Balanced Scorecard

Type of record:
  • Strategy method
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Ideal innovation phases for this method:
  1. Innovation Phase
  2. 1
  3. 2
  4. 3
  5. 4
  6. 5
  7. 6
  8. 7
  9. 8
  10. 9
  11. 10

Description

The aim of creating a Balanced Scorecard is to translate the formulated corporate or innovation strategy into concrete targets and key figures. In addition, the goal of the scorecard is the effective determination of the necessary data about the performance of the company in relation to the target figures and the successful implementation of an organizational strategy.

In this way, especially in larger organizations, innovation management can be well aligned with corporate strategy using the scorecard.

The Balanced Scorecard is a strategic management or leadership system that translates the strategy into a key performance indicator system based on the corporate mission or innovation goal. This key performance indicator system can be used to control management processes such as communication, strategy development, corporate planning, incentive systems and a company's strategic initiatives.

It should be noted that the Balanced Scorecard is not an instrument for formulating the right strategy. Rather, it is an instrument for implementing the company's already formulated strategy.

For implementation, the success variables in the four central areas of finance, customers, processes and learning and growth are mapped in a clear manner on a multidimensional "scorecard" using around 25 indicators.

In order to create a Balanced Scorecard, you need experience in selecting the right perspectives and key figures and the ability to measure the success factors in the individual areas.

The advantage of this method over benchmarking is that it is not dependent on external data and the success of a strategy is measured against its own objectives.
  • Effective for all innovation types
  • Effective for disruptive innovations
  • Effective for highly complex challenges
  • Effective for medium complex challenges
  • Effective for radical innovations
  • P1 Understanding (identify innovation fields - problem solving)
  • P2 Analysis (problems - challenges - environment - people - products)
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