Balanced Scorecard (BSC)
Helps you see the business not only through money, but through customers, processes and the team.
What it is
A set of measures from four sides: finance, customers, internal processes, learning and growth of the team. Money is the result; the other three sides show where that result comes from.
How to use it
- Write down the company's goal for the year in one sentence.
- For each of the four sides, pick 2–3 measures that lead to that goal.
- Give each measure a target and an owner.
- Check the numbers once a month and change the plans, not the measures.
Example
Goal — grow without losing quality. Finance: revenue and margin. Customers: share of repeat purchases. Processes: time from a lead to the first answer. Team: how many salespeople have had sales training.
