Process of building a Balanced Scorecard
The four step process given by Kaplan and Norton used across organizations are: · Define the measurement architecture- this is the initial level of balance scorecard implementation. The focus areas are strategic business units. · Specify strategic objectives-The potential measure of each perspective should be identified and this would make the strategic objective more focused and strong. · Choose strategic measures- The parameters of measuring should be related to the actual performance drivers. This would enable to evaluate the progress done towards achieving the objectives. · Develop the implementation plan-the targets should clearly defined in balance scorecard . The information system of the organization sould be clearly developed and it should be linked with the top level metrics to lower level of operational activities.