Scorecard
The Balanced Scorecard (CMI), also known as Balanced Scorecard (BSC) or dashboard is a tool that allows to establish corporate control and monitor the objectives of a company and its different areas or units.
It can also be considered as an application that helps a company to express the objectives and initiatives necessary to comply with its strategy, showing continuously when the company and employees achieve the results defined in its strategic plan .
Unlike other business intelligence tools
The Balanced Scorecard differs from other Business Intelligence tools such as Systems Decision Support (DSS) or Executive Information Systems (EIS), which is more oriented monitoring indicators that the detailed analysis of information
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The frequency of CMO can be daily, weekly or monthly and focuses on indicators generally represent processes, making implementation and commissioning is easier and faster. A CMO should always be linked to a DSS (Decision Support System) to further investigate the data.
The Balanced Scorecard (CMI) , by contrast, represents the implementation of the strategy of a company from the point of view of the Directorate General (which causes it should be fully involved in all stages, from the definition the implantation). There aredifferent types of scorecards, although the most used are those based on themethodology of Kaplan & Norton . The main features of this methodology are using both financial and non - financial indicators, and that the strategic objectives are organized into four areas or perspectives: financial, customer, internal and learning / growth.
* The financial perspective incorporates the vision of the shareholders and measures the value creation of the company. Answer the question: What indicators have to go well for the efforts of the company really be transformed into value? This perspective appreciates one of the most important objectives for-profit organizations, which is precisely create value for
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The success of its implementation is that the management team involved and spend time developing its own business model.
Benefits of implementing a Balanced Scorecard
The explicit force a business model and translate it into indicators facilitates consensus across the enterprise, not only the direction but also how to achieve it.
Clarifies how everyday actions affect not only the short term but also the long term.
Once the MIC is running, it can be used to communicate the company's plans, joint efforts in one direction and avoid dispersion. In this case, the CMI acts as a control system by exception.
Allow automatically detect deviations in the strategic or operational plan, and even dig into the operational data of the company to find the root cause that gave rise to such deviations .
Risks of implementing a Balanced Scorecard
A little model developed without the collaboration of the address is unheeded, and the effort will be in vain.
If the indicators are not chosen carefully, the WCC loses much of its virtues, because it conveys the message you want to