In the 1960s the concept of the Scorecard (Tableau de Bord) appeared in France. Starting in the eighties, it was when the scorecard became more than a practical concept, a doctrinal concept. It was originally born as a command board, but it was developed in its own operation, until it was a comprehensive planning system with a high evaluation profile.
Introduction
It is an approach to how to incorporate strategic objectives into the administrative system through performance measurement mechanisms. The Balanced Scorecard transfers the vision and the strategy to the method that motivates the follow-up of the established long-term goals.
The Dashboard and Control Board transfer the Vision and Strategy
in terms of Measurement and Performance.
Vision describes the highest goal, BE the best, strategy is the common UNDERSTANDING of how this goal will be achieved. The Balanced Scorecard provides the means to translate the vision into a set of objectives. These objectives will be translated into a system of performance measures that more clearly communicates the strategic focus of the companies.
The basic components of a good Balanced Scorecard are the following:
• A chain of cause-effect relationships: That express the set of hypotheses of the strategy through strategic objectives and their achievement through performance indicators (results)
• A link to financial results: The business objectives and their respective indicators must reflect the systemic composition of the strategy through four perspectives: Financial, Customers, Internal Processes, and Learning and Growth. The results must finally be translated into financial achievements that lead to the maximization of the value created by the business for its shareholders.
• A balance of performance indicators and guide indicators: In addition to the indicators that reflect the final performance of the business, a set of indicators is required that reflect the things that need to be "done well" to meet the objective. These measure the progress of the actions that bring us closer or that promote the achievement of the objective. The purpose is to channel actions and efforts oriented towards the business strategy.
• Measurements that generate and drive change: Measurement motivates certain behaviors, associated both with the achievement and communication of individual and team organizational results. A fundamental component is to define indicators that generate the expected behaviors, those that guide the organization to adaptability to an environment in permanent and accelerated change.
• Alignment of initiatives or projects with the strategy through the strategic objectives: Each project that exists in the company must be directly related to the leverage of the expected achievements for the various objectives expressed through its indicators
• Consensus of the management team of the organization: The Balanced Scorecard is the result of the dialogue between the members of the management team to reflect the business strategy and an agreement on how to measure and support what is important to achieve said strategy
Strategic Evolution of Management
The Balanced Scorecard provides the framework to translate the strategy into operational terms and serves to communicate strategic change at all levels and establish the foundations of an administrative process organized by processes and not by functions as erroneously most of the world's companies are organize.
Companies will first have to commit to modifying their management system, establishing the premises that support the strategy as a guide for activities. Only in this way will it be possible to rationalize, reach agreement on the goals, that the investment is made based on the strategy and that the budgets are consistent with the long-term vision.
Without financial and non-financial measures, it will be impossible to take the vital signs of the companies.
Presentation of the Management Meetings Model
• General sequence planning - management. Scheme «of the four meetings».
• Communication, education and dissemination program from the corporate level downwards. Means and Strategy
• Incorporation of the automated system of the BSC. An evaluation of the alternatives in the market and the characteristics of the organization should be made. In some cases, existing systems can be adapted within the company, for non-complex organizations.
Summary of the Strategic Learning scheme that operates under the application of the BSC as a management system.
The products, in summary, will be:
- Disclosure
- Automation
- BSC Commercial Agenda
- Action Plan on incomplete
- Alignment Plan initiatives and strategic objectives
- Organizational deployment plan
This implementation plan will be reviewed in a meeting of the executive team, establishing dates for the first review and reporting meetings with the incorporation of the methodology and the start of the communication plan.
Bibliographic index
1. Kaplan, Robert S. and Norton, David P. - Balanced Scorecard - Management 2000.
2. Amat, Joan Ma. - Management Control a management perspective - Management 2000.
3. Blazquez, Miguel - Use and abuse of the Balanced Scorecard - web: www.eco.uncor.edu/noinst/jorsist
4. Kaplan, Robert S. and Norton, David P. - The balanced scorecard collaborative see http: www.bscol.com
5. Publications, essays and articles on the subject published on the internet.
6. Biasca, Rodolfo - 10 steps to build the dashboard - Manual for business development - Clarín y Mercado.
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