Personal scorecard: how BSC helps achieve personal goals
They say that something that can be measured can be improved. Performance evaluation systems have become extremely popular in various business areas.
… BSC Designer impressed me so much when I saw how it applies the Balanced Scorecard technique to personal life! Actually by applying this software in my life I feel more enthusiastic to follow my personal goals and I think it could be a good appetizer to make your life changed. As you know one of the key success factors in achieving personal goals is to make them tangible and BSC Designer will do it for you. More case studies…
Ruhollah Ashrafian, MBA
Rahbaran System Rastak Consulting Company
Planning and strategic vision are all important for any company that wants to succeed in the market and gain competitive advantage there. But any business is run by people who have their own preferences in life.
Of course, business goals are different as compared to personal goals. Life is so versatile and unpredictable. You never know what happens tomorrow, but still planning is important for those individuals striving to make their lives a complete success.
At a first glance, it may seem ridiculously and even funny, but the concept of Balanced Scorecard can be easily applied in the area of personal planning and development. As already said above, every individual has different goals in different spheres of life. People have jobs, families, hobbies and friends. Naturally, every individual wants to make great achievements in life. At that, these achievements and improvements differ throughout different spheres of life.
The traditional Balanced Scorecard concept applied in business includes four categories (groups of indicators): financial, customer, internal processes, learning and growth. These four categories fully describe everything that happens to the company both in the internal and external environment. And what about personal goals? Every individual has to deal with finance, processes in his family and company he works for, personal development issues etc.
Each category includes goals and. It goes without saying that all goals must be well integrated into the system of values and mission in life. Balance scorecard helps individuals set realistic goals and develop a system of measures evaluation of which will indicate success of failure in implementation of these goals.
So, what are the four personal scorecard categories?
- Internal. This is about physical and mental state of an individual. It should be noted that the person mood and physical well-being influences his performance at work, as well as has the greatest impact on relations with colleagues and family. For example, the person who often false sick may be irritated and annoying which prevents him from completion of personal goals. In this category one should give an answer how to maintain good physical and mental conditions. The following personal performance measures in the internal category are most widely used: enthusiasm rate, work intensity, stress rate, stressed tolerance, job satisfaction, trust rate from boss, time when I felt good, job irritation rate, time spent for jogging, my weight, every sleep time, number of sports sessions a week, number of new tasks, frequency of uncontrolled emotion expression at work, cholesterol level in blood, intuition accuracy, percentage of time I felt full of energy, alcohol consumption, physical state, error rate at work, time spent for work and a number of others.
- External. Like any business or a company, an individual is living in the environment of other people: family members, colleagues, friends etc. it is important to know how all these people see you. If a person manages to be in harmony with internal and external environment he is more likely to reach goals and achieve success in everything he does. The following personal performance measures are widely used in external perspective: customer satisfaction, of time spent with children, time spent with family, how often I made donations, reliability of my services, how often I was praised by my wife, satisfaction rate of other people with my services, number of warnings from management, my availability rate, number of frank and pleasant conversations with my loved ones, participation in public organizations, how often I help other people, how often I go out with family, number of quarrels with my wife, number of people who think I’m a good boss, how often I was praised for ethical conduct, how fast I answer emails, time spent with bosom friends, how many times my children ask for my advice etc.
- Knowledge and learning. Everything is simple here. An individual must develop his knowledge and skills no matter what he does in life. For example, IT engineer must learn new programming languages, while an artist should try new experimental arts and so on… Such goals may be formulated in the following way: “To read 10 new books by the end of the year” etc. You may consider the following indicators in this category: number of areas I’m competent in, ratio of completed learning tasks, number of music classes, number of books on management, hours spend that training courses, number of published articles, ratio of sales which became possible because of newly obtained knowledge, expenses for education, number of innovative ideas, number of spiritual books I read, time spent for reading and discussion and a number of others.
- Finance. Both poor and rich people have to deal with finances. It is imperative to know to what degree an individual fulfill his financial needs. Measures in this category may include “number of timely paid bills” or “number of things which an individual planned to buy and did so.” Of other indicators may include financial savings, deviation from budget in percents, ratio of revenue from new orders, savings account balance, number of late bills, debts rate, revenue growth, wages, bonuses, cash flow, pension, investment rate, money spent for charity, household expenses, hourly jobs rate etc..
Personal performance measures/indicators are those norms based and which one evaluates his progress towards implementation of personal goals. With the help of personal performance measures it is possible to evaluate own actions from the position of how you use own critical success factors and implement personal goals. Personal performance measures a criteria with the help of which one measures personal goals. Such indicators make personal vision and goals measurable. Without such indicators and without any tasks it would be difficult to perform self coaching, using feedback information. Personal performance measures stimulate for action in case they are related to relevant objectives. Based on the indicators it is possible to develop a certain course of actions.
When you evaluate changes and compare obtained results with the norms, the indicators timely signals you about problematic areas, as well as your strengths and weaknesses. It is recommended to have no more than two indicators for each objective. When undergoing this stage of personal scorecard development your answer to questions: 1) how can I measure my personal results, and 2) what makes my personal goals measurable?
It is obvious that BSC models for commercial organizations and personal scorecards look very much the same. The difference that in business BSC models interests of shareholders/business owners are taken into account, while personal scorecards are focused on personal/individual ambitions. It also matters for what purpose personal scorecards are used. Often, HR specialists use them to align personal goals of employees with company goals and objectives.
It is also important to mention that the above model has various forms and interpretations. For instance internal goals and measures may include personal and health goals, while financial category may have thing goals. In fact, the number of categories may exceed 4, depending on specific character of personal scorecard.
In conclusion, it should be said that personal goals must always have realistic target and provide individuals with motivation. Only in such a way personal scorecard will really work.