What is Balanced Scorecard?
Balanced Scorecard Software is used to create a business framework which helps to manage and track organizational strategy. It is based on the balance between lagging indicators & leading indicators. It also helps you to do the tasks like measuring your strategy, Describing your strategy, & Tracking the actions to achieve the goal. To create the BSC one must set perspectives which can be broken down into financialperspectives, Customer perspectives, learning and growthperspectives, and internal processesperspectives. Balanced Scorecard software generates a strategy map which can reflect the connections in one frame. This map is used to bring an organization’s strategy to life, describe the strategy to the organization, and track strategic performance. Strategy Management Software also helps the company to execute or follow the created strategy map effectively.
The Four Balanced Scorecard Perspectives
Customers
The Customers perspective focuses on the people who are buying the product/services. It a view of the organizatio performance from the customer point of view.
Financial
The financial Perspectives focus on the money part in a business and if the business returns are satisfying the shareholders financially.
Internal Processes
The Internal Processes focuses on the organization and how efficiently is the business running. It is a view of the Business internally.
Learning & Growth
The learning and growth perspectives focus on the human capital, infrastructure, technology, the overall corporate culture and any factor that can boost the performance.
Strategic Objectives
Strategic Objectives are the actions that have to be implemented in order to achieve the perspectives and overall strategy.
Key Performance Indicators:
KPIs go under objectives and they are critical to reflect the overall performance. They are directly linked to the objectives performance therefore the set of KPIs under the objects make up the overall performance of the objective.
Strategy Map:
Strategy Maps is the visualization of the BSC. It contains the 4 perspective and all the objectives that falls under each perspective. It has been proved that perspectives play an important role in achieving each other therefore strategy maps are based on cause and effect. It has cause and effects arrows that moves upwards and shows the relationships between objectives thus perspectives
Balanced Scorecard Software – How to choose the best one?
To choose the best Balanced Scorecard Software, consider the following listed points:
Easy to use– Make sure that the software is easy to handle, your team do not face any complications and the scorecard is easy to manage, track, and create.
Easy to customize– Every organization have its own set of Goals and KPIs. Therefore, it the scorecard should be customized so that the company’s goals can be reached.
Strategy map features– It should be capable to create a strategy map so that strategy can be described to the team to achieve the respective goals. It also helps the users to draw cause and affect arrows, add logos and resize the objects.
Dashboards– It helps users to have live data in the form of widgets, text, or graphs. A good interface or dashboard helps the users to strategic actions quickly.
Reporting features– Make sure that Strategy Management Software helps you to create charts and figures.
Export capabilities– It should be able to export data in the form of PowerPoint, Excel, PDF, etc. so that data can be analyzed later.
Automation and integration– It should be able to integrate with other system to minimize manual work and cross out human errors.
What is strategy management?
It is an art of formulating, executing and evaluating the decisions with different functionalities which helps to achieve the desired goals. Process is as under:
1- Goal setting
2- Analysis
3- Strategy formulation
4- Strategy implementation
5- Evaluation and control
Why use Strategy Management Software?
Strategy Management Software helps users to execute the strategic plan and document the change effect and programs. It also measures the outcome of change efforts in the individual & team. It also helps to determine the short & long term goals. It also helps to select the right path among different paths so that the desired goals can be achieved effectively and quickly.
We recommend Spider Impact as the best BSC / Strategy management software.
Spider Impact® software by Spider Strategies® is the only software recommended by the Balanced Scorecard Institute.
To Learn More about BSC, you may have a look at Spider Strategies article or Balanced Scorecard Institute article.
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