The Balanced Scorecard is well –known as a strategic planning and metric management system that is used in business, industry, government and non-profit organizations worldwide. The primary purpose of this system is to align an organization’s business activities to the vision and strategy of the organization, optimize both the internal and external communications, and monitor financial, operational and organizational performance against the stated strategic goals. While originated, by Dr. Robert Kaplan and Dr. David Norton, as a performance management framework that stressed more of the non-financial performance measures as opposed to traditional financial metrics in aims of helping managers to better view and understand organizational performance, one must ask, in a much more technology-based interaction between companies and potential customers, where should the focus for performance measurement lie and how does that focus shift based on a company’s desired mode of integration with its customers and constituents?
In the traditional business economy, metrics management helps to propel an organization from simply recording agreed upon performance metrics to using said information to drive action plans for the organization by key department and manage to goals on a daily basis.
Properly applied metrics management is meant to provide feedback around the internal business practices and the external results and outcomes in aims at continuously improving business performance and operational results.
“ Where performance is measured, performance
improves. Where performance is reported,
performance improves dramatically. Where
performance is reported publicly, performance
~ Clate Mask , CEO of Infusionsoft
A brief review of the key categories of performance metrics lead to an understanding for not only which types of metrics are critical for measuring, but the relative importance of each metric to the organization given their strategic objectives. The most traditional metrics that companies understand, are measured by, and resonate with are financial or “money”-related metrics. The financial landscape of metrics management that keeps a constant pulse on profit and loss performance, cash management and risk profiling has always and will be critical for organizations to understand where they stack up vs-à-vis their competitors. However, as technology continues to change the dynamics of social interaction, other metric landscapes will become increasingly important.
- The business operations landscape allows managers to have an understanding as to how efficiently and productively different processes are performing, and gives them the ability to identify problems in process flows and address said problems as quickly as possible.
- The customer landscape has become increasingly important over time. Businesses continually increase focus on understanding customer requirements and developing initiatives aimed at driving customer satisfaction in aims at driving and improving customer affinity and loyalty. If a company is unable to meet its customer’s needs then the customers will certainly seek out other solutions. A leading indicator of failing overall business performance is an inability to satisfy customer needs and an inability to succeed along the customer landscape of metric performance.
- As we move forward into the technology-based business economy, what has become apparent is that the learning and growth landscape for metrics management has become critical for companies looking to create and sustain a long-term competitive advantage. This dimension is not only critical for companies looking to build on their core asset, employee knowledge of their respective business, and more importantly, knowledge of the needs of their customers and clients. This will be the separating dimension for business leaders going forward.
- But in this new technology-based viral economy, what are the right metrics and what are the dimensions that companies should be looking to compete in? What are the correct social media metrics? What are the best social media platforms to employ and how does that change based on product, service, channel of distribution, manufacturing process, etc.? Twitter? Facebook? LinkedIn? SMS?
Fueled by an Awesome Idea?
Unfortunately, many go-getters don’t know what’s in store as they venture forward to implement their brilliant ideas. They just know they want to go into business for themselves.
Had an Entrepreneurial Seizure?
Did you leave a company or a job you weren’t excited about, only to end up feeling the same way you did before? Did you have an idea that you just knew, deep down in your gut, would have a positive impact on the world?
Hate being the manager?
If you’re like most entrepreneurs I’ve met, you’d rather come up with ideas than plan, organize and manage the financials. But speaking from firsthand experience, these hats might become your only wardrobe—unless you have a proper business strategy in place.
In small business, a strategic game plan can help you do more than just survive. You can thrive— and win.
- Understand how strategy guides planning
- Establish a meeting rhythm for success
- Involve and motivate your employees
- Analyze results for continuous improvement
Identify your purpose! Stake a claim on your mission! Find the keys to Strategic Planning. The link between a great idea and business success.
Your Small Business Game Plan: A Winning Strategy for Entrepreneurs and Small Business Owners.
Copyright 2015 Viral Solutions LLC