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Download balanced scorecard template in Microsoft Excel format.
Accurately Measure Performance with a Balanced Scorecard Template
Are you a business owner or manager interested in changing the way performance is measured in your company or organization? Have you considered the balanced scorecard approach? If you have, you can probably find the perfect balanced scorecard template online if you know what to look for. In this article we will briefly define the balanced scorecard method of measuring performance and show you how a balanced scorecard template can help you save both time and money.
What Is the Balanced Scorecard?
For years, the only measurement tool available to managers for evaluating their company or organization was financial data. It was simple. The employees who were bringing in the most money to the company—either directly or indirectly—were considered the most valuable, and if the company was making money it was deemed a successful company. This method, however, does not account for other traits or characteristics that might make an employee a valued asset to a company or organization, nor does it accurately reflect the overall effectiveness of the organization. Fortunately, the balanced scorecard approach does just that.
The balanced scorecard approach, which was developed by Drs Robert Kaplan (Harvard Business School) and David Norton, suggests that corporate performance should be viewed from four distinct perspectives. In no particular order these perspectives are:
• The Learning and Growth Perspective. The learning and growth perspective analyzes things like employee training and the general attitude and culture of the work environment.
• The Business Process Perspective. The business process perspective basically refers to the internal processes, or day-to-day operation of the business. Metrics for measuring using this perspective could include such items as “how well do a corporation’s products meet the needs of the customer,” or “is the company adhering to its mission statement?”
• The Customer Perspective. Training, growth, learning and day-to-day operations are certainly important, but they are worth very little if that training does not meet the needs of the customer base. This perspective helps to measure customer satisfaction through surveys and repeat business.
• The Financial Perspective. Obviously the goal of any company is to make money. This perspective looks at how well a company uses its resources to maximize profits.
The Balanced Scorecard Template
If the balanced scorecard method of measuring performance sounds like something you’d like to experiment with, the good news is that you don’t need to “reinvent the wheel.” There are literally hundreds of balanced scorecard templates available online for almost any type of business you can think of.
The balanced scorecard template allows you to use a computer software program to design your measurement rubrics and then plug in the names of each employee. Obviously this type of system for measuring performance will give you a clearer picture of your organization’s effectiveness and will come in very handy when it’s time for employee evaluations.