Balanced scorecard in your business

Every time you get in your car you know if you have gasoline (energy) to reach your destination, you know the outside and passenger compartment temperature, consumption and cost per kilometer traveled, the speed and it alerts you if you have not put on your seat belt safety so you can drive safely. In addition, if you use a browser, you know where your destination is, how long it will take to reach it and the best or cheapest route.

These are just a few of the examples, but I'm sure you can think of many more. Would you buy a car without a dashboard?

And in your business, do you have a scorecard? Can you think of any reason not to have it? And to have it? Wouldn't you like to know the status of your company every time you enter it?

And why don't you have it already?

We go in parts.

What is a CM (Dashboard)?

It is an office tool that synthesizes the key performance indicators of your business.

There are several types depending on the perspective you want to adopt (from the client, from the processes, from the training, etc.). According to the values that you reflect in the graph, we can call it Balanced Scorecard, Operational Scorecard, etc. In any case, it is a set of key indicators of your business that, at a glance, lets you know if they are right or, on the contrary, if there is one that fails.

How do I build it?

Take a blank sheet Divide the sheet into as many parts as areas or concepts you want to control. We are going to propose an Operational Dashboard and choose the areas of Finance, Quality, Sales, Production and Warehouse. Write in each area the fundamental aspects of operation. For example, for the finance area: expected payments of the month with respect to expected income, liquidity ratio, cost of financing, profitability,… For Quality: percentage of rejections, number of non-conformities, resolved conformities, number of improvements,… sales: total new clients, percentage of clients with respect to the total of the client portfolio, average sale… Production: total manufactured articles, non-productive hours with respect to total hours, percentage of absenteeism,… Warehouse: stock turnover, value of raw materials warehouse,product in progress and finished product. Establish indicators to monitor the concepts outlined in point 3 and define objectives to be achieved for each one. Set up the information circuit, as simple as possible. There are products on the market that deal with this work and it will depend on the investment capacity of each company. Anyway, you can create a system with the office tools and a little bit of dedication. It works when an indicator goes outside the expected margins.Anyway, you can create a system with the office tools and a little bit of dedication. It works when an indicator goes outside the expected margins.Anyway, you can create a system with the office tools and a little bit of dedication. It works when an indicator goes outside the expected margins.