The Balanced Scorecard is a tool that helps to manage the organisation. With a structure centred on process indicators, it can incorporate the KPIs from the strategic plan, business plan and ISO 9001 certification.
Uses and applications of the Balanced Scorecard
The balanced scorecard, comprising indicators or KPIs, is used to monitor and measure the performance of all the organisation’s processes based on:
- Financial results
- Customer satisfaction
- Internal processes or operations
- Creativity, innovation and employee satisfaction
- Development of employees’ skills
The Balanced Scorecard is a tool for both short-term control and strategic planning, in line with company policy.
What do the indicators show?
It helps monitor and quantify aspects that generate value, such as excellence in production processes, know-how, customer loyalty and the organization’s ability to implement its strategy effectively.
Optimize resource allocation
The knowledge provided by the balanced scorecard helps successfully manage human resources and maintain competitiveness when incorporating staff without previous experience.
The balanced scorecard fosters commitment, motivation, communication and results-oriented work among employees.
Link strategy, planning, management and ISO certification
The Balanced Scorecard is a measurement and information system that helps monitor the strategic plan and the business plan, as well as the key business factors through KPIs. It facilitates the detection of areas for improvement and priority areas, in line with the continual improvement approach of ISO 9001.
The organization prioritizes actions and investments according to its objectives and strategy.
Support management control
It supports and facilitates management control, with the ability to generate predictive information and help the organization adapt to global and competitive markets.
Increase competitiveness
The combination of indicators facilitates the control of all processes and their impact on business results, as well as the comparison between different business units.
It helps detect trends and new needs, always in line with the organization’s policy.
The Balanced Scorecard helps align employees’ objectives with those of the organization. It also supports the implementation of variable remuneration that is consistent with the strategy.