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Balanced Scorecard Forms Vision, Mission, And Strategy

Oct 19, 2007
When you are attempting to look at any corporate entity, the first thing you have to take into account is the perspective from which you are analyzing the entity. According to the ideas espoused by the BSCI's (Balanced Scorecard Institute) Vice President Howard Rohm there are four perspectives that need to be taken into account. These are the perspectives of the business Owner(s); what he calls customers and other stake holders; managers and process owners, and; employees. These four perspectives are named as Financial, Customers, Internal Business Processes, and Learning and Growth.

All of these perspectives are constantly evaluating your corporate performance all the time as they interact with your enterprise. The three measurements are categorized as Vision, Mission, Strategy, by Mr. Rohm. Often, the most dreaded question that a public speaker has to face is prefaced by the words, "I just have a short (or brief, or simple) question." These "short" questions often take the longest amount of time and effort to answer. Mission: Vision: Strategy, are three very short questions, encapsulated in single words.

Monolithic ideas of what the corporate M:V:S are updated in Balanced Scorecard management, to the idea that each of the various perspectives noted above has different view of your corporate M:V:S at each interaction with the organization. This idea fits in well with modern thought on other subjects including psychology and philosophy. Current thought holds that we are in an ever-changing relationship with our surroundings, and that we constantly evaluate our position/relation to everything all the time.

Balanced Scorecard takes this position with regard to corporate entities to its logical end by giving you the tools to identify, measure, and manage all aspects of your corporate M:V:S to improve corporate performance and bottom-line.

An additional feature of the Balanced Scorecard approach is that it is implemented continuously and concurrently at various levels of the organization. Starting with any level of corporate management we/you can determine what the corporate Mission(s) is/are. Each would be the core Mission of a complete system on a scorecard. As we have all learned through using the various spread-sheet programs, each system can be a line on a worksheet or a sheet in a workbook, depending on the complexity of the entity as you see it.

The goal of the balanced scorecard system is to improve corporate responsiveness and efficiency through accurate reporting and timely analysis of metrics in the various areas of corporate activities as measured from different perspectives. As we also learned back in the beginning of the IT era; sometimes the analysis of the problem, preparatory to programming requires deeper understanding of the process and harder work than all later stages combined. To this, Mr. Rohm says, that Balanced Scorecard implementation is a journey; not a goal. Since we would consider it safe to assume that implementation of Balanced Scorecard has as its source an urge to improve your enterprise, the thought that it could be implemented without effecting change is at least short-sighted.
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