A business scorecard objectives are to measure the true health of your business and progress in your strategic goals. The balanced scorecard for business helps monitor four key perspectives that make up the primary focus areas of the business scorecard. 

The balanced scorecard for business helps create a systemized way of assessing the performance of your business and keeps the consistency in doing so. This is the only way you can assess the progress you are making from one period of time to the next.

Let’s have a look at each of these criteria below.

Financial

The financial perspective is arguably one of the most popular focus areas for business owners. Much as this is a critical aspect of your business, it is a function of decisions made before seeing the results through the financial outcomes of your business. If you are solving your customer’s problems in the most efficient way possible and you are constantly learning new ways to grow your business, then the financials will definitely show for it.

What are your current financial goals, and what projects or activities are you focusing on to reach your target? The answer to this question will form the first part of the balanced scorecard for your business.

As you go along, you will also need to start looking at your financials and start making decisions based on the numbers. You can always get someone to help you make sense of the numbers. However, don’t make decisions on projects or focus areas if you haven’t looked at the financials.

Customer

Without the customer, your business is a hobby. Your customer’s needs, desires, pain points, fears, worries should always be at the center of your business.

You could track the number of new and repeat customers on a monthly basis. Track their level of satisfaction through surveys as a means of evaluating how well you are performing in this area. How well are your products and services serving customers in a way that meets their deepest desires? Who are your ideal customers and how are their buying behaviours changing? These are all questions that you want to keep asking yourself as part of the balanced scorecard process.

The easiest way to get your customer KPIs on track is to detail out who exactly your customer is, and get as much feedback as possible whenever they use your products or services. Big corporations use Net Promoter Scores to get an objective view of how their customers view them. Similarly, you can engage your customers and use the feedback shared to refine your product.

Processes

The processes perspective of the business balanced scorecard focuses on how efficient and effective your business processes are. Are you doing things as efficiently as you can? Are you spending time on the 80% of activities that only give you 20% of revenue?

Perfecting your processes is key in saving yourself time and money. One of the easiest ways of doing this is setting up systems in your business to make your processes as efficient as possible.

Think about the systems you can implement today, with as much simplicity as possible, so that you can save time on those repetitive tasks that you know you have to do, but don’t necessarily directly contribute to your bottom line.

The quickest way to get your processes in check is to start by writing down all your standard operating procedures. Once you have documented them, it’s so much easier to track what’s working and what isn’t. It also makes a significant difference when you give new team members your SOP Manual so that they know how things should be done in your business without you having to explain the same thing over and over again.

Learning & Development (L&D)

Especially in the online business world, where many people tend to think that they can get away with google search and youtube to grow their business, it is important to place a target on your learning and development. If you want to grow, there will always be skills and experiences that you can learn from more experienced people. The L&D perspective captures your business’s learning needs and the approach to tracking progress, budgets required, and impact.

If you are a solopreneur, you need to continuously improve your knowledge and skills. The learning could be in the form of trainings, mentorship programs, workshops, new courses etc. Keep a budget aside for this, and start seeing it as an investment in growing your business.


Free GUIDE: Plan & Organize your business in a Day!

In Conclusion,

Take some time to map out your goals for each of the 4 areas of the balanced scorecard for your business. Each goal should be linked to an activity or project within your business, even if it’s the same activity across more than one scorecard area.

Remember to track your progress, review what’s going well and what isn’t and refine your products and processes along the way.

Check out my Plan your business in a day guide here!

A gudie for mompreneurs on how to effortlessly create a balanced scorecard for your business.