Balanced Scorecard

As a business consultant we work to align business activities with the vision and mission statement of the organization by implementing a strategic planning and management system called a balanced scorecard.

Hume Management and Consulting will work with the management team to analyze the business from four standpoints:

the financial perspective,
the customer perspective,
business process perspectives, 
the learning and growth perspective

Description - A Balanced Scorecard defines what management means by "performance" and measures whether management is achieving desired results. The Balanced Scorecard translates Mission and Vision Statements into a comprehensive set of objectives and performance measures that can be quantified and appraised. These measures typically include the following categories of performance:

  • Financial performance (revenues, earnings, return on capital, cash flow);
  • Customer value performance (market share, customer satisfaction measures, customer loyalty);
  • Internal business process performance (productivity rates, quality measures, timeliness);
  • Innovation performance (percent of revenue from new products, employee suggestions, rate of improvement index);
  • Employee performance (morale, knowledge, turnover, use of best demonstrated practices).

Methodology - To construct and implement a Balanced Scorecard, managers should:

  • Articulate the business's vision and strategy;
  • Identify the performance categories that best link the business's vision and strategy to its results (e.g., financial performance, operations, innovation, employee performance);
  • Establish objectives that support the business's vision and strategy;
  • Develop effective measures and meaningful standards, establishing both short-term milestones and long-term targets;
  • Ensure companywide acceptance of the measures;
  • Create appropriate budgeting, tracking, communication, and reward systems;
  • Collect and analyze performance data and compare actual results with desired performance;
  • Take action to close unfavorable gaps.

Common Uses

Hume Management and Consulting uses the Balanced Scorecard  to:

  • Clarify or update a business's strategy;
  • Link strategic objectives to long-term targets and annual budgets;
  • Track the key elements of the business strategy;
  • Incorporate strategic objectives into resource allocation processes;
  • Facilitate organizational change;
  • Compare performance of geographically diverse business units;
  • Increase companywide understanding of the corporate vision and strategy.

Hume Management and Consulting

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 As a business consultant Steve came highly recommended.  Although I had been in my industry for nearly 20 years Steve brought ideas to the table that I had never considered.  His ability to get employee buy in was obvious for day one.  My sales have increased steadly the past few months, employee theft has stopped, and we now really work as a team. The culture has completely changed and the staff and I can't express our appreciation enough.  We highly recommend Steve Hume as a business consultant.

Ted L

Manufacturing Business