The purpose of this web page is not to explain Balanced Scorecard. For information on Balanced Scorecard click here

Rather the purpose of this webpage is to discuss how Process Management helps an organization achieve its Balanced Scorecard Key Performance Indicators and thus achieve its strategy and goals

So lets very briefly review the Balanced Scorecard process: Organization

1. Reviews Vision, Mission, and Values
2. Sets Goals for coming years and possibly a 3 or 5 year goals
3. Determines Strategy to achieve those goals
4. Creates Strategy Maps
5. Sets Key Performance Indicators (KPIs)
6. Reviews Gaps between Current Performance and Key Performance Indicator Targets
7. Reviews Business Processes used to achieve those KPIs
8. Determines Business process Improvement to reach KPIs
9. Relates Compensation to Business Process KPIs
10. Determines if achieving its KPIs then it should be achieving its goals

As you can see from above, Business Process Management Supports the Balanced Scorecard items 7, 8, and 9.

• 7. Reviews Business Processes used to achieve those KPIs.
  An organization must review its business processes used to achieve KPIs. If new products, services, equipment, technology, etc. have been introduced business processes must be updated.  Any prior or current improvement projects must be incorporated into the Business Processes performance.
   
• 8. Determines Business Process Improvement to reach KPIs
  Now the organization looks where the gaps are between current performance and Balanced Scorecard KPIs and determines business process improvement projects, assign start and end date, assign members and resp0onsible team leader.
• 9. Relates Compensation to Business Process KPIs Finally the organization sets compensation in part based on achieving KPI targets. This gets everyone to focus on improving the entire cross functional process rather just optimizing their department or cost center. By optimizing the entire process:
  • Costs of entire process are reduced
  • Quality and customer satisfaction of internal and external customers are improved
  • Cycle Time and Process Velocity of the entire process are improved.

  It is easier, faster, and more effective to achieve Balanced Scorecard targets if the organization focuses on improving cross functional business targets rather than just department or cost center expenses.

  Call John Antos  at 972-980-7407 to find out more about Process Management and Balanced Scorecard.

Phone: 972.980.7407 email: Contact us
Value Creation Group, Inc.
7820 Scotia Dr. #2000
Dallas, TX 75248