Why Consultants Value the Balanced Scorecard
The Weekly Brief: Quick Tools & Strategies to Apply at Work
To holistically evaluate a company’s strategy and performance, a consultant must look beyond the financial books. Revenue numbers may speak to the current health of a company, but assessing qualitative factors like employee morale and customer satisfaction will provide additional insight on where organizational improvement or change is required to achieve long-term success.
The balanced scorecard is a framework for tracking a comprehensive set of business objectives that can be measured over time. Common components include:
- Market share
- Employee morale
- Customer satisfaction metrics
By tracking this data, consultants can help their clients keep long-term strategic goals in focus and spot trouble before it appears in the financial statements.
Read the Harvard Business Review article, written by scorecard creators Robert S. Kaplan and David P. Norton, for an effective framework for evaluating performance and a balanced scorecard example.