Benefits of creating a balanced scorecard for your startup

• When developing a company, it is essential to have useful tools that facilitate its management and help us optimize the available resources, such as the balanced scorecard.

Strategic decision making requires accurate and updated information on all the processes and key aspects involved in the operation of an entity. In this way, in order for it to be taken to the next level, it is necessary to have a business administration model.

Origin

This model emerged in 1992 from two business management experts, Robert Kaplan and David Norton, who decided to introduce the concept of balanced scorecard (BSC) or, in other words, the balanced scorecard (BSC).

Known as an innovative pillar of the business sector since then, this model is known worldwide since, by using it, you obtain a global and real-time vision of the business strategy and the actions that are carried out to achieve the objectives that help it. to continue moving forward.

With this tool it is possible for the entire team to know the status of the most important areas of a project in a global and balanced way, since it brings together numerous indicators that in turn have been linked to specific action plans.

Benefits of the balanced scorecard

Once the entity is known with a more precise level of detail, the use of the balanced scorecard (BSC) also provides a series of benefits, such as:

• The anticipation of possible problems and inconveniences that may affect the normal rhythm and performance of the company. If preventive measures are in place to safeguard its proper functioning, especially in the economic sphere, it will be less likely to be left without cash flow, maintenance and security funds or financial assets.
• Decision making, which is more efficient and focuses on the needs of the market for the product or service offered. This improves both customer satisfaction and subsequent loyalty.
• Thanks to the optimization that this model allows, it is easier to identify areas for improvement and operate in a more perfected and productive way in a shorter time.
• Growth is the last of these advantages, since, by evaluating the performance of the initiatives that the project has and monitoring its status globally, the future prospects are much more favorable and are heading towards practically expansion. organic of the startup.

Perspectives

On the other hand, the importance of this resource lies, in turn, in four important perspectives:

1. The financial: is the one that discloses the general financial performance and profitability of the project. It collects key indicators such as income, profitability and/or costs.
2. That of the customer: taking into account their satisfaction, loyalty or perception of the company can help identify opportunities to improve the way in which they relate to the product or service offered.
3. Operations: the quality of internal processes is also a determining factor. Efforts should also be aimed at providing greater efficiency and productivity of deliveries at lower costs.
4. That of learning and growth: both the focus of the business and the team that makes it work in the long term must be considered. Knowing how to train staff, having an attitude of continuous adaptability and resilience will make the startup evolve favorably.

As a whole, these points of view can be applied to all dimensions of the organization, regardless of the sector to which the entity belongs, and promote a series of benefits that drive its advancement and growth over time. With them, it will also be possible to correct possible obstacles and challenges that may appear in the different phases of the project.