In the last post, we looked at what a Balanced Scorecard (BSC) is, who uses it, and why. In this post, we'll take a look at the implementation of a BSC. Although the specifics of an implementation will differ between a large corporation (which, for example, might need software to support its BSC initiative) and a small business (which might rely on a short documented list), the following high-level steps will be a part of any implementation:

• Define the company's strategy - As always, if you are not clear on where you are trying to go, it's impossible to create a useful map to help you get there. Make sure you are clear on your strategy so you can break down how to achieve it.
• Define objectives which support your company's strategy - Objectives should be measurable and should reflect the four areas of the Balanced Scorecard - Financial, Customer, Process, and Learning and Development.
• Define your measures - Figure out in specific terms how you will know whether you've met your objectives.
• Define and pursue your initiatives - Now that you know what you are trying to do and how success will be measured, define and pursue activities to drive those objectives.
• Evaluate your success - Measure what you've achieved against your objectives and measurements, and refine the process based on what you learn.

One of the most powerful things about the Balanced Scorecard is that it can be cascaded from the very top on the organization right down to the front lines, ensuring that each and every company resource is aligned behind a clear and common set of objectives. Here is a simplified example demonstrating how objectives can be broken down and made relevant to every level of the organization:

In this example, we can see that, although there are some differences in the specifics of each level's goals, they are ultimately linked to one another and all serve to further the organization's strategic goals.

The Balanced Scorecard is a powerful management tool that can be scaled to benefit businesses of all sizes. It ensures you are making the most of your resources by aligning efforts to support your ultimate goals.