Balanced scoreboard: Assess strengths and weaknesses
A. HME suppliers need to be strategically and operationally excellent to survive the present environment and to meet tomorrow’s challenges.
No matter the size of your company, one tool that many companies have benefited from is the balanced scorecard (BSC). It is a results-management system designed to help companies align their business activities, improve internal and external communications, and measure performance against expectations.
The framework of the BSC includes integration of four key perspectives: financial, customer, internal processes, and learning and growth. The first step in building a BSC is to conduct a companywide assessment. This is typically done by doing a SWOT analysis. The acronym stands for strengths and weaknesses, which are internal; and opportunities and threats, which are external. It is best to involve all employees to discuss and document this information.
After management prioritizes collected data, it then selects a few items to develop overall business strategies with specific goals. Goals are encompassing statements such as “improve customer service.” The next step in building a BSC is to develop measurable objectives for each goal. Improving customer service may have objectives involving personnel in customer service, sales, delivery and IT who are all aligned to this one goal.
What gets measured gets done. Next, set specific performance criterion with acceptable levels of performance for each objective. These targets are key in accomplishing desirable outcomes that support the mission, purpose and strategies of the company.
Finally, identify initiatives, tasks and projects assigned to specific individuals.
Tom Cesar is president/CEO of Tom Cesar Management Solutions, LLC. He can be reached at 919.539.5713 or email@example.com.