The Balanced Scorecard approach to successfully executing business strategy is now 20 years old. But the work of Kaplan and Norton is still relevant to our sector today, as we move from counting inputs and outputs to measuring impact and outcomes. For those not familiar with the approach, the balanced scorecard enables a business to manage its performance across four dimensions of the organisation, rather than down within departments or silos. These dimensions are:
Financial / Stakeholders – is the organisation creating value for its ultimate stakeholders/funders?
Customers – is the organisation providing the products, services & experiences that its customers want to buy (with their limited time or money) , so that value is created for the stakeholders?
Processes – are the organisation’s internal processes efficient & effective enough to deliver what current and potential customers want?
Learning & growth – are the people and organisation learning from its stakeholders, customers, partners and processes to keep improving what they offer to their customers?