Strategic Plan and the Balanced Scorecard BSC.
Definition of the business Strategy plan
Definition of the business strategy points the way to reach with success our vision.
As we have mentioned in the first chapter of the article Balanced Scorecard, it is not in the definition where the main mistakes resides but in the bad planning. Many executives design and define big strategies to reach the success, but when communicating and executing the strategy they fail. The Balanced Scorecard BSC let us translating our strategy into operates terms, the Balanced Scorecard allow us to communicate, execute and control our organization.
Strategic Map of the Balanced Scorecard.
The first step to create the Balanced Scorecard is elaborating the Strategic Map of an organization, this map help us to describe and communicate our strategy in a formal context, remembering that the big fail of the strategies is the execution, the description of our strategy is the first step to execute successfully our strategy.
Strategic Map Example.
The strategic map divides the vision and the strategy of the company into 4 perspectives well defined:
Perspective of the client
Perspective of the internal processes
Perspective of the learning and growing.
Through this division of the vision and the strategy in this 4 perspectives, the directives get conscious about the reach of the strategy in the company, the strategic map let them to see the effects of the strategy from the different perspectives proposed, making an exercise of re-analysing , of re-definition and confirm the strategy.
4 Perspectives of Balanced Scorecard.
The creation of the strategic map gives a formal context to the description and communication of the strategy in all the levels.
In this chapter has been exposed the relation between the strategy of the company and the Balanced Scorecard, as well as the introduction of the concept of strategic map. In the following chapters the four perspectives will be detailed.
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Excel scorecard - Balanced scorecard in Excel
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Next Chapter : Financial perspective