How to apply the balanced scorecard in practice?
Posted: Thu Jan 23, 2025 3:21 am
In the previous topic, we discussed what each of the perspectives is, but to facilitate this understanding, we will present an example of how it is possible to apply this methodology in practice.
Let's assume that there is a cell phone company that is using the balanced scorecard with the aim of improving its profits in the market, so the division of its strategy would be as follows:
Financial: from this perspective, the goal is to increase revenue. First, it is necessary to set a limit for this increase; the goal here is to have 5% more revenue in 4 months. As an indicator, it will use the iran phone number list revenue that will be calculated by accounting. From there, management must define a strategy for this, which can be: offering promotions, discounts, developing an innovative product, etc.;
Market: In order to increase profits, it is obviously essential to pay attention to the types of customers. In this context, when we talk about the market, we are referring to consumers. Our technology company conducted some research and discovered that it has a low reach rate among people aged 25 to 35. As a goal, they set out to reach more people with this profile, so that revenue increases by 5%. The strategy here would be to establish ways to attract this audience, such as providing specific technological products and advertising their services in places that this profile frequents;
Internal processes: in this case, the purpose may be to develop new products and points of sale, establishing a 10% increase in profit. The income statement can be used as an indicator. The chosen strategy is aimed at the creative sector so that it can develop a new product, and management can negotiate new sales spaces;
Learning: Finally, upon achieving the expected result of increasing profits by 10%, the company must analyze all the processes involved in this purpose. To do this, in addition to evaluating the data generated during this period, it is also necessary to study the errors and possible solutions so that they can be applied in the next project.
So, we have seen the main information about the balanced scorecard methodology. A very practical tool for managing and executing projects that helps the company to have a broader picture of its processes.
Let's assume that there is a cell phone company that is using the balanced scorecard with the aim of improving its profits in the market, so the division of its strategy would be as follows:
Financial: from this perspective, the goal is to increase revenue. First, it is necessary to set a limit for this increase; the goal here is to have 5% more revenue in 4 months. As an indicator, it will use the iran phone number list revenue that will be calculated by accounting. From there, management must define a strategy for this, which can be: offering promotions, discounts, developing an innovative product, etc.;
Market: In order to increase profits, it is obviously essential to pay attention to the types of customers. In this context, when we talk about the market, we are referring to consumers. Our technology company conducted some research and discovered that it has a low reach rate among people aged 25 to 35. As a goal, they set out to reach more people with this profile, so that revenue increases by 5%. The strategy here would be to establish ways to attract this audience, such as providing specific technological products and advertising their services in places that this profile frequents;
Internal processes: in this case, the purpose may be to develop new products and points of sale, establishing a 10% increase in profit. The income statement can be used as an indicator. The chosen strategy is aimed at the creative sector so that it can develop a new product, and management can negotiate new sales spaces;
Learning: Finally, upon achieving the expected result of increasing profits by 10%, the company must analyze all the processes involved in this purpose. To do this, in addition to evaluating the data generated during this period, it is also necessary to study the errors and possible solutions so that they can be applied in the next project.
So, we have seen the main information about the balanced scorecard methodology. A very practical tool for managing and executing projects that helps the company to have a broader picture of its processes.