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Balanced Scorecard and IT Dashboards
   
The balanced scorecard is a performance management tool that strategically incorporates both financial and non financial data.  As its name implies the Balanced Scorecard was originally intended to provide a more balanced executive-level view beyond the traditional financial-only approach. Robert Kaplan and David Norton, originators of the current Balanced Scorecard approach contend that there are four key areas that provide insight into the true performance of a company.   
  
Each of the four areas are connected - that is - improvement in Learning and Growth should translate to an improvement in Internal Operating Processes.  The correlation is not, however, always direct.  An improvement in financials may be the result of a decrease in one of the other factors.  If this is not the strategic direction of the company it would signal that a change is required in approach.

The balance scorecard has evolved in recent years to be more than just a passive summary of the current state of a company.  Today it is used as a vital tool in the Strategic Planning process and contains guidance on the direction of the company.  It is also used throughout an organization to provide focus and a call-to-action on areas that are unique to each individual division or department inside of a company.  There is also an increased focus on "Leading Indicators" rather than "Lagging Indicators" in order to allow an organization to be more proactive in each approach rather than merely reacting to historical data.  Evolving the Balanced Scorecard to a Strategic Planning Tool means that the contents of the scorecard are much more individualized to the needs of each company.  While the primary categories likely remain the same company to company, the answer to "How will my customers view us if we are successful" will vary between companies and even between groups within the same company.

This revised approach is intended to align the overall goals of the company into the individual goals of all levels of employees.  This new scorecard approach allows an organization to determine company-specific measures and targets to be filtered through the layers of the organization to suit each employee’s individual role and achieve optimal results.  Not only can the scorecard be used to ensure that all employee goals have been aligned to work towards the same end, it can be used for incentive based pay.   
   
Balanced Scorecard and Performance Management Methodology  
   
Choosing the right metrics and measures and aligning compensation and incentive plans is key to setting up and reporting using Balanced Scorecard. At Baix we will partner with you to determine the right metrics and targets and ensure that your compensation plan is aligned to the company’s strategic direction.
   
The Baix team will use a structured framework to analyze and enhance your existing scorecard and/or define and develop a new scorecard using performance measures and indicators that align with the strategic direction of your company.
   
The Baix IT Balanced Scorecard Process Focuses On:
  
  Ensuring Balanced Scorecard is reflective of Strategic and Operational Metrics
  Adding Business and Customer Value
  Company-specific meaningful metrics and measures
  Indicators that examine internal and external factors
  Indicators designated to "Run the Business", "Grow the Business" and "Transform the Business"

  
  
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