FAQ Balance Scorecard < Back

A Balanced Scorecard is a framework that focuses on shareholder, customer, internal and learning requirements of a business in order to create a system of linked objectives, measures, targets and initiatives which collectively describe the strategy of an organization and how that strategy can be achieved. The Balanced Scorecard concept was developed by Dr. David Norton and Prof. Robert Kaplan of Harvard Business School to help companies implement strategy.
The original creators of the Balanced Scorecard founded a company – “Renaissance Worldwide” to help companies develop and implement the Balanced Scorecard. Cedar was formerly part of Renaissance Worldwide. Thus Cedar has thought leadership in the area of Balanced Scorecard having implemented over 200 scorecards for a wide range of companies across diverse industries like Oil and Gas, Hospitality, Financial Services, Real Estate, Heavy Engineering, Automotive, Machine Tools, Paints, Consumer Products, and Software.
Cedar can help your firm validate its vision and mission statements, and formulate its business strategy at the corporate and divisional level using the Balanced Scorecard as strategy formulation tool. Cedar can also help implement the Balanced Scorecard as a performance management tool enterprise wide, down to the individual.
The Balanced Scorecard works on the premise that measurement drives performance. Historically, organizations measure performance based on purely financial parameters. The Balanced Scorecard approach lays strong emphasis on measuring key strategic parameters related to Financial, Customers, Internal Processes and Learning & Growth. By identifying the top 4-5 strategic objectives within each of these 4 perspectives, the Balanced Scorecard presents a comprehensive picture of a company’s strategy.
Cedar has a globally and regionally well-tested methodology to develop the Balanced Scorecard.  The key steps include;
  1. An internal assessment where Cedar will review internal documents, and data.
  2. Analysis of the business context to highlight the existing and potential challenges and opportunities.
  3. One-on-one interviews with key management personnel at corporate and divisional levels. The purpose of these meetings is to allow the management team to articulate their interpretation of the vision, the financial, customer, internal process, and organizational issues/objectives of the enterprise, their concerns vis-à-vis the strengths and weaknesses of the organization, etc.
  4. Series of strategy workshops for senior management. Typical output of these workshops will be the business strategy and a straw-model strategy map.
  5. This is later detailed into measurement templates, initiative templates that forms the basis for the creation of a Balanced Scorecard.
The program takes about 8-12 weeks. A first workshop where the strategy map and scorecard is finalized happens at about the 6 week point.
Individuals can assist by making available data/information to the scorecard coordinator and by providing their frank opinion on internal and external challenges facing the organization during executive interviews. The Balanced Scorecard project provides many individuals within a company an opportunity to ensure their views are taken into consideration in the strategic planning process.
The BSC coordinators role is to ensure that all requested data is accurately and rapidly provided to enable objective analysis, to identify and facilitate meetings with key executives and ensure that the Balanced Scorecard development process progresses according to the agreed project timeline. The coordinator should also ensure that accurate information is disseminated among all employees regarding the Balanced Scorecard project and at all stages of the project to ensure understanding and support for the overall process.