Better Business Performance Management through a Balanced Scorecard
Billion are spent on Business Performance Management this year, but organizations are still struggling to manage the execution of their strategic goals.
An estimated $57 billion is being spent on Business Performance Management (BPM) this year, but organizations are still struggling to manage the execution of their strategic goals.
If you are one of those organizations, it might be time for a new Performance Management System. One of Socius’ Business Intelligence solutions consultants, Brad Blackmore, presented the following Performance Management System solution at Socius’ Aspire conference in October:
BPM is a series of business processes designed to optimize the development, execution and management of business strategy. It involves facilitating the creation of strategic goals as well as supporting the subsequent management of the performance and progress toward those goals.
Underlying every BPM is a Performance Management System that compares actual results to the objectives. This comparison is essential to provide meaning to the data. An effective Performance Management System will:
- Focus on the key activities that organization considers critical to remain successful
- Mix the past, present, and future
- Balance the needs of all stakeholders
- Start at the top and flow down
- Have targets based on research and reality
The most popular Performance Management System the fulfills these criteria is the Balanced Scorecard (BSC).
Follow these steps to develop a Balanced Scorecard:
1. Develop your strategic foundation
- Values
- Mission
- Vision
2. Develop your strategic assessment
- External environment
- Industry environment
- Balanced Scorecard SWOT
3. Define your strategic destination statement
4. Align strategies and actions in a strategy map
5. Select metrics and set targets
6. Implementation
7. Roll-out and conduct strategic reviews
To see an example of BPM through a Balanced Scorecard, download Brad’s presentation.
Contact Socius if you would like assistance implementing a Balanced Scorecard approach to BPM in your organization.
