Leadership: Improving Performance

Whether you have five or 5,000 employees, your organization can become a high performance organization. According to a recent article by Gumbus and Lussier in the Journal of Small Business Management, the Balanced Scorecard (BSC) can help organizations in the following six ways:

• Promotes growth – focuses on long-term strategic solutions not short-term operational results
• Tracks performance – both individual and collective results can be tracked against targets so that they can be corrected and improved
• Provides focus – measurements are aligned by what is important to the company
• Aligns the goals – measurements are linked through the organization alignment
• Clarity of goals – allows everyone to understand their importance to the vision of the organization
• Accountability – individuals are measured by the results

The BSC provides the management team with a strategic tool to set strategy, align the operations while communicating it with the internal and external stakeholders of the organization. This management tool allows the organization to track its progress against goals and objectives that meet the vision of the organization.