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What balanced-mean

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What balanced-mean

  1. 1. What Does “Balanced” Mean?<br />A bonus mini-lesson from www.ScoreCardTrainings.com<br />
  2. 2. What Does “Balanced” Mean?<br />We discussed the process of designing the Balanced Scorecard in the eTraining, “How to Build the Balanced Scorecard,” available at www.ScoreCardTrainings.com.<br />In this bonus mini-lesson, we will consider the idea of “balance” in the Balanced Scorecard. <br />What does it mean? <br />Why is it important to have a balanced view of your company or project?<br />Copyright © BSC Designer. More Balanced Scorecard Trainings at www.scorecardtrainings.com.<br />
  3. 3. Weight of indicators<br />Each indicator or category on a Balanced Scorecard has its own weight—that is, a number which shows its relative importance. <br />These weights tell you which goals, indicators, and tasks are most important or most valuable to the company. <br />You will also take these weights into account when you calculate the total performance of your Balanced Scorecard. <br />Our BSC Designer software, available at www.BSCdesigner.com, performs these calculations automatically.<br />But “Balanced” is not only about the weights of your indicators. <br />It is also important to have a balanced view of your company, business unit, or project.<br />Copyright © BSC Designer. More Balanced Scorecard Trainings at www.scorecardtrainings.com.<br />
  4. 4. Balance Indicators<br />You need to balance your Financial and Non-Financial Indicators. <br />The Balanced Scorecard should provide a balanced view of your whole company, including internal Business Processes, Customer Relationship, and Education and Growth, as well as Finance.<br />You need to balance your long-term and short-term goals. <br />We discuss this process in our eTraining, “Strategy Maps and the Balanced Scorecard,” available at www.ScoreCardTrainings.com.<br />Copyright © BSC Designer. More Balanced Scorecard Trainings at www.scorecardtrainings.com.<br />
  5. 5. Balance completeness and independence<br />You need to balance completeness and independence when you design your indicators. <br />Taken all together, your indicators should describe 90% of your business, but they should not repeat each other.<br />And you need to balance the performance of your indicators, as well. <br />After a month or two, if some indicators have changed their values dramatically and others have not changed their values at all, these indicators are not really balanced. <br />Copyright © BSC Designer. More Balanced Scorecard Trainings at www.scorecardtrainings.com.<br />
  6. 6. Learn more about BSC<br />To learn more about the Balanced Scorecard, please visit www.ScoreCardTrainings.com.<br />Copyright © BSC Designer. More Balanced Scorecard Trainings at www.scorecardtrainings.com.<br />

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