Updated: Nov 1
So many companies in Vietnam have been using Balanced Scorecard (BSC) to create, run & validate their Business models & strategies. The bottom line is to make sure the BALANCE or the consistency between "Where to go", "How to get there" & "Have we been there yet?".
Unfortunately a number of Balanced Scorecards fail to help companies maintain the amazing "Balance".
"Just go & it will become a road"
I have been working with a number of companies who never heard of BSC, never use BSC or even laugh at BSC if somebody mentions it. They don't have or don't spend time for their Business Plans or Strategies. Their favorite slogan is "Just go & it will become a road."
In other words, they are more "Opportunity-Minded" than "Business-Minded". They look at short-term goals than long-term ones, quick-fix fire-fighting than systematic solutions.
In this case, I introduce Balanced Scorecard Model to manage owners, investors or top decision-makers' expectations. The reason is by setting a benchmark for "where to go" or the most important Business Goals, their expectation can't shift or constantly change all the time.
However the BSC must be simple, easy to understand & agree on. Unlike other theorists' BSC, Weatwork.co created a unique infographic that quickly yet precisely captures the most important aspects of BSC exclusively for anyone who accesses it for the first time.
A unique BSC infographic
As Co-founder of Weatwork.co, a unique business learning platform that provides tech-aligned business know-hows in a unique, simplified, concrete yet fun ways, I co-authored the new concepts of Balanced Scorecard or Business Model Canvas to help business people agree & reach their goals easier.
Still sticking with five basic BSC elements, namely Goals - Finance - Customers - Processes - Learning & Growth, we only customised the term "Learning & Growth" & transformed into "Organisational Excellence" - see the infographic below.
Aligned short-term & long-term business goals
The most important element of BSC is GOALS, sometimes called VISIONS/STRATEGIES. It is also the most controversial, especially with regard to the consistency or relationship between Short-term & long-term goals.
On the left of the infographic, you also see the Bad BSC with a little RED on the Short-term Profit, not on the Long-term Growth. This is the most prevalent situation where C-level officers or top leaders can only agree on Short-term profits.
On the right, Short-term profits & long-term growth must be interrelated or aligned:
(i) Short-term profits: VND 50 billions in revenue for 6 months post-hotel opening
(ii) Long-term growth goal or strategy: Not available
(i) Short-term goals: To be a middle ranking of a local competition set of 6 international 5-star hotels, in both Occupancy and REVPAR while optimizing the GOP margin;
(ii) Long-term growth goal or strategy: To be ranked in the top 2 hotels of the comp set in both occupancy and REVPAR in consecutive 3 years.
(iii) Alignment between Short-term goals & long-term goals: Both goals have the same measures (ranking in comp set of 6 in Occ & REVPAR). The short term goals as the baseline to set goals for the long term plans & the ability to realise the set goals.
Aligned Objectives in the rest of 4 elements
FINANCE: Aligned Objectives - Measures - Targets - Initiatives
CUSTOMERS: Aligned Objectives - Measures - Targets - Initiatives
INTERNAL PROCESSES: Aligned Objectives - Measures - Targets - Initiatives
ORGANISATIONAL CULTURE/DNA: Aligned Objectives - Measures - Targets - Initiatives
All alignment in each & among all 5 BSC elements ensures the Balance - the Success - in any BSC-driven Strategy
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