Post by account_disabled on Mar 5, 2024 5:28:24 GMT
The BSC, or Balanced Scorecard , is often conceived as a mere measurement system of the performance of the key operations of a company or organization. And indeed, this is one of the main tasks, one of the most important missions reserved for the balanced command panel. However, the CMI is much more than a measurement system . The balanced scorecard as a performance measurement system On previous occasions we have spoken at length about the balanced scorecard, looking at how to design and implement a BSC , studying its different perspectives, listing its main components taking into account some of its applications in a Business Intelligence context.
Regarding the latter, and specifically in reference to the elements that compose it, we have treated in some depth 2 fundamental and closely related components: KPIs , or key performance indicators performance metrics phins120895 Since KPIs are central elements of the structure of a balanced scorecard, and performance metrics are the fundamental instrument that allows us to measure the performance of processes and activities in relation to the expected progress in the development of the corporate strategy, it would seem evident that One of the key functions that the CMI plays is to establish itself as a performance measurement system. However, and as we will see below, the role it plays in a corporate context goes far beyond mere and simple measurement. The CMI: a management system Chile Mobile Number List When we say that the balanced scorecard translates the corporate strategy into action plans and corporate activities, and that it allows the strategies adopted to be communicated to all levels and members of the organization, what we are stating in summary is that the BSC is , First and foremost, a management system. Thus, performance measurement is just one of the many processes (and certainly one of the most important) that takes place in the scorecard; one of the primary activities for which the WCC is primarily responsible, yes, but which in no way confers the ultimate objective that a scorecard points to.
On the other hand, if we tried to describe its fundamental purposes, we would also notice in them the strong character of a management system that a BSC presents: As we have already mentioned previously, the scorecard translates the corporate strategy into operations. Therefore, it allows the organization's processes and activities to be aligned with the defined strategy. Communicates and transmits the corporate strategy and the changes made to it to all levels of the organization It complements financial indicators with non-financial ones, and the measurement of tangible processes with that of intangible processes possible scenarios, projection opportunities. Allowing results to be stabilized and sustaining them over time: thereby managing to maintain the necessary balance between strategy and results for medium and long-term decision making. Remember that everything said here will be explained in greater depth and detail in the free guide 10 keys to defining a Balanced Scorecard , downloadable without restrictions in the resources and training section of Lantares. Related posts: Finance and processes: comparison between two key perspectives of the CMI Budget cycles, another great challenge for BI platforms 5 practical and effective ways to ensure customer loyalty.