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It’s somewhat easy to come up with a business vision, with a mission s…

It’s somewhat easy to come up with a business vision, with a mission statement, with a set of strategies. But, when it comes down to the discharge of that vision and strategy, things become a lot more challenging. This difficulty increases as the size of the organisation increases. For proper strategic performance management, a variety of methodologies and techniques exist. The most beneficial strategic management platform is still the Balanced Scorecard (BSC).
Initially, it’s important to define strategic management. Wikipedia states strategic management analyses the major initiatives taken by a company’s top management on behalf of owners, involving resources and functionality in external environments. It necessitates specifying the organisation’s mission, vision and targets, creating policies and plans, often in whens it come to projects and programs, which are designed to achieve these aims, then afterwards allocating resources to implement the policies and plans, projects and programs. It is a level of management functions below setting targets and above tactics.
The target of every business is to create a profit. Therefore, corporate goals, initiatives, and investments all commonly are tied to financial metrics.
Common questions are;
How will it affect sales?
What is the return on investment?
How long is the payback?
The problem using this is that most strategic management systems zero in purely on Financial Measures. The Balanced Scorecard stands apart because it takes a “balanced” approach by supporting traditional financial measures with three essential non-financial categories:
Customer Relationships
Internal Business Processes
Learning and Growth
This provides greater reliability over the longer term viewpoint that companies state to work to, but they are regularly distracted to the short-term, weak and occasionally greed-driven financial metrics.
The balanced method allows organisations to track financial results, while concurrently keeping track of progress in building the functionalities and getting the intangible assets they need for ongoing, lasting progress.
Traditional Strategic Management and Balanced Scorecard approach
The basis of any strategic management method should be based upon BSC. With the scorecard and metrics in place, the organisation should adopt an ongoing, iterative approach to managing its strategy and BSC. Through this process, companies can achieve the following:
Make clear and update the overall corporate strategy;
Communicate the strategy throughout the organisation;
Align departmental and individual goals with the strategy;
Attach strategic objectives to long-term targets and annual budgets;
Determine and align strategies initiatives; and
Conduct periodic performance reviews to learn about and improve strategy.
Properly implementing BSC requires an iterative set of four processes.
Process 1. Translating the Vision
The primary process is to translate the vision. This involves converting the vision statement into working terms. The process also ensures that, at the management level, we gain comprehensive agreement and its true essence. Whereas gaining agreement may seem an uncomplicated and self-evident task, it often is not. Vision statements are often obscure and conveniently deciphered differently by different people. Simply, although everyone may endorse a vision statement, each individual may have formed an unique interpretation of what that statement actually pertains to in operational terms.
Process 2. Communication and Linking
The next consists of communicating the translated vision down through the organisation and teaching people about what it means. Another essential element involves setting objectives and linking rewards to performance metrics.
Process 3. Business Planning
Business planning must then be undertaken in accordance to the work performed in the previous two processes. Business planning activities include setting targets, aligning strategic initiatives, and allocation resources. In many companies, strategic planning and budgeting are two separate processes. BSC forces your organisation to integrate both processes.
Process 4. Feedback and Learning
This fourth process provides a procedure for strategic feedback and assessment. It enables continuous strategic refinements. Management Information that can be tracked with the scorecard for this include feedback on products, new lessons discovered about internal processes, and technological breakthroughs.
Four processes of Balanced Scorecard
Feedback and Learning feeds back into Translating the Vision.
Obviously, the approach to strategic management could be driven by the size of the organisation. An international organisation may employ a more structured strategic management model. This is because of its size, scope of operations, and requirement to encompass stakeholder views and requirements.
A small or mid-sized enterprise may adopt a more entrepreneurial approach. This results from the scope of operations, as well as having far fewer resources. In such cases, the CEO may simply outline a mission, and pursue all tasks under that mission, however there is great value in adopting the principles of the BSC as the ultimate goals of any service are typically;
Improve shareholder value
Extend revenues
Reduce or contain costs
Eventually the Balanced Scorecard approach becomes more crucial and necessary as the size of the organisation increases.

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