BSC Designer – Balanced Scorecard Software

Employees evaluation with Balanced Scorecard. Download free Employees Evaluation Guide.

One of the great advantages of the Balanced Scorecard management system is its tremendous versatility.

It is easily adapted to any aspect of business management, and employee evaluation is no exception. By analyzing the employee’s relationship with the company from each of the four key perspectives, you can see where the employee is fully contributing to your success and where he or she could improve.

Balanced Scorecard in Employees Appraisal

The balanced scorecard allows supervisors and managers to objectively analyze the employee’s performance and contribution to the company. It prevents the problems associated with subjective evaluation by providing concrete metrics that can be applied equally to every employee.

This protects the company in two ways. First, it ensures that supervisors do not, deliberately or unconsciously, give more favorable evaluations to employees they enjoy working with. Second, it provides the company with demonstrable data that can be used to defend against discrimination or unfair labor practice lawsuits.

The balanced scorecard also provides managers with a more rounded view of each employee’s role in the company. For example, how does one effectively evaluate a saleperson who is popular with his clients but consistently far over budget in expenses? Likewise, how does one determine the business value of a department leader who is outstandingly efficient but whose taskmaster mentality leads to high employee turnover?

The balanced scorecard allows you to select criteria in each of the four key perspectives – Financial, Customer, Internal Process, and Learning and Growth – to develop a realistic view of employee contribution. You will consider your employee requirements from each of the four business perspectives:

Fundamentally, your purpose is to determine whether the employee is doing everything possible to help the company succeed. Each of the perspectives evaluates how well the employee is doing in achieving that purpose in specific areas. Here are some commonly used examples of evaluation criteria and suggested measurements for each.

Financial:

-          Good steward of financial resources: Percentage of projects completed within budget or number of months department operated within budget

-          Appropriate compensation for responsibility level: Variance from company’s historical salary for comparable position or variance from industry standard for comparable position

Customer:

-          Successful relationships with internal customers (coworkers, subordinates, superiors): Number of complaints received or number of positive responses on employee satisfaction surveys

-          Successful relationships with external customers (clients, vendors, business associates): Number of positive responses in satisfaction surveys for those customers employee interacts with

Internal Processes:

-          Completes tasks effectively: Percentage of projects completed by deadline or number of days operating without failure or injury

-          Uses resources efficiently: Waste-to-production ratio in department or by assigned project

Learning and Growth:

-          Makes continual effort to improve skills and knowledge: Number of training opportunities participated in

-          Actively looks for ways to promote company growth: Number of suggestions given to supervisor

Once you’ve obtained the data for each of these four areas, you can objectively analyze the employee’s strengths and weaknesses. Each employee will have areas of excellence and areas where they could improve. For example, the taskmaster will have high scores in Internal Process criteria, but low scores in Customer criteria. You can then recommend actions that this employee should take as an objective activity rather than a personal criticism. This increases the chance that the suggestion will be acted upon. It is the difference between telling the employee, “Your subordinates think you’re too hard on them,” and “Your Customer perspective isn’t performing as well as it should.”

Weighting is especially helpful for employee evaluation because it allows you to customize the same scorecard to various positions within your company. For example, positive relationships with external customers should carry extra weight in your sales team’s evaluations, but completing tasks on time and without injury would be more heavily weighted in your logistics team. By applying weights accordingly, you can build your scorecard to encourage expertise in the areas essential to each employee’s work requirements.

One of the most important principles of balanced scorecard use is open communication both up the company hierarchy and down. You should also use the four perspectives to give your employee the opportunity to evaluate his relationship with the company. The employee’s perception plays a significant role in the level of effort he or she will readily commit to. You can increase the possibility that the employee will take decisive action to improve his scores if you take time to ensure the employee’s concerns are acknowledged and where possible, addressed. Employee perceptions can typically be obtained using a simple survey as part of the evaluation process.

Financial:

-          Compensation: Does the employee feel his or her compensation is appropriate for the amount of work required?

-          Access to financial resources: Does the employee feel his or her budget is realistic?

Customer:

-          Relationship with internal customers: Does the employee feel he or she has a good relationship with coworkers, subordinates and supervisors?

-          Relationship with external customers: Does the employee feel he or she has a good relationship with external customers?

Internal Processes:

-          Workload: Does the employee feel the number of tasks assigned is reasonable for his normal work schedule? (i.e. 40 hours)

-          Process participation: Does the employee feel he has enough control over the processes involved in the tasks required for his job?

-          Resource availability: Does the employee feel the company is providing the resources needed to effectively do the work required?

Learning and Growth:

-          Personal Growth Opportunities: Does the employee feel he has opportunities to increase his skills and advance in the company?

-          Company Growth Involvement: Does the employee feel he directly contributes to the company’s success and that his or her suggestions are taken seriously?

By applying the balanced scorecard to employee evaluations, you can objectively analyze whether each employee is making consistent progress toward becoming an essential part of your company. You will have the data you need to improve your employees’ performance and ultimately, ensure your success.

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Please, specify your email address below to download Employees Evaluation Guide:

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Please, note: if for some reasons you don’t want to have emails from us, but still want to use the guide, you can just click the button without entering any email.

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Please, specify your email address below to download Practical Balanced Scorecard for HR:

• You will have download link immediately;
• You will have e-mail with some start-up instructions;
• We can send you some offers about HR and BSC products;

Please, note: if for some reasons you don’t want to have emails from us, but still want to use practical Balanced Scorecard for HR, you can just click the button without entering any email.

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In any organization, the training element plays an important role in aligning the workforce and the business processes with the business objectives of the organization, which is inclusive of both the existing and new hires. While the training process involves numerous categories spanning across specific processes, skill sets or BPR initiatives, all of which require the ROI (Return on Investment).

A Training Scorecard essentially looks at measuring the efficacy and efficiency of a training program and must ideally focus on finding measurable parameters which are easily quantifiable. Honing the employee skills in sync with the organization objectives and enhancing business performance correspondingly. Focusing on the various dimensions of the training process and linking them with the Balanced Scorecard provides assessable results that can be effectually utilized to measure productivity and quality parameters.

Using the Microsoft Excel Spreadsheet Application, an effective Training Scorecard can be developed which covers various quantifiable parameters that consists of certain metrics and training specific perspectives that derive the net performance of the training program keeping in close check the viability and cost effectiveness.

These programs are designed to benefit the organization and the employees simultaneously by enhancing the competence levels and facilitate contribution the business goals. Now we shall look at the steps involved in creation of a Trainer Balanced Scorecard on the Excel Spreadsheet application that involves the below mentioned process:

1. In order to start creating a Trainer Scorecard one needs to plot the basic objectives of a specific training program as per the requirement in case of New Hire training or Existing training. In case of as new hire training program it is important to comprehensively put together the organization dynamics with all intricacies and corporate details coherently to the new joiner to facilitate effective understanding of the organization and its long term objectives and goals and its views regarding the current market share and its future plans as well. The use of various technical and non-technical aids becomes important in developing the employee performance and form a driving force to induce better productivity and quality. .

1. Once the goals and objectives are at hand, the next step is to allot various perspective groups on the Balanced Scorecard needs to be plotted that form the four major perspectives of training which includes the Assessment Perspective, Training Delivery perspective, Financial Perspective and Learning and Feedback Perspective.

1. Post the determination of the perspectives, the next step is to assign the indicators underneath each perspective. For example, under the Assessment Perspective the four indicators can be put in as follows:

-       Product Knowledge Assessment

-       Functional Skills Assessment

-       Team Work and Goal Assessment

-       Post Training Performance Assessment

The Assessment needs to be derived and measured as pr the type of training imparted, whether to a new hire or an existing employee.

1. Thereafter, finally the task at hand is to put in the values corresponding to the indicators like Weighted Values, Max, Relative Performance and Absolute Performance.

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There are numerous strategic tools existing for designing exclusive concepts regarding the BSC; however the BSC Designer is the most efficient set of software and internet services solution that makes it easy to measure, control and improve business performance with the help of its capability in application of the Balanced Scorecard concept.

The BSC concept is used by all major corporate houses in measuring and enhancing their business performance and further in designing their long term strategies and objectives to stand out in this competitive era. Although, the BSC Designer software is available in three major editions, however the most powerful and user friendly of all is the BSC Designer PRO having an immensely intuitive interface replete with options to include indicators and categories along with the Balancing functions to adjust weighted values.

Further, it also has the ability to integrate multiple scorecards into one and also import information using the SQL indicators; along with the facility to export the results and charts into simple and readable HTML reports. The results can also be saved in the BSC original format (.bsc) or further exported to an Excel file for further usage and this feature proves to be immensely useful as the BSC report exported to Excel can be constructively used to connect data from company ERM system with performance measurement.

Upon launch of the BSC Designer application, a default project is opened with all the four perspectives of the Balanced Scorecard concept replete with three indicators under each perspective, so that the user can start the designing process immediately. The toolbar on top is full of useful tools to add categories and indicators and create stunning looking charts and strategy maps. Upon clicking on any category or indictor the information is displayed below with description and weighted values.

At the bottom of the screen lie the five major description elements which are called the additional parameters including Value i.e. the current value and metric level; Measure i.e. measure value specified in the measurement of units which can be a score or percentage or custom measure units; Minimum and Maximum determines the scale of the metric designed to improve the current value and achieve maximum value.

Optimization, this drop box determines the optimization strategy to increase or decrease the values and the last one is the Target Description, this is an optional field where any additional notes can be put in which explains the business alignment indicators and measurement units that are to be used. The BSC Designer PRO can be effectually used in creating striking looking strategy maps automatically with its interactive tools and enhanced features and hence this tool earns rich kudos for its exclusive working and stellar performance. Now let us look at the steps involved in using this sophisticated tool with the help of easy to comprehend screenshots.

1. Creating the Measurable Parameters.
2. Grouping the Parameters under broad perspectives.
3. Converting Objectives into Parameters.
4. Assigning Weighted Values to Parameters.
5. Decide Optimization Levels.

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Although, the Balanced Scorecard concept can be most clearly depicted through the BSC Designer, however the Microsoft Office Excel application can also be efficaciously used to represent the BSC values and metrics in accordance with the Human Resource process set up.

The Microsoft Office Excel Application is a popular spreadsheet application created and distributed by Microsoft for Microsoft Windows and Mac OX S consisting of varied set of tools like graphing tools, calculation features, pivot tables, and even a macro programming language called the VBA ( Visual Basic for Application).

The Excel application is extensively used in numerous business processes for accounting and database maintenance functions with the help of its grid of cells and numbered rows to organize data manipulations and also has the facility to display the data as line graphs and charts. The HR scorecard provides valuable insights into the working of the HR performance and since Human Resources is one of the most critical departments of an organization, the measuring and assessing of the HR metrics provides ample opportunities to improvise the functionality and working of the HR components. Now let us have a look at the methodology and steps involved in the creation of the HR scorecard in the Excel spreadsheet application with the help of easy to implement steps.

1. The first step towards generating an HR scorecard is to launch the Excel application and start with dividing the cells in the four perspectives of a Balanced Scorecard that is the Financial perspective, Customer Perspective, Internal Perspective and the Learning and Growth Perspective, and place four indicators under each of the categories for measuring the performances.

1. The next step is to divide the cells into various measurable performance elements like the Indicators, Weighted Values, Values, Maximum, Relative Performance and Absolute Performance and insert numeric values corresponding towards each indicator under the weight, value and maximum columns.

1. Post the values have been inserted, the user needs to calculate the Relative Performance by dividing the Value element by the Max element =( Value/Max). The said step can be elaborated with the help of an example.

Value: 3

Max: 8

Relative Value: = (3/8) = 0.375

1. Now, we need to calculate the Absolute Performance by multiplying the Weighted Value with the Relative Value =(Weighted Value*Relative Value). The said step can be elaborated with the help of an example:

Weighted Value: 2.5

Relative Value: 0.375

Absolute Performance: =(2.5*0.375) = 0.9375

1. Further, the total performance needs to be figured out by calculating the total sum of all Values entered and taking out their average numeric value. The said process is to be executed for all the indicators falling under all the four perspectives.

Thus, we can see that its considerably simple to illustrate an HR scorecard with the BSC Designer along with the Microsoft Spreadsheet Application with the help of indicators and value additions and enables the user to effectively design the scorecard and represent the approaches used.

Example of an HR Scorecard using the BSC designer is provided below for reference

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The Balanced Scorecard approach was strategically developed by Dr. Robert Kaplan and Dr. David Norton in the 90s to devise fresh plans for business success and long term growth and excellence. The Balanced Scorecard is a performance management system that integrates use of metrics to measure the different aspects of an organization’s performance categorized under financial, customer, internal and learning and growth perspectives.

The Human Resource Department is one of the most critical departments of any organization that is responsible for hiring and performance of the workforce that contribute to business success. The HR process in itself contains the scope of developing an individual scorecard that encompasses a host of verticals describing and providing a valuable insight into the HR performance and the people involved in it. The HR metrics involves a wide ranging aspects that facilitates improvising the Human Resource functioning and measure its productivity; besides calculating the efficiency of the key performance indicators with regard to the different HR aspects like leadership, motivation and training that assists in understanding of the HR management corresponding to the Business goals.

The Hiring process entails the most important element of hiring the right employees for the right job that includes the selection indicators and metrics that indicate the desired traits required to develop a capable and competent workforce.

The Training metrics pertains to value addition and development provided to the hired employees in accordance with the strategic goals of the organization and determines the performance indicators to check the training viability and precise requirement, besides the resultant performance.

The Leadership metrics describes the aspects under which the process managers strive to enhance the employee management like improvised security for the employees, reduction in turnover percentage, along with succession planning and employee effectiveness.

Encouraging employees to perform better and give in best always and guiding them to overachieve benchmarks is the key to boosting the performance levels. Further, monetary and non-monetary tools can also be used effectively to perk up performances and motivation metrics soundly describe the indicators inducing enhanced performance.

Another important part of the HR process is the retirement factor and succession planning that requires preparing for filling up critical job requirements and providing adequate training for same to ensure smooth working of the current employees and guide them to sail towards new professional heights.

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Scorecard Every organization aims to employ a goal oriented and efficient workforce that works towards its long term objectives and goals and strives to achieve business effectiveness. Any organization is made up of tangible and intangible resources that work together in integration for long term growth and excellence. Hence, it becomes important to organize them appositely to avoid any loss and maladies and the HR department takes the onus of recruiting and maintaining the productive employees and further, periodically rewarding the better ones to enhance their morale and motivation levels in business interest.

BSC and Performance Incentives The Human Resource department has to organize and work in accordance with the organization requirement and administer the activities relating to workforce and management personnel with regard to their business performance and professional conduct and also setting deliverables for output and productivity.

The Balanced Scorecard can be effectively used for controlling the performance of all processes and workforce which includes the Human Resource taskforce as well. Every incentive or award is designed to motivate the deserving candidate and encourage him/her to perform even better and consistently over achieve the benchmarks and add value to the business and even serve as an unofficial SME (Subject Matter Expert) to act as a motivational pillar to the peers in difficult situations and provide suitable assistance when required.

Adopting the metrics methodology maximizes the chances of deserving awarding to suitable employees and enhancing future progress as well accordingly.

The Key Performance Indicators provide great support by designing a clear structure of performance evaluation that gives accurate readings on the performers and non-performers and further aids in awarding the right candidate at the right time. The promotion and compensation related factors can be easily managed with the help of a Balanced Scorecard that quantifiably measures the performance of the employees and keeps into consideration elements like output levels, adherence to company protocol, proper attendance, and completion of the task within the timelines.

Moreover, overall adaptability and adjustment with the team is also an important factor to consider besides individual task performance. Another consideration is the quality of the performance of the employee along with the perspective towards the work handled along with the overall demeanor in accordance with colleagues and immediate superiors.

The Balanced Scorecard operates as per the quality of work delivered along with peer and supervisor feedback whether positive or negative and the same is recorded with the HR team. An employee is also majorly judged according to the responsibility and onus taking initiative displayed at the time of group activities, team conflict and inter-departmental operations and further proving their loyalty through references provided and regularity in the critical operations handling and attendance as well.

All these comprise the Scorecard principle when it comes to performance appraisal and awarding appropriate compensation whether tangible or intangible and measuring employee attitude post the compensation has been awarded to check for attitude changes and performance based transformations. Adopting the metrics methodology maximizes the chances of deserving awarding to suitable employees and enhancing future progress as well accordingly.

How to control processes of employees’ promotion and compensation with Balanced Scorecard. Every organization aims to employ a goal oriented and efficient workforce that works towards its long term objectives and goals and strives to achieve business effectiveness. Any organization is made up of tangible and intangible resources that work together in integration for long term growth and excellence.

Hence, it becomes important to organize them appositely to avoid any loss and maladies and the HR department takes the onus of recruiting and maintaining the productive employees and further, periodically rewarding the better ones to enhance their morale and motivation levels in business interest. BSC and Performance Incentives The Human Resource department has to organize and work in accordance with the organization requirement and administer the activities relating to workforce and management personnel with regard to their business performance and professional conduct and also setting deliverables for output and productivity.

The Balanced Scorecard can be effectively used for controlling the performance of all processes and workforce which includes the Human Resource taskforce as well. Every incentive or award is designed to motivate the deserving candidate and encourage him/her to perform even better and consistently over achieve the benchmarks and add value to the business and even serve as an unofficial SME (Subject Matter Expert) to act as a motivational pillar to the peers in difficult situations and provide suitable assistance when required.

The Key Performance Indicators provide great support by designing a clear structure of performance evaluation that gives accurate readings on the performers and non-performers and further aids in awarding the right candidate at the right time. The promotion and compensation related factors can be easily managed with the help of a Balanced Scorecard that quantifiably measures the performance of the employees and keeps into consideration elements like output levels, adherence to company protocol, proper attendance, and completion of the task within the timelines. Moreover, overall adaptability and adjustment with the team is also an important factor to consider besides individual task performance.

Another consideration is the quality of the performance of the employee along with the perspective towards the work handled along with the overall demeanor in accordance with colleagues and immediate superiors. The Balanced Scorecard operates as per the quality of work delivered along with peer and supervisor feedback whether positive or negative and the same is recorded with the HR team.

An employee is also majorly judged according to the responsibility and onus taking initiative displayed at the time of group activities, team conflict and inter-departmental operations and further proving their loyalty through references provided and regularity in the critical operations handling and attendance as well.

All these comprise the Scorecard principle when it comes to performance appraisal and awarding appropriate compensation whether tangible or intangible and measuring employee attitude post the compensation has been awarded to check for attitude changes and performance based transformations. Adopting the metrics methodology maximizes the chances of deserving awarding to suitable employees and enhancing future progress as well accordingly.

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Once, the recruitment process is done and the most suitable candidates are selected for the specific job requirements, the next most imperative step is to determine the state of the employee effectively in his/her job profile and work in terms of the productivity and quality benchmarks and appropriate periodical review of the performance.

Further, keep in close check the motivational factors and morale levels of the employees that reflects their performance. The Balanced Scorecard can prove to be a perfect medium for choosing the right measures and targets to identify situations clearly.

Assessing Employee Performance with BSC The Balanced Scorecard can be elaborately used by the top management and process managers to keep a close track of employee activities comprising of mainly the execution of their professional benchmarks and deliverables. The major aspect of the Scorecard is its constitution of different financial and non-financial measures that are presented to assess performance of the employees in aggregate to extract the most relevant information with regard to the workforce and their ideologies and beliefs with respect to the organization and its goals.

It is imperative to determine and comprehend the psyche of the employees and their expectations from the organization in total and providing a platform to address their concerns and provide feedback if required. Moreover, it is advisable to induce interactive sessions between workforce and process managers to enable development and long term maintenance of clear relationship that is sustained over mutual learning and provision of growth opportunities.

Financial as well as non-financial methods are used to keep the employee morale high and keep them motivated all along in the highly volatile competition levels as well as influencing their thought process through constructive means. The workforce metrics provides valuable insights in assessing the employee mindsets and the Human Resource metrics facilitate gauging corporate strategies and policies that aim towards high performance levels and enhancing productivity.

Therefore, it is also vital to employ adequately experienced sources to operate the Human Resource procedure that can aptly scan and appraise the employees with the aid of their elaborate industry knowledge and competence and can also help in understanding the employee concerns better than anyone else. The measurement of all intrinsic factors is also significantly measured in terms of competition within the organization and the employee current performance and also taking into regard the challenges posed in their way of growth and excellence.

Overall, the successful integration of all the aforementioned elements constitutes the scope of the HR Balance Scorecard that provides intricate details regarding the employee management and business management processes and their syndication. Additionally, counting on such performance tools becomes necessary for ascertaining the factors that contribute towards the organization success. The Key Performance Indicators help the HR management to communicate the desired performance and to even evaluate the average performance of the employee and further define the business objectives on the basis of their achievability, feasibility and assessment value.

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Training is an immensely imperative concept deeply integrated with one of the perspectives of the Balanced Scorecard called the Learning and Growth aspect that deals with people of the organization and their skills, both inherent and acquired along with the best available system for honing the overall workforce performance.

The Human Resource department is involved in the most important task of hiring talented employees; however the next most important task is to hone their skills and train them efficaciously in accordance with the business requirements and objectives that strategically place these goals in sync with long term business plans and improvising it periodically.

KPI and Training Metrics In order to appositely control the training process, it is vital to focus on the key performance metrics with the help of the Balanced Scorecard concentrating on the various dimensions of the training procedures and evaluating them carefully consistently on the basis of numerous parameters like efficacy, usability, practicality and contribution to productivity. Besides assisting with the professional expertise, training sessions also serve as an ice breaking ground for people and promote better interpersonal relations and also elevating the motivational and morality levels amongst the candidates.

The Scorecard approach facilitates easy recognition of all aspects concerning the HR management and employee management including training requirements for current employees and existing workforce

Further, it is also vital to induce the spirit of participation in all and spearhead the involvement quotient stressing on individual and corporate development and growth. Additionally, the requirement of putting together the entire corporate rigmarole coherently to the candidates systematically and methodically requires the use of Balanced Scorecard concept for measurable metrics to be reviewed sporadically making it an ever useful tool for assessing the currently used modules and to offer a considerable solution in terms of tangible and intangible tools for imparting training to the newly appointed workforce.

Another major aspect of improvising the training is the subjects covering the schedules of training processes, comprising of a varied arcade of components like dynamic market scenarios, diversified and changing customer demands and needs, adapting to technological innovations and acquiring a new business line that requires extensive and intricate information; overall entailing all the elements that provide ample space to the employee for growth and excellence parallel to the organization.

Training evaluation metrics provide the foreground to the organization to critically assess the current training practices and measure its various aspects allowing the management to gauge the employee performance levels prior and post the training procedures inclusive of their productivity and quality levels as well as scrutinizing the gaps in between the working of employees monitoring the pain areas.

The Scorecard approach facilitates easy recognition of all aspects concerning the HR management and employee management including training requirements for current employees and existing workforce and hence, gives a holistic view on the quantifiable goals that are in perfect synergy with the company ambitions and track the progress without losing sight of the desired futuristic aims. Unswerving and up-graded policies on training aspects makes it possible for the management to pull out the training needs as efficiently as possible and make the taskforce coherent in understanding and executing the tools provided in training to enhance their performance on the whole.

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