Analyzing short term goals is very important to the health of a business, but if that is the only point of focus, then you are only looking at one small piece of the puzzle. Ultimately, you want to focus on the longevity of your company; which means you need to be tracking more than just financial growth.
To get a full measure of company performance, there needs to be a balanced analysis. One of the most effective methodologies is the company scorecard. A company scorecard is a wonderful tool for breaking down long-term strategic goals into manageable day to day steps. It achieves this by viewing your company through four different lenses which identify strengths and weaknesses within your company.
Lenses To Look Through
There are 4 main categories to consider on your company scorecard:
Learning and Growth
The learning and growth aspect looks at the learning opportunities available to employees. It analyses the training employees receive, the availability of the newest technology and software, communication and collaboration, and the opportunities available for continued education and training.
Internal Business Processes
The internal business processes is all about how smoothly your company’s production process is. The goal is to identify any waste, obstacles, gaps, bottlenecks, etc. that may be holding your company back.
This is exactly what it sounds like- perspectives of the customers. Customer satisfaction and feedback is essential to growing your business. Giving the customers a voice will identify whether their needs are being met by your products/services.
This is traditional financial data, like profit margin, demand, shareholder satisfaction, etc. Many companies focus solely on this quantitative measurement of company performance, which is not an accurate reflection. However, that is not to say that it isn’t vitally important. Money is, after all, what keeps the daily operation running.
Get The Team Involved
Each of the four legs of a company scorecard may seem unrelated but are in fact highly intertwined and build on one another. Scorecards will work to get your team involved and inter-relate. For example, a company with employees who are educated on the industry and adept at their positions will have increased communication and collaboration. Better communication will create a smoother business production process which has a twofold effect. A smoother production process saves the company money by discovering how to do more with less; and it is also likelier to create a better product, resulting in happier customers, and higher sales. If approached with diligence, the company scorecard management tool can be a game changer- the first big step in fully taking control of your company.