What is Balanced Scorecard and How to Apply it in Your Company?

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The Balanced Scorecard, also known by the acronym BSC, is a strategic management model created to design a company's planning in a more comprehensive way with a focus on solid growth. It allows the company's vision to be realized by managing long-term objectives.

If your goal as a manager or entrepreneur is to improve your organization's performance and grow consistently, this management tool will be of great help. Learn more about the subject in this article!

What are the advantages of the Balanced Scorecard?
Being guided solely by financial indicators does not help a company remain innovative and competitive over the years. With the Balanced Scorecard, it is possible to:

have a simpler and more intuitive view of strategic planning: this gambling data netherland v way, it is easier for all employees to follow the outlined strategies, in addition to visualizing the company's future;
work towards continuous improvement: as the objectives set are met, it is possible to update the BSC with the new goals;
integrate with other indicators: it is possible to combine other indicators, including financial ones, with this strategy;
improve communication of goals: the clearer the communication of group and individual goals, the greater the chances of achieving these objectives.
How can I apply this strategy to my company?
The Balanced Scorecard application in your company should be done considering four perspectives: financial, customer, internal processes and learning and growth. Understand:

Financial perspective
Assess the company's short-, medium-, and long-term financial goals. You can determine, for example, increasing sources of income, stabilizing cash flow, etc.

To achieve the desired result, what goals need to be set? To do this, you can use metrics such as Return on Investment (ROI), Customer Acquisition Cost (CAC) and Average Ticket.

Customer perspective
The next step is to define what the company's efforts will be to improve market share and win more customers. It is also worth keeping consumer retention and improving the satisfaction index on the radar.

To achieve these goals, the tip is to fully understand the needs of your target audience and offer solutions that resolve the consumer's pain.

Internal processes perspective
The third perspective of the Balanced Scorecard is internal processes. Here, the main objective is to identify which processes have the greatest impact on your business and customer relationships in order to improve them.