In 2013, one of the major Russian companies was set the following goal: preparation for the transition to the federal level in 2019. In 6 years, it was necessary to make the business capable of stable development, create a partner network in all major cities, triple revenue and raise employee salaries by 50%. That is, a specific goal was set, specific, measurable and achievable.
This installation was then broken down into strategy levels, i.e. a sequence of actions and the result they lead to were developed. An increase in revenue and actions to form a stabilization fund aimed at developing production, previously located abroad, were envisaged. Tactical actions were determined based on long-term plans. For each strategy, deadlines for implementation were presented and responsible persons were appointed.
An example of the application of the balanced scorecard system
Objectives at the level of financial development prospects:
Increase the company's ios database profit (KPI: increase revenue threefold).
Reduce expenses (KPI: reduce the volume of borrowed funds to 7%, reduce the share of all expenses).
Increase the company's turnover (by increasing the volume of sales per quarter, reduce illiquid assets by 5% over the same period).
Create a stabilization fund for production (KPI: business capitalization, increase in the volume of fixed capital).
Goals at the customer perspective level:
Increase the strength of the company's brand.
Regional development.
Expand the range.
Increase customer satisfaction.
Upgrade the client category.
Increase revenue from each customer.
Goals at the level of development prospects of processes:
Improve the product sales system through the implementation of an automated control system and a sales funnel.
Optimize the production scheme.
Implement process management.
Use R&D.
Organize management based on competencies.
Objectives at the level of personnel development prospects:
Increase labor efficiency (introduce a system of material incentives).
Achieving increased satisfaction is social policy.
Improve the qualifications of the company's personnel.
Formalize the activities of specialists.
Develop a corporate information system.
By 2019, the company had fully achieved its goals.
Nowadays, the balanced scorecard is increasingly used for business management. The basics of this concept are that it takes into account a set of data, i.e. business management goes beyond financial parameters, but does not completely abandon them. The name reflects the desire to balance short- and long-term goals, financial and non-monetary indicators, lagging and leading indicators, internal and external performance prospects.
Despite this, the primary goal of any business is to make a profit. Therefore, when developing a strategy, it is important to identify customer, process, and growth metrics that will be leading factors in financial success. Just as a pilot must not lose sight of the intended target while monitoring the dashboard, a successful manager must also focus on improving the performance data that affects future profitability.
Author of the article
Dmitry Svistunov
Dmitry Svistunov
Head of SEO and Development
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