eTraining: How to build Balanced Scorecar
In the second part of the training you will learn how to build the balanced scorecard. The duration of the training part: 60 min. Coaching part includes 2 exercises + bonus.
In this part of the training you will learn how to build the Balanced Scorecard:
- This part of the training explains the processes of building Balanced Scorecard;
Play Example: key rules about updating scorecard regularly.
Why do we really need Balanced Scorecard? To connect the strategy and action, and that is actually the purpose of the training. To explain how to connect the strategy of your company to the action of your line-level employees with Balanced Scorecard
- We explain what all Balanced Scorecard terms mean: BSC, Balanced Scorecard, KPI, dashboard
- We explain why using financial indicators is something that limits your business a lot;
- Our training includes practical approach to building Balanced Scorecard – we should how to start with business problem and move to the indicators and actions that will be linked to indicators;
During the coaching session we have answered questions about Balanced Scorecard design process, such as:
- What is the best number of indicators in each category
- How many categories and sub-categories should we use
- How can one define priorities with Balanced Scorecard
- What is the best scale for weights
- What to do if target values were achieved
- How many tasks and indicators should be assigned to one employee
This part of the training also includes some other key aspects about Balanced Scorecard and the main benefit of this training is that you will understand how to start with your strategic goal and create indicators that will help you measure your progress and achieve your strategic goal.
In the coaching part of the training we ask you to do 2 exorcises, that will help you to start with your brainstorming process associated with Balanced Scorecard design.
Bonus
The bonus for this part is “How to calculate values of indicators” 3-pages document that explains how to calculate the values of the Balanced Scorecard if you decided to calculate the performance manually.
admin Training and Coaching balanced scorecard, build, coaching, create, design, Training and Coaching
The development of Key Risk Indicators has enhanced the prospects of business performance significantly and its usage has extensively evolved over time. Their immense potential in facilitating the business growth and excellence has contributed to its popularity in recent times. More and more organizations are building KRIs nowadays and benefiting from their use. Let us look at some of the key steps involved in the process of developing KRIs.
Detect the Risks:
- Identify the risk involved. The first step is to identify the risk involved in the business and to understand the root cause for the same.
- Measure the effectiveness of identified risks indicators for the business. These can be measured by basically two tools:
- Gap Assessment: It uses seven dimensions, (namely- measurement frequency, levels of trigger, criteria for escalation, lead or lag, ownership of metrics, availability of historical data and accuracy of the data source) which are rated 1 to 5. It helps in judging the effectiveness of KRI.
- Design Matrix: It is a matrix which shows the relationship between various risks indicators and their causes. It is a qualitative tool.
- Improve risk indicators. In this step various risk indicators are tested against the tools i.e. Gap Assessment and Design Matrix. After that the not so strong risk indicators are removed from the list. The list is reduced to a maximum of five KRIs.
Analyze the Risks:
- Validate the risk indicators and identify the trigger level. The process of validation deals with statistically analyzing the historical data of risk and the KRI. In case historical data is not available, a proxy event driver can be used. The resultant correlation between the event driver and the KRI guides in setting the trigger levels. In case, validation is not required for the data, trigger levels can be obtained on the basis of business requirements.
- Design the Dashboard Reports. Dashboards usually use graphs, tables etc and help in the better understanding of the KRIs in particular and the entire business situation in general. It helps the management to review the actions taken and to adopt appropriate controlling measures.
- The plan of control. It is a brief summary of all the actions and the specifications with regard to the KRI. The control plan helps the management to take up a series of predefined and appropriate steps each time a KRI is triggered in the business.
The aforementioned theory can be utilized by businesses in developing the KRIs. Either a top- down or a bottom –up approach can be used, depending on the business scenario and the prevailing situation.
admin KRI build, KRI, risk indicators
