People often conflate performance management with measurement, as I witness daily. They believe they are managing the business performance well, yet all they are really doing is measuring or monitoring the situation as it is.
Without a doubt, monitoring is just as crucial as management, but in order to select the right instrument, one must be aware of the differences.
The dashboard strategy is a type of firefighting
The traditional instrument for measuring or monitoring tasks is a dashboard with all its attractive diagrams, charts, and tables. It presents a tale about the current state of the business and is updated in real time. A dashboard makes it easier to gather business information that can then be applied to solve issues and make changes.
The dashboard method is similar to fire fighting. You concentrate your attention on the issue at hand but not on its cause. Additionally, you won’t succeed by only keeping an eye on a business state. An effective strategy and a framework to carry it out are what you need.
Balanced Scorecard-based strategy diagram
The plan is known as a strategy in business parlance. The Balanced Scorecard is the most often used framework for strategy execution, according to the most recent study.
Sadly, the majority of executives believe that the Balanced Scorecard is about four equally weighted viewpoints. Though true, that isn’t the concept’s main principle.
The fact that these four viewpoints are specifically connected through cause-and-effect relationships is more significant. The business goals of the lower level « Education and Growth » viewpoint are all connected to the goals of the « Internal Business Processes » perspective. This perspective’s goals are connected, in turn, with goals from « Customers » views. All of the goals are connected to « Finance, » at the end.
Only these goals are taken into consideration, and what we are left with is another descriptive tool. What changes need to be made to make it a management tool?
Add a plan of action
An action plan has to be included with each goal. What steps will the business take to accomplish this goal? Measurement suggests that a management has true process control. A measuring tool called a key performance indicator is used in the Balanced Scorecard and is meant to be in line with each company goal.
Find a pre-made template
Although the aforementioned information may seem difficult, they are necessary. If you have a ready-to-use template you can utilize to develop a management framework for the Balanced Scorecard, it will be simpler.
Encourage staff to consider the larger picture
Try it out and watch how your management style changes. Additionally, you’ll find that you understand what has to be done to get the desired outcomes.
