their priorities.
This involves analysing the information to determine which indicators can be derived.
Set objectives for each of the BSC perspectives
Define objectives for each of the BSC perspectives (typically):
- Financial: profitability, cost efficiency…
- Customers: customer satisfaction, complaints, customer loyalty, market share…
- Internal processes: operational efficiency, energy efficiency, quality management, environmental management, safety, social responsibility and innovation…
- Learning and growth: training, workplace atmosphere, knowledge…
The indicators must be linked to the strategic objectives and those of the integrated management system.
Creating a scorecard with indicators
Building the balanced scorecard to serve as a visual and operational tool. This involves:
- Selecting the indicators. They must be relevant, measurable, achievable and aligned with the strategic objectives of each perspective.
- Designing a template to easily track the indicators. This involves using tools to manage the BSC, such as Excel, Power BI, Google Data Studio, specialised software or ERPs with strategic management modules.
- Linking the data automatically where possible.
Implementation and monitoring of the CMI results
Implementation and monitoring of results to ensure that each indicator adds value and that they collectively facilitate the monitoring of the organisation.
- Train managers on how to use and interpret the scorecard.
- Arrange regular review meetings. The CMI should be reviewed monthly or quarterly, although this depends on the organisation’s needs.
- Record incidents, deviations, causes and corrective actions.
- Link it to objectives, bonuses or annual reviews where necessary.
Monitoring the balanced scorecard
Strategic consultancy
You can implement the balanced scorecard with our strategic consultancy services, including:
- Strategic consultants to design, develop and implement the balanced scorecard in line with your strategy and ISO certification. Guaranteed success.
- ISO consultancy. Quality consultancy to implement and obtain the ISO or CSR certification you require, integrated internal ISO audits and ISO outsourcing for the maintenance of your certification.
- Training tailored to your needs. Management training courses and ISO quality courses. In-company face-to-face training, online via our training campus and blended learning.
Ask us for a quote tailored to your needs.
FAQs Balanced Scorecard
What is the Balanced Scorecard (BSC)?
It is a strategic management tool that translates the company’s vision and strategy into measurable objectives from different perspectives.
The BSC helps to measure and manage performance, which is key to meeting the requirements for monitoring and continuous improvement set out in ISO standards. The main ISO standards that can be linked to the BSC are ISO 9001 (quality), ISO 14001 (environmental), ISO 45001 (health and safety), ISO 50001 (energy) and ISO 27001 (information security), amongst others.
What is the purpose of the Balanced Scorecard?
The BSC helps align strategy with management systems using key performance indicators (KPIs) and facilitates decision-making, strategic monitoring and continuous improvement.
The use of the BSC is not mandatory for ISO certification, but it is a very useful tool for meeting requirements such as monitoring objectives, analysing data and improving the system.
How does the BSC contribute to compliance with the ISO certificate?
The BSC enables organisations to monitor ISO 9001 quality objectives, analyse trends and make data-driven decisions.
The BSC can include legal and compliance indicators. This is particularly useful for standards such as ISO 14001, ISO 45001 or ISO 27001, which require the monitoring of legal requirements.
Who should use the BSC?
The BSC should be used by senior management, middle management and department heads involved in setting and monitoring strategic objectives.
In a certified organisation, the BSC is managed by senior management with the support of the management system manager and the heads of each department.