Why we implemented Balanced Scorecard?
An examination of translating an innovative Tide Software strategy into a specific company’s activities and monitoring a progression that can be made towards achieving them in a traditional way, exclusively in terms of financial results would not reflect fully the situation of our company. Therefore, besides the standard financial analysis we introduced BSC that has three additional dimensions: Clients, internal processes and company growth and development.
Indicators with a current status of its progress are available for a whole team of Tide Software.pl. At the same time we matched them with an evaluation and motivation system. This brought a next element realizing our company strategy through showing any employee synergies between him and the company, achieving the strategic goals due to his efforts. Moreover when goals are clearly defined it makes the creative thinking and initiative for sustainable development easier (kaizen – self-learning organization).
Benefits of BSC implementing
- Gearing up the whole organization and all participants to deliver the long-term goals
- Clearly defined goals at every level of the company
- Translating the strategy into specified tasks, projects and activities
- Increase of company’s value
- Support for improving the strategy (a double feedback loop)
- Continuous monitoring of strategy progress
- The orientation towards goals to achieve, not history
For fulfilling the strategic company goals, there are 1-2 long-term indicators (3-5 years) and no more than 4 additional short-term indicators (6 months-1 year) set for each area. In accordance to SMART rule (the goal must be in line with the following requirements: it must be specific, timed, and measurable, crucial for company and must be a great challenge to it), we defined the initial, intermediate and target values. Furthermore we defined conditions that need to be fulfilled (how much time we have, what activities and investments need to be involved) due to goals could be feasible and realistic to achieve.
One of the innovations of our strategy is openness to external environment, according to that we decided to publish some of our indicators in its three key dimensions.
- Client’s satisfaction
- A number of reporting plaints and complaints
- Gaining new clients
An employee – a member of the team:
- An employee’s satisfaction
- A number of employees’ suggestions (involving in the management)
- Increase in revenues
- Market share
- An innovative strategy